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12500.0
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2023-11-15 00:00:00 UTC
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AAPL Stock: Is the Magic Gone? Here’s How You Can Still Profit
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AAPL
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https://www.nasdaq.com/articles/aapl-stock%3A-is-the-magic-gone-heres-how-you-can-still-profit
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) stock has been treading water lately, concerning some investors that the company has lost its aura of innovation. Let’s analyze what has gone awry and how to profit from AAPL stock going forward.
Apple remains the world’s largest company, so when AAPL stock outperforms, this single-stock move has the potential to buoy the broader tech sector. However, it’s worth noting that competitors like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are diving into emerging tech like quantum computing and AI. Comparatively, Apple still relies heavily on iPhone, Mac, and other hardware sales to generate its growth.
Of course, Apple has diversified into services like iCloud, Apple TV, and Apple Music. But these all ultimately feed on hardware growth. A lack of innovation has become evident, as Apple slashes order forecasts for new products like the iPhone 15, iPad, MacBook Air, and more.
Apple’s Growth Engine Sputtering as Economy Slows
What’s missing with the investment narrative around AAPL stock is the spectacular growth story Apple has ridden for the past two decades. Expansion is unambiguously decelerating, although the post-COVID surge provided a temporary boost.
Currently, Apple is struggling to sustain pandemic-era sales levels. Meanwhile, it hasn’t invested heavily in futuristic technologies like quantum computing or AI for end users (barring Siri). Nor has it diversified meaningfully beyond hardware and affiliated services.
This makes Apple appear stagnant at present. Of course, Apple devices will continue to sell due to their quality and brand cachet. iPhones boast better batteries and optimization thanks to Apple’s proprietary iOS. MacBooks also retain their premium resale value.
Dangers Lurk for AAPL Stock if Hardware Sales Stall
Apple must maintain growth and continue expanding its ecosystem to see its share price grow. At some point, iPhone and Mac sales could hit a wall as markets saturate.
I do expect Apple’s growth to return when the economy rebounds. But until then, AAPL stock could tread water absent major new innovations.
On the bright side, services revenue expanded 9% year-over-year this past quarter when other segments declined. This recurring revenue stream will become even more vital over time.
But services are still indirectly tied to hardware sales. If iPhone and Mac volumes dip substantially, it becomes difficult for Apple to squeeze more services sales from a stagnant user base. We’ve seen most of its hardware miss sales forecasts in recent months, with Apple putting some of its orders on hold. Thus, this is definitely a problem that could become more significant.
Lack of Breakthroughs Means More of the Same for AAPL Stock
In summary, Apple lacks any imminent breakthrough technologies apart from incremental improvements to existing devices. More iPhones and MacBooks are likely coming without game-changing new products on the horizon.
That said, “more of the same” remains quite profitable for Apple. Consensus sees around 10% annual revenue growth over the next decade, with earnings expanding at a similar clip.
AAPL stock has surged nearly 28% over the past 10 years, even amidst its current stagnancy. With consistent low double-digit growth, I expect shares to appreciate 15-20% annually moving forward.
Declining hardware margins will be offset partially by high-margin Services revenue. Additionally, Apple could start paying dividends to support its premium valuation as growth moderates.
The Best Way to Profit
In conclusion, the best way to profit from AAPL stock presently is similar to what institutional investors do – hold through ups and downs, reinvest dividends, and let compounding work its magic over many years.
Spectacular new innovations could catalyze Apple’s growth engine again. But for now, patient, long-term investors can ride its predictable hardware refresh cycles and high-margin services ecosystem to steady gains.
On the date of publication, Omor Ibne Ehsan 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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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The post AAPL Stock: Is the Magic Gone? Here’s How You Can Still Profit 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 remains the world’s largest company, so when AAPL stock outperforms, this single-stock move has the potential to buoy the broader tech sector. Dangers Lurk for AAPL Stock if Hardware Sales Stall Apple must maintain growth and continue expanding its ecosystem to see its share price grow. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been treading water lately, concerning some investors that the company has lost its aura of innovation.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been treading water lately, concerning some investors that the company has lost its aura of innovation. Apple’s Growth Engine Sputtering as Economy Slows What’s missing with the investment narrative around AAPL stock is the spectacular growth story Apple has ridden for the past two decades. Dangers Lurk for AAPL Stock if Hardware Sales Stall Apple must maintain growth and continue expanding its ecosystem to see its share price grow.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been treading water lately, concerning some investors that the company has lost its aura of innovation. Apple’s Growth Engine Sputtering as Economy Slows What’s missing with the investment narrative around AAPL stock is the spectacular growth story Apple has ridden for the past two decades. Let’s analyze what has gone awry and how to profit from AAPL stock going forward.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock has been treading water lately, concerning some investors that the company has lost its aura of innovation. Let’s analyze what has gone awry and how to profit from AAPL stock going forward. Apple remains the world’s largest company, so when AAPL stock outperforms, this single-stock move has the potential to buoy the broader tech sector.
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12501.0
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2023-11-15 00:00:00 UTC
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US lawmakers question Apple over Jon Stewart's China content
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AAPL
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https://www.nasdaq.com/articles/us-lawmakers-question-apple-over-jon-stewarts-china-content-0
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nan
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By Patricia Zengerle and Michael Martina
WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation.
The New York Times reported last month that Stewart's show on Apple's streaming service was ending, the result of creative differences. The newspaper said Stewart told members of his staff that potential show topics related to China and artificial intelligence were causing concern to Apple executives.
Apple AAPL.O declined comment to the Times.
"While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook.
The letter asked representatives of Apple for a briefing on its concerns by Dec. 15, 2023. It said the committee also expected to speak with representatives of Stewart.
"To reassure the creative community in light of these reports, we also respectfully request that Apple publicly commit that content that could be perceived as critical of the CCP or the PRC is welcome on Apple TV+ and other Apple services," said the letter, signed by the panel's Republican chairperson, Representative Michael Gallagher, and Representative Raja Krishnamoorthi, the panel's ranking Democrat.
Representatives for Stewart and Apple did not respond to Reuters' requests for comment.
The letter was released ahead of a dinner expected on Wednesday night at which top U.S. business leaders were to dine with Chinese President Xi Jinping in San Francisco as he seeks to court American companies and counter his country's recent struggles to entice foreign investment.
The dinner on the margins of the Asia-Pacific Economic Cooperation (APEC) forum would follow a day of talks between Xi and U.S. President Joe Biden, aimed at stabilizing fraught ties between the world's two largest economies.
The House committee has made China's controls on media a focus of its work.
U.S. lawmakers have long expressed concerns about potential Chinese government censorship given the ruling Communist Party’s strict media controls. The concern is particularly acute for Hollywood films, as some studios have altered or self-censored scripts to appease Chinese government minders and gain access to the country’s market.
(Reporting by Patricia Zengerle and Michael Martina; Additional reporting by Stephen Nellis and Dawn Chmielewski; Editing by Stephen Coates)
((patricia.zengerle@thomsonreuters.com, www.twitter.com/ReutersZengerle; 001-202-898-8390;))
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 declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. The letter was released ahead of a dinner expected on Wednesday night at which top U.S. business leaders were to dine with Chinese President Xi Jinping in San Francisco as he seeks to court American companies and counter his country's recent struggles to entice foreign investment.
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Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. The New York Times reported last month that Stewart's show on Apple's streaming service was ending, the result of creative differences.
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Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. "While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook.
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Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. "While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook.
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12502.0
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2023-11-15 00:00:00 UTC
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After Hours Most Active for Nov 15, 2023 : NEM, CSCO, BK, FIS, V, PFE, AAPL, VZ, QQQ, VONG, SQQQ, AMZN
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-15-2023-%3A-nem-csco-bk-fis-v-pfe-aapl-vz-qqq-vong-sqqq-amzn
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The NASDAQ 100 After Hours Indicator is down -52.05 to 15,765.13. The total After hours volume is currently 106,907,186 shares traded.
The following are the most active stocks for the after hours session:
Newmont Corporation (NEM) is -0.02 at $36.35, with 5,215,811 shares traded. As reported by Zacks, the current mean recommendation for NEM is in the "buy range".
Cisco Systems, Inc. (CSCO) is -5.2199 at $48.06, with 4,827,029 shares traded. Smarter Analyst Reports: Understanding Lumen Technologies’ Newly Added Risk Factors
The Bank Of New York Mellon Corporation (BK) is unchanged at $46.57, with 4,089,626 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2024. The consensus EPS forecast is $1.32. BK's current last sale is 89.56% of the target price of $52.
Fidelity National Information Services, Inc. (FIS) is unchanged at $54.46, with 4,043,814 shares traded. As reported by Zacks, the current mean recommendation for FIS is in the "buy range".
Visa Inc. (V) is unchanged at $248.11, with 3,932,014 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $2.35. As reported by Zacks, the current mean recommendation for V is in the "buy range".
Pfizer, Inc. (PFE) is unchanged at $30.19, with 3,619,792 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $0.64. PFE's current last sale is 79.45% of the target price of $38.
Apple Inc. (AAPL) is +0.1 at $188.11, with 3,063,793 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.59. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Verizon Communications Inc. (VZ) is unchanged at $36.00, with 2,806,076 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.17. VZ's current last sale is 87.8% of the target price of $41.
Invesco QQQ Trust, Series 1 (QQQ) is -1.08 at $384.54, with 2,733,069 shares traded. This represents a 48.05% increase from its 52 Week Low.
Vanguard Russell 1000 Growth ETF (VONG) is -0.0314 at $73.85, with 2,036,529 shares traded. This represents a 37.21% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.13 at $16.43, with 1,950,041 shares traded. This represents a 1.48% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -0.26 at $142.94, with 1,915,770 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.76. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.1 at $188.11, with 3,063,793 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Understanding Lumen Technologies’ Newly Added Risk Factors
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. Apple Inc. (AAPL) is +0.1 at $188.11, with 3,063,793 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. Apple Inc. (AAPL) is +0.1 at $188.11, with 3,063,793 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is +0.1 at $188.11, with 3,063,793 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Visa Inc. (V) is unchanged at $248.11, with 3,932,014 shares traded.
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12503.0
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2023-11-15 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-8
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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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12504.0
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2023-11-15 00:00:00 UTC
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Got $1,000? Here Are 4 Artificial Intelligence Stocks to Buy Hand Over Fist, to Help You Retire a Millionaire.
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AAPL
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https://www.nasdaq.com/articles/got-%241000-here-are-4-artificial-intelligence-stocks-to-buy-hand-over-fist-to-help-you
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nan
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nan
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As earnings season draws to a close, you might be wondering which stocks are worth doubling down on, or where you can find the most enticing growth prospects. Many on Wall Street have been sounding an alert for a new tech bull market thanks in large part to artificial intelligence (AI).
The biggest technology companies in the world by market capitalization are collectively referred to as the "Magnificent Seven": Apple, Nvidia, Tesla, Amazon, (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Meta Platforms (NASDAQ: META). After digesting the most recent earnings reports for each, I believe that four of them look too good to pass up.
Let's see why Microsoft, Alphabet, Amazon, and Meta not only look like great buys at the moment, but also are laying the groundwork for durable success. For long-term investors, these four AI leaders might just help someone reach millionaire status.
1. Microsoft
Microsoft is best known for its Windows operating system and suite of productivity tools including Excel, PowerPoint, and Word. However, for the past several years, the company has been gaining momentum in cloud computing, spearheaded by its platform Azure.
Earlier this year, Microsoft invested $10 billion in OpenAI and its flagship product ChatGPT. Over the last few months, Microsoft has started rolling out new features powered by OpenAI. In its most recent earnings report, the company reported 29% annual growth in Azure, with 3 percentage points of this growth driven by AI.
For several months, the company has been preparing a new product, 365 Copilot, an AI-powered assistant using large language models and generative AI to integrate with Microsoft's various tools including search, cloud, and productivity applications. The commercial release is currently underway, with some on Wall Street thinking it could be a $100 billion opportunity for Microsoft.
2. Alphabet
Following Microsoft's investment in OpenAI earlier this year, Alphabet quickly followed suit with a partnership with a rival start-up called Anthropic. For the last couple of quarters, Alphabet has been showing investors how its integrating AI into its core products, including advertising, cloud computing, and productivity tools.
Advertising is the company's largest revenue and profit contributor. But its ad business was one of the bigger investor concerns for most of 2022, largely due to competing services like TikTok and Instagram.
Growth was shrinking in advertising -- particularly on its video-sharing platform YouTube -- which was having a material effect on profitability, leaving some to wonder if the company's best days were behind it.
But the last couple of quarters have contained a lot of bright spots. Advertising growth has started to rebound, which management attributes to inroads made with generative AI and how it's becoming a core pillar of advertising tools. Ad spending can be cyclical, so it is crucial that Alphabet shows its customers that it has the best capabilities in targeting ads to a specific demographic.
One of the more encouraging points in the third-quarter earnings report was the growth in operating income for its services business, which is primarily made up of advertising. For the quarter, ended Sept. 30, operating margin for services was 35% -- an improvement from the prior year's 31%.
The improving financial and operational picture at Alphabet is reason enough to be bullish. And given how early the company is in its AI deployment, the long-term prospects only make the story even more compelling.
Image Source: Getty Images
3. Amazon
Like Alphabet, Amazon has built a business that gives investors exposure to many different industries.
Amazon is best known for its e-commerce platform, but the company is the undisputed leader in cloud computing and has quietly built a budding advertising business. The biggest takeaway from its third-quarter report was that, as of now, the cloud business effectively has a $100 billion revenue run-rate.
But management says the overwhelming bulk of enterprise IT spending is still captured by on-premise products. This means that as cloud applications become even more crucial for enterprises of all sizes, Amazon is in position to benefit from this shift in IT budgets.
And like Alphabet, Amazon also is a big investor in Anthropic. As part of the deal, Anthropic will train future generative-AI models on Amazon's homegrown semiconductor chips and will use Amazon as its primary cloud provider. I think investors are discounting the benefits of this partnership and the opportunity for lead generation that Anthropic represents.
Amazon's advertising business is also exciting. The company is leveraging AI to hone its ability to run targeted ad campaigns. As the holiday season approaches, these investments could be a bellwether for the e-commerce operation.
4. Meta Platforms
Meta is home to social media applications Facebook, Instagram, and WhatsApp. For much of 2022 and early 2023, Meta Platforms was under a lot of scrutiny after the company's core advertising business took a back seat to management's interest in the metaverse.
Meta mistakenly allocated too many resources to its metaverse ambitions and lost sight of its core moneymaker. As growth in the advertising business stalled and expenses ballooned, profitability took a hit. Meta resorted to multiple rounds of layoffs to get costs under control as it sought to get its advertising revenue back on track.
The third-quarter earnings report underscored how much progress Meta has made. Advertising revenue had its highest growth rate all year, and free cash flow is at levels not seen since 2021.
Macroeconomic conditions might make some investors question the near-term outlook. This is a valid concern, but the analysis in the section below shows why investors should think about the long term.
Can these magnificent four make you a millionaire?
Data source: YCharts.
The chart above illustrates the total return on a $50,000 investment in each of the four stocks over 10 years. Total return is an important metric for stocks because it accounts for dividend reinvestment. Microsoft is the only one of the Magnificent Seven that pays a dividend, and this is one reason its return has outpaced the other three in this group.
If you're considering the stocks outlined above, a good strategy would be to dollar-cost average into each of them, as long as the core investment thesis remains intact.
With each of these stocks trading for just a few hundred dollars, you can open positions in each for about $1,000. By doubling down on your winners over the long haul, the power of compounding will take effect, and you should see a meaningful return that just might make you a millionaire.
10 stocks we like better than Microsoft
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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. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Pinterest, 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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Growth was shrinking in advertising -- particularly on its video-sharing platform YouTube -- which was having a material effect on profitability, leaving some to wonder if the company's best days were behind it. For much of 2022 and early 2023, Meta Platforms was under a lot of scrutiny after the company's core advertising business took a back seat to management's interest in the metaverse. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Pinterest, and Tesla.
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The biggest technology companies in the world by market capitalization are collectively referred to as the "Magnificent Seven": Apple, Nvidia, Tesla, Amazon, (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Meta Platforms (NASDAQ: META). For the last couple of quarters, Alphabet has been showing investors how its integrating AI into its core products, including advertising, cloud computing, and productivity tools. Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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The biggest technology companies in the world by market capitalization are collectively referred to as the "Magnificent Seven": Apple, Nvidia, Tesla, Amazon, (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), and Meta Platforms (NASDAQ: META). For the last couple of quarters, Alphabet has been showing investors how its integrating AI into its core products, including advertising, cloud computing, and productivity tools. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Pinterest, and Tesla.
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For the last couple of quarters, Alphabet has been showing investors how its integrating AI into its core products, including advertising, cloud computing, and productivity tools. For much of 2022 and early 2023, Meta Platforms was under a lot of scrutiny after the company's core advertising business took a back seat to management's interest in the metaverse. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Pinterest, and Tesla.
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12505.0
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2023-11-15 00:00:00 UTC
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Apple's iPhone 14 users get another year of free satellite SOS access
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AAPL
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https://www.nasdaq.com/articles/apples-iphone-14-users-get-another-year-of-free-satellite-sos-access
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nan
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nan
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Nov 15 (Reuters) - Apple AAPL.O said on Wednesday iPhone 14 users would get free access to its emergency SOS feature for another year.
Introduced a year earlier, the feature allows users to share their location through satellite from areas without network by using Apple's FindMy app and send messages to emergency services.
The service has been rolled out to 16 countries and regions, after its initial launch in the United States and Canada.
Users of the iPhone 15 line-up will continue to have two years of free access to the service, provided through a partnership between Apple and satellite operator Globalstar GSAT.A.
Apple also introduced a roadside assistance feature earlier this year, helping its smartphone users to connect via satellite to the American Automobile Association for help in the United States.
(Reporting by Harshita Mary Varghese; Editing by Devika Syamnath)
((HarshitaMary.Varghese@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 15 (Reuters) - Apple AAPL.O said on Wednesday iPhone 14 users would get free access to its emergency SOS feature for another year. Introduced a year earlier, the feature allows users to share their location through satellite from areas without network by using Apple's FindMy app and send messages to emergency services. Users of the iPhone 15 line-up will continue to have two years of free access to the service, provided through a partnership between Apple and satellite operator Globalstar GSAT.A.
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Nov 15 (Reuters) - Apple AAPL.O said on Wednesday iPhone 14 users would get free access to its emergency SOS feature for another year. Introduced a year earlier, the feature allows users to share their location through satellite from areas without network by using Apple's FindMy app and send messages to emergency services. Apple also introduced a roadside assistance feature earlier this year, helping its smartphone users to connect via satellite to the American Automobile Association for help in the United States.
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Nov 15 (Reuters) - Apple AAPL.O said on Wednesday iPhone 14 users would get free access to its emergency SOS feature for another year. Introduced a year earlier, the feature allows users to share their location through satellite from areas without network by using Apple's FindMy app and send messages to emergency services. Users of the iPhone 15 line-up will continue to have two years of free access to the service, provided through a partnership between Apple and satellite operator Globalstar GSAT.A.
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Nov 15 (Reuters) - Apple AAPL.O said on Wednesday iPhone 14 users would get free access to its emergency SOS feature for another year. Introduced a year earlier, the feature allows users to share their location through satellite from areas without network by using Apple's FindMy app and send messages to emergency services. The service has been rolled out to 16 countries and regions, after its initial launch in the United States and Canada.
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12506.0
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2023-11-15 00:00:00 UTC
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GOOG Stock: What the Antitrust Trial Means (and Doesn’t Mean) for the Tech Giant
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AAPL
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https://www.nasdaq.com/articles/goog-stock%3A-what-the-antitrust-trial-means-and-doesnt-mean-for-the-tech-giant
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) stock continues to be affected by the U.S. Department of Justice civil suit filed back in January, alleging that the company engaged in monopolistic and anti-competitive actions in order to maintain its dominant position in search and digital advertising markets.
The trial, which started in September, is still unfolding. However, in recent days, one analyst has provided their take on the outcomes from the suit, some of which are seemingly negative. Yet, while the outcomes may not be favorable to this company, don’t assume this will be the primary driver for shares going forward. Here’s why.
GOOG Stock, the Trial, and Potential Consequences
So far, the aforementioned antitrust trial has revealed some interesting details about Alphabet’s cash cow digital advertising business. A good example is the revealing of financial details related to the company’s revenue sharing agreement with Apple (NASDAQ:AAPL).
Per the arrangement, the iPhone maker receives 36% of the revenue generated from Google searches on its Safari browser, in exchange for Google being the default search engine on Safari. This search exclusively deal could provide a revenue stream for Apple north of $20 billion annually.
If Alphabet ends up losing this case, and is forced to end its use of search exclusively deals, with not just Apple but with other smartphone makers as well, it could have serious repercussions for the financial performance of these companies. However, what are the potential consequences for this company?
Like I hinted above, one analyst (Bernstein’s Mark Moerdler) has explored this topic, focusing his latest GOOG stock research note on the lawsuit.
In particular, an outcome from this case may be that search exclusivity ends. In turn, all popular search platforms will become pre-installed on smartphones. Per Moerdler, this could be favorable for Microsoft’s (NASDAQ:MSFT) Bing search engine.
An End to Search Hegemony is Less of a Big Deal Than You Think
At first, it may seem like Google’s losing of its search hegemony could spark a further slump for GOOG stock. The company is perceived to be woefully behind in areas like generative AI and cloud computing, and being propped up by the deep competitive moat surrounding its search business.
However, before you dump GOOG, on the view that the beginning of the end is just around the corner, keep a few things in mind. For one, while Moerdler noted that Microsoft’s Bing search engine could gain market share as a result of this lawsuit, the market share gains could be minimal.
While perhaps material for the growth of Microsoft’s search revenue, the resultant loss of market share could be relatively small for Alphabet. That’s not all. As I’ve discussed before, Alphabet may have a chance of coming out ahead, if it’s no longer allowed to pay smartphone makers for exclusivity. Cost savings from this could outweigh modest revenue losses.
Atop these counterarguments, keep in mind something else as well. Despite perceptions, the situation with Alphabet and its respective generative AI and cloud computing businesses is not as dire as some skeptics of the stock would have you think.
The Verdict
Don’t get me wrong. Alphabet still has a lot to prove. It still needs to catch up to first-mover Microsoft in the area of generative AI. Microsoft is seemingly having an easier time growing its Azure cloud computing business than Alphabet is with its Google Cloud segment.
However, additional progress with its generative AI endeavors could quickly change investor perceptions.
As I pointed out previously, Google Cloud is still growing at a moderately high clip (22% year-over-year revenue growth). Investors could, in time, become appreciative again of this fact.
With the antitrust suit, the market’s feeling of uneasy vibes could shift. More could come to the optimistic conclusion about the consequences (cost savings outweigh market share losses).
Any weakness for GOOG stock related to this lawsuit may be a signal to buy, not a signal to stay away.
GOOG stock earns a B rating in Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post GOOG Stock: What the Antitrust Trial Means (and Doesn’t Mean) for the Tech Giant 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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A good example is the revealing of financial details related to the company’s revenue sharing agreement with Apple (NASDAQ:AAPL). Like I hinted above, one analyst (Bernstein’s Mark Moerdler) has explored this topic, focusing his latest GOOG stock research note on the lawsuit. The company is perceived to be woefully behind in areas like generative AI and cloud computing, and being propped up by the deep competitive moat surrounding its search business.
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A good example is the revealing of financial details related to the company’s revenue sharing agreement with Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) stock continues to be affected by the U.S. Department of Justice civil suit filed back in January, alleging that the company engaged in monopolistic and anti-competitive actions in order to maintain its dominant position in search and digital advertising markets. For one, while Moerdler noted that Microsoft’s Bing search engine could gain market share as a result of this lawsuit, the market share gains could be minimal.
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A good example is the revealing of financial details related to the company’s revenue sharing agreement with Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) stock continues to be affected by the U.S. Department of Justice civil suit filed back in January, alleging that the company engaged in monopolistic and anti-competitive actions in order to maintain its dominant position in search and digital advertising markets. An End to Search Hegemony is Less of a Big Deal Than You Think At first, it may seem like Google’s losing of its search hegemony could spark a further slump for GOOG stock.
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A good example is the revealing of financial details related to the company’s revenue sharing agreement with Apple (NASDAQ:AAPL). GOOG Stock, the Trial, and Potential Consequences So far, the aforementioned antitrust trial has revealed some interesting details about Alphabet’s cash cow digital advertising business. If Alphabet ends up losing this case, and is forced to end its use of search exclusively deals, with not just Apple but with other smartphone makers as well, it could have serious repercussions for the financial performance of these companies.
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2023-11-15 00:00:00 UTC
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The Embarrassingly Easy Way Warren Buffett Is Raking in Over $12 Billion Annually for Berkshire Hathaway
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AAPL
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https://www.nasdaq.com/articles/the-embarrassingly-easy-way-warren-buffett-is-raking-in-over-%2412-billion-annually-for
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nan
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For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been putting on a clinic for professional and everyday investors. Since taking over as CEO in the mid-1960s, he's overseen just shy of a 4,300,000% aggregate return in Berkshire's Class A shares (BRK.A) as of the closing bell on Nov. 10, 2023.
The Oracle of Omaha's "recipe" for success is a regular topic of discussion. Typically, Buffett and his investment team gravitate to time-tested, profitable businesses with flexible balance sheets, strong brand names, and trusted management teams.
But it also helps when your money is doing some of the heavy lifting. With minimal effort, Warren Buffett is overseeing the collection of more than $12 billion in annual income using two incredibly simple strategies that any investor can follow.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Berkshire Hathaway is on track to collect more than $6 billion in annual dividend income
As of Nov. 10, Berkshire Hathaway's $350 billion investment portfolio consisted of more than 50 securities. A majority of the stakes Buffett's company holds are in businesses that pay a regular dividend. Although putting money to work in dividend stocks isn't fancy or groundbreaking, it tends to be a highly successful strategy for patient investors.
Approximately 10 years ago, the wealth-management division of America's largest bank by assets, JPMorgan Chase, released a report that compared the performance of companies initiating and growing their payouts between 1972 and 2012 to publicly traded companies that don't offer a payout. Researchers found that the dividend payers produced an annualized return of 9.5% over four decades, while the non-payers generated annualized returns of a mere 1.6% over the same span.
Since dividend stocks tend to be profitable on a recurring basis and time-tested, they're just the type of businesses a long-term investor like Warren Buffett will appreciate.
Over the coming 12 months, Berkshire Hathaway is on pace to collect more than $6 billion in dividend income. Interestingly enough, nearly half of this dividend income ($2.83 billion) is expected to come from just three stocks:
Bank of America (NYSE: BAC): $991,537,926
Occidental Petroleum (NYSE: OXY): $964,196,739 (including preferred stock dividends)
Apple (NASDAQ: AAPL): $878,937,967
Money-center giant Bank of America is Berkshire's top income stock. Aside from being cyclical and enjoying disproportionately long periods of economic growth, Bank of America is perfectly positioned to benefit from a higher interest rate environment. No large U.S. bank is more interest-sensitive than BofA, with its net-interest income increasing by the billions each quarter relative to where things stood in 2021.
Energy stock Occidental Petroleum has been one of Berkshire's top buys since the start of 2022. Though Buffett's company is generating close to $164.2 million in annual dividend income from the more than 228 million shares of common stock it owns in Occidental, the bulk ($800 million) derives from the $10 billion in Occidental preferred stock Berkshire holds yielding 8%. Berkshire received this preferred stock by handing over $10 billion to help fuel Occidental's acquisition of Anadarko in 2019.
Meanwhile, Apple is a capital-return juggernaut. The $15 billion it parses out in dividends each year is second only to Microsoft. Furthermore, Apple has repurchased more than $600 billion worth of its common stock since its buyback program commenced in 2013.
The point being that Warren Buffett is allowing his $350 billion investment portfolio to generate meaningful income for his company each year, and neither he nor his investment team have to lift a finger.
Image source: Getty Images.
Buffett's company is raking in north of $6 billion in annual interest income on short-term Treasuries
However, owning dividend stocks isn't the only way the Oracle of Omaha and his team are generating embarrassingly easy income for Berkshire Hathaway.
The company's recently filed third-quarter operating results show that Berkshire has more than $1 trillion in assets. Among its listed assets are $126.4 billion worth of "short-term investments in U.S. Treasury bills."
Treasury bills are U.S. government debt securities set to mature in four, 13, 26, or 52 weeks (one year). Whereas Treasury bonds and notes have fixed interest rates over a defined maturity timeline, Treasury bills are simply sold at a discount to their face value. When these short-term debt securities mature in a few weeks, months, or one year, the owner is made whole, generating a positive "yield."
3 Month Treasury Bill Rate data by YCharts.
With the Federal Reserve forced to get aggressive to combat historically high inflation, Treasury debt securities have soared at least in relation to where they had been. This increase in yield has been particularly pronounced for short-term Treasury bills (T-Bills). Since the start of 2022, the yield on three-month T-Bills has jumped from 0.05% to around 5.3%.
In other words, the historically high cash balance that Buffett and his investment team are sitting on is likely earning 5% (or perhaps slightly more) on an annualized basis. That's more than $6 billion in annual interest income with very minimal effort (i.e., placing the buy order when U.S. government debt securities are being sold).
This is a particularly attractive approach at the moment given that stocks aren't cheap. Between Oct. 1, 2022 and Sept. 30, 2023, Buffett has overseen more than $38 billion in net-equity sales. Though he and his investing lieutenants (Todd Combs and Ted Weschler) are adding to some existing holdings, they've predominantly been net sellers as stock valuations have risen to historically unsustainable levels. Being able to collect an extremely safe 5% (or greater) yield, which currently tops the prevailing inflation rate, is an offer Warren Buffett is unlikely to turn down.
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JPMorgan Chase 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, Berkshire Hathaway, JPMorgan Chase, and Microsoft. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interestingly enough, nearly half of this dividend income ($2.83 billion) is expected to come from just three stocks: Bank of America (NYSE: BAC): $991,537,926 Occidental Petroleum (NYSE: OXY): $964,196,739 (including preferred stock dividends) Apple (NASDAQ: AAPL): $878,937,967 Money-center giant Bank of America is Berkshire's top income stock. With minimal effort, Warren Buffett is overseeing the collection of more than $12 billion in annual income using two incredibly simple strategies that any investor can follow. Aside from being cyclical and enjoying disproportionately long periods of economic growth, Bank of America is perfectly positioned to benefit from a higher interest rate environment.
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Interestingly enough, nearly half of this dividend income ($2.83 billion) is expected to come from just three stocks: Bank of America (NYSE: BAC): $991,537,926 Occidental Petroleum (NYSE: OXY): $964,196,739 (including preferred stock dividends) Apple (NASDAQ: AAPL): $878,937,967 Money-center giant Bank of America is Berkshire's top income stock. Though Buffett's company is generating close to $164.2 million in annual dividend income from the more than 228 million shares of common stock it owns in Occidental, the bulk ($800 million) derives from the $10 billion in Occidental preferred stock Berkshire holds yielding 8%. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, and Microsoft.
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Interestingly enough, nearly half of this dividend income ($2.83 billion) is expected to come from just three stocks: Bank of America (NYSE: BAC): $991,537,926 Occidental Petroleum (NYSE: OXY): $964,196,739 (including preferred stock dividends) Apple (NASDAQ: AAPL): $878,937,967 Money-center giant Bank of America is Berkshire's top income stock. Though Buffett's company is generating close to $164.2 million in annual dividend income from the more than 228 million shares of common stock it owns in Occidental, the bulk ($800 million) derives from the $10 billion in Occidental preferred stock Berkshire holds yielding 8%. Buffett's company is raking in north of $6 billion in annual interest income on short-term Treasuries However, owning dividend stocks isn't the only way the Oracle of Omaha and his team are generating embarrassingly easy income for Berkshire Hathaway.
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Interestingly enough, nearly half of this dividend income ($2.83 billion) is expected to come from just three stocks: Bank of America (NYSE: BAC): $991,537,926 Occidental Petroleum (NYSE: OXY): $964,196,739 (including preferred stock dividends) Apple (NASDAQ: AAPL): $878,937,967 Money-center giant Bank of America is Berkshire's top income stock. Buffett's company is raking in north of $6 billion in annual interest income on short-term Treasuries However, owning dividend stocks isn't the only way the Oracle of Omaha and his team are generating embarrassingly easy income for Berkshire Hathaway. See the 10 stocks *Stock Advisor returns as of November 6, 2023 JPMorgan Chase and Bank of America are advertising partners of The Ascent, a Motley Fool company.
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2023-11-15 00:00:00 UTC
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Got $1,000? 3 Warren Buffett Stocks to Buy Hand Over Fist
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https://www.nasdaq.com/articles/got-%241000-3-warren-buffett-stocks-to-buy-hand-over-fist-0
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Contrary to popular belief, one does not need much to begin investing. Even amounts such as $1,000 will not only get one started, but also buy whole shares of most of the stocks chosen by Warren Buffett's team at Berkshire Hathaway.
This includes consumer-oriented stocks, and under current conditions, stocks like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND) look like they are in an excellent position to serve investors well.
Apple
When considering the stocks Warren Buffett owns, Apple almost has to be a choice, considering that it makes up nearly half of Berkshire Hathaway's stock portfolio. While people know it for many products, Apple derives the majority of its revenue from the iPhone.
As that product matured, Apple pivoted into Apple Services, which includes Apple TV+, Apple Pay, and the Apple Card. These additions should help the company grow even if hardware sales begin to plateau.
Additionally, few companies can match Apple in liquidity, which now stands at about $162 billion. This gives it one of the more stable balance sheets in existence.
That solidity may even compensate for the fact that its net income of $97 billion for fiscal 2023 (ended Sept. 30) fell 3% from the previous fiscal year. Such a drop is unusual for Apple and is likely due to uncertainty in the economy.
Still, amid these conditions, the stock is up 40% this year. And while its price-to-earnings (P/E) ratio of 30 is significantly higher than the earnings multiples of the last decade, it prices the stock at a point where it can still benefit from growth once the economy improves.
Amazon
Amazon is another Berkshire investment that has served investors well. Investors know it best for pioneering e-commerce and later cloud computing. Moreover, as competitors emerged, Amazon has managed to maintain its lead in both industries.
It has also prospered in a unique way. It is unclear if its online sales business, its largest revenue source, turns a profit. However, its e-commerce segments support subscription, reseller, and ad businesses, which likely drive a positive net income. Additionally, Amazon benefits from higher margins with the cloud computing segment Amazon Web Services (AWS). In most quarters, AWS drives the majority of its operating income.
Despite its $1.5 trillion market cap, Amazon has returned to rapid profit growth. Net income for the first three quarters of 2023 was almost $20 billion, a dramatic turnaround from the $3 billion loss in the same period in 2022.
That has brought about a significant recovery in the stock this year. And despite a recent 73 P/E ratio, its earnings multiple is near historical lows. This positions investors who follow Buffett's team in this stock to derive significant returns from a modest investment.
Floor & Decor
Another consumer stock benefiting from a unique business model is Floor & Decor. Indeed, the regional to national expansion it is undergoing is usually good for stock market growth.
However, Floor & Decor prospers by specializing in hard flooring and decor. It offers more variety than competitors such as Home Depot and cuts out the middleman by negotiating with the supplier directly. The more the company expands, the more power it holds to negotiate lower prices.
Admittedly, rising operating costs have weighed on Floor & Decor. In the first three quarters of 2023, net income of $209 million dropped 9% from year-ago levels. This has occurred even as it earns more revenue due to the 17 additional stores it opened in the first nine months of the year.
Unfortunately, relentless selling amid rising interest rates and worries about the economy wiped out most of the gains for this year. But its recent P/E ratio of 31 has been a historical low in this decade. When the flooring industry finally recovers, the retail stock will likely surge higher along with the economy.
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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. Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Home Depot. 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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This includes consumer-oriented stocks, and under current conditions, stocks like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND) look like they are in an excellent position to serve investors well. And while its price-to-earnings (P/E) ratio of 30 is significantly higher than the earnings multiples of the last decade, it prices the stock at a point where it can still benefit from growth once the economy improves. However, its e-commerce segments support subscription, reseller, and ad businesses, which likely drive a positive net income.
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This includes consumer-oriented stocks, and under current conditions, stocks like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND) look like they are in an excellent position to serve investors well. Additionally, Amazon benefits from higher margins with the cloud computing segment Amazon Web Services (AWS). The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Home Depot.
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This includes consumer-oriented stocks, and under current conditions, stocks like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND) look like they are in an excellent position to serve investors well. Apple When considering the stocks Warren Buffett owns, Apple almost has to be a choice, considering that it makes up nearly half of Berkshire Hathaway's stock portfolio. As that product matured, Apple pivoted into Apple Services, which includes Apple TV+, Apple Pay, and the Apple Card.
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This includes consumer-oriented stocks, and under current conditions, stocks like Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Floor & Decor (NYSE: FND) look like they are in an excellent position to serve investors well. Amazon Amazon is another Berkshire investment that has served investors well. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Home Depot.
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2023-11-15 00:00:00 UTC
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Better Buy: Amazon vs. Apple
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https://www.nasdaq.com/articles/better-buy%3A-amazon-vs.-apple-5
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nan
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nan
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the most closely followed stocks, and among the world's five most valuable companies by market cap. These tech giants rule their respective industries, with one dominating e-commerce and the other leading consumer tech. As a result, their stocks still have much to offer new investors over the long term and could be some of the smartest buys right now.
Macroeconomic headwinds over the last two years have challenged countless companies. Reductions in consumer discretionary spending led to steep declines in Amazon's retail profits in 2022. Meanwhile, Apple has experienced repeated dips in product revenue. However, economic hurdles won't last forever, and these companies are well positioned to profit substantially from a market recovery.
So, let's examine whether Amazon or Apple is the better buy this month.
The case for Amazon
In fiscal 2022, Amazon posted operating losses of $10.6 billion between its two e-commerce segments. The company remained profitable thanks to its lucrative cloud business, Amazon Web Services (AWS). However, the e-commerce declines led management to rethink its business model and introduce various cost-cutting measures, closing dozens of warehouses, sunsetting unprofitable projects, and laying off thousands of people.
The restructuring paid off as Amazon's retail business returned to profitability this year. Its North American segment hit over $4 billion in operating income in the third quarter, compared to the $412 million in losses it reported the year before.
In addition to e-commerce growth, Amazon is steadily expanding in artificial intelligence (AI), a market that has blown up in 2023. The company has added several new AI tools to AWS as it works to meet soaring demand for such services. AWS has solid prospects in this high-growth space with its leading market share and a long list of prominent clients that includes Netflix, Sony, and Meta.
Amazon shares have soared 70% year to date as Wall Street has recognized the improvements in its retail business and its growing prospects in AI. The company is on a promising growth trajectory that could be worth an investment.
The case for Apple
Apple hasn't had it as easy as Amazon this year. Its revenues have tumbled 3% year over year in fiscal 2023 as each of its four product segments reported declining sales. The company has continued to experience pullbacks from consumers due to inflation and higher interest rates. Yet despite those recent challenges, Apple shares have risen 42% year to date.
Data by YCharts.
Apple has a long history of providing investors with consistent gains. The chart above shows its shares have outperformed some of its biggest competitors over the last five years, among them Microsoft, Alphabet, and Amazon. While past growth isn't always indicative of what is to come, Apple is making moves to keep its business expanding over the long term.
The company is home to a highly profitable services business, which includes the App Store and subscription platforms like Apple TV+, Apple Music, and more. The digital business boasts profit margins of 70%, significantly higher than its margin for products, which hovers around 36%. Indeed, services may be on track to eventually surpass the iPhone as Apple's highest-earning segment, as revenue growth has hit 9% in 2023 compared to the iPhone's decline of 2%.
Apple is gradually shifting its business to more digital markets that are less vulnerable to economic fluctuations. It's also expanding into AI and has reportedly developed its own version of OpenAI's ChatGPT. The company has excellent prospects over the long term, and its stock looks like an attractive buy for patient investors.
Is Amazon or Apple stock the better buy?
Amazon and Apple are two compelling investments with excellent prospects over the next decade. However, Amazon's meteoric stock rise this year has made it significantly more expensive than Apple. The chart below compares the companies' price-to-earnings and price-to-free-cash-flow ratios. Apple comes out on top for both metrics. The figures indicate that Apple's stock offers far more value right now.
Data by YCharts.
Moreover, despite recent declines, the iPhone company brought in more than $99 billion in free cash flow in its latest quarter compared to Amazon's free cash flow of $17 billion. Apple's business is on better footing financially, making it a more reliable investment.
Furthermore, Apple shares have dipped 5% since the end of July, which has only made its stock more attractive. Now would be an excellent time to make a long-term investment in the MacBook company. However, it would still be smart to keep Amazon on your radar in case its stock dips to a more attractive valuation.
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*Stock Advisor returns as of November 6, 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, 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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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the most closely followed stocks, and among the world's five most valuable companies by market cap. However, the e-commerce declines led management to rethink its business model and introduce various cost-cutting measures, closing dozens of warehouses, sunsetting unprofitable projects, and laying off thousands of people. AWS has solid prospects in this high-growth space with its leading market share and a long list of prominent clients that includes Netflix, Sony, and Meta.
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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the most closely followed stocks, and among the world's five most valuable companies by market cap. Moreover, despite recent declines, the iPhone company brought in more than $99 billion in free cash flow in its latest quarter compared to Amazon's free cash flow of $17 billion. 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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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the most closely followed stocks, and among the world's five most valuable companies by market cap. The case for Apple Apple hasn't had it as easy as Amazon this year. See the 10 stocks *Stock Advisor returns as of November 6, 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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Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two of the most closely followed stocks, and among the world's five most valuable companies by market cap. The company has excellent prospects over the long term, and its stock looks like an attractive buy for patient investors. Is Amazon or Apple stock the better buy?
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12510.0
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2023-11-15 00:00:00 UTC
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US lawmakers question Apple over Jon Stewart's China content
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AAPL
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https://www.nasdaq.com/articles/us-lawmakers-question-apple-over-jon-stewarts-china-content
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By Patricia Zengerle and Michael Martina
WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation.
The New York Times reported last month that Stewart's show on Apple's streaming service was ending, the result of creative differences. The newspaper said Stewart told members of his staff that potential show topics related to China and artificial intelligence were causing concern to Apple executives.
Apple AAPL.O declined comment to the Times.
"While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook.
The letter asked representatives of Apple for a briefing on its concerns by Dec. 15, 2023. And said it also exected to speak with representatives of Stewart.
"To reassure the creative community in light of these reports, we also respectfully request that Apple publicly commit that content that could be perceived as critical of the CCP or the PRC is welcome on Apple TV+ and other Apple services," said the letter, signed by the panel's Republican chairperson, Representative Michael Gallagher, and Representative Raja Krishnamoorthi, the panel's ranking Democrat.
The letter was released ahead of a dinner expected on Wednesday night at which top U.S. business leaders were to dine with Chinese President Xi Jinping in San Francisco as he seeks to court American companies and counter his country's recent struggles to entice foreign investment.
The dinner on the margins of the Asia-Pacific Economic Cooperation (APEC) forum would follow a day of talks between Xi and U.S. President Joe Biden, aimed at stabilizing fraught ties between the world's two largest economies.
The House committee has made China's controls on media a focus of its work.
U.S. lawmakers have long expressed concerns about potential Chinese government censorship given the ruling Communist Party’s strict media controls. The concern is particularly acute for Hollywood films, as some studios have altered or self-censored scripts to appease Chinese government minders and gain access to the country’s market.
(Reporting by Patricia Zengerle; Editing by Stephen Coates)
((patricia.zengerle@thomsonreuters.com, www.twitter.com/ReutersZengerle; 001-202-898-8390;))
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 declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. The letter was released ahead of a dinner expected on Wednesday night at which top U.S. business leaders were to dine with Chinese President Xi Jinping in San Francisco as he seeks to court American companies and counter his country's recent struggles to entice foreign investment.
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Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. The New York Times reported last month that Stewart's show on Apple's streaming service was ending, the result of creative differences.
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Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. "While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook.
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Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. The New York Times reported last month that Stewart's show on Apple's streaming service was ending, the result of creative differences.
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12511.0
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2023-11-15 00:00:00 UTC
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Should You Invest in the Technology Select Sector SPDR ETF (XLK)?
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https://www.nasdaq.com/articles/should-you-invest-in-the-technology-select-sector-spdr-etf-xlk-10
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Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Technology Select Sector SPDR ETF (XLK) is a passively managed exchange traded fund launched on 12/16/1998.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 6, placing it in top 38%.
Index Details
The fund is sponsored by State Street Global Advisors. It has amassed assets over $53.56 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. XLK seeks to match the performance of the Technology Select Sector Index before fees and expenses.
The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.77%.
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 in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 23.60% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 70.32% of total assets under management.
Performance and Risk
So far this year, XLK return is roughly 47.12%, and was up about 38.97% in the last one year (as of 11/15/2023). During this past 52-week period, the fund has traded between $121.18 and $182.04.
The ETF has a beta of 1.12 and standard deviation of 24.48% for the trailing three-year period, making it a medium risk choice in the space. With about 67 holdings, it effectively diversifies company-specific risk.
Alternatives
Technology Select Sector SPDR 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, XLK is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. IShares U.S. Technology ETF has $12.84 billion in assets, Vanguard Information Technology ETF has $54.45 billion. IYW has an expense ratio of 0.40% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 23.60% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $53.56 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 23.60% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). The Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics.
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Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 23.60% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Alternatives Technology Select Sector SPDR 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 (AAPL) accounts for about 23.60% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Technology Select Sector SPDR ETF (XLK) is a passively managed exchange traded fund launched on 12/16/1998.
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2023-11-15 00:00:00 UTC
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Chips Ahoy: 3 Semiconductor Stocks You Need to Buy Now
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https://www.nasdaq.com/articles/chips-ahoy%3A-3-semiconductor-stocks-you-need-to-buy-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The semiconductor industry turned south after rising sharply in the first half of the year. The S&P 400 Semiconductor index is down 11% in 2023 but off by nearly a third from its highs early on. Investors were expecting another down year on top of the drubbing chip stocks took in 2022, but a turnaround is forming. This led us to creating this list of semiconductor stocks to buy.
Consumer spending remains strong despite rising inflation and falling personal computer shipments. Companies like Apple (NASDAQ:AAPL) supplier Foxconn (OTCMKTS:FXCOF) saw profits rise 11% from last year beating analyst expectations. Smartphone sell-through volumes rose 2% sequentially even if they were down 8% year over year. Canalys says the global smartphone slowdown is almost over. The market only dropped 1% in the third quarter.
Yet the situation remains volatile. Amazon (NASDAQ:AMZN) announced it is cutting 180 jobs in its gaming division and video game engine maker Unity Software (NYSE:U) said layoffs are in the works. But artificial intelligence (AI) still drives growth higher. All eyes are on Nvidia‘s (NASDAQ:NVDA) third-quarter earnings report next week.
So sifting through semiconductor stocks to buy becomes a more intensive process. Right now, though, is an opportune time because of their discounted valuations. What follows are three of the best supercharged chip stocks waiting to be bought.
Taiwan Semiconductor Manufacturing (TSM)
Source: Sundry Photography / Shutterstock.com
Foundry giant Taiwan Semiconductor Manufacturing (NYSE:TSM) gave the market an early preview of the turnaround brewing in the industry. It singlehandedly lifted the chip market when it reported blowout October sales numbers. Revenue for the month rocketed 35% higher from the previous quarter!
Nvidia’s demand for AI chips undoubtedly helped push sales higher (TSM is Nvidia’s chip supplier), but AI only represents 6% of total revenue. However, TSM anticipates customers will continuously add on more AI features to their chip orders as time progresses so expect that figure to grow.
Indications of a smartphone rebound were also present. Segment revenue jumped 33% higher and accounts for 39% of revenue. High-performance computing was also up 6% while Internet of Things rose 24%. Although automotive and data centers were the two segments that declined, they represent just 5% and 2%, respectively, of total revenue.
Although Taiwan Semiconductor Manufacturing stock is up 29% this year, it’s still offered at an attractive 16 times next year’s earnings. If the cyclical semi industry is ready to roar, you’ll want to climb aboard the TSM train now.
ASML Holding (ASML)
Source: Ralf Liebhold / Shutterstock
ASML Holding (NASDAQ:ASML) is vital to semiconductor industry even though it’s not a chipmaker itself. It is an equipment supplier to the manufacturers. It sells critical tools such as extreme ultraviolet lithography (EUV) photolithography machines, immersion systems, and other types of lithography equipment.
ASML is the world’s only manufacturer of EUV machines, a valuable monopoly when chipmakers want to produce ever more advanced chips. Among its customers are TSM, Intel (NASDAQ:INTC), and Samsung, the three of whom account for an estimated 80% of revenue.
Because Taiwan is a potential flashpoint on the geopolitical stage, there is some risk to its business (and to TSM’s, naturally). Customer concentration can’t be lightly dismissed either. Yet there are long-term industry tailwinds that should keep driving ASML forward. Investors also have good visibility into ASML’s revenue.
Wall Street is upbeat and expects the equipment supplier to grow earnings at a compounded rate of 22% annually. With a dividend that yields a modest 1% annually, investors will want to stock up on ASML shares now.
NXP Semiconductors (NXPI)
Source: Lukassek / Shutterstock.com
NXP Semiconductors (NASDAQ:NXPI) is arguably one of the better values among its peers today. The near-field communication chipmaker trades at just 12 times earnings estimates and 18x the free cash flow (FCF) it generates. Its growth potential lies in the proliferation of smart electric cars. NXP’s chips allow cars to communicate with one another and the environment around them. The automotive segment accounts for 57% of revenue.
It’s also the source of the biggest risk. High interest rates are dampening EV demand. Although sales are still growing, the rate of growth is slowing. Ford (NYSE:F) is cutting one shift at the plant making its Lightning F-150 pickup truck. China’s Contemporary Amperex Technology, also known as CATL, the world’s largest EV battery maker, recently reported revenue grew 11%, its weakest quarter in two years.
Even so, EV sales in the third quarter topped 300,000 vehicles in the U.S. for the first time. They were up 14% in the European Union in September and 22% higher in China.
Fortunately, it’s not just EVs where NXP’s chips are used. The semiconductor stock provides chips for various advanced driver assistance systems, in-vehicle networking, body, chassis, powertrain, and safety applications. As the auto market returns, NXP Semiconductors will be a chip stock you should own. If you are looking for semiconductor stocks to buy, start here.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Chips Ahoy: 3 Semiconductor Stocks You Need to Buy 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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Companies like Apple (NASDAQ:AAPL) supplier Foxconn (OTCMKTS:FXCOF) saw profits rise 11% from last year beating analyst expectations. China’s Contemporary Amperex Technology, also known as CATL, the world’s largest EV battery maker, recently reported revenue grew 11%, its weakest quarter in two years. The semiconductor stock provides chips for various advanced driver assistance systems, in-vehicle networking, body, chassis, powertrain, and safety applications.
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Companies like Apple (NASDAQ:AAPL) supplier Foxconn (OTCMKTS:FXCOF) saw profits rise 11% from last year beating analyst expectations. Nvidia’s demand for AI chips undoubtedly helped push sales higher (TSM is Nvidia’s chip supplier), but AI only represents 6% of total revenue. ASML Holding (ASML) Source: Ralf Liebhold / Shutterstock ASML Holding (NASDAQ:ASML) is vital to semiconductor industry even though it’s not a chipmaker itself.
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Companies like Apple (NASDAQ:AAPL) supplier Foxconn (OTCMKTS:FXCOF) saw profits rise 11% from last year beating analyst expectations. Taiwan Semiconductor Manufacturing (TSM) Source: Sundry Photography / Shutterstock.com Foundry giant Taiwan Semiconductor Manufacturing (NYSE:TSM) gave the market an early preview of the turnaround brewing in the industry. Nvidia’s demand for AI chips undoubtedly helped push sales higher (TSM is Nvidia’s chip supplier), but AI only represents 6% of total revenue.
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Companies like Apple (NASDAQ:AAPL) supplier Foxconn (OTCMKTS:FXCOF) saw profits rise 11% from last year beating analyst expectations. Investors were expecting another down year on top of the drubbing chip stocks took in 2022, but a turnaround is forming. Even so, EV sales in the third quarter topped 300,000 vehicles in the U.S. for the first time.
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2023-11-15 00:00:00 UTC
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Forget Apple: These 2 Stocks Are Better Buys for a Bull Market
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https://www.nasdaq.com/articles/forget-apple%3A-these-2-stocks-are-better-buys-for-a-bull-market
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When you think of successful companies and stocks, Apple (NASDAQ: AAPL) probably is one of the first to come to mind. The maker of the world-famous iPhone and a slew of other top products and services has seen its earnings climb into the billions of dollars over the past decade, and in more recent times, its market value soar into the trillions.
So, adding Apple to your portfolio might seem like a great idea ahead of the next bull market. And it is, but a couple of other companies actually represent better buys for this next phase of market growth. They both are recovering from difficult times and may be entering a new era of growth, and this could supercharge their shares.
All of this means, right now, you might want to forget Apple -- even if the Apple Watch is sitting right there on your wrist -- and instead try these two potential bull market winners.
Image source: Getty Images.
Amazon
Amazon (NASDAQ: AMZN) had a tough time of it last year. The e-commerce and cloud computing giant reported its first annual loss in about a decade as higher inflation weighed on its costs and on its customers' buying power. On top of this, Amazon also had to deal with excess capacity across its fulfillment network.
But Amazon worked to turn things around by making one important decision: The company decided to improve its cost structure, cutting tens of thousands of jobs, increasing efficiency, and shifting investment into high-growth areas.
Amazon also has made other specific moves to benefit its businesses of e-commerce and cloud computing. For e-commerce, the company transitioned to a regional fulfillment model from a national one to increase package delivery speed and cut costs. For cloud computing, Amazon upped its investment in artificial intelligence (AI), a potentially revolutionary technology for that business.
The efforts already are bearing fruit, with Amazon reporting a return to profit and positive free cash flow as well as revenue growth over the past two quarters. And Amazon stock has rallied, gaining nearly 70% so far this year.
But as Amazon's cost structure improvements continue to develop and deliver results, I could see the stock climbing further in a bull market environment.
Carnival
Carnival Corp.'s (NYSE: CCL) problems started in the early days of the pandemic, when cruise ships were forced to halt operations. That resulted in earnings plunging into negative territory and debt ballooning to a peak of $34 billion.
Since, the company has benefited from two things: its work to cut costs and increase revenue opportunities and the general rebound in demand for cruise vacations. Carnival has taken steps such as replacing older ships with newer, more fuel-efficient ones. And the company offers bundled packages to travelers prior to their cruise -- to get more onboard spend on the books ahead of sailings.
So far, things are looking good. Just recently, Carnival reported records in both revenue and total customer deposits. The company also beat its guidance range for U.S. net income under generally accepted accounting principles (GAAP) in the third quarter and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). And, importantly, the ongoing growth in adjusted free cash flow should help Carnival pay down debt.
Like Amazon, Carnival has seen its shares take off, climbing nearly 60% since the start of the year. But it's important to remember they're far from their pre-pandemic levels -- and at the same time, revenue is climbing.
CCL data by YCharts
Carnival's recovery efforts and the rebound in demand clearly could power earnings in the coming quarters -- and that may translate into a soaring stock price.
Should you really forget about Apple?
It's hard to forget about a company that seems to be everywhere these days, from your wrist to your TV screen. And there's reason to be optimistic about Apple's earnings and share price over the long haul. This market leader even looks reasonably priced today due to its bright long-term outlook.
So, I wouldn't avoid Apple shares. But if you want to stock up on stocks that may truly take off in the next bull market, Amazon and Carnival could be your best bets. Thanks to their recent recovery efforts, they have what it takes to lead the next wave of market gains.
10 stocks we like better than Amazon
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*Stock Advisor returns as of November 6, 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 and Apple. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you think of successful companies and stocks, Apple (NASDAQ: AAPL) probably is one of the first to come to mind. The maker of the world-famous iPhone and a slew of other top products and services has seen its earnings climb into the billions of dollars over the past decade, and in more recent times, its market value soar into the trillions. But Amazon worked to turn things around by making one important decision: The company decided to improve its cost structure, cutting tens of thousands of jobs, increasing efficiency, and shifting investment into high-growth areas.
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When you think of successful companies and stocks, Apple (NASDAQ: AAPL) probably is one of the first to come to mind. The efforts already are bearing fruit, with Amazon reporting a return to profit and positive free cash flow as well as revenue growth over the past two quarters. Since, the company has benefited from two things: its work to cut costs and increase revenue opportunities and the general rebound in demand for cruise vacations.
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When you think of successful companies and stocks, Apple (NASDAQ: AAPL) probably is one of the first to come to mind. But as Amazon's cost structure improvements continue to develop and deliver results, I could see the stock climbing further in a bull market environment. But if you want to stock up on stocks that may truly take off in the next bull market, Amazon and Carnival could be your best bets.
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When you think of successful companies and stocks, Apple (NASDAQ: AAPL) probably is one of the first to come to mind. Like Amazon, Carnival has seen its shares take off, climbing nearly 60% since the start of the year. But if you want to stock up on stocks that may truly take off in the next bull market, Amazon and Carnival could be your best bets.
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2023-11-15 00:00:00 UTC
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SPLG, CYA: Big ETF Inflows
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https://www.nasdaq.com/articles/splg-cya%3A-big-etf-inflows
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 14,900,000 units, or a 3.7% increase week over week. Among the largest underlying components of SPLG, in morning trading today Microsoft is up about 0.4%, and Apple is higher by about 0.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the CYA ETF, which added 2,850,000 units, for a 37.9% increase in outstanding units.
VIDEO: SPLG, CYA: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of SPLG, in morning trading today Microsoft is up about 0.4%, and Apple is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the CYA ETF, which added 2,850,000 units, for a 37.9% increase in outstanding units. VIDEO: SPLG, CYA: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 14,900,000 units, or a 3.7% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the CYA ETF, which added 2,850,000 units, for a 37.9% increase in outstanding units. VIDEO: SPLG, CYA: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 14,900,000 units, or a 3.7% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the CYA ETF, which added 2,850,000 units, for a 37.9% increase in outstanding units. VIDEO: SPLG, CYA: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR Portfolio S&P 500 ETF, which added 14,900,000 units, or a 3.7% increase week over week. Among the largest underlying components of SPLG, in morning trading today Microsoft is up about 0.4%, and Apple is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the CYA ETF, which added 2,850,000 units, for a 37.9% increase in outstanding units.
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12515.0
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2023-11-14 00:00:00 UTC
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Berkshire invests in Atlanta Braves, sheds GM and other stocks
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AAPL
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https://www.nasdaq.com/articles/berkshire-invests-in-atlanta-braves-sheds-gm-and-other-stocks
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nan
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nan
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Nov 14 (Reuters) - Berkshire Hathaway BRKa.N, the conglomerate run by billionaire Warren Buffett, on Tuesday said it has made a small investment in the company that indirectly owns the Atlanta Braves baseball team, and eliminated its holdings in General Motors GM.N and Procter & Gamble PG.N.
The changes were disclosed in a regulatory filing that detailed Berkshire's U.S.-listed stock holdings, which comprise most of its $318.6 billion equity portfolio, as of Sept. 30.
Berkshire sold $7 billion of stocks and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%.
(Reporting by Jonathan Stempel in New York; Editing by Christian Schmollinger)
((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 sold $7 billion of stocks and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. Nov 14 (Reuters) - Berkshire Hathaway BRKa.N, the conglomerate run by billionaire Warren Buffett, on Tuesday said it has made a small investment in the company that indirectly owns the Atlanta Braves baseball team, and eliminated its holdings in General Motors GM.N and Procter & Gamble PG.N. The changes were disclosed in a regulatory filing that detailed Berkshire's U.S.-listed stock holdings, which comprise most of its $318.6 billion equity portfolio, as of Sept. 30.
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Berkshire sold $7 billion of stocks and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. Nov 14 (Reuters) - Berkshire Hathaway BRKa.N, the conglomerate run by billionaire Warren Buffett, on Tuesday said it has made a small investment in the company that indirectly owns the Atlanta Braves baseball team, and eliminated its holdings in General Motors GM.N and Procter & Gamble PG.N. The changes were disclosed in a regulatory filing that detailed Berkshire's U.S.-listed stock holdings, which comprise most of its $318.6 billion equity portfolio, as of Sept. 30.
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Berkshire sold $7 billion of stocks and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. Nov 14 (Reuters) - Berkshire Hathaway BRKa.N, the conglomerate run by billionaire Warren Buffett, on Tuesday said it has made a small investment in the company that indirectly owns the Atlanta Braves baseball team, and eliminated its holdings in General Motors GM.N and Procter & Gamble PG.N. (Reporting by Jonathan Stempel in New York; Editing by Christian Schmollinger) ((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 sold $7 billion of stocks and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. Nov 14 (Reuters) - Berkshire Hathaway BRKa.N, the conglomerate run by billionaire Warren Buffett, on Tuesday said it has made a small investment in the company that indirectly owns the Atlanta Braves baseball team, and eliminated its holdings in General Motors GM.N and Procter & Gamble PG.N. The changes were disclosed in a regulatory filing that detailed Berkshire's U.S.-listed stock holdings, which comprise most of its $318.6 billion equity portfolio, as of Sept. 30.
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12516.0
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2023-11-14 00:00:00 UTC
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Pilgrim's Pride and Malibu Boats have been highlighted as Zacks Bull and Bear of the Day
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AAPL
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https://www.nasdaq.com/articles/pilgrims-pride-and-malibu-boats-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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nan
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nan
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For Immediate Release
Chicago, IL – November 14, 2023 – Zacks Equity Research shares Pilgrim's Pride PPC as the Bull of the Day and Malibu Boats MBUU as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Walt Disney Company DIS, Apple Inc. AAPL and Amazon.com, Inc. AMZN.
Here is a synopsis of all five stocks:
Bull of the Day:
Pilgrim's Pride is a Zacks Rank #1 (Strong Buy) that engages in the production, processing, marketing and distribution of fresh, frozen, and value-added chicken, and pork products to retailers, distributors, and foodservice operators.
The stock is trading at 52-week highs after a revenue and earnings beat. While PPC is trading up about 15% on the year, it is still down 25% from 2022 highs.
Investors should be looking for more upside if the stock can break the resistance level at $26.50.
More About Pilgrim's Pride
The company was founded in 1946 and is headquartered in Greeley, Colorado. It employs over 61,000 people and has a market cap of $6 billion.
Pilgrim's Pride offers its products under the Pilgrim's, Just BARE, Gold'n Pump, Gold Kist, County Pride, Pierce Chicken, Pilgrim's Mexico, County Post, Savoro, To-Ricos, Del Dia, Moy Park, O'Kane, Richmond, Fridge Raiders, and Denny brands.
The company sells its products to chain restaurants, food processors, broad-line distributors, and the retail market.
PPC has a Zacks Style Score of "A" in Value and "B" in Growth. The stock has a Forward PE of 17 and pays no dividend.
Q3 Earnings
In late October, PPC reported a 14% earnings beat on revenues. This the seventh straight earnings beat for the company who has not missed on earnings expectations since late 2021.
Q3 came in at $0.58 v $0.42 expected and revenues were $4.4B v $4.29Be. Adjusted EBITDA margins were 7.4%, which was down from the 10.3% last year.
While the company expected tighter protein supplies into year end, lower grain prices are helping chicken profits.
Management cited operational excellence efforts and promotional activity as reasons for margin growth. Moreover, PPC saw net sales net sales grow 65% collectively in the Just Bare and Pilgrim's brands.
Estimates Trend Higher
Looking at earnings estimates, we only have data for the longer-term. However, the move in this data is noticeable.
For the current year, we see analyst lifting estimates since earnings. For the last 30 days, numbers have been taken from $1.24 to $1.53, an up move of 23%.
Next year the numbers continue to move higher, with estimates going from $2.10 to $2.48, up 18%.
The Technical Take
For the most part, the stock has gone sideways over the last 10 years. While there was an attempted breakout in 2022, that up move failed and the stock sold down to the $20 support level.
While the PPC is up nice this year, the $26.50 level has been a headache for the bulls. A break over that level and we could start to see some serious upwards movement to the $29.50 level. This is the 61.8% Fibonacci retracement, drawn from 2022 highs to recent lows and should be the next area of resistance.
Looking longer term, if the bulls get price over the $30 level, they can start to target those 2022 highs above $34
For those looking for an entry, below are some levels to watch:
21-day Moving Average (MA): $25
50-day MA: $24.35
200-day MA: $23.70
In Summary
Pilgrim's Pride investors have seen struggles, but nothing like their main competitors in Tyson Foods. Management's comments seem to point out the difference here is the execution and management.
Bullish inventors can place their bets on the good team over at PPC. But they also can count on solid fundamentals and the technicals offering support.
There should be plenty of meat on the bone for PPC as the year ends and investors can look for a strong start to 2024 if inflation keeps trending lower.
Bear of the Day:
Malibu Boats is a Zacks Rank #5 (Strong Sell) that designs, engineers, manufactures, markets, and sells a range of recreational powerboats.
The stock is trading at 52-week lows after a recent earnings report. While the company beat on earnings, its outlook was stormy.
The consumer remains strong, but they have shifted to spending on smaller everyday items instead of big-ticket items like boats. For this reason, investors and the company look to be cautious going into 2024.
About the Company
Malibu was founded in 1982 and is headquartered in London, Tennessee.The company sells its products through independent dealers and employs over 3,000 people.
The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands.
Malibu is valued at $800 million and has a Forward PE of 8. The stock holds Zacks Style Scores of "B" in Value and Growth, and "A" in Momentum. The stock pays no dividend.
Q4 Earnings
Malibu reported in late October, beating EPS by 24%. The company is used to beating expectations as they have not missed since 2016.
However, management reduced its FY24 outlook as they no longer see improvement in retail trends in 2H. The company sees net sales declining in the high teens/low 20% range vs. down mid-/high teens prior. EBITDA margins are now expected to contract 350-450bps from last year.
Analyst commentary says consumers are backing away with higher interest rates. While market share is still there for Malibu, only the cash buyers for higher end boats are outperforming. The credit buyers look to be on the sidelines until interest rates come in.
Estimates
Analysts have been cutting estimates since earnings and the lower guidance.
Over the last 30 days, numbers for the current quarter plunged from $1.12 to $0.51 or 66%.
For the current year, analysts have lowered estimates 13% over that same time frame.
Looking at the longer term, numbers are trending lower as well. For next year, estimates have fallen from $7.47 to $6.27 over the last 90 days, or almost 16%.
Technical Take
While the S&P is up 15% on the year MBUU is down 20% in 2023. This underperformance is a consequence of higher interest rates taking demand away. And when you look at the chart, you can see the MBUU breakdown happened when interest rates started to spike late in the summer.
The stock has broken the 2022 lows and a 61.8% Fibonacci retracement drawn from COVID lows to highs.
The next support area is $40, but if that fails the stock had risk down to $34.
Any bounce will likely be sold. Investors can look for the 50-day moving average at $47.50. The 200-day MA is at $54.50 and likely won't be tested unless there is a fundamental change in the current earnings situation.
In Summary
Malibu is going to have trouble over the next six months as consumer demand weakens into the off season. While the interest rate situation looks to be improving over that time frame, the company does not see demand coming back quickly.
Additional content:
What's in Store for Disney (DIS) After Promising Earnings?
Entertainment behemoth The Walt Disney Company reported encouraging quarterly earnings last week that surpassed Wall Street's estimates.
The media giant posted fiscal fourth-quarter revenues of $21.2 billion, up 5% from a year ago. Earnings came in at 82 cents a share in the quarter ending in September, up from 30 cents in the year-ago quarter.
An increase in streaming users helped Disney post solid quarterly earnings. Notably, the Disney+ streaming service added almost 7 million core subscribers in the reported quarter and increased the total number of subscribers to 112.6 million.
Disney's CEO Robert Iger recently said that acceptance of movies and original series such as Elemental, Guardians of the Galaxy Vol.3, Little Mermaid, Moving, and Ahsoka boosted subscriber growth significantly.
The entertainment segment, which includes movies, generated revenues of $9.5 billion in the fiscal fourth quarter, up 2% from the same period a year ago.
Similarly, the experience segment, which includes hotels, cruises and theme parks, posted revenues of $8.2 billion, up 13% from the same quarter a year ago.
Disney also expects its overall revenues and profits to improve further in the December quarter, while its management vowed to reduce costs.
The company, in reality, is expecting its free cash flow to increase and achieve pre-pandemic levels in the next year. The company assumes $8 billion in free cash flow in fiscal 2024.
However, weaker results at ESPN have primarily impacted the company for quite some time now. The cost of sports rights is increasing at a faster pace than the revenues generated from ESPN, which undoubtedly is a headache for Disney.
In the fiscal fourth quarter, the sports segment, or mostly ESPN, posted revenues of $3.9 billion, but it was more or less flat with the same period last year.
It's also worth pointing out that the growth in the streaming segment is much softer at the moment as the company continues to face stiff competition from other media giants like Apple Inc. and Amazon.com, Inc. Disney's move to increase streaming prices in August hasn't gone down well with users.
To top it off, linear TV viewing has reduced considerably, and along with lower advertising revenues, things are looking challenging for Disney in the near term.
To make matters worse, Disney continues to face a prolonged actors strike, a decline in footfall at Disney World Resort, and ambiguity related to a CEO succession plan.
Therefore, despite posting upbeat results in its latest quarterly earnings, the Zacks Consensus Estimate for Disney's current-year earnings has decreased 10.3% over the past 60 days.
The Zacks Rank #5 (Strong Sell) company's shares are trading at their lowest level in almost a decade. Shares of Disney have gained a meager 1.6% so far this year, while the S&P 500 Index has soared 16%. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
The Walt Disney Company (DIS) : Free Stock Analysis Report
Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report
Malibu Boats, Inc. (MBUU) : 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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In addition, Zacks Equity Research provides analysis on The Walt Disney Company DIS, Apple Inc. AAPL and Amazon.com, Inc. AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report To read this article on Zacks.com click here. Entertainment behemoth The Walt Disney Company reported encouraging quarterly earnings last week that surpassed Wall Street's estimates.
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In addition, Zacks Equity Research provides analysis on The Walt Disney Company DIS, Apple Inc. AAPL and Amazon.com, Inc. AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 14, 2023 – Zacks Equity Research shares Pilgrim's Pride PPC as the Bull of the Day and Malibu Boats MBUU as the Bear of the Day.
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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 The Walt Disney Company (DIS) : Free Stock Analysis Report Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on The Walt Disney Company DIS, Apple Inc. AAPL and Amazon.com, Inc. AMZN. Here is a synopsis of all five stocks: Bull of the Day: Pilgrim's Pride is a Zacks Rank #1 (Strong Buy) that engages in the production, processing, marketing and distribution of fresh, frozen, and value-added chicken, and pork products to retailers, distributors, and foodservice operators.
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In addition, Zacks Equity Research provides analysis on The Walt Disney Company DIS, Apple Inc. AAPL and Amazon.com, Inc. AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 14, 2023 – Zacks Equity Research shares Pilgrim's Pride PPC as the Bull of the Day and Malibu Boats MBUU as the Bear of the Day.
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12517.0
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2023-11-14 00:00:00 UTC
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3 Calendar Spread Trade Ideas For This Tuesday
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AAPL
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https://www.nasdaq.com/articles/3-calendar-spread-trade-ideas-for-this-tuesday
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nan
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nan
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Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike.
Traders can use calls or puts and they can be set up to be neutral, bullish or bearish with neutral being the most common.
When doing bullish calendar spreads, we typically use calls to minimize the assignment risk. Likewise, if the calendar is set up with a bearish bias, we use puts.
Neutral calendars can use calls or puts, but calls are more common.
Let’s look at a couple of examples, using Exxon Mobil (XOM), Microsoft (MSFT) and Apple (AAPL).
XOM Neutral Calendar Spread
Let’s use XOM stock for our first calendar spread example.
With Exxon Mobil stock trading around 105, setting up a calendar spread at 105 gives the trade a neutral outlook.
Selling the December 15 call option with a strike price of $105 will generate around $250 in premium, and buying the January 19, 105 call will cost approximately $405.
That results in a net cost for the trade of $155 per spread, and that is the most the trade can lose.
The estimated maximum profit is $175, but that could vary depending on changes in implied volatility.
The idea with the trade is that if XOM stock remains around $105 for the next few weeks, the sold option will decay faster than the bought option allowing the trade to be closed for a profit.
The breakeven prices for the trade are estimated at around $101 and $110.50, but these can also change slightly depending on changes in implied volatility.
In terms of trade management if XOM broke through either $101 or $110.50, I would look to adjust or close the trade.
Let’s look at another example.
MSFT Neutral Calendar Spread
With Microsoft stock trading around $370, setting up a calendar spread at $370 gives the trade a neutral outlook.
Selling the December 15 call option with a strike price of $370 will generate around $770 in premium, and buying the January 19, $370 call will cost approximately $1,275.
That results in a net cost for the trade of $505 per spread, and that is the most the trade can lose.
The estimated maximum profit is $550, but that could vary depending on changes in implied volatility.
The idea with the trade is that if MSFT stock remains around $370 for the next few weeks, the sold option will decay faster than the bought option allowing the trade to be closed for a profit.
The breakeven prices for the trade are estimated at around $358 and $387, but these can also change slightly depending on changes in implied volatility.
In terms of trade management if MSFT broke through either $358 or $387, I would look to adjust or close the trade.
AAPL Neutral Calendar Spread
With Apple stock trading around $185, setting up a calendar spread at $185 gives the trade a neutral outlook.
Selling the December 15 call option with a strike price of $185 will generate around $440 in premium, and buying the January 19, $185 call will cost approximately $680.
That results in a net cost for the trade of $240 per spread, and that is the most the trade can lose.
The estimated maximum profit is $230, but that could vary depending on changes in implied volatility.
The idea with the trade is that if AAPL stock remains around $185 for the next few weeks, the sold option will decay faster than the bought option allowing the trade to be closed for a profit.
The breakeven prices for the trade are estimated at around $179.50 and $193, but these can also change slightly depending on changes in implied volatility.
In terms of trade management if AAPL broke through either $179.50 or $193, I would look to adjust or close the trade.
Mitigating Risk
Thankfully, calendar spreads are risk defined trades, so they have some build in risk management. Position sizing is crucial to ensure that minimal damage is done if the trade suffers a full loss.
One way to set a stop loss for a calendar spread is close the trade if the loss is 20-30% of the premium paid.
Calendar spreads can also contain early assignment risk, so be mindful of that if the stock breaks through the short strike and it’s getting close to expiry.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
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On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let’s look at a couple of examples, using Exxon Mobil (XOM), Microsoft (MSFT) and Apple (AAPL). AAPL Neutral Calendar Spread With Apple stock trading around $185, setting up a calendar spread at $185 gives the trade a neutral outlook. The idea with the trade is that if AAPL stock remains around $185 for the next few weeks, the sold option will decay faster than the bought option allowing the trade to be closed for a profit.
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AAPL Neutral Calendar Spread With Apple stock trading around $185, setting up a calendar spread at $185 gives the trade a neutral outlook. Let’s look at a couple of examples, using Exxon Mobil (XOM), Microsoft (MSFT) and Apple (AAPL). The idea with the trade is that if AAPL stock remains around $185 for the next few weeks, the sold option will decay faster than the bought option allowing the trade to be closed for a profit.
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AAPL Neutral Calendar Spread With Apple stock trading around $185, setting up a calendar spread at $185 gives the trade a neutral outlook. Let’s look at a couple of examples, using Exxon Mobil (XOM), Microsoft (MSFT) and Apple (AAPL). The idea with the trade is that if AAPL stock remains around $185 for the next few weeks, the sold option will decay faster than the bought option allowing the trade to be closed for a profit.
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AAPL Neutral Calendar Spread With Apple stock trading around $185, setting up a calendar spread at $185 gives the trade a neutral outlook. Let’s look at a couple of examples, using Exxon Mobil (XOM), Microsoft (MSFT) and Apple (AAPL). The idea with the trade is that if AAPL stock remains around $185 for the next few weeks, the sold option will decay faster than the bought option allowing the trade to be closed for a profit.
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12518.0
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2023-11-14 00:00:00 UTC
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7 Cryptos that Could Skyrocket Next
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AAPL
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https://www.nasdaq.com/articles/7-cryptos-that-could-skyrocket-next
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The crypto market is arguably the toughest to gauge, which complicates the decision-making around cryptos to buy. From facilitating financial transactions to powering smart-contract blockchain applications, including decentralized data storage and cloud computing, the promise surrounding the industry remains massive.
The first half of 2023 was heartening for crypto investors, with industry heavyweights enjoying remarkable rallies. Crypto juggernauts in Bitcoin (BTC-USD) and Ethereum (ETH-USD) posted double-digit gains, rebounding emphatically from the daunting crypto winter of 2022.
Yet, each success in the digital realm offers savvy investors a chance to identify and avoid underperforming assets. Hence, this strategic approach can effectively unlock the true potential of these cryptos to buy that can take your portfolios to new heights.
Bitcoin (BTC)
Source: Sittipong Phokawattana / Shutterstock.com
Bitcoin is the face of the burgeoning crypto market, and hence, first on this list of cryptos to buy. Bitcoin recently broke the critical $35,000 threshold. Currently trading around $37,000, it has rebounded amazingly well from a December low of $16,000 last year. This stellar rebound led to a 122.8% increase in Bitcoin’s value year-to-date (YTD).
Moreover, its recent price increase is largely due to expectations that the U.S. Securities and Exchange Commission (SEC) will approve its first Bitcoin exchange-traded fund (ETF). This potential development, along with the belief that the U.S. Federal Reserve’s adoption of a more dovish policy, has increased the attractiveness of riskier assets. Reflecting this optimism, analysts foresee Bitcoin’s price surpassing $50,000 soon. Moreover, Standard Chartered upgraded its Bitcoin forecast to fall in the $100,000 and $120,000 range by the end of 2024.
Ethereum (ETH)
Source: shutterstock
Ethereum, the second-largest cryptocurrency, has been on quite the run this year, with its price now above $2,000. This recent upswing reflects a broader trend in the cryptocurrency market, with Ethereum’s price soaring 31.8% in the past month. Consequently, Ethereum’s market capitalization shot up to an impressive $247.75 billion, with a YTD increase of 72%.
Moreover, analysts remain optimistic about Ethereum’s future trajectory. A recent report from Standard Chartered made headlines with its bold prediction that Ethereum’s price could increase five-fold by 2026’s conclusion, attributing this growth to its expanding use in blockchain smart contracts and gaming. They forecast Ethereum reaching about $8,000 in the next two years, indicating potential for massive long-term expansion. It’s tough to deny Ethereum’s stature in the digital currency landscape with its laundry list of use-cases which continue to add new layers to its growth story, and is definitely among cryptos to buy if you can.
Solana (SOL)
Source: sdx15 / Shutterstock.com
Solana (SOL-USD) has gained immense recognition in the cryptocurrency world for its high throughput and low transaction costs. These features position it well for adoption in decentralized finance (DeFi) and decentralized applications (dApps). Due to these capabilities, Solana is a promising contender in the expanding world of digital currencies, offering a blend of efficiency and cost-effectiveness.
Despite previous challenges, including its association with the troubled FTX, Solana has demonstrated remarkable resilience. In the past six months, it has surged over 149%, pushing its market capitalization to a staggering $21.47 billion.
Moreover, Solana has shifted to a bullish market trend, breaking past its previous lower highs. Its venture into the mobile crypto market with the Saga phone marks a significant stride in enhancing its decentralized presence and attracting new users. Currently, Solana’s price stands at a solid $51, further solidifying its position in the cryptocurrency landscape.
Render Token (RNDR)
Source: Maurice NORBERT / Shutterstock.com
Render Token (RNDR-USD) is making its mark in the decentralized cryptocurrency world by connecting artists, studios, and miners. It addresses the increasing demand for Graphic Processing Unit (GPU) resources in sectors including gaming, artificial intelligence (AI), and medical imaging. As a blockchain-powered solution, Render Token is revolutionizing GPU computing across various industries.
Moreover, with the global GPU market expected to reach $400 billion by 2032, Render Token’s model of decentralized GPU power rental is timely. It utilizes blockchain and smart contracts to facilitate GPU power rental, compensating users in RNDR tokens. Impressively, it has witnessed a whopping 454% price surge YTD, reflecting its strong market trajectory.
Furthermore, in a world facing rising chip demand, the Render Network is important in providing essential resources for artists and researchers. Its recent partnership with Apple (NASDAQ:AAPL) further boosts its credibility. Hence, with the AI expansion and chip shortages, Render Token’s demand should rise, underscoring its promising future in the market.
The Graph (GRT)
Source: Have a nice day Photo/Shutterstock
The Graph (GRT-USD), rapidly becoming known as the “Google of blockchains,” is dedicated to streamlining data handling in decentralized networks. Its key advantage is a strong, open-source, decentralized protocol, ensuring safe and effective data exchange. This method enhances transparency and trust, distinguishing The Graph in the blockchain domain.
Moreover, currently trading at 13.5 cents, it represents an investment in the emerging AI and blockchain revolution. Over the past year, its price has soared by an impressive 91%, and its market capitalization has reached $1.19 billion, reflecting growing investor interest.
With AI-powered APIs, it is driving the development of dApps across various sectors, including finance and social governance, showcasing its vast potential. Despite the inherent volatility in the crypto market, The Graph is demonstrating its resilience and potential. Its pivotal role in powering AI-driven blockchain applications establishes it as a key influencer, poised to make a transformative impact across various industries.
Avalanche (AVAX)
Source: FellowNeko / Shutterstock
Avalanche (AVAX-USD) is emerging as a trailblazer in the blockchain space, with a strong focus on scalability and DeFi. Strategic partnerships, transaction growth, and continuous innovation underscore its growing influence in the crypto landscape. Notably, Avalanche is redefining industry standards with its advanced security and unique subnets accommodating both public and private blockchains.
Moreover, its recent partnership with Amazon’s (NASDAQ:AMZN) cloud computing division marks a major step forward. This collaboration broadens its reach to various clients like corporations, institutions, and governments, even during the crypto market downturn. This alliance, along with Avalanche’s effective real-world applications, solidifies its standing as a significant player in the DeFi sector.
Furthermore, 2023 has been a year of recovery for Avalanche, with its price climbing to $15.41, marking a 38% increase YTD. This growth has propelled its market capitalization to an impressive $5.48 billion, further cementing its status as a key player in the evolving world of cryptocurrencies.
XRP (XRP-USD)
XRP (XRP-USD), though last on this list of cryptos to buy, stands out in the crypto sphere, embodying both caution and optimism. The scrutiny of Ripples Lab by the SEC has had a debilitating effect on XRP. However, with Ripple’s legal win, its back in the thick of things, validating its existence and fueling a surge in XRP’s price.
Despite these challenges, XRP has shown resilience, gaining 34% in the last month and over 70% this year. This rise has pushed its market capitalization to a solid $35.2 billion. Such a recovery highlights the cryptocurrency’s enduring appeal and growing investor confidence.
Adding to XRP’s allure is the speculation about Ripple potentially launching an Initial Public Offering (IPO). This step could legitimize XRP and strengthen other blockchain assets. It also provides retail investors a way to participate in the crypto market indirectly. This development could be a key milestone for cryptocurrency acceptance and integration.
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 Cryptos that Could Skyrocket Next 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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Its recent partnership with Apple (NASDAQ:AAPL) further boosts its credibility. From facilitating financial transactions to powering smart-contract blockchain applications, including decentralized data storage and cloud computing, the promise surrounding the industry remains massive. A recent report from Standard Chartered made headlines with its bold prediction that Ethereum’s price could increase five-fold by 2026’s conclusion, attributing this growth to its expanding use in blockchain smart contracts and gaming.
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Its recent partnership with Apple (NASDAQ:AAPL) further boosts its credibility. From facilitating financial transactions to powering smart-contract blockchain applications, including decentralized data storage and cloud computing, the promise surrounding the industry remains massive. Moreover, with the global GPU market expected to reach $400 billion by 2032, Render Token’s model of decentralized GPU power rental is timely.
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Its recent partnership with Apple (NASDAQ:AAPL) further boosts its credibility. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The crypto market is arguably the toughest to gauge, which complicates the decision-making around cryptos to buy. Bitcoin (BTC) Source: Sittipong Phokawattana / Shutterstock.com Bitcoin is the face of the burgeoning crypto market, and hence, first on this list of cryptos to buy.
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Its recent partnership with Apple (NASDAQ:AAPL) further boosts its credibility. Bitcoin (BTC) Source: Sittipong Phokawattana / Shutterstock.com Bitcoin is the face of the burgeoning crypto market, and hence, first on this list of cryptos to buy. Hence, with the AI expansion and chip shortages, Render Token’s demand should rise, underscoring its promising future in the market.
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12519.0
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2023-11-14 00:00:00 UTC
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Pre-Market Most Active for Nov 14, 2023 : THRX, AAPL, PLTR, SQQQ, AMD, TSLA, TQQQ, BMY, SE, ONON, NIO, KO
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-14-2023-%3A-thrx-aapl-pltr-sqqq-amd-tsla-tqqq-bmy-se-onon-nio
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The NASDAQ 100 Pre-Market Indicator is up 239.61 to 15,722.4. The total Pre-Market volume is currently 32,805,643 shares traded.
The following are the most active stocks for the pre-market session:
Theseus Pharmaceuticals, Inc. (THRX) is +0.8598 at $3.00, with 3,197,940 shares traded.THRX is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.59.
Palantir Technologies Inc. (PLTR) is +0.08 at $19.79, with 2,450,095 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $0.04.
ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $17.28, with 2,003,795 shares traded. This represents a 5.49% increase from its 52 Week Low.
Advanced Micro Devices, Inc. (AMD) is +0.3 at $117.09, with 1,811,711 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $0.81.
Tesla, Inc. (TSLA) is +4.05 at $227.76, with 1,794,193 shares traded.
ProShares UltraPro QQQ (TQQQ) is +0.36 at $40.76, with 1,791,967 shares traded. This represents a 153.17% increase from its 52 Week Low.
Bristol-Myers Squibb Company (BMY) is -0.05 at $50.10, with 1,592,064 shares traded.
Sea Limited (SE) is -5.57 at $40.46, with 1,091,946 shares traded.
On Holding AG (ONON) is -1.61 at $24.95, with 1,005,077 shares traded.
NIO Inc. (NIO) is -0.08 at $7.14, with 869,640 shares traded.NIO is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.43 per share, which represents a -36 percent increase over the EPS one Year Ago
Coca-Cola Company (The) (KO) is -0.07 at $56.86, with 867,629 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $0.8.
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 +0.5 at $185.30, with 2,727,093 shares traded. Theseus Pharmaceuticals, Inc. (THRX) is +0.8598 at $3.00, with 3,197,940 shares traded.THRX is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024.
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Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago NIO Inc. (NIO) is -0.08 at $7.14, with 869,640 shares traded.NIO is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago NIO Inc. (NIO) is -0.08 at $7.14, with 869,640 shares traded.NIO is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. The NASDAQ 100 Pre-Market Indicator is up 239.61 to 15,722.4. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago
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12520.0
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2023-11-14 00:00:00 UTC
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5 Stocks You Can Confidently Invest $500 In Right Now
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AAPL
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https://www.nasdaq.com/articles/5-stocks-you-can-confidently-invest-%24500-in-right-now-11
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Do you prefer a more passive, long-term approach to investing that doesn't require constant monitoring and updating of your portfolio? That's fine. In fact, it's great. Investors employing a simpler "less is more" approach often end up outperforming their peers.
The key to success with such a strategy is just finding the right stocks to begin with. If you are just starting out as an investor but only have so much available to invest -- say $500 -- you want to start out with solid choices you know will do well so you can grow that initial investment. You also need to know these choices will be fine in the long run, and able to shrug off any short-term challenges.
With that as the backdrop, here's a rundown of five different stocks you can confidently invest $500 in right now and not worry about them too much for the next several years.
1. Procter & Gamble
You've heard of the company. And you're likely to also be a customer without even realizing it. Procter & Gamble (NYSE: PG) is parent to several popular brands of consumer goods, including Tide laundry detergent, Gillette razors, Luvs and Pampers diapers, Cascade dishwasher detergent, Bounty paper towels, and more.
Its products aren't just familiar, either. In market research outfit BrandSpark's most recent look at the market, Procter & Gamble boasted a leading 23 of the country's most trusted brand names; Tide alone won in five different laundry categories.
This is no small matter. See, although brand recognition alone doesn't inherently guarantee profitability, market dominance goes a long way in ensuring a leading brand remains a leading brand. Not only does Procter & Gamble enjoy all the advantages of scale, like relatively lower production and operating costs as well as sales leverage with retailers, but it also simply has more products to cross-sell. P&G can also afford to be one of the world's biggest advertisers.
Connect the dots. It's unlikely Procter & Gamble is going to be dethroned anytime soon, if ever.
2. Apple
Here's another company that doesn't need much of an introduction. Apple (NASDAQ: AAPL), of course, makes the world's single most popular smartphone -- the iPhone. Yes, Samsung technically sells more total smartphones, but in a variety of models and price ranges. Apple also generates far more smartphone revenue than any of its rivals due to the iPhone's premium pricing.
Loyalty to the iOS operating system powering iPhones is sky-high, too, with market research firm Consumer Intelligence Research Partners reporting that 94% of iOS users (most of them being iPhone users) plan on sticking with the operating system when it's time to upgrade their devices. Consumer Intelligence Research Partners adds that between early last year and early this year, 15% of iPhone purchases made within the United States were made by former users of Samsung's Android smartphones. Both measures are far stronger than Android's appeal and loyalty.
Although the iPhone is a powerhouse product accounting for more than half of the company's revenue, it's not the only reason to step into Apple for the long haul. The popular device is increasingly a means to an end, generating additional revenue by facilitating the sale of apps, music, and video entertainment. These digital services now account for around one-fourth of Apple's top line and even more of its bottom line.
Apps and subscriptions only fuel consumer loyalty to Apple's iOS digital ecosystem, of course. People are not only already familiar with the operating system, but they've already paid for many of the apps installed on previous versions of their smartphones.
3. Visa
This is yet another company you're more than familiar with. Visa (NYSE: V) is the world's biggest credit card middleman (outside of China, anyway), handling the purchase of $14.8 trillion worth of goods and services in its recently ended fiscal year. That's more than 259 billion total transactions from a crowd wielding more than 4 billion Visa credit and debit cards.
Visa's sheer reach is only half the reason to own the stock, however. The other half is the way consumer spending is evolving. Cash is slowly but surely going away, displaced by cards. The U.S. Federal Reserve reports that back in 2012, cash was used to handle 40% of purchases made within the United States. Now, that number has been dialed back to only 18%. During this time, debit and credit card usage has grown from 44% of transactions to 60%.
Yet, there's room remaining for both of these trends to continue.
This shift, of course, reflects the growing convenience of cards and the growing inconvenience of paper and coins. It's now common within the United States to purchase things like groceries or even pay your wireless phone bill with a credit card, and more so every day.
Visa may never be a high-growth stock. As long as sellers and buyers want to connect with one another, though, Visa's service will be a necessary one.
4. Adobe
You probably know the name as the developer of image-editing software Photoshop or the premier name in digital PDF (portable document file) solutions. And it still offers both.
However, Adobe (NASDAQ: ADBE) is so much more than Photoshop and PDFs. The company offers a full-blown suite of digital tools aimed at the business market. Stock photography, generative AI, 3D modeling, animation, web traffic analytics, e-commerce tools, targeted marketing, and digital data collection (and more) are all in its wheelhouse now.
That's not the evolution that makes Adobe such a worry-free investment, though. You can confidently pour at least a portion of your idle cash into it at this time because of the way it now offers its software to customers. While you can still purchase it outright on a one-time basis, most users now opt for the subscription-based, cloud-accessed versions of its tools. Not only are these tools always up to date and accessible from anywhere, but this model is also often more cost-effective for the end-user. It's good for Adobe and its investors, too, as recurring revenue is also predictable revenue.
To this end, Adobe's annualized recurring revenue run rate now stands at $14.6 billion, while $15.7 billion worth of this business is already lined up and waiting to be booked. For perspective, Adobe has done about $18.9 billion worth of business over the course of the past four quarters.
5. Coca-Cola
Last but not least, add Coca-Cola (NYSE: KO) to your list of stocks you can confidently step into right now.
Like Adobe, Procter & Gamble, Apple, and Visa, the big draw here is once again the habitual, recurring purchase of its products -- all of them. Yes, there's its market-leading namesake cola. The company isn't just carbonated beverages, though. This is also the name behind Dasani water, Gold Peak tea, Minute Maid juice, and others. It's always got a beverage product to sell someone.
The key selling feature of Coca-Cola stock, however, is its dividend. The current dividend yield is a healthy 3.2%, but more than that, it's a dividend that's been raised every single year for the past 61 years.
Don't look for this streak to be snapped anytime soon, either. See, the beverage giant has spent the past several years selling its bottling operations back to local bottlers so it can better focus on what it does best. That's marketing and licensing its flavors and brand names. And it's very, very good at it; there's a reason brand names and their corresponding brand logos are among the most recognized in the world.
While this strategic shift means less net revenue, since profit margins on royalties are much higher than margins on bottling, The Coca-Cola Company is actually set to make more net income now than it was earning then.
KO Revenue (Quarterly) data by YCharts.
As the chart above also illustrates, Coca-Cola is making far more than enough money to continue funding its dividend. It's well-shielded should temporary turbulence strike.
10 stocks we like better than Coca-Cola
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Coca-Cola 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 6, 2023
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Apple, and Visa. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe, long January 2024 $47.50 calls on Coca-Cola, 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), of course, makes the world's single most popular smartphone -- the iPhone. The popular device is increasingly a means to an end, generating additional revenue by facilitating the sale of apps, music, and video entertainment. Visa (NYSE: V) is the world's biggest credit card middleman (outside of China, anyway), handling the purchase of $14.8 trillion worth of goods and services in its recently ended fiscal year.
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Apple (NASDAQ: AAPL), of course, makes the world's single most popular smartphone -- the iPhone. Loyalty to the iOS operating system powering iPhones is sky-high, too, with market research firm Consumer Intelligence Research Partners reporting that 94% of iOS users (most of them being iPhone users) plan on sticking with the operating system when it's time to upgrade their devices. Consumer Intelligence Research Partners adds that between early last year and early this year, 15% of iPhone purchases made within the United States were made by former users of Samsung's Android smartphones.
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Apple (NASDAQ: AAPL), of course, makes the world's single most popular smartphone -- the iPhone. Loyalty to the iOS operating system powering iPhones is sky-high, too, with market research firm Consumer Intelligence Research Partners reporting that 94% of iOS users (most of them being iPhone users) plan on sticking with the operating system when it's time to upgrade their devices. Consumer Intelligence Research Partners adds that between early last year and early this year, 15% of iPhone purchases made within the United States were made by former users of Samsung's Android smartphones.
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Apple (NASDAQ: AAPL), of course, makes the world's single most popular smartphone -- the iPhone. Although the iPhone is a powerhouse product accounting for more than half of the company's revenue, it's not the only reason to step into Apple for the long haul. You can confidently pour at least a portion of your idle cash into it at this time because of the way it now offers its software to customers.
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12521.0
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2023-11-14 00:00:00 UTC
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49% of Warren Buffett's $318 Billion Portfolio Is Now Invested in 1 Surprising Stock
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AAPL
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https://www.nasdaq.com/articles/49-of-warren-buffetts-%24318-billion-portfolio-is-now-invested-in-1-surprising-stock
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Berkshire Hathaway CEO Warren Buffett has famously shied away from technology stocks for much of his career. He has given several explanations (and expressed a modicum of regret) for passing on opportunities like Microsoft and Alphabet, but they all amount to the same thing. Technology companies are generally outside his realm of expertise.
However, Buffett began to redefine his circle of competence about a decade ago when Berkshire took a substantial stake in IBM in 2011. Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). As of Sept. 30, Berkshire Hathaway had 49% of its $318 billion equity securities portfolio invested in this single technology stock.
The prevailing consensus is that Buffett was not the original decision-maker when Berkshire first bought shares in 2016. That distinction probably lies with his co-investment managers Todd Combs and Ted Weschler.
But there can be no question that Buffett has a high conviction now about Apple, based on Berkshire's huge asset allocation. As Buffett said earlier this year: "Apple is different than the other businesses we own. It just happens to be a better business."
Given his conviction, is Apple stock worth buying today?
Durable advantages built on brand authority
Buffett sees a durable competitive advantage as the most important quality a business can possess, and Apple has that in spades. It ranks as the second-most-valuable brand in the world in 2023, according to consultancy Brand Finance, and its brand authority is the source of tremendous consumer loyalty and pricing power.
Buffett called attention to those qualities during a CNBC interview earlier this year: "If you're an Apple user and somebody offers you $10,000, but the only proviso is they'll take away your iPhone and you'll never be able to buy another, you're not going to take it." Not many companies have a product that is so highly prized among consumers.
A strong presence in several consumer markets
Apple has earned a strong market presence in several consumer electronics verticals. First and foremost, it is the largest smartphone manufacturer in the U.S. (55% market share in the third quarter) and the second-largest worldwide (16% market share in the third quarter). Apple is also the fourth-largest personal computer (PC) manufacturer, and it leads the market in tablets and smartwatches.
That creates a path to mid-single-digit growth in device revenue in the coming years as the broader consumer electronics market is expected to grow at 6.6% annually through 2030, according to Grand View Research.
But Apple has an installed base north of 2 billion active devices, which creates a monetization opportunity via services like App Store sales, financial products (Apple Pay), and various subscription products like Apple Music. The company has a strong presence in a few of those markets. Most notably, Apple Pay is the most popular in-store mobile wallet among U.S. consumers, and the App Store earns twice as much revenue as its closest competitor, the Google Play Store.
That creates a path to low-double-digit growth in services revenue in the coming years as mobile app sales are expected to increase at 9% annually through 2027 and the U.S. mobile payments market is projected to increase at 13% annually over the same period.
Lackluster results (again) in the fourth quarter
Apple beat expectations on the top and bottom lines in the fiscal fourth quarter (ended Sept. 30), but the results were mediocre at best. Total revenue fell for the fourth consecutive quarter, dropping about 70 basis points. That decline was due primarily to a 34% drop in Mac sales and a 10% decline in iPad sales. But meager 3% growth in iPhone sales certainly didn't help the situation.
On the bright side, Apple reported 16% sales growth in its high-margin services business, and the company repurchased more than $15 billion in stock during the quarter. As a result, GAAP earnings increased 13% to $1.46 per diluted share.
Apple stock looks expensive in context
Apple is a well-managed business that has consistently created value for shareholders. The stock is up 271% over the last five years, nearly quadrupling the S&P 500's total return. But I am skeptical as to whether the company can deliver market-beating returns from its current valuation.
Apple stock trades at just under 30 times earnings, a premium to its five-year average of 25.8 times earnings. Worse yet, Wall Street expects Apple to grow earnings per share at 9.8% annually over the long term. That forecast makes its current valuation multiple look expensive.
Personally, I would wait for a cheaper price. But Buffett clearly has immense confidence in the company, so I certainly wouldn't fault investors for buying a small position in Apple stock today.
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 6, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends International Business Machines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). Buffett called attention to those qualities during a CNBC interview earlier this year: "If you're an Apple user and somebody offers you $10,000, but the only proviso is they'll take away your iPhone and you'll never be able to buy another, you're not going to take it." That creates a path to mid-single-digit growth in device revenue in the coming years as the broader consumer electronics market is expected to grow at 6.6% annually through 2030, according to Grand View Research.
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Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). A strong presence in several consumer markets Apple has earned a strong market presence in several consumer electronics verticals. But Apple has an installed base north of 2 billion active devices, which creates a monetization opportunity via services like App Store sales, financial products (Apple Pay), and various subscription products like Apple Music.
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Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). But Apple has an installed base north of 2 billion active devices, which creates a monetization opportunity via services like App Store sales, financial products (Apple Pay), and various subscription products like Apple Music. On the bright side, Apple reported 16% sales growth in its high-margin services business, and the company repurchased more than $15 billion in stock during the quarter.
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Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). First and foremost, it is the largest smartphone manufacturer in the U.S. (55% market share in the third quarter) and the second-largest worldwide (16% market share in the third quarter). That's right -- they think these 10 stocks are even better buys.
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12522.0
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2023-11-14 00:00:00 UTC
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This Warren Buffett Favorite Just Did Something It Hasn't Done All Year. Is It a Screaming Buy?
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AAPL
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https://www.nasdaq.com/articles/this-warren-buffett-favorite-just-did-something-it-hasnt-done-all-year.-is-it-a-screaming
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Investors love to follow what stock Warren Buffett and his team buy for his holding company, Berkshire Hathaway. His stock picks make waves in the investing world and can move the entire market.
But not all of his picks become popular stocks or become long-term winners. And even though he's rigorous about researching companies he wants to invest in and has said his favorite holding period is "forever," when the time is right, he has no qualms about selling.
Although he gives out advice freely and frankly, he rarely gives details about specific stocks. But there's one investment he's told followers over and over again to put their money in and to never bet against, and it just did something in 2023 that should give investors some confidence about its future.
The American tailwind
The investment I'm talking about isn't Apple, Coca-Cola, or Berkshire Hathaway stock itself. It's the S&P 500, and outside the individual stocks in the Berkshire Hathaway portfolio, Berkshire owns 43,000 shares of the Vanguard S&P 500 ETF (NYSEMKT: VOO). That's worth around $17 million at today's price, a drop in the bucket of the entire portfolio that's worth about $346 billion today.
Berkshire Hathaway isn't an amateur investor. It's very actively invested. So why does it own index funds?
It's not easy to beat the market, even though Buffett has done it. In bull markets, more than 80% of actively invested mutual funds could underperform the market. In 2021, 85% underperformed. Not surprisingly, it's easier to beat the market when the market is down, and only 54% of actively invested mutual funds underperformed the S&P 500 in 2022. That's still more than half.
In his most recent shareholder letter, Buffett described what he calls "the American tailwind." It's not the first time he's talked about his confidence in the future of the U.S., and he attributed his company's success to the promise and initiative of the country.
Don't bet against the market
The S&P 500 is a collection of some of the largest, most popular companies in the U.S., and altogether they drive a huge amount of the American economy. These are the companies that will be around in the future and drive economic recovery, as well as create new opportunities and future growth.
Buffett said: "I have yet to see a time when it made sense to make a long-term bet against America. And I doubt very much that any reader of this letter will have a different experience in the future." To that end, he has said that he's putting 90% of his individual portfolio into index funds for his wife after he dies.
Buffett actually made a bet with a large, well-known hedge fund to test out how well investing in an S&P 500 index fund stacks up against elite stock pickers. Buffett and five select fund managers each invested the same amount over 10 years, Buffett in an index fund, and the five managers each chose their stocks, buying and selling over the time frame.
These were the results, ended in 2017:
FUND A FUND B FUND C FUND D FUND E INDEX FUND
Final gain 21.7% 42.3% 87.7% 2.8% 27% 125.8%
Average annual gain 2% 3.6% 6.5% 0.3% 2.4% 8.5%
Data source: Berkshire Hathaway letter to shareholders, 2017.
Is the market making a comeback?
Getting back to what the market did, it just posted its best week of 2023. The year started on a high note, with investors pushing up the market to within striking distance of ending the bear market. But after gloomy economic reports and no easing up on interest rates, the market fell.
However, the most recent slate of company earnings reports illustrated that the economy is doing better than expected, and the market rallied last week. Many individual stocks soared, and the S&P 500 is now up 15% year to date.
We don't know where the market is going next, but if history is any guide it will continue to rise and create wealth over time. Even if you are choosing your own stocks, it's a good idea to having some funds put away in an index fund or ETF to further diversify your holdings and provide value. If you haven't done this yet, now is a great time.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors love to follow what stock Warren Buffett and his team buy for his holding company, Berkshire Hathaway. And even though he's rigorous about researching companies he wants to invest in and has said his favorite holding period is "forever," when the time is right, he has no qualms about selling. Don't bet against the market The S&P 500 is a collection of some of the largest, most popular companies in the U.S., and altogether they drive a huge amount of the American economy.
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Investors love to follow what stock Warren Buffett and his team buy for his holding company, Berkshire Hathaway. The American tailwind The investment I'm talking about isn't Apple, Coca-Cola, or Berkshire Hathaway stock itself. Buffett and five select fund managers each invested the same amount over 10 years, Buffett in an index fund, and the five managers each chose their stocks, buying and selling over the time frame.
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In bull markets, more than 80% of actively invested mutual funds could underperform the market. Not surprisingly, it's easier to beat the market when the market is down, and only 54% of actively invested mutual funds underperformed the S&P 500 in 2022. Buffett and five select fund managers each invested the same amount over 10 years, Buffett in an index fund, and the five managers each chose their stocks, buying and selling over the time frame.
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The American tailwind The investment I'm talking about isn't Apple, Coca-Cola, or Berkshire Hathaway stock itself. In bull markets, more than 80% of actively invested mutual funds could underperform the market. Buffett and five select fund managers each invested the same amount over 10 years, Buffett in an index fund, and the five managers each chose their stocks, buying and selling over the time frame.
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12523.0
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2023-11-14 00:00:00 UTC
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After Hours Most Active for Nov 14, 2023 : NEM, V, EDAP, NU, RBLX, QQQ, INTC, AAPL, GM, CCL, IQ, MTCH
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-14-2023-%3A-nem-v-edap-nu-rblx-qqq-intc-aapl-gm-ccl-iq-mtch
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The NASDAQ 100 After Hours Indicator is up 9.67 to 15,822.14. The total After hours volume is currently 90,416,425 shares traded.
The following are the most active stocks for the after hours session:
Newmont Corporation (NEM) is +0.05 at $36.14, with 5,205,227 shares traded.
Visa Inc. (V) is +0.04 at $246.98, with 3,509,369 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $2.35.
EDAP TMS S.A. (EDAP) is unchanged at $4.15, with 3,132,663 shares traded., following a 52-week high recorded in today's regular session.
Nu Holdings Ltd. (NU) is -0.23 at $8.60, with 3,088,784 shares traded., following a 52-week high recorded in today's regular session.
Roblox Corporation (RBLX) is +0.03 at $39.27, with 2,844,229 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is +0.4908 at $385.82, with 2,535,418 shares traded. This represents a 48.55% increase from its 52 Week Low.
Intel Corporation (INTC) is -0.02 at $39.39, with 2,480,738 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.27.
Apple Inc. (AAPL) is -0.03 at $187.41, with 2,477,364 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.59.
General Motors Company (GM) is unchanged at $28.20, with 2,345,270 shares traded.
Carnival Corporation (CCL) is +0.01 at $13.90, with 2,280,214 shares traded.
iQIYI, Inc. (IQ) is unchanged at $4.98, with 2,158,884 shares traded.IQ is scheduled to provide an earnings report on 11/21/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.07 per share, which represents a -6 percent increase over the EPS one Year Ago
Match Group, Inc. (MTCH) is -0.04 at $30.73, with 1,662,951 shares traded.
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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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. Apple Inc. (AAPL) is -0.03 at $187.41, with 2,477,364 shares traded. iQIYI, Inc. (IQ) is unchanged at $4.98, with 2,158,884 shares traded.IQ is scheduled to provide an earnings report on 11/21/2023, for the fiscal quarter ending Sep2023.
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Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. Apple Inc. (AAPL) is -0.03 at $187.41, with 2,477,364 shares traded. EDAP TMS S.A. (EDAP) is unchanged at $4.15, with 3,132,663 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is -0.03 at $187.41, with 2,477,364 shares traded. The total After hours volume is currently 90,416,425 shares traded. Visa Inc. (V) is +0.04 at $246.98, with 3,509,369 shares traded.
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Apple Inc. (AAPL) is -0.03 at $187.41, with 2,477,364 shares traded. The following are the most active stocks for the after hours session: Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024.
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12524.0
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2023-11-14 00:00:00 UTC
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Alphabet CEO, in Play store trial, acknowledges some materials not retained
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AAPL
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https://www.nasdaq.com/articles/alphabet-ceo-in-play-store-trial-acknowledges-some-materials-not-retained
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nan
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By Greg Bensinger
SAN FRANCISCO, Nov 14 (Reuters) - Alphabet CEO GOOGL.O Sundar Pichai acknowledged in federal court on Tuesday that he sometimes marked documents as "privileged" and never turned off a setting that caused internal chats to delete automatically after one day.
Pichai was in court in San Francisco to defend Alphabet's Google from a lawsuit by Epic Games that alleges its app store policies amount to an illegal monopoly and have caused consumers to pay artificially high prices.
Attorneys for Epic Games, maker of the wildly popular "Fortnite" game, appeared to be trying to establish that Pichai and Google were concealing sensitive communications that could later be used against it in a potential trial.
Jurors were shown an internal Google document reminding employees that "anything you write can become subject to review in legal discovery" as well as one of Pichai's chat histories where he requested that history be turned off, meaning messages would be erased.
“I supported all recommendations from our legal and compliance team,” Pichai said during roughly an hour of testimony led by Epic's lawyer. He largely stuck to one-word answers but was occasionally admonished by Epic Games' attorney for straying beyond simple answers.
Pichai, in examination by a Google attorney, denied he had ever tried to keep any document hidden from a lawsuit. He said he used the term "privileged" on documents to indicate "confidential" not necessarily subject to attorney-client privilege.
But he later acknowledged, under questioning from the judge, that since 2008 Google largely left it to employees to determine if their chats could be relevant to litigation. He said that policy was revised recently.
Epic Games has alleged in its lawsuit that app store policies amount to an illegal monopoly and have caused consumers to pay artificially high prices. The company wants it to be easier for Google Play users to access third-party app stores and additional payment processors for in-app purchases.
For its part, Google has said changing its systems would cause its Android-based app store to be less secure and damage its ability to compete with Apple AAPL.O. Epic’s similar lawsuit against Apple resulted in a ruling largely that was mostly favorable to Apple – both companies appealed to the U.S. Supreme Court.
Epic filed the case against Google in 2020 after “Fortnite” was removed from the app store after the Cary, North Carolina, company enabled customers to pay it directly, circumventing Google’s payment systems, which allow it to take a percentage of each transaction.
If jurors find for Epic it could radically alter the app store business, in which Google and Apple exert exclusive control of what apps are available to consumers and take a cut of roughly 30% of in-app purchases and paid downloads.
Google has settled claims over its app store with dating app maker Match Group MTCH.O and from U.S. consumers and U.S. states. Google is also facing an antitrust trial over the U.S. government’s allegations about its search dominance and is expected to have to defend itself at trial next year over its policies on digital advertising.
Separately, Pichai confirmed that Google pays Apple 36% of search revenue on iOS in order to be the default search engine, a figure that leaked on Monday in Google's antitrust trial under way in federal court in Washington, D.C.
The payments to Apple have been central to the Justice Department's case.
Google and Epic Games face off at trial over Play Store rules
(Reporting by Greg Bensinger in San Francisco Editing by Matthew Lewis)
((greg.bensinger@thomsonreuters.com; Reuters Messaging: @gregbensinger))
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 its part, Google has said changing its systems would cause its Android-based app store to be less secure and damage its ability to compete with Apple AAPL.O. By Greg Bensinger SAN FRANCISCO, Nov 14 (Reuters) - Alphabet CEO GOOGL.O Sundar Pichai acknowledged in federal court on Tuesday that he sometimes marked documents as "privileged" and never turned off a setting that caused internal chats to delete automatically after one day. Pichai was in court in San Francisco to defend Alphabet's Google from a lawsuit by Epic Games that alleges its app store policies amount to an illegal monopoly and have caused consumers to pay artificially high prices.
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For its part, Google has said changing its systems would cause its Android-based app store to be less secure and damage its ability to compete with Apple AAPL.O. Pichai was in court in San Francisco to defend Alphabet's Google from a lawsuit by Epic Games that alleges its app store policies amount to an illegal monopoly and have caused consumers to pay artificially high prices. Epic Games has alleged in its lawsuit that app store policies amount to an illegal monopoly and have caused consumers to pay artificially high prices.
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For its part, Google has said changing its systems would cause its Android-based app store to be less secure and damage its ability to compete with Apple AAPL.O. Pichai was in court in San Francisco to defend Alphabet's Google from a lawsuit by Epic Games that alleges its app store policies amount to an illegal monopoly and have caused consumers to pay artificially high prices. Epic filed the case against Google in 2020 after “Fortnite” was removed from the app store after the Cary, North Carolina, company enabled customers to pay it directly, circumventing Google’s payment systems, which allow it to take a percentage of each transaction.
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For its part, Google has said changing its systems would cause its Android-based app store to be less secure and damage its ability to compete with Apple AAPL.O. By Greg Bensinger SAN FRANCISCO, Nov 14 (Reuters) - Alphabet CEO GOOGL.O Sundar Pichai acknowledged in federal court on Tuesday that he sometimes marked documents as "privileged" and never turned off a setting that caused internal chats to delete automatically after one day. Pichai was in court in San Francisco to defend Alphabet's Google from a lawsuit by Epic Games that alleges its app store policies amount to an illegal monopoly and have caused consumers to pay artificially high prices.
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12525.0
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2023-11-14 00:00:00 UTC
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These 3 Mega-Cap Tech Companies Are Cash-Generating Machines
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https://www.nasdaq.com/articles/these-3-mega-cap-tech-companies-are-cash-generating-machines
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Companies with strong cash-generating abilities boast a highly flexible nature, as they’re better equipped to weather a potential economic downturn, can capitalize on growth opportunities, and provide investors with a sense of safety.
After all, cash is king.
And when it comes to stacking cash, mega-cap tech players – Microsoft MSFT, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. All three stocks have helped lead the market’s rebound in 2023, delivering outsized gains. Let’s take a closer look at each.
Apple
Investor-favorite Apple has rebounded in a big way in 2023, with shares up more than 40% and finding momentum following its latest quarterly results. Regarding the release, Apple exceeded the Zacks Consensus EPS Estimate by 5% and posted revenue modestly ahead of expectations.
The company generated roughly $19.4 billion in free cash flow throughout its latest period.
Image Source: Zacks Investment Research
It’s worth noting that the company’s Services revenue has been a source of growth for Apple over the recent years, though the iPhone still represents a sizable chunk of total sales overall. The company posted Services revenue of $22.3 billion in its latest release, up nicely from the year-ago period and well above the Zacks Consensus Estimate.
Apple has consistently exceeded Services revenue expectations as of late, as we can see below.
Image Source: Zacks Investment Research
Microsoft
Microsoft shares have benefited from the AI frenzy in 2023, up more than 50%. Analysts have taken their earnings expectations higher for the mega-cap giant nearly across all timeframes, helping land it into a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
The company generated roughly $20.7 billion in free cash flow throughout its latest quarter, up 22% compared to the same period last year. As we can see below, MSFT’s cash-generating abilities have rebounded nicely from 2022 lows.
Image Source: Zacks Investment Research
In addition, Microsoft is forecasted to continue growing its top and bottom line steadily, with estimates for its current year suggesting 13% earnings growth on 14% higher sales. And peeking ahead to FY25, estimates allude to a further 14% bump in earnings on 13% revenue growth.
Alphabet
Alphabet has also enjoyed positive price action amid the broader tech turnaround in 2023, with shares up nearly 50%. Analysts have been particularly bullish for its current fiscal year, with the $5.74 Zacks Consensus EPS Estimate up 13% over the last year.
Image Source: Zacks Investment Research
The Google parent posted quarterly free cash flow of $22.6 billion in its latest quarter, climbing 40% from the same period last year. As we can see below, the company’s cash-generating abilities have remained consistent post-pandemic.
Image Source: Zacks Investment Research
Shares presently trade at a 23.0X forward earnings multiple (F1), below the 24.2X five-year median and five-year highs of 39.1X. The stock presently sports a Style Score of “D” for Value.
Bottom Line
Companies boasting strong cash-generating abilities can be great investments, as they have plenty of cash to fuel growth, pay dividends, and easily wipe out debt.
And as mentioned above, these companies are better equipped to handle an economic downturn, which is undeniably a positive.
For those seeking cash-generators, all three above – Microsoft MSFT, Apple AAPL, and Alphabet GOOGL – fit the criteria.
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 >>
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And when it comes to stacking cash, mega-cap tech players – Microsoft MSFT, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. For those seeking cash-generators, all three above – Microsoft MSFT, Apple AAPL, and Alphabet GOOGL – fit the criteria. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. And when it comes to stacking cash, mega-cap tech players – Microsoft MSFT, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. For those seeking cash-generators, all three above – Microsoft MSFT, Apple AAPL, and Alphabet GOOGL – fit the criteria.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. And when it comes to stacking cash, mega-cap tech players – Microsoft MSFT, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. For those seeking cash-generators, all three above – Microsoft MSFT, Apple AAPL, and Alphabet GOOGL – fit the criteria.
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And when it comes to stacking cash, mega-cap tech players – Microsoft MSFT, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. For those seeking cash-generators, all three above – Microsoft MSFT, Apple AAPL, and Alphabet GOOGL – fit the criteria. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12526.0
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2023-11-14 00:00:00 UTC
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3 Meme Stocks That Are Here for the Long Haul
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https://www.nasdaq.com/articles/3-meme-stocks-that-are-here-for-the-long-haul
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The release of “Dumb Money” has sparked renewed attention in meme stocks to buy and hold, shedding light on the 2021 retail trading frenzy. The interest in meme stocks led to the widespread popularity of stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) which seemingly offered nothing for the savvy investor, marking an important chapter in financial history.
However, investors are quick to dismiss meme stocks as mere social media fads lacking solid fundamentals and attractive growth trajectories. The trending meme stocks discussed in this article are three of the biggest winners in the stock market this year, offering robust long-term upside. Therefore, it is imperative to understand the fusion of finance and online trends show meme stocks as enduring, not temporary. They represent a fresh aspect of investing, where classic strategies merge with modern trends, offering long-lasting opportunities for investors.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Tech titan Apple (NASDAQ:AAPL) never ceases to amaze. The launch of the iPhone 15 sent ripples across the industry, particularly in challenging markets such as China. Additionally, the iPhone 15 Pro Max boasts an extraordinary 50-day average fulfillment period, as reported by JPMorgan (NYSE:JPM) in September, underscoring its skyrocketing demand.
Moreover, the company introduced the Vision Pro augmented reality headset, a groundbreaking venture that marks Apple’s most significant consumer product unveiling in over a decade. Furthermore, Apple’s financial strength remains unchallenged, with a market capitalization that has ballooned over the $2.9 trillion mark. The latest quarterly figures are a testament to this, with remarkable sales of $89.5 billion and net income soaring to $22.96 billion. TipRanks analysts are echoing this success, predicting a Strong Buy with an 9% upside. This financial prowess, coupled with innovative launches, cements Apple’s dominance in the market.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META), boasting over three billion users across its services, remains a digital powerhouse. The company is making waves this year with an emphatic comeback as it makes its foray into AI. The debut of its large Llama language model earlier this year was a strategic move to rival titans such as OpenAI’s ChatGPT. Consequently, the unveiling of Llama 2 further highlights Meta’s commitment to innovation and attracting top developer talent.
At Meta Connect 2023, Meta showcased the Quest 3 VR headset, a tech marvel with a Snapdragon XR2 Gen 2 chipset, and an innovative “pass-through” feature for improved realism. Additionally, the company revealed the Ray-Ban Meta Smart Glasses, with unique frames, enhanced audio and camera features, poised to further expand Meta’s prowess in everyday wearables.
Reflecting this optimism, Meta’s stock performance has been stellar, soaring over 164% year-to-date. Additionally, the average analyst target for the stock at an impressive $381. That points to Meta’s potential for long-term growth in the ever-evolving tech landscape.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA), a GPU powerhouse, is rapidly advancing in the AI sector, fueled by high demand for its AI training and inference chips. This growing interest is mirrored in its vigorous growth and strategic integration of HGX systems across major cloud platforms, highlighting Nvidia’s technological prowess.
Moreover, Nvidia’s stock showcases extraordinary growth, climbing 240% year-to-date and trading at $483. As a standout in the S&P 500 index this year, NVDA’s market capitalization surpassed the whopping $1 trillion mark. That remarkable surge reflects the company’s robust position in the AI sphere and its ability to consistently innovate.
Furthermore, Citi (NASDAQ:C) analysts forecasted that NVDA will maintain an impressive 90% market share in the AI GPU chip segment over the next few years. That projection, coupled with a Strong Buy rating from TipRanks analysts and a predicted 34% upside, positions Nvidia as a company with a clear trajectory towards even greater heights.
On the date of publication, Muslim Farooque 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.
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 3 Meme Stocks That Are Here for the Long Haul appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Tech titan Apple (NASDAQ:AAPL) never ceases to amaze. Additionally, the iPhone 15 Pro Max boasts an extraordinary 50-day average fulfillment period, as reported by JPMorgan (NYSE:JPM) in September, underscoring its skyrocketing demand. Moreover, the company introduced the Vision Pro augmented reality headset, a groundbreaking venture that marks Apple’s most significant consumer product unveiling in over a decade.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Tech titan Apple (NASDAQ:AAPL) never ceases to amaze. Meta Platforms (META) Source: Blue Planet Studio / Shutterstock.com Meta Platforms (NASDAQ:META), boasting over three billion users across its services, remains a digital powerhouse. Nvidia (NVDA) Source: Evolf / Shutterstock.com Nvidia (NASDAQ:NVDA), a GPU powerhouse, is rapidly advancing in the AI sector, fueled by high demand for its AI training and inference chips.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Tech titan Apple (NASDAQ:AAPL) never ceases to amaze. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The release of “Dumb Money” has sparked renewed attention in meme stocks to buy and hold, shedding light on the 2021 retail trading frenzy. The trending meme stocks discussed in this article are three of the biggest winners in the stock market this year, offering robust long-term upside.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Tech titan Apple (NASDAQ:AAPL) never ceases to amaze. The trending meme stocks discussed in this article are three of the biggest winners in the stock market this year, offering robust long-term upside. Meta Platforms (META) Source: Blue Planet Studio / Shutterstock.com Meta Platforms (NASDAQ:META), boasting over three billion users across its services, remains a digital powerhouse.
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12527.0
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2023-11-14 00:00:00 UTC
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Berkshire sheds General Motors, Procter & Gamble as it builds cash
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https://www.nasdaq.com/articles/berkshire-sheds-general-motors-procter-gamble-as-it-builds-cash
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By Jonathan Stempel
Nov 14 (Reuters) - Berkshire Hathaway BRKa.N said on Tuesday it has shed its holdings in General Motors GM.N and Procter & Gamble PG.N, and trimmed its stake in Amazon.com AMZN.O, as the conglomerate controlled by billionaire Warren Buffett boosted its cash pile to a record $157.2 billion.
In a regulatory filing detailing its U.S.-listed stock holdings as of Sept. 30, Berkshire reported no holdings in GM and P&G, after reporting stakes of $848 million and $48 million in June, and said it reduced its stake in Amazon by 5%.
Berkshire also appeared to have shed what had been a $621 million stake in Celanese CE.N, a specialty materials company.
One new position was an $8 million stake in Atlanta Braves Holdings BATRA.O, which indirectly controls the Major League Baseball team and The Battery Atlanta, a mixed-use development next to the Braves' Truist Park.
The Braves had been split off from Liberty Media LBYTA.O, another Berkshire investment, in July.
Tuesday's filing detailed investments that comprised most of Omaha, Nebraska-based Berkshire's equity portfolio, which totaled $318.6 billion as of Sept. 30.
Berkshire sold $7 billion of stocks, including some of its big investment in Chevron CVX.N, and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%.
For all of 2023, Berkshire has sold $23.6 billion more stocks than it has bought.
The net sales contributed to Berkshire's record cash stake, which is about the same size as its $156.8 billion stake in iPhone maker Apple AAPL.O.
Berkshire's filing does not say which investments are Buffett's, which are from his portfolio managers Todd Combs and Ted Weschler, and why the investments were made.
Larger investments are normally Buffett's, and investors often try to piggyback on Berkshire's trading, reflecting Buffett's reputation as one of the world's greatest investors.
To that end, Berkshire decided not to disclose one or more of its holdings, and said it has asked the U.S. Securities and Exchange Commission for confidential treatment.
Berkshire has occasionally requested such treatment for major investments, including multi-billion-dollar stakes in IBM IBM.N and Exxon Mobil XOM.N more than a decade ago. Neither appears to be a current Berkshire investment.
In other third-quarter sales, Berkshire finished exiting video game maker Activision Blizzard, which was bought by Microsoft MSFT.O last month, and reduced its holdings in life insurer Globe Life GL.N.
Berkshire also shed about two-thirds of its stake in Markel Group MKL.N, a notable change given that some investors have in recent years viewed the insurance and investment company as a "mini-Berkshire."
Buffett, 93, has run Berkshire since 1965.
His conglomerate also owns dozens of businesses including the Geico car insurer, BNSF railroad, energy and industrial companies, and consumer brands such as Benjamin Moore, Dairy Queen, Duracell, Fruit of the Loom and See's Candies.
(Reporting by Jonathan Stempel in New York; Editing by Christian Schmollinger and 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 sold $7 billion of stocks, including some of its big investment in Chevron CVX.N, and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. The net sales contributed to Berkshire's record cash stake, which is about the same size as its $156.8 billion stake in iPhone maker Apple AAPL.O. By Jonathan Stempel Nov 14 (Reuters) - Berkshire Hathaway BRKa.N said on Tuesday it has shed its holdings in General Motors GM.N and Procter & Gamble PG.N, and trimmed its stake in Amazon.com AMZN.O, as the conglomerate controlled by billionaire Warren Buffett boosted its cash pile to a record $157.2 billion.
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Berkshire sold $7 billion of stocks, including some of its big investment in Chevron CVX.N, and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. The net sales contributed to Berkshire's record cash stake, which is about the same size as its $156.8 billion stake in iPhone maker Apple AAPL.O. In a regulatory filing detailing its U.S.-listed stock holdings as of Sept. 30, Berkshire reported no holdings in GM and P&G, after reporting stakes of $848 million and $48 million in June, and said it reduced its stake in Amazon by 5%.
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Berkshire sold $7 billion of stocks, including some of its big investment in Chevron CVX.N, and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. The net sales contributed to Berkshire's record cash stake, which is about the same size as its $156.8 billion stake in iPhone maker Apple AAPL.O. By Jonathan Stempel Nov 14 (Reuters) - Berkshire Hathaway BRKa.N said on Tuesday it has shed its holdings in General Motors GM.N and Procter & Gamble PG.N, and trimmed its stake in Amazon.com AMZN.O, as the conglomerate controlled by billionaire Warren Buffett boosted its cash pile to a record $157.2 billion.
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The net sales contributed to Berkshire's record cash stake, which is about the same size as its $156.8 billion stake in iPhone maker Apple AAPL.O. Berkshire sold $7 billion of stocks, including some of its big investment in Chevron CVX.N, and bought just $1.7 billion in the third quarter, a down period for its stock holdings led by Apple AAPL.O, whose share price fell 12%. In a regulatory filing detailing its U.S.-listed stock holdings as of Sept. 30, Berkshire reported no holdings in GM and P&G, after reporting stakes of $848 million and $48 million in June, and said it reduced its stake in Amazon by 5%.
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12528.0
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2023-11-14 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-5
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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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12529.0
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2023-11-14 00:00:00 UTC
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Apple supplier Foxconn posts surprise rise in quarterly profit
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-posts-surprise-rise-in-quarterly-profit
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nan
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nan
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Recasts, adds details on outlook, paragraphs 4-6
TAIPEI, Nov 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Tuesday a surprise 11% increase in third-quarter profit, boosted by strong demand for smart consumer electronics ahead of the year-end holiday shopping season in Western markets.
The Taiwanese company, the world's largest contract electronics maker, said net profit for the July-September quarter rose to T$43.1 billion ($1.3 billion) from T$38.8 billion in the same period the previous year.
The profit beat a T$34.5 billion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.
Foxconn said revenue for the fourth quarter would slightly decline year on year, but did not give a reason and maintained its outlook for full-year revenue to also slightly decline.
The world's biggest assembler of iPhones said it expects revenue for its smart consumer electronics division, which includes smartphones, to also fall slightly in the fourth quarter. The division makes up about half of Foxconn's total revenue.
($1 = 32.3430 Taiwan dollars)
(Reporting by Yimou Lee and Sarah Wu; Editing by Anne Marie Roantree and Edwina Gibbs)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts, adds details on outlook, paragraphs 4-6 TAIPEI, Nov 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Tuesday a surprise 11% increase in third-quarter profit, boosted by strong demand for smart consumer electronics ahead of the year-end holiday shopping season in Western markets. The profit beat a T$34.5 billion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. The world's biggest assembler of iPhones said it expects revenue for its smart consumer electronics division, which includes smartphones, to also fall slightly in the fourth quarter.
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Recasts, adds details on outlook, paragraphs 4-6 TAIPEI, Nov 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Tuesday a surprise 11% increase in third-quarter profit, boosted by strong demand for smart consumer electronics ahead of the year-end holiday shopping season in Western markets. Foxconn said revenue for the fourth quarter would slightly decline year on year, but did not give a reason and maintained its outlook for full-year revenue to also slightly decline. The world's biggest assembler of iPhones said it expects revenue for its smart consumer electronics division, which includes smartphones, to also fall slightly in the fourth quarter.
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Recasts, adds details on outlook, paragraphs 4-6 TAIPEI, Nov 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Tuesday a surprise 11% increase in third-quarter profit, boosted by strong demand for smart consumer electronics ahead of the year-end holiday shopping season in Western markets. The Taiwanese company, the world's largest contract electronics maker, said net profit for the July-September quarter rose to T$43.1 billion ($1.3 billion) from T$38.8 billion in the same period the previous year. Foxconn said revenue for the fourth quarter would slightly decline year on year, but did not give a reason and maintained its outlook for full-year revenue to also slightly decline.
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Recasts, adds details on outlook, paragraphs 4-6 TAIPEI, Nov 14 (Reuters) - Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Tuesday a surprise 11% increase in third-quarter profit, boosted by strong demand for smart consumer electronics ahead of the year-end holiday shopping season in Western markets. The Taiwanese company, the world's largest contract electronics maker, said net profit for the July-September quarter rose to T$43.1 billion ($1.3 billion) from T$38.8 billion in the same period the previous year. The world's biggest assembler of iPhones said it expects revenue for its smart consumer electronics division, which includes smartphones, to also fall slightly in the fourth quarter.
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12530.0
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2023-11-14 00:00:00 UTC
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51.4% of Warren Buffett's $348 Billion Berkshire Hathaway Portfolio Is Invested in These 2 Artificial Intelligence (AI) Stocks
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AAPL
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https://www.nasdaq.com/articles/51.4-of-warren-buffetts-%24348-billion-berkshire-hathaway-portfolio-is-invested-in-these-2
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nan
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nan
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Fool.com contributor Parkev Tatevosian highlights two artificial intelligence (AI) stocks that Warren Buffett owns in his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio.
*Stock prices used were the afternoon prices of Nov. 12, 2023. The video was published on Nov. 14, 2023.
10 stocks we like better than Apple
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*Stock Advisor returns as of November 6, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. If you choose to subscribe through his link, he will earn some extra money that supports his channel.
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Fool.com contributor Parkev Tatevosian highlights two artificial intelligence (AI) stocks that Warren Buffett owns in his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway.
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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. See the 10 stocks *Stock Advisor returns as of November 6, 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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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. His opinions remain his own and are unaffected by The Motley Fool.
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12531.0
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2023-11-14 00:00:00 UTC
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Qualcomm Stock (NASDAQ:QCOM): Are Good Days Ahead for the Chipmaker?
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AAPL
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https://www.nasdaq.com/articles/qualcomm-stock-nasdaq%3Aqcom%3A-are-good-days-ahead-for-the-chipmaker
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nan
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Chipmaker Qualcomm (NASDAQ:QCOM) had a difficult year, owing to macroeconomic pressures weighing on consumer spending. However, with the global smartphone market on the mend, things are starting to look up for QCOM. Wall Street also remains hopeful of Qualcomm's future, given management's belief in stabilizing market dynamics. Also, AI-driven opportunities may improve Qualcomm's fundamentals in the coming years, which is why I am bullish on QCOM stock.
Macroeconomic Headwinds Strained Qualcomm’s Fiscal 2023
Qualcomm's success has relied on its innovative chipsets, particularly the Snapdragon series. These chipsets power a vast range of devices, from smartphones, tablets, and wearables to automotive systems.
However, Fiscal 2023 turned out to be not so positive for the chipmaker, led by a slowdown in smartphone sales. Rising inflation has put a damper on consumer spending on discretionary products such as electronics and smartphones. Its latest fourth-quarter Fiscal 2023 results were also gloomy, disappointing investors. The stock has gained a mere 18.2% YTD, which is not great compared to the massive gains its peers in the semiconductor industry have achieved so far in 2023.
In Q4, its revenue declined by 24% year-over-year to $8.7 billion, beating consensus estimates by $146 million. Meanwhile, earnings per share (EPS) for the quarter fell by 35% to $2.02, surpassing estimates by $0.11. For the full Fiscal year, revenue and earnings declined by 19% and 33%, respectively.
Notably, Qualcomm’s operations are distinguished by two segments: QCT (Qualcomm CDMA Technologies), which represents its chip business, and QTL (Qualcomm Technology Licensing), which covers its licensing business. In Fiscal 2023, QCT accounted for about 85% of its total revenue.
Let’s break down its revenue for the QCT segment (chip sales). The market’s lukewarm demand for new smartphones led to a 22% decline in Handset chip sales in Fiscal 2023, while its IoT (Internet of Things) chip sales dropped 19.2% year-over-year. Qualcomm's Automotive chip sales, on the other hand, stood out with a 24% increase from Fiscal 2022.
As the automotive industry continues to evolve, Qualcomm’s Snapdragon Digital Chassis remains an essential part of this digital transformation. In the Q4earnings call CEO Cristiano Renno Amon highlighted the company’s new long-term strategic deal with Amazon’s (NASDAQ:AMZN) AWS (Amazon Web Services) "to enable automakers to integrate cloud technologies into their vehicle development life cycle.”
What’s more, Qualcomm is also a dividend stock that has a dividend yield of 2.6%, significantly higher than the S&P 500’s (SPX) average yield of 1.6%. The company generated $9.8 billion in free cash flow in Fiscal 2023, out of which it used $3.5 billion to pay dividends and $3 billion to repurchase shares. It also ended Fiscal 2023 with a strong balance sheet with $11.3 billion in cash, cash equivalents, and marketable securities.
Fiscal 2024 Could Turn Around QCOM's Fortunes
Going into 2024, according to International Data Corporation, the global smartphone market is expected to recover by 4.5% year-over-year. This recovery could help boost demand for Qualcomm’s products.
While other chip makers like Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) are ramping up their AI efforts, Qualcomm is raising the stakes in the game as well.
In its annual Snapdragon Summit event in October, the company unveiled two new generative AI-integrated chips, the Snapdragon 8 Gen 3 for smartphones and the Snapdragon X Elite for the personal computer (PC) market. For improved audio experiences, it also unveiled the AI-powered S7 and S7 Pro Gen 1 sound platforms.
Qualcomm’s efforts to stay current with the evolving tech industry by incorporating AI into all its products and services are positioning it for more growth. Furthermore, in the fourth quarter, Qualcomm also announced a deal with Apple (NASDAQ:AAPL) to supply Snapdragon 5G Modem-RF Systems for smartphone launches from 2024-26.
Looking ahead, management sees signs of stabilization in the demand for 3G, 4G, and 5G handsets worldwide. Hence, the company now forecasts Q1 Fiscal 2024 revenue in the range of $9.1 billion to $9.9 billion and EPS between $2.25 and $2.45.
If Qualcomm meets the upper end of the guidance, that would mean 5% revenue and 3.4% earnings growth over the year-ago period. Along with an amazing sequential growth of 14% in revenue and 21.3% in earnings, it would also signal the global smartphone market's recovery. Meanwhile, analysts forecast revenue of $9.5 billion and EPS of $2.36 for Fiscal Q1 2024.
Although Qualcomm did not provide full-year guidance for Fiscal 2024, the outlook for the start of the fiscal year appears encouraging. Analysts foresee its revenue and earnings to show year-over-year growth of 5.5% and 9.3%, respectively. Currently, Qualcomm trades at 13.4 times its projected 2024 earnings. For a growth stock with AI capabilities, its valuation seems fair.
Is Qualcomm a Buy, According to Analysts?
Following Qualcomm’s fourth-quarter results, TD Cowen analyst Matt Ramsay reaffirmed his Buy rating on the stock with a target price of $145.00. The analyst finds Qualcomm's successful foray into the PC space and its commanding presence in the Android handset market to be impressive. Additionally, DZ Bank also upgraded QCOM stock to Buy from Hold, assigning a price target of $140.
Meanwhile, after QCOM's Q4 earnings, JPMorgan (NYSE:JPM) analyst Samik Chatterjee now believes Qualcomm “finally reported an end to the downward spiral” with its rosy outlook for Q1 Fiscal 2024. The analyst has a Buy rating on the stock and raised its price target from $135 to $140.
Out of the 21 analysts covering Qualcomm stock, 14 recommend a Buy, six recommend a Hold, and one recommends a Sell, giving the stock a Moderate Buy rating. The average QCOM stock price target is $135.83, implying 7% upside potential over the next 12 months.
The Takeaway
Qualcomm still plays a pivotal role in shaping the future of technology as we delve deeper into the 5G, IoT, and AI era. Its relentless pursuit of innovation, coupled with its diverse product portfolio and improving market dynamics, may all contribute to stronger revenue and profit growth in the years to come. For this reason, I remain cautiously optimistic that good days are ahead for Qualcomm.
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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Furthermore, in the fourth quarter, Qualcomm also announced a deal with Apple (NASDAQ:AAPL) to supply Snapdragon 5G Modem-RF Systems for smartphone launches from 2024-26. In the Q4earnings call CEO Cristiano Renno Amon highlighted the company’s new long-term strategic deal with Amazon’s (NASDAQ:AMZN) AWS (Amazon Web Services) "to enable automakers to integrate cloud technologies into their vehicle development life cycle.” What’s more, Qualcomm is also a dividend stock that has a dividend yield of 2.6%, significantly higher than the S&P 500’s (SPX) average yield of 1.6%. Meanwhile, after QCOM's Q4 earnings, JPMorgan (NYSE:JPM) analyst Samik Chatterjee now believes Qualcomm “finally reported an end to the downward spiral” with its rosy outlook for Q1 Fiscal 2024.
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Furthermore, in the fourth quarter, Qualcomm also announced a deal with Apple (NASDAQ:AAPL) to supply Snapdragon 5G Modem-RF Systems for smartphone launches from 2024-26. Notably, Qualcomm’s operations are distinguished by two segments: QCT (Qualcomm CDMA Technologies), which represents its chip business, and QTL (Qualcomm Technology Licensing), which covers its licensing business. The market’s lukewarm demand for new smartphones led to a 22% decline in Handset chip sales in Fiscal 2023, while its IoT (Internet of Things) chip sales dropped 19.2% year-over-year.
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Furthermore, in the fourth quarter, Qualcomm also announced a deal with Apple (NASDAQ:AAPL) to supply Snapdragon 5G Modem-RF Systems for smartphone launches from 2024-26. Macroeconomic Headwinds Strained Qualcomm’s Fiscal 2023 Qualcomm's success has relied on its innovative chipsets, particularly the Snapdragon series. Notably, Qualcomm’s operations are distinguished by two segments: QCT (Qualcomm CDMA Technologies), which represents its chip business, and QTL (Qualcomm Technology Licensing), which covers its licensing business.
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Furthermore, in the fourth quarter, Qualcomm also announced a deal with Apple (NASDAQ:AAPL) to supply Snapdragon 5G Modem-RF Systems for smartphone launches from 2024-26. For the full Fiscal year, revenue and earnings declined by 19% and 33%, respectively. Qualcomm’s efforts to stay current with the evolving tech industry by incorporating AI into all its products and services are positioning it for more growth.
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12532.0
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2023-11-14 00:00:00 UTC
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Microsoft, Google will not challenge EU gatekeeper status
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AAPL
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https://www.nasdaq.com/articles/microsoft-google-will-not-challenge-eu-gatekeeper-status
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nan
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nan
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By Foo Yun Chee and Supantha Mukherjee
BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft and Google will not challenge an EU law requiring them to make it easier for users to move between competing services such as social media platforms and internet browsers.
As part of its latest crackdown on Big Tech, the European Union in September picked 22 "gatekeeper" services, run by six of the world's biggest tech companies, to face new rules .
The Digital Markets Act (DMA) requires these gatekeepers to inter-operate their messaging apps with competitors and allow users to decide which apps they pre-install on their devices.
The DMA will apply to services from Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance.
Those disagreeing with the label and its requirements have until Nov. 16 to take their complaint to the Luxembourg-based General Court, which deals with cases ranging from competition law to trade and the environment.
A Google spokesperson said it will not appeal the decision.
Alphabet's Google has the highest number of services, including its Android operating system, maps and search, which will face tougher rules under the DMA.
Google has adopted a strategy in recent years of working rather than fighting EU regulators, and it would be hard for the company to win as it is the dominant player, according to sources familiar with the matter.
Companies such as Zalando ZALG.DE and Amazon have challenged the Digital Services Act (DSA), seen as a companion legislation to the DMA, which imposes greater responsibilities on tech firms for the content shared on their sites.
Amazon, which had previously said it will continue to work constructively with the European Commission, declined comment.
"We accept our designation as a gatekeeper under the Digital Markets Act and will continue to work with the European Commission to meet the obligations imposed on Windows and LinkedIn under the DMA," a Microsoft spokesperson said.
Industry sources told Reuters that other companies such as TikTok and Meta could likely file challenges. Meta's Facebook, Instagram, Marketplace, and WhatsApp qualified as gatekeepers.
Meta and TikTok declined to comment.
TikTok earlier said that it fundamentally disagreed with the gatekeeper designation.
Apple, which Bloomberg News reported on Friday is also likely to challenge its designation, did not respond to requests for comment.
(Reporting by Foo Yun Chee in Brussels and Supantha Mukherjee in Stockholm; Editing by Sharon Singleton and Alexander Smith)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.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 DMA will apply to services from Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft and Google will not challenge an EU law requiring them to make it easier for users to move between competing services such as social media platforms and internet browsers. Companies such as Zalando ZALG.DE and Amazon have challenged the Digital Services Act (DSA), seen as a companion legislation to the DMA, which imposes greater responsibilities on tech firms for the content shared on their sites.
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The DMA will apply to services from Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft and Google will not challenge an EU law requiring them to make it easier for users to move between competing services such as social media platforms and internet browsers. The Digital Markets Act (DMA) requires these gatekeepers to inter-operate their messaging apps with competitors and allow users to decide which apps they pre-install on their devices.
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The DMA will apply to services from Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft and Google will not challenge an EU law requiring them to make it easier for users to move between competing services such as social media platforms and internet browsers. Companies such as Zalando ZALG.DE and Amazon have challenged the Digital Services Act (DSA), seen as a companion legislation to the DMA, which imposes greater responsibilities on tech firms for the content shared on their sites.
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The DMA will apply to services from Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. "We accept our designation as a gatekeeper under the Digital Markets Act and will continue to work with the European Commission to meet the obligations imposed on Windows and LinkedIn under the DMA," a Microsoft spokesperson said. Industry sources told Reuters that other companies such as TikTok and Meta could likely file challenges.
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12533.0
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2023-11-14 00:00:00 UTC
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Trusting the Magnificent Seven Stocks
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AAPL
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https://www.nasdaq.com/articles/trusting-the-magnificent-seven-stocks
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nan
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nan
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A
t times it can be a struggle to believe in the overall direction of the stock market, particularly as uncertainty remains with regards to interest rates and anticipating the Federal Reserve’s next policy decision. But when it comes to the "Magnificent Seven" stocks, so named by Bank of America analyst Michael Hartnett, there are plenty of the reasons to remain optimistic.
Hartnett earlier this year used the phrase "Magnificent Seven" to describe a basket of seven stocks: Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). These mega-cap tech giants, which are largely focused on secular growth trends such as artificial intelligence, cloud computing, and cutting edge hardware and software, have powered the broad market rally we have seen.
However, given that these seven mega-caps account for a massive sway over the S&P, an argument can be made as to whether the rally is as “broad” as it is believed to be. As of Friday’s close, the S&P 500 index is up nearly 15% year to date. However, without the cap weighting of the Magnificent Seven, the S&P 500 would be in negative territory for the year. This speaks to how heavily concentrated this trade currently is. Based on the holdings of active long-only funds through the end of September, 90% of funds hold Microsoft stock, for example.
Apple and Amazon were both held by more than 70% active long-only funds through the end of September. This was followed by Alphabet, Meta and Nvidia which are held by more than 60% of funds, while Tesla was held by 40% of funds. The least ownership reflects the most buying potential. In this case, Tesla would have the most upside from current levels. In fact, when looking at long-only funds relative to the S&P weighting, Apple and Tesla are the only ones among the Magnificent Seven with an underweight position.
As another sign of bullishness on the Magnificent Seven, the short interest on them is currently at an all-time low at slightly above 1% of market cap. Last week, CNBC’s Jim Cramer reminded investors of how hard it is to stick with Magnificent Seven. “You had to fight so many trends, so many obvious pain points, so many outspoken naysayers” Cramer said. “Remember, as obvious as these winners seem in retrospect, it was very easy to get shaken out.” Cramer explained the reason why these companies are “among the most heavily-traded in the business,” but he also pointed out believes they should be held instead.
While the heavy concentration is the stocks might be reason for concern, Cramer’s reasoning is correct. With their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence, the seven stocks have more than doubled the return of the S&P 500 over the past decade. Armed with tons of cash on their balance sheets, strong cash flows and excellent leadership, the Magnificent Seven are well-positioned to continue leading their respective markets over time.
For example, Nvidia’s prominent role in making chips that powers artificial intelligence is still in the early stages. Microsoft’s early dominance in AI and its ability to monetize its AI investments will continue to drive the stock higher. Tesla is in the same early stages of its self-driving platform, while Amazon, Google, Apple and Meta and developing high-margin services, and in some cases, cloud solutions that will benefit both consumers and the enterprise in the next decade.
In other words, even as the Magnificent Seven stocks are at a combined market capitalization of more than $10 trillion, there are still many reasons to expect them to continue to rise over time.
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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Hartnett earlier this year used the phrase "Magnificent Seven" to describe a basket of seven stocks: Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). t times it can be a struggle to believe in the overall direction of the stock market, particularly as uncertainty remains with regards to interest rates and anticipating the Federal Reserve’s next policy decision. These mega-cap tech giants, which are largely focused on secular growth trends such as artificial intelligence, cloud computing, and cutting edge hardware and software, have powered the broad market rally we have seen.
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Hartnett earlier this year used the phrase "Magnificent Seven" to describe a basket of seven stocks: Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). These mega-cap tech giants, which are largely focused on secular growth trends such as artificial intelligence, cloud computing, and cutting edge hardware and software, have powered the broad market rally we have seen. Based on the holdings of active long-only funds through the end of September, 90% of funds hold Microsoft stock, for example.
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Hartnett earlier this year used the phrase "Magnificent Seven" to describe a basket of seven stocks: Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). This was followed by Alphabet, Meta and Nvidia which are held by more than 60% of funds, while Tesla was held by 40% of funds. In other words, even as the Magnificent Seven stocks are at a combined market capitalization of more than $10 trillion, there are still many reasons to expect them to continue to rise over time.
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Hartnett earlier this year used the phrase "Magnificent Seven" to describe a basket of seven stocks: Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). These mega-cap tech giants, which are largely focused on secular growth trends such as artificial intelligence, cloud computing, and cutting edge hardware and software, have powered the broad market rally we have seen. While the heavy concentration is the stocks might be reason for concern, Cramer’s reasoning is correct.
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12534.0
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2023-11-14 00:00:00 UTC
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The 1 Best Reason to Sell Apple Stock Now May Be a Surprise
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AAPL
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https://www.nasdaq.com/articles/the-1-best-reason-to-sell-apple-stock-now-may-be-a-surprise
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nan
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nan
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Apple (NASDAQ: AAPL) shares have continued to move higher after the company reported relatively lackluster quarterly results in early November. After so many years of success, should investors be thinking about selling their shares? In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down Apple's results and what's going on with its business, and share their -- potentially surprising -- thoughts on selling shares now.
*Stock prices used were from the morning of Nov. 10, 2023. The video was published on Nov 13, 2023.
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Jason Hall has no position in any of the stocks mentioned. Jeff Santoro has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Jason Hall 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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Apple (NASDAQ: AAPL) shares have continued to move higher after the company reported relatively lackluster quarterly results in early November. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Apple (NASDAQ: AAPL) shares have continued to move higher after the company reported relatively lackluster quarterly results in early November. In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down Apple's results and what's going on with its business, and share their -- potentially surprising -- thoughts on selling shares now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
|
Apple (NASDAQ: AAPL) shares have continued to move higher after the company reported relatively lackluster quarterly results in early November. In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down Apple's results and what's going on with its business, and share their -- potentially surprising -- thoughts on selling shares now. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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Apple (NASDAQ: AAPL) shares have continued to move higher after the company reported relatively lackluster quarterly results in early November. In this video, Motley Fool contributors Jason Hall and Jeff Santoro break down Apple's results and what's going on with its business, and share their -- potentially surprising -- thoughts on selling shares now. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Jason Hall has no position in any of the stocks mentioned.
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12535.0
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2023-11-14 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Broadcom, Adobe, NextEra Energy and Enbridge
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-broadcom-adobe-nextera-energy-and-enbridge
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For Immediate Release
Chicago, IL – November 14, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Broadcom Inc. AVGO, Adobe Inc. ADBE, NextEra Energy, Inc. NEE and Enbridge Inc. ENB.
Here are highlights from Monday’s Analyst Blog:
Top Stock Reports for Apple, Broadcom and Adobe
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Broadcom Inc. and Adobe Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Apple shares have only modestly done better than the Zacks Tech sector this year (+43.4% vs. +41.3%), but they have handily outperformed the broader market (+43.4% vs. +16% for the S&P 500 index). The company expects iPhone and Services' year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter. Apple launched four new iPhone models at its product launch event on Sep 12.
Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available. Apple is benefiting from increasing customer engagement in the services segment.
The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
(You can read the full research report on Apple here >>>)
Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+74.4% vs. +54.9%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises.
Broadcom expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022. Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom's prospects.
Expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year.
(You can read the full research report on Broadcom here >>>)
Adobe shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+77.5% vs. +51.3%). The company is benefiting from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth.
Rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe's commerce offerings and growing adoption of Acrobat.
The Zacks analyst remains optimistic about Adobe's market position, compelling product lines and continued innovation. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
Other noteworthy reports we are featuring today include NextEra Energy, Inc. and Enbridge Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : 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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Stocks recently featured in the blog include: Apple Inc. AAPL, Broadcom Inc. AVGO, Adobe Inc. ADBE, NextEra Energy, Inc. NEE and Enbridge Inc. ENB. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Broadcom Inc. AVGO, Adobe Inc. ADBE, NextEra Energy, Inc. NEE and Enbridge Inc. ENB. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Broadcom Inc. and Adobe Inc.
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Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Broadcom Inc. AVGO, Adobe Inc. ADBE, NextEra Energy, Inc. NEE and Enbridge Inc. ENB. Here are highlights from Monday’s Analyst Blog: Top Stock Reports for Apple, Broadcom and Adobe The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Broadcom Inc. AVGO, Adobe Inc. ADBE, NextEra Energy, Inc. NEE and Enbridge Inc. ENB. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Broadcom Inc. and Adobe Inc.
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12536.0
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2023-11-14 00:00:00 UTC
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Microsoft, Google to not challenge EU gatekeeper designation
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AAPL
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https://www.nasdaq.com/articles/microsoft-google-to-not-challenge-eu-gatekeeper-designation
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By Foo Yun Chee and Supantha Mukherjee
BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft MSFT.O and Alphabet's GOOGL.O Google will not challenge an EU law that would require them to make it easier for people to move between competing services – such as social media platforms and internet browsers, the companies said.
In September, the European Union picked out 22 "gatekeeper" services, run by six of the biggest tech companies in the world, to face new rules as part of its latest crackdown on Big Tech.
The Digital Markets Act (DMA) targets the market clout of top technology companies and the "gatekeepers" are required to inter-operate their messaging apps with rivals and let users decide which apps to pre-install on their devices.
The DMA will apply to services from Alphabet, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft and TikTok owner ByteDance.
Those disagreeing with the label and requirements have until Nov. 16 to take their complaint to the Luxembourg-based General Court, which deals with cases ranging from competition law to trade and the environment.
"We accept our designation as a gatekeeper under the Digital Markets Act and will continue to work with the European Commission to meet the obligations imposed on Windows and LinkedIn under the DMA," a Microsoft spokesperson said.
According to industry sources, other companies such as TikTok could likely file challenges.
A TikTok spokesperson earlier said that they "fundamentally disagree" with the gatekeeper designation. The company did not respond to requests for comment on Tuesday.
Apple is also likely to challenge its designation, Bloomberg News reported on Friday. The company did not respond to requests for comment.
Google has the highest number of services, including its Android operating system, Maps and Search, which will face tougher rules under the DMA. Meta's Facebook, Instagram, Marketplace, and WhatsApp also qualified as gatekeepers.
A Google spokesperson said they will not appeal the decision. Meta and Amazon did not respond to requests for comment.
(Reporting by Foo Yun Chee in Brussels and Supantha Mukherjee in Stockholm; Editing by Sharon Singleton)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.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 DMA will apply to services from Alphabet, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft and TikTok owner ByteDance. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft MSFT.O and Alphabet's GOOGL.O Google will not challenge an EU law that would require them to make it easier for people to move between competing services – such as social media platforms and internet browsers, the companies said. "We accept our designation as a gatekeeper under the Digital Markets Act and will continue to work with the European Commission to meet the obligations imposed on Windows and LinkedIn under the DMA," a Microsoft spokesperson said.
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The DMA will apply to services from Alphabet, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft and TikTok owner ByteDance. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft MSFT.O and Alphabet's GOOGL.O Google will not challenge an EU law that would require them to make it easier for people to move between competing services – such as social media platforms and internet browsers, the companies said. (Reporting by Foo Yun Chee in Brussels and Supantha Mukherjee in Stockholm; Editing by Sharon Singleton) ((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.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 DMA will apply to services from Alphabet, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft and TikTok owner ByteDance. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 14 (Reuters) - Microsoft MSFT.O and Alphabet's GOOGL.O Google will not challenge an EU law that would require them to make it easier for people to move between competing services – such as social media platforms and internet browsers, the companies said. The Digital Markets Act (DMA) targets the market clout of top technology companies and the "gatekeepers" are required to inter-operate their messaging apps with rivals and let users decide which apps to pre-install on their devices.
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The DMA will apply to services from Alphabet, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft and TikTok owner ByteDance. A TikTok spokesperson earlier said that they "fundamentally disagree" with the gatekeeper designation. Meta and Amazon did not respond to requests for comment.
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12537.0
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2023-11-14 00:00:00 UTC
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The S&P 500 Is More Concentrated Than Ever, and That's Historically Bad News for Wall Street
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AAPL
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https://www.nasdaq.com/articles/the-sp-500-is-more-concentrated-than-ever-and-thats-historically-bad-news-for-wall-street
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For well over a century, Wall Street has provided a pathway for everyday investors to build their wealth. The annualized returns for the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC) have easily outpaced the annualized returns of bonds, housing, and commodities spanning multiple decades.
However, short-term directional moves in the major stock indexes are considerably harder to predict as evidenced by all three major indexes vacillating back and forth between bull and bear markets since this decade began.
Image source: Getty Images.
Though there's no perfect blueprint or concrete formula that can accurately tell investors what's to come for the Dow Jones, S&P 500, and Nasdaq Composite, there is certainly an abundance of breadcrumbs for investors to follow. One of these proverbial breadcrumbs has seen the broad-based S&P 500 make history in a way that's traditionally been bad news for Wall Street.
The benchmark S&P 500 is more top-heavy than it's ever been
Since 1957, the S&P, as we know it today, has contained 500 components. Having 500 of the largest publicly traded companies in the index arguably provides a better barometer of Wall Street's health than the Dow or Nasdaq Composite.
However, the above statement only holds true if the S&P 500 is getting fair representation from all of its components. Although it's a market cap-weighted index, and it certainly makes sense for larger businesses to have more "say" in the overall direction of the S&P 500, a top-heavy index has rarely, if ever, been a good thing for Wall Street or investors.
Since 2023 began, the "Magnificent Seven" have done most of the heavy lifting for the S&P 500 and Nasdaq Composite. The Magnificent Seven are comprised of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon, Alphabet, Nvidia, Meta Platforms, and Tesla. But the representation from the largest two components -- Apple and Microsoft -- is what's rightly turning heads.
The top 2 stocks in the S&P 500 (Apple & Microsoft) now represent a combined 14.4% of the index, the highest weighting for any two companies with data going back to 1980. pic.twitter.com/M75Vpa3lo4
-- Charlie Bilello (@charliebilello) November 8, 2023
As you can see in the post above by Charlie Bilello, the chief market strategist at Creative Planning, Wall Street's dynamic duo has made history. When Bilello posted this chart on Nov. 7, Apple and Microsoft collectively accounted for 14.4% of the S&P 500's weighting, which is an all-time record. As of the closing bell on Nov. 10, 2023, this weighting had expanded to nearly 14.7%.
On a correlative basis, previous peaks in the weighting of the S&P 500's top-two holdings have preceded stock market corrections, such as in 1982, or bear markets, like the steep decline witnessed during the financial crisis in 2008.
To be abundantly clear, a top-heavy S&P 500 isn't, in itself, a reason for the broader market to head lower. Rather, it's that the companies with the highest weightings have far less wiggle room to fail. If Apple and/or Microsoft were to disappoint investors with their future growth prospects, it would be a recipe for a stock-market correction given their outsized weightings.
On one hand, Microsoft has continued to fire on all cylinders. The company's cloud-infrastructure service segment, Azure, is gaining market share on Amazon Web Services (AWS). But it's a different story for Apple, which is near the top-end of its valuation range dating back to 2011.
Although Apple narrowly avoided a year-over-year earnings decline in fiscal 2023 (Apple's fiscal year ended on Sept. 30, 2023), sales for iPhone, Mac, iPad, and wearables all declined from the prior-year period. With Apple's growth engine stalled at the moment, it and the S&P 500 are vulnerable to downside.
Image source: Getty Images.
Wall Street has a lengthy track record of transferring wealth to the patient
Considering what's happened previously when the S&P 500 has been highly concentrated, and taking into account a handful of metrics and predictive indicators that suggest the U.S. economy could be headed for a recession, the next couple of months or quarters may be challenging for traders. For patient investors, however, it'll just mark another period of opportunity to grow their wealth.
As much as investors may dislike the unpredictability and velocity of downside moves in the stock market, corrections and bear markets are a normal and inevitable part of the long-term investing cycle. Based on data provided by sell-side consultancy firm Yardeni Research, there have been 39 corrections in the S&P 500 totaling 10% or more since the start of 1950. On average, investors are navigating a double-digit pullback in the broad-market indexes every 1.9 years.
But just as corrections are inevitable, so are long-winded periods of expansion for the stock market.
In June, investment analysis company Bespoke Investment Group released data that examined the average length of bull and bear markets for the S&P 500 dating back to the start of the Great Depression in September 1929. Whereas the 27 bear markets studied lasted an average of 286 calendar days, the 27 bull markets clocked in at an average length of 1,011 calendar days.
^SPX data by YCharts.
All told, there have been eight bull markets since 1942 that have lasted between four and 12 years. Furthermore, 13 bull markets since 1935 have lasted longer than the lengthiest bear market on record (630 calendar days, Jan. 11, 1973 to Oct. 3, 1974), according to Bespoke's dataset.
However, the most convincing dataset that demonstrates the value of time for investors comes courtesy of Crestmont Research. The researchers at Crestmont examined the rolling 20-year total returns, including dividends, of the S&P 500. Since most S&P components could be found in other indexes prior to its inception in 1923, researchers were able to back-test their dataset to 1900, yielding 104 rolling 20-year periods (1919 to 2022).
What Crestmont's dataset showed was that all 104 rolling 20-year periods generated a positive total return. Hypothetically speaking, it wouldn't have mattered if an investor purchased at the peak or perfectly timed a trough; they would have made a positive total return if they simply held onto an S&P 500 tracking index for 20 years.
Though periods of high concentration for the major stock indexes have, historically, not been particularly good news for Wall Street, it's tough not to be excited about the future given the extensive amount of data that supports long-term, optimistic investors.
10 stocks we like better than Apple
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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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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. Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Magnificent Seven are comprised of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon, Alphabet, Nvidia, Meta Platforms, and Tesla. Wall Street has a lengthy track record of transferring wealth to the patient Considering what's happened previously when the S&P 500 has been highly concentrated, and taking into account a handful of metrics and predictive indicators that suggest the U.S. economy could be headed for a recession, the next couple of months or quarters may be challenging for traders. Hypothetically speaking, it wouldn't have mattered if an investor purchased at the peak or perfectly timed a trough; they would have made a positive total return if they simply held onto an S&P 500 tracking index for 20 years.
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The Magnificent Seven are comprised of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon, Alphabet, Nvidia, Meta Platforms, and Tesla. In June, investment analysis company Bespoke Investment Group released data that examined the average length of bull and bear markets for the S&P 500 dating back to the start of the Great Depression in September 1929. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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The Magnificent Seven are comprised of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon, Alphabet, Nvidia, Meta Platforms, and Tesla. The top 2 stocks in the S&P 500 (Apple & Microsoft) now represent a combined 14.4% of the index, the highest weighting for any two companies with data going back to 1980. pic.twitter.com/M75Vpa3lo4 -- Charlie Bilello (@charliebilello) November 8, 2023 As you can see in the post above by Charlie Bilello, the chief market strategist at Creative Planning, Wall Street's dynamic duo has made history. As much as investors may dislike the unpredictability and velocity of downside moves in the stock market, corrections and bear markets are a normal and inevitable part of the long-term investing cycle.
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The Magnificent Seven are comprised of Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon, Alphabet, Nvidia, Meta Platforms, and Tesla. In June, investment analysis company Bespoke Investment Group released data that examined the average length of bull and bear markets for the S&P 500 dating back to the start of the Great Depression in September 1929. See the 10 stocks *Stock Advisor returns as of November 6, 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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12538.0
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2023-11-14 00:00:00 UTC
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Should Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-goldman-sachs-activebeta-u.s.-large-cap-equity-etf-gslc-be-on-your-investing-11
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Launched on 09/17/2015, the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $10.81 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.43%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.60% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 25.7% of total assets under management.
Performance and Risk
GSLC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Large Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Large Cap Equity Index is designed to deliver exposure to equity securities of large-capitalization U.S. issuers.
The ETF return is roughly 15.24% so far this year and was up about 11.16% in the last one year (as of 11/14/2023). In the past 52-week period, it has traded between $75.12 and $90.06.
The ETF has a beta of 0.98 and standard deviation of 17.37% for the trailing three-year period, making it a medium risk choice in the space. With about 449 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GSLC is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $360.15 billion in assets, SPDR S&P 500 ETF has $410.89 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $10.81 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Launched on 09/17/2015, the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Launched on 09/17/2015, the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Why Large Cap Blend Large cap companies usually have a market capitalization above $10 billion.
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12539.0
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2023-11-14 00:00:00 UTC
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Should ALPS (OUSA) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-alps-ousa-be-on-your-investing-radar-1
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The ALPS (OUSA) was launched on 07/14/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Alps. It has amassed assets over $637.85 million, 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
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.48%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.95%.
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 21% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL).
The top 10 holdings account for about 40.17% of total assets under management.
Performance and Risk
OUSA seeks to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index before fees and expenses. The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States.
The ETF has gained about 2.74% so far this year and is up about 15.02% in the last one year (as of 11/14/2023). In the past 52-week period, it has traded between $40.56 and $45.06.
The ETF has a beta of 0.87 and standard deviation of 14.28% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS 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, OUSA is an excellent 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 $48.25 billion in assets, Vanguard Value ETF has $96.95 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
ALPS (OUSA): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The ALPS (OUSA) was launched on 07/14/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
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Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. 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.
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Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). 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.
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Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). 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.
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12540.0
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2023-11-14 00:00:00 UTC
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Huawei sales up 83%, boosting China's October smartphone sales
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AAPL
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https://www.nasdaq.com/articles/huawei-sales-up-83-boosting-chinas-october-smartphone-sales
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nan
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By Yelin Mo and Brenda Goh
BEIJING, Nov 14 (Reuters) - Strong sales growth at Huawei HWT.UL helped power an 11% rise in China's total smartphone shipments in October, data from research firm Counterpoint showed on Tuesday, indicating signs of recovery in its lagging mobile market.
Huawei was a major contributor to the average year-on-year growth in the first four weeks of October, with its sales surging 83%, a note from the firm showed.
According to the Counterpoint data, Xiaomi 1810.HK also saw a 33% increase in smartphone sales in October. It did not provide specifics around Apple's AAPL.O performance in the period.
In August, Huawei launched its Mate 60 smartphone series powered by what analysts said are a self-developed advanced chip, seen by some analysts as an answer to U.S. sanctions aimed at halting shipments of some chips to China.
"The clear standout in October has been Huawei, with its turnaround on the back of its Mate 60 series devices. Growth has been stellar," said Counterpoint China analyst Archie Zhang.
"Demand continues to be high double-digits and we’re also seeing a halo effect, with other models from the vendor performing well."
However, Counterpoint said there could be lingering bottlenecks for Huawei as it may still experience certain production issues.
"Huawei’s ability to scale up to this new normal will be a major determinant not just for their own growth, but for the broader market,” said Ivan Lam, senior Counterpoint analyst.
China's smartphone market has seen sales fall over several quarters, with a 3% drop in the quarter ending June, according to Counterpoint.
Analysts expect the market may be poised for a rebound, with research firm IDC predicting unspecified year-on-year sales growth in the fourth quarter after ten consecutive quarters of falling shipments.
(Reporting by Yelin Mo and Brenda Goh; Editing by Jan Harvey)
((yelin.mo@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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It did not provide specifics around Apple's AAPL.O performance in the period. By Yelin Mo and Brenda Goh BEIJING, Nov 14 (Reuters) - Strong sales growth at Huawei HWT.UL helped power an 11% rise in China's total smartphone shipments in October, data from research firm Counterpoint showed on Tuesday, indicating signs of recovery in its lagging mobile market. Huawei was a major contributor to the average year-on-year growth in the first four weeks of October, with its sales surging 83%, a note from the firm showed.
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It did not provide specifics around Apple's AAPL.O performance in the period. By Yelin Mo and Brenda Goh BEIJING, Nov 14 (Reuters) - Strong sales growth at Huawei HWT.UL helped power an 11% rise in China's total smartphone shipments in October, data from research firm Counterpoint showed on Tuesday, indicating signs of recovery in its lagging mobile market. In August, Huawei launched its Mate 60 smartphone series powered by what analysts said are a self-developed advanced chip, seen by some analysts as an answer to U.S. sanctions aimed at halting shipments of some chips to China.
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It did not provide specifics around Apple's AAPL.O performance in the period. By Yelin Mo and Brenda Goh BEIJING, Nov 14 (Reuters) - Strong sales growth at Huawei HWT.UL helped power an 11% rise in China's total smartphone shipments in October, data from research firm Counterpoint showed on Tuesday, indicating signs of recovery in its lagging mobile market. In August, Huawei launched its Mate 60 smartphone series powered by what analysts said are a self-developed advanced chip, seen by some analysts as an answer to U.S. sanctions aimed at halting shipments of some chips to China.
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It did not provide specifics around Apple's AAPL.O performance in the period. By Yelin Mo and Brenda Goh BEIJING, Nov 14 (Reuters) - Strong sales growth at Huawei HWT.UL helped power an 11% rise in China's total smartphone shipments in October, data from research firm Counterpoint showed on Tuesday, indicating signs of recovery in its lagging mobile market. Huawei was a major contributor to the average year-on-year growth in the first four weeks of October, with its sales surging 83%, a note from the firm showed.
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12541.0
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2023-11-13 00:00:00 UTC
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Google's expert in US antitrust trial defends billions paid to device makers
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AAPL
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https://www.nasdaq.com/articles/googles-expert-in-us-antitrust-trial-defends-billions-paid-to-device-makers
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nan
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By Diane Bartz
WASHINGTON, Nov 13 (Reuters) - The multi-billion dollar payments that Alphabet's GOOGL.O Google makes to Apple AAPL.O, wireless carriers and others are normal competitive behavior and not an abuse of monopoly, an expert called by Google testified on Monday in a blockbuster antitrust trial.
In what is expected to be the last week of trial, Kevin Murphy, who teaches at the University of Chicago Booth School of Business, argued Apple and others played Google and Microsoft MSFT.O, which has the Bing search engine, off against each other in order to win big payments from Google.
The government, which has filed four major antitrust lawsuits against three Big Tech companies since 2020, has accused Google of paying billions - $26.3 billion in 2021 - to ensure that its search is the default on smartphones and browsers and to keep its market share in the stratosphere. It alleges the payments are an abuse of monopoly.
"The payments that Google makes reflect that competition," he said.
Further, Murphy argued that while Microsoft had virtually all the preinstalled browser defaults in early 2010s, its Bing search engine got just 15% of search queries.
He said that there was "some truth" to the argument that changing defaults on devices might be complex for some but those same people often get around that difficulty by switching to a different browser or another workaround.
Why is the US suing Google for antitrust violations? https://www.reuters.com/legal/why-is-us-suing-google-antitrust-violations-2023-09-11/
(Reporting by Diane Bartz Editing by Marguerita Choy)
((Diane.Bartz@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Diane Bartz WASHINGTON, Nov 13 (Reuters) - The multi-billion dollar payments that Alphabet's GOOGL.O Google makes to Apple AAPL.O, wireless carriers and others are normal competitive behavior and not an abuse of monopoly, an expert called by Google testified on Monday in a blockbuster antitrust trial. In what is expected to be the last week of trial, Kevin Murphy, who teaches at the University of Chicago Booth School of Business, argued Apple and others played Google and Microsoft MSFT.O, which has the Bing search engine, off against each other in order to win big payments from Google. He said that there was "some truth" to the argument that changing defaults on devices might be complex for some but those same people often get around that difficulty by switching to a different browser or another workaround.
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By Diane Bartz WASHINGTON, Nov 13 (Reuters) - The multi-billion dollar payments that Alphabet's GOOGL.O Google makes to Apple AAPL.O, wireless carriers and others are normal competitive behavior and not an abuse of monopoly, an expert called by Google testified on Monday in a blockbuster antitrust trial. In what is expected to be the last week of trial, Kevin Murphy, who teaches at the University of Chicago Booth School of Business, argued Apple and others played Google and Microsoft MSFT.O, which has the Bing search engine, off against each other in order to win big payments from Google. "The payments that Google makes reflect that competition," he said.
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By Diane Bartz WASHINGTON, Nov 13 (Reuters) - The multi-billion dollar payments that Alphabet's GOOGL.O Google makes to Apple AAPL.O, wireless carriers and others are normal competitive behavior and not an abuse of monopoly, an expert called by Google testified on Monday in a blockbuster antitrust trial. In what is expected to be the last week of trial, Kevin Murphy, who teaches at the University of Chicago Booth School of Business, argued Apple and others played Google and Microsoft MSFT.O, which has the Bing search engine, off against each other in order to win big payments from Google. The government, which has filed four major antitrust lawsuits against three Big Tech companies since 2020, has accused Google of paying billions - $26.3 billion in 2021 - to ensure that its search is the default on smartphones and browsers and to keep its market share in the stratosphere.
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By Diane Bartz WASHINGTON, Nov 13 (Reuters) - The multi-billion dollar payments that Alphabet's GOOGL.O Google makes to Apple AAPL.O, wireless carriers and others are normal competitive behavior and not an abuse of monopoly, an expert called by Google testified on Monday in a blockbuster antitrust trial. In what is expected to be the last week of trial, Kevin Murphy, who teaches at the University of Chicago Booth School of Business, argued Apple and others played Google and Microsoft MSFT.O, which has the Bing search engine, off against each other in order to win big payments from Google. The government, which has filed four major antitrust lawsuits against three Big Tech companies since 2020, has accused Google of paying billions - $26.3 billion in 2021 - to ensure that its search is the default on smartphones and browsers and to keep its market share in the stratosphere.
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12542.0
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2023-11-13 00:00:00 UTC
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The 3 Best Robinhood Stocks for Beginning Investors
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https://www.nasdaq.com/articles/the-3-best-robinhood-stocks-for-beginning-investors
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Embarking on the Robinhood (NASDAQ:HOOD) investing journey unlocks the stock market’s secrets, especially when focusing on the best Robinhood stocks for beginning investors. For beginners, choosing the right stocks is crucial. This includes beginner-friendly stocks, low-risk options, and affordable choices in the realm of best Robinhood stocks for beginning investors. These elements are key to financial literacy for new investors, and understanding the best Robinhood stocks for beginning investors can be a significant first step.
We aim to empower you with Robinhood trading tips and basic stock analysis skills. You’ll learn to build a diverse portfolio, balancing dividend and growth stocks. This approach is essential for long-term investment success.
Our focus also includes tech stocks and value investing strategies, perfect for beginners. These categories offer a mix of innovation and intrinsic value. Using Robinhood, these strategies become more accessible, aiding in effective retirement planning.
Safe stocks to buy on Robinhood are not just about immediate gains. They’re about sustainable financial growth, important for future security. Whether you’re eyeing long-term investments or just starting, this guide is your essential Robinhood compass.
Microsoft (MSFT)
Source: The Art of Pics / Shutterstock.com
Microsoft (NASDAQ:MSFT), a standout in the tech sector, boasts a year-to-date return of 54%. Importantly, this reflects its strong market adaptability and resilience. The latest quarterly earnings show a 13% increase in revenue to $56.52 billion and a 27% rise in net income to $22.29 billion, demonstrating significant growth and market confidence.
Furthermore, the company’s operating expenses grew only 1%, showing a strategic balance in spending. Consequently, the net profit margin increased to 39%, indicating Microsoft’s efficiency and profitability.
Moreover, earnings per share rose to $2.99, up by 27%, highlighting shareholder value. This, combined with a stable effective tax rate, illustrates Microsoft’s fiscal prudence.
On the balance sheet front, Microsoft remains solid, with a 24% increase in total assets to $445.79 billion and a 34% rise in cash and short-term investments to $143.95 billion. This positions the company well for future ventures.
Despite a 21% increase in total liabilities to $225.07 billion, Microsoft’s financial foundation remains strong, supported by a healthy total equity and price-to-book ratio.
Turning to the cash flow statement, it is impressive. The net change in cash soared by 411%, and free cash flow grew by 21%, reflecting operational efficiency and a robust business model.
Looking at market indicators, they further establish Microsoft’s strong position. With a market cap of $2.75 trillion and a price-to-earnings ratio of 35.80, it remains an attractive investment option. Its dividend yield of 0.81% adds to its appeal.
In conclusion, Microsoft’s financial performance and market presence underscore its status as a thriving tech giant. Microsoft, boasting a robust and ever-growing stature, stands on a foundation of a formidable balance sheet and impressive cash flow. This powerfully positions it for enduring triumphs, particularly in the realms of AI and cloud computing. For investors who covet both stability and growth within the vibrant tech sector, Microsoft emerges as a remarkably attractive option.
Amazon (AMZN)
Source: Eric Broder Van Dyke / Shutterstock.com
As an investor, especially for beginners on platforms like Robinhood, monitoring dynamic stocks like Amazon (NASDAQ:AMZN) is crucial. Amazon stands out among the best Robinhood stocks for beginning investors due to its impressive 67.3% year-to-date return. The company’s recent earnings, with a revenue of $143.08 billion, a 12.6% year-over-year increase, underscore its sustained growth.
Operating expenses grew to $56.87 billion, up 4.7%, balancing spending and growth effectively. Net income surged to $9.88 billion, a 244% increase, highlighting Amazon’s profitability. The net profit margin more than doubled to 6.9%, and earnings per share increased to $0.94, a 235.7% increase, signaling a robust return for shareholders and reinforcing its status among the best Robinhood stocks for beginning investors.
Amazon’s balance sheet remains solid with total assets at $486.88 billion, a 13.7% increase. Total liabilities rose by 4.5% to $303.91 billion, indicating prudent financial management. Cash flow metrics are positive, with a net change in cash of $14 million, a 100.6% increase, and free cash flow at $12.93 billion, a 668.4% rise. These statistics cement Amazon’s position as a top choice among the best Robinhood stocks for beginning investors.
With a market cap of $1.48 trillion and an average trading volume of 53.71 million shares, Amazon’s industry dominance is clear. Its strong earnings, solid balance sheet and impressive cash flow make it a compelling investment. For Robinhood beginners, Amazon’s strategic investments and adaptability in the market place it as a leading example of the best Robinhood stocks for beginning investors.
Apple (AAPL)
Apple’s (NASDAQ:AAPL) journey in the fluctuating financial market stands out, especially for those seeking the best Robinhood stocks for beginning investors. Despite facing a 49% year-to-date loss, Apple has shown remarkable resilience, an essential trait for the best Robinhood stocks for beginning investors. Its latest earnings reveal a slight 0.7% dip in revenue to $89.50 billion, yet its ability to remain financially stable is noteworthy.
Operating expenses rose by 2% to $13.46 billion. However, this was offset by an 11% increase in net income, totaling $22.96 billion. This growth underscores Apple’s effectiveness in profit conversion, a key aspect for the best Robinhood stocks for beginning investors, with its net profit margin improving by 12% to 25.7%.
The company’s earnings per share also improved by 13% to $1.46, in line with a 6.7% growth in EBITDA to $29.62 billion. These figures further solidify Apple’s position as one of the best Robinhood stocks for beginning investors. The effective tax rate remained stable, an important consideration for the best Robinhood stocks for beginning investors.
In the balance sheet, total assets slightly decreased by 0.1% to $352.58 billion, while total liabilities reduced by 3.9% to $290.44 billion. This fiscal prudence is a critical factor for the best Robinhood stocks for beginning investors. Additionally, a 27.4% increase in cash and short-term investments to $61.56 billion highlights Apple’s liquidity.
Overall, Apple’s financial performance and strategic foresight make it a standout among the best Robinhood stocks for beginning investors. Its solid business model and investment strategies make it a compelling choice for those new to investing.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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The post The 3 Best Robinhood Stocks for Beginning Investors 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) Apple’s (NASDAQ:AAPL) journey in the fluctuating financial market stands out, especially for those seeking the best Robinhood stocks for beginning investors. Microsoft, boasting a robust and ever-growing stature, stands on a foundation of a formidable balance sheet and impressive cash flow. For investors who covet both stability and growth within the vibrant tech sector, Microsoft emerges as a remarkably attractive option.
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Apple (AAPL) Apple’s (NASDAQ:AAPL) journey in the fluctuating financial market stands out, especially for those seeking the best Robinhood stocks for beginning investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Embarking on the Robinhood (NASDAQ:HOOD) investing journey unlocks the stock market’s secrets, especially when focusing on the best Robinhood stocks for beginning investors. The net change in cash soared by 411%, and free cash flow grew by 21%, reflecting operational efficiency and a robust business model.
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Apple (AAPL) Apple’s (NASDAQ:AAPL) journey in the fluctuating financial market stands out, especially for those seeking the best Robinhood stocks for beginning investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Embarking on the Robinhood (NASDAQ:HOOD) investing journey unlocks the stock market’s secrets, especially when focusing on the best Robinhood stocks for beginning investors. The net profit margin more than doubled to 6.9%, and earnings per share increased to $0.94, a 235.7% increase, signaling a robust return for shareholders and reinforcing its status among the best Robinhood stocks for beginning investors.
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Apple (AAPL) Apple’s (NASDAQ:AAPL) journey in the fluctuating financial market stands out, especially for those seeking the best Robinhood stocks for beginning investors. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Embarking on the Robinhood (NASDAQ:HOOD) investing journey unlocks the stock market’s secrets, especially when focusing on the best Robinhood stocks for beginning investors. This includes beginner-friendly stocks, low-risk options, and affordable choices in the realm of best Robinhood stocks for beginning investors.
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12543.0
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2023-11-13 00:00:00 UTC
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Is iShares MSCI ACWI Low Carbon Target ETF (CRBN) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-ishares-msci-acwi-low-carbon-target-etf-crbn-a-strong-etf-right-now-10
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Making its debut on 12/08/2014, smart beta exchange traded fund iShares MSCI ACWI Low Carbon Target ETF (CRBN) provides investors broad exposure to the World 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.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $849.88 million, making it one of the larger ETFs in the World ETFs. This particular fund seeks to match the performance of the MSCI ACWI Low Carbon Target Index before fees and expenses.
The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, making it one of the least expensive products in the space.
CRBN's 12-month trailing dividend yield is 1.77%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 18.89% of total assets under management.
Performance and Risk
Year-to-date, the iShares MSCI ACWI Low Carbon Target ETF has added about 12.14% so far, and is up about 11.14% over the last 12 months (as of 11/13/2023). CRBN has traded between $136.68 and $161.60 in this past 52-week period.
The ETF has a beta of 0.95 and standard deviation of 16.87% for the trailing three-year period, making it a low risk choice in the space. With about 1200 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.91 billion in assets, iShares ESG Aware MSCI USA ETF has $12.27 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
To read this article on Zacks.com click here.
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 4.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Making its debut on 12/08/2014, smart beta exchange traded fund iShares MSCI ACWI Low Carbon Target ETF (CRBN) provides investors broad exposure to the World ETFs category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.64% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 12/08/2014, smart beta exchange traded fund iShares MSCI ACWI Low Carbon Target ETF (CRBN) provides investors broad exposure to the World ETFs category of the market.
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12544.0
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2023-11-13 00:00:00 UTC
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Should Schwab U.S. Large-Cap ETF (SCHX) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-etf-schx-be-on-your-investing-radar-3
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Schwab U.S. Large-Cap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $33.49 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 28.5% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF has added about 16.46% so far this year and is up about 13.15% in the last one year (as of 11/13/2023). In the past 52-week period, it has traded between $44.45 and $54.21.
The ETF has a beta of 1.01 and standard deviation of 17.87% for the trailing three-year period, making it a medium risk choice in the space. With about 753 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHX is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $360.49 billion in assets, SPDR S&P 500 ETF has $413.35 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 U.S. Large-Cap ETF (SCHX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
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 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $33.49 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Performance and Risk SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses.
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Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Alternatives Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab U.S. Large-Cap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
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2023-11-13 00:00:00 UTC
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2 Top Warren Buffett Stocks to Buy Hand Over Fist Right Now
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https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-hand-over-fist-right-now
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Warren Buffett is arguably one of the best investors of all time. He's created fortunes for Berkshire Hathaway shareholders during the more than five decades he's overseen the conglomerate's investments. And he continues to find new ways to grow his fellow shareowners' wealth.
Unsurprisingly, investors pay close attention to the moves Buffett and his team make in Berkshire's massive $345 billion stock portfolio. Here are two of Buffett's biggest bets in the stock market -- both of which are still attractive buys today.
Warren Buffett loves this energy stock
Geopolitical turmoil in the Middle East and Europe makes clear the crucial need for reliable sources of affordable energy. CEO Vicki Hollub is positioning Occidental Petroleum (NYSE: OXY) to help meet the global demand for dependable energy -- specifically, in the form of oil and natural gas -- for decades to come.
Many analysts believe that constrained supply resulting from the overall energy industry's underinvestment in new projects and infrastructure, combined with rising demand from developing economies, could drive oil prices higher in the coming years. Occidental derives a larger percentage of its revenue from oil production operations than many of its peers, so it's poised to profit handsomely from these trends.
Yet Occidental is far more than just an oil driller. This Buffett favorite is also a leader in the exciting field of carbon capture, utilization, and storage (CCUS).
In August, Occidental struck a deal to acquire Carbon Engineering, a pioneer in direct air capture (DAC) technology that removes carbon dioxide from the atmosphere. The $1.1 billion purchase should allow Occidental to accelerate its plans to create a network of up to 1,000 DAC facilities in the U.S. and international markets in the coming decades. Occidental expects its Stratos facility to be capable of capturing 500,000 tons of carbon dioxide annually after it comes online in mid-2025.
Demand for carbon capture solutions is projected to grow rapidly as more businesses and governments strive to achieve their net-zero emissions goals. For its part, ExxonMobil estimates that the carbon capture market could soar to a stunning $4 trillion by 2050. Hollub, in turn, expects Occidental to eventually make more money from its carbon management business than it does from its oil and gas operations today.
Notably, Buffett has been adding to Berkshire's stake in this innovative energy provider. Following his recent buys, Berkshire Hathaway owns more than a quarter of Occidental's shares, a massive stake valued at roughly $14 billion.
This is Warren Buffett's favorite tech company
Like Occidental, Apple (NASDAQ: AAPL) is set to benefit from powerful long-term trends. With high-speed connectivity and seamless mobility likely to only grow in importance, the iPhone maker's unrivaled profitability is set to become even more impressive.
More than 2 billion Apple devices are in use around the world. In addition to the massive profits the tech giant earns from the sale of these devices, Apple also generates a fast-growing stream of recurring revenue. With over 1 billion paid subscriptions, Apple's booming services business already produces $85 billion in annual sales -- a figure that appears set to head even higher.
Apple is raising prices on several of its popular services, including Apple TV+, Arcade, News+, and its bundled offering, Apple One. The price hikes should bolster the company's revenue and profits from this already high-margin segment.
Additionally, Apple recently unveiled its new line of M3 processors. The faster, more efficient chips are expected to boost sales of iMac desktop computers and MacBook Pro laptops. Higher Mac sales would help to further expand Apple's thriving device and services ecosystem.
These growth catalysts should help to propel Apple's nearly $100 billion in annual profits to new heights in the years ahead. Buffett is certainly bullish on the tech titan's prospects. Apple is Berkshire Hathaway's largest holding by far. Buffett's company has amassed a staggering $167 billion stake in Apple's stock.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This is Warren Buffett's favorite tech company Like Occidental, Apple (NASDAQ: AAPL) is set to benefit from powerful long-term trends. Unsurprisingly, investors pay close attention to the moves Buffett and his team make in Berkshire's massive $345 billion stock portfolio. CEO Vicki Hollub is positioning Occidental Petroleum (NYSE: OXY) to help meet the global demand for dependable energy -- specifically, in the form of oil and natural gas -- for decades to come.
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This is Warren Buffett's favorite tech company Like Occidental, Apple (NASDAQ: AAPL) is set to benefit from powerful long-term trends. Unsurprisingly, investors pay close attention to the moves Buffett and his team make in Berkshire's massive $345 billion stock portfolio. The Motley Fool recommends Occidental Petroleum.
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This is Warren Buffett's favorite tech company Like Occidental, Apple (NASDAQ: AAPL) is set to benefit from powerful long-term trends. Apple is raising prices on several of its popular services, including Apple TV+, Arcade, News+, and its bundled offering, Apple One. Buffett's company has amassed a staggering $167 billion stake in Apple's stock.
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This is Warren Buffett's favorite tech company Like Occidental, Apple (NASDAQ: AAPL) is set to benefit from powerful long-term trends. Following his recent buys, Berkshire Hathaway owns more than a quarter of Occidental's shares, a massive stake valued at roughly $14 billion. Buffett's company has amassed a staggering $167 billion stake in Apple's stock.
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12546.0
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2023-11-13 00:00:00 UTC
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Stock Market News for Nov 13, 2023
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https://www.nasdaq.com/articles/stock-market-news-for-nov-13-2023
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U.S. stock markets closed sharply higher on Friday reversing previous day’s sharp decline. Market participants ignored the Fed Chairman Jerome Powell’s recent warning of interest rate hike. All three major stock indexes ended in positive territory. For the week, these indexes have finished in positive zone too.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.2% or 391.16 points to close at 34,283.10. Notably, 26 components of the 30-stock index ended in positive territory, while 4 ended in negative zone. The blue-chip index closed above the psychological barrier of 34,000 after the gap of a single day.
The tech-heavy Nasdaq Composite finished at 13,798.11, surging 2.1% due to strong performance of large-cap technology stocks. The tech-laden index posted its biggest single-day percentage gain since May 26.
The S&P 500 climbed 1.6% to finish at 4,415.24. The broad-market index posted its highest closing level since Sep 19. All 11 broad sectors of the benchmark ended in positive territory. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 2.6%, 1.6% and 1.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7.3% to 14.17. A total of 10.2 billion shares were traded on Friday, lower than the last 20-session average of 11 billion. Advancers outnumbered decliners on the NYSE by a 2.7-to-1 ratio. On Nasdaq, a 1.6-to-1 ratio favored advancing issues.
Government Bond Yields Stabilize
Wall Street regained momentum since the beginning of November primarily owing to the stabilization of the U.S. government bond yields. The yield on the benchmark 10-Year U.S. Treasury Note dropped to 4.646% after spiking to more than 5.1% the last week of October. The yield on the long-term 30-Year U.S. Treasury Note also dropped during this period.
Notably, on Nov 9, in his speech at the International Monetary Fund, the fed Chair maintained his hawkish stance and hinted at more interest rate hikes to bring down inflation to the central bank’s target of 2%. However, market participants ignored that warning.
A lower market risk-free rate of return is positive for growth sectors like technology, communication services and consumer discretionary. Consequently, stock prices of Microsoft corp. MSFT, Apple Inc. AAPL and Meta Platforms Inc. META surged 2.5%, 2.3% and 2.6%, respectively. Microsoft and Meta Platforms currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The University of Michigan reported that preliminary consumer sentiment index for November declined to 60.4 from October’s final reading of 63.8. This is the lowest reading since May. The consensus estimate was 63.7. The sub-index for current condition fell to 65.7 in November from 70.6 in October. The sub-index for expectations slid to 56.9 in November from 59.3 in October. Both sub-indexes recorded lowest reading since May too.
Consumer’s expectations for inflation rate this year increased to 4.4% in November from 4.2% October. Over a period of five-year, consumers expect inflation to average 3.2%, up from 3% in October, marking the highest since March 2011.
Weekly Roundup
Last week was a strong one for U.S. stock markets. The three major stock indexes – the Dow, the S&P 500 and the Nasdaq Composite – gained 0.7%, 1.3% and 2.4%, respectively. Wall Street witnessed two consecutive weeks of positive closing as the concern for more interest rate hikes reduced to a good extent resulting in the stabilization of government bond yields.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consequently, stock prices of Microsoft corp. MSFT, Apple Inc. AAPL and Meta Platforms Inc. META surged 2.5%, 2.3% and 2.6%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Notably, on Nov 9, in his speech at the International Monetary Fund, the fed Chair maintained his hawkish stance and hinted at more interest rate hikes to bring down inflation to the central bank’s target of 2%.
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Consequently, stock prices of Microsoft corp. MSFT, Apple Inc. AAPL and Meta Platforms Inc. META surged 2.5%, 2.3% and 2.6%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 2.6%, 1.6% and 1.7%, respectively.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, stock prices of Microsoft corp. MSFT, Apple Inc. AAPL and Meta Platforms Inc. META surged 2.5%, 2.3% and 2.6%, respectively. Economic Data The University of Michigan reported that preliminary consumer sentiment index for November declined to 60.4 from October’s final reading of 63.8.
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Consequently, stock prices of Microsoft corp. MSFT, Apple Inc. AAPL and Meta Platforms Inc. META surged 2.5%, 2.3% and 2.6%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. For the week, these indexes have finished in positive zone too.
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12547.0
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2023-11-13 00:00:00 UTC
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What's in Store for Disney (DIS) After Promising Earnings?
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AAPL
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https://www.nasdaq.com/articles/whats-in-store-for-disney-dis-after-promising-earnings
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Entertainment behemoth The Walt Disney Company DIS reported encouraging quarterly earnings last week that surpassed Wall Street’s estimates.
The media giant posted fiscal fourth-quarter revenues of $21.2 billion, up 5% from a year ago. Earnings came in at 82 cents a share in the quarter ending in September, up from 30 cents in the year-ago quarter.
An increase in streaming users helped Disney post solid quarterly earnings. Notably, the Disney+ streaming service added almost 7 million core subscribers in the reported quarter and increased the total number of subscribers to 112.6 million.
Disney’s CEO, Robert Allen Iger recently said that acceptance of movies and original series such as Elemental, Guardians of the Galaxy Vol.3, Little Mermaid, Moving, and Ahsoka boosted subscriber growth significantly.
The entertainment segment, which includes movies, generated revenues of $9.5 billion in the fiscal fourth quarter, up 2% from the same period a year ago.
Similarly, the experience segment, which includes hotels, cruises and theme parks, posted revenues of $8.2 billion, up 13% from the same quarter a year ago.
Disney also expects its overall revenues and profits to improve further in the December quarter, while its management vowed to reduce costs.
The company, in reality, is expecting its free cash flow to increase and achieve pre-pandemic levels in the next year. The company assumes $8 billion in free cash flow in fiscal 2024.
However, weaker results at ESPN have primarily impacted the company for quite some time now. The cost of sports rights is increasing at a faster pace than the revenues generated from ESPN, which undoubtedly is a headache for Disney.
In the fiscal fourth quarter, the sports segment, or mostly ESPN, posted revenues of $3.9 billion, but it was more or less flat with the same period last year.
It's also worth pointing out that the growth in the streaming segment is much softer at the moment as the company continues to face stiff competition from other media giants like Apple Inc. AAPL, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Comcast Corporation CMCSA. Disney’s move to increase streaming prices in August hasn’t gone down well with users.
To top it off, linear TV viewing has reduced considerably, and along with lower advertising revenues, things are looking challenging for Disney in the near term.
To make matters worse, Disney continues to face a prolonged actors strike, a decline in footfall at Disney World Resort, and ambiguity related to a CEO succession plan.
Therefore, despite posting upbeat results in its latest quarterly earnings, the Zacks Consensus Estimate for Disney’s current-year earnings has decreased 10.3% over the past 60 days.
The Zacks Rank #5 (Strong Sell) company’s shares are trading at their lowest level in almost a decade. Shares of Disney have gained a meager 1.6% so far this year, while the S&P 500 Index has soared 16%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Image Source: Zacks Investment Research
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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It's also worth pointing out that the growth in the streaming segment is much softer at the moment as the company continues to face stiff competition from other media giants like Apple Inc. AAPL, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Comcast Corporation CMCSA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Entertainment behemoth The Walt Disney Company DIS reported encouraging quarterly earnings last week that surpassed Wall Street’s estimates.
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It's also worth pointing out that the growth in the streaming segment is much softer at the moment as the company continues to face stiff competition from other media giants like Apple Inc. AAPL, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Comcast Corporation CMCSA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The entertainment segment, which includes movies, generated revenues of $9.5 billion in the fiscal fourth quarter, up 2% from the same period a year ago.
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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 Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. It's also worth pointing out that the growth in the streaming segment is much softer at the moment as the company continues to face stiff competition from other media giants like Apple Inc. AAPL, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Comcast Corporation CMCSA. Entertainment behemoth The Walt Disney Company DIS reported encouraging quarterly earnings last week that surpassed Wall Street’s estimates.
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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 Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. It's also worth pointing out that the growth in the streaming segment is much softer at the moment as the company continues to face stiff competition from other media giants like Apple Inc. AAPL, Amazon.com, Inc. AMZN, Netflix, Inc. NFLX and Comcast Corporation CMCSA. An increase in streaming users helped Disney post solid quarterly earnings.
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2023-11-13 00:00:00 UTC
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Why These 8%+ Yielding Funds Crush Low-Fee Index Funds (Every Time)
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AAPL
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https://www.nasdaq.com/articles/why-these-8-yielding-funds-crush-low-fee-index-funds-every-time
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nan
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nan
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If you always wanted a free lunch but thought they don't exist, well, they kind of do, in the form of the Fidelity group of ZERO index funds, like the Fidelity ZERO Total Market Index Fund (FZROX).
After all, its 0% fees mean it should easily beat a closed-end fund (CEF) with a high expense ratio, right? Well, not so fast.
0% Fees Do Not Equal Outperformance
FZROX--in purple above--may levy no management fee, but it's underperformed many equity CEFs over a long period. Since inception, it's trailed the Adams Diversified Equity Fund (ADX), in blue, and the General American Investors Co. (GAM) fund, in orange, in total returns.
Meantime, that duo yielded about 8% each, versus FZROX's 1.2%.That's despite much bigger management fees at ADX and GAM.
Source: CEF Insider
These aren't even the most expensive CEFs on a fee basis. But since these fees are taken out of the fund periodically as managers invest their capital (no, you don't have to send a check to your CEF to pay the fee), the fees don't really matter if the fund is providing a larger total return than the free fund. And it is.
That's not the only reason CEF managers earn their higher fund fees. There's also the income issue.
CEFs = More Income
Source: CEF Insider
CEFs are perhaps best known for their bond funds, which assemble a portfolio of bonds and hand the income it generates over to investors. But many are surprised to find that, actually, equity CEFs yield more on average: 9.4%, as the chart above shows.
That's $783 a month in income on average per $100k invested. For equity index funds, that same investment yields a puny $125 a month, over six times less!
But aren't high yields unsustainable? Many of us have been told that, and it's true for a lot of assets, but not CEFs. Here's why.
How CEF Managers Earn Their Fees
For an example, let's take the Eaton Vance Risk-Managed Diversified Equity Income Fund (ETJ), a 9%-yielding equity fund that holds the usual suspects: Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN) are its top three holdings, with Eli Lilly (LLY), Walmart (WMT) and Caterpillar (CAT) also being top-20 positions.
ETJ's Profit and Income Story
ETJ wasn't the greatest fund then (or now), but even it got investors big profits and an 8.4% yield for a decade. Not just any decade, either, but the 2010s, when interest rates were near zero for years!
This is what CEF investors pay those fund fees for: fund managers have the responsibility to maintain payouts as best as possible while not letting the fund's net asset value (NAV) fall, not lowering distributions, and providing a big total return. ETJ didn't succeed--it cut dividends twice--but that means this "failure" of a fund still yielded 8.4% over 10 years and got investors an 82.8% total return at the same time! All the while, ETJ was charging about a 1.12% fund fee per year.
Want more profits and no dividend cuts? Well, CEF investors got that from the Columbia Seligman Premium Technology Growth Fund (STK), whose 1.13% fund fee is nearly identical to that of ETG, but whose returns are much better.
Don't ignore that orange line: those are the dividends, which remained unchanged throughout all the madness of the last decade and included some special payouts along the way, as well (shown by the spikes). STK's 7% dividend has been secure for years and years, and it looks likely to stay that way.
This is powerful stuff: a big, sustainable income stream, exposure to stocks (or bonds, or real estate) and a diversified portfolio. That's what CEF investors pay those fees for, and if you value cash in hand over the promise of cash in the future, you can see why they are happy to pay them.
The Future of CEF Fees
The magic in a good closed-end fund is turning market returns into income, and there's no correlation between fees and total returns in CEFs (trust me, I've studied this stuff for over a decade). This has meant CEF fund managers haven't had much motivation to cut fees, and few investors have campaigned successfully on the issue of fees.
That is changing for a lot of reasons.
First, asset management is declining. That's why Prudential, which manages over $1 trillion, cut 243 employees this year; Charles Schwab is cutting 2,000, and BlackRock's Invesco has announced it is reducing its head count and will continue to do so. Also, just based on what I'm hearing, asset managers are seeing pay cuts.
Some asset-management firms see an opportunity in this shift, and they've been buying smaller asset-management firms. In CEFs, the British asset manager abrdn is taking over many smaller funds, snapping up their management teams and companies. Meanwhile, other firms have been merging funds, with many more likely in the next couple of years).
This consolidation is happening for the simple reason that it reduces costs: fewer people managing fewer funds means lower salaries, filing fees, and just generally lower fees overall.
That means CEF fees are set to fall, so if you hate CEF fees (despite these funds' 8%+ income streams, diversification and history of long-term profits), you might want to take this world of funds now.
My Call: Buy These 5 CEFs (Average Yield: 13.3%)--and Hold Them for Life
One of the most incredible things about CEFs is that, over the long haul, they boast an incredible record of safety.
Get this: of all the CEFs that are a decade old or older, only 10% have lost money in the last 10 years. That's a 90% win rate!
It's an incredible stat, and now, with many CEFs still discounted after the 2022 mess and management fees set to fall, is a great time to buy in. That goes double if you buy the 5 top picks I'm pounding the table on now, which throw off blockbuster yields up to 13.3%!
Click here and I'll tell you more about CEFs' remarkable history and give you the opportunity to download a FREE Special Report naming these 5 sturdy picks--including the one with that massive 13.3% payout.
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
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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How CEF Managers Earn Their Fees For an example, let's take the Eaton Vance Risk-Managed Diversified Equity Income Fund (ETJ), a 9%-yielding equity fund that holds the usual suspects: Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN) are its top three holdings, with Eli Lilly (LLY), Walmart (WMT) and Caterpillar (CAT) also being top-20 positions. ETJ didn't succeed--it cut dividends twice--but that means this "failure" of a fund still yielded 8.4% over 10 years and got investors an 82.8% total return at the same time! Click here and I'll tell you more about CEFs' remarkable history and give you the opportunity to download a FREE Special Report naming these 5 sturdy picks--including the one with that massive 13.3% payout.
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How CEF Managers Earn Their Fees For an example, let's take the Eaton Vance Risk-Managed Diversified Equity Income Fund (ETJ), a 9%-yielding equity fund that holds the usual suspects: Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN) are its top three holdings, with Eli Lilly (LLY), Walmart (WMT) and Caterpillar (CAT) also being top-20 positions. This consolidation is happening for the simple reason that it reduces costs: fewer people managing fewer funds means lower salaries, filing fees, and just generally lower fees overall. Also see: Warren Buffett Dividend Stocks Dividend Growth Stocks: 25 Aristocrats Future Dividend Aristocrats: Close Contenders 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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How CEF Managers Earn Their Fees For an example, let's take the Eaton Vance Risk-Managed Diversified Equity Income Fund (ETJ), a 9%-yielding equity fund that holds the usual suspects: Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN) are its top three holdings, with Eli Lilly (LLY), Walmart (WMT) and Caterpillar (CAT) also being top-20 positions. But since these fees are taken out of the fund periodically as managers invest their capital (no, you don't have to send a check to your CEF to pay the fee), the fees don't really matter if the fund is providing a larger total return than the free fund. This is what CEF investors pay those fund fees for: fund managers have the responsibility to maintain payouts as best as possible while not letting the fund's net asset value (NAV) fall, not lowering distributions, and providing a big total return.
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How CEF Managers Earn Their Fees For an example, let's take the Eaton Vance Risk-Managed Diversified Equity Income Fund (ETJ), a 9%-yielding equity fund that holds the usual suspects: Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN) are its top three holdings, with Eli Lilly (LLY), Walmart (WMT) and Caterpillar (CAT) also being top-20 positions. But since these fees are taken out of the fund periodically as managers invest their capital (no, you don't have to send a check to your CEF to pay the fee), the fees don't really matter if the fund is providing a larger total return than the free fund. This is what CEF investors pay those fund fees for: fund managers have the responsibility to maintain payouts as best as possible while not letting the fund's net asset value (NAV) fall, not lowering distributions, and providing a big total return.
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12549.0
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2023-11-13 00:00:00 UTC
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Debt-Fueled Buybacks: 3 Stocks Undeterred by Rising Rates
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AAPL
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https://www.nasdaq.com/articles/debt-fueled-buybacks%3A-3-stocks-undeterred-by-rising-rates
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Bloomberg published an article in early November about RTX Corp. (NYSE:RTX) selling $6 billion in investment-grade bonds over various durations to help repay a short-term loan it got to cover its $10 billion accelerated share repurchase.
Is it just me, or does that seem ridiculous in a higher interest-rate market?
“Both Moody’s Investors Service and S&P Global Ratings reduced the outlook on RTX’s rating to negative from stable due to its debt load following the share-buyback announcement,” stated Bloomberg.
Typically, I’d discuss three stocks other than RTX in this situation. However, the sheer insanity of the move makes me want to examine the defense contractor’s long-term track record for buying back its stock.
As a result, here are two stocks and RTX using debt-fueled buybacks, seemingly undeterred by rising interest rates.
RTX Corp. (RTX)
Source: JHVEPhoto / Shutterstock.com
Let’s dig deep into RTX’s borrowing.
First, the smallest of the five debt tranches was $500 millon at 5.75% maturing in 2029. The largest was $1.75 billion at 6.4% maturing in 2054. Also, it is the most extended duration. A back-of-the-napkin calculation suggests it will pay $365 million in annual interest on these bonds. True, that’s better than the current prime rate (8.5%), which it paid for its bridge loan.
Next, look at the $10 billion accelerated share repurchase (ASR).
In exchange for $10 billion, RTX received 108.45 million shares, an average price of $92.21. That’s about $10 higher than the current share price, although more shares could be delivered as part of the ASR.
Raytheon Technologies merged with United Technologies on Apr. 3, 2020. As of June 30, 2020, it had 1.53 billion shares outstanding. The company changed its name to RTX in July. As of the end of the third quarter (Sept. 30), it had 1.44 billion shares outstanding. Based on the 108.45 million shares repurchased through its ASR, it reduced its share count by 7.5% to $1.33 billion.
For the first nine months of 2023, it repurchased $2.59 billion of its stock at an average price of $88.0 a share. Then in 2022, it repurchased $2.8 billion of its stock at an average price of $93.61. Finally, in 2021, it repurchased $2.33 billion at $83.10 a share. And, it bought back $47 million in 2020 (merger year) for $142.42 a share.
To summarize, it has repurchased $15.44 billion of its stock, including its ASR, for an average price of $92.59 a share. That’s a return on investment of -11%.
And for this wonderful return, RTX gets an 18% increase in its long-term debt. Absolute lunacy.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Once upon a time, Apple (NASDAQ:AAPL) had zero debt. The iPhone manufacturer finished fiscal 2012 (September year-end) with zero long-term debt and $146.8 billion in cash, short-term, and long-term marketable securities.
Then, in April 2013, the company announced that it would borrow $17 billion to buy back its shares. It plans to buy back up to $60 billion by 2015, up from a previous $10 billion share repurchase program.
In fiscal 2013, it repurchased $23 billion (19.4 million shares) of its stock. And, thanks to two stock splits in June 2014 (7-for-1) and August 2020 (4 for-1), the 19.4 million shares are now 543.2 million, worth $101.3 billion, a compound annual growth rate of 16.0%, much higher than its cost of capital on the $17 billion in loans.
Finally, a decade later, Apple’s net cash position of $146.8 billion in 2012 is now $38.2 billion, 74% lower than in 2012.
The company issued $5.25 billion in bonds in May at interest rates between 4.0% and 4.85% to keep the share repurchases and dividends moving higher. The highest rate is for $1.25 billion in notes maturing in 2053. The annual interest on those bonds is $229 million, or 0.2% of its 2023 operating income of $114.3 billion.
There’s responsible use of debt (AAPL) and irresponsible (RTX).
Bristol-Myers Squibb (BMY)
Source: IgorGolovniov / Shutterstock.com
Bristol-Myers Squibb (NYSE:BMY) issued $4.5 billion of senior unsecured debt on Oct. 30 in four tranches, with interest rates ranging from 5.75% to 6.4%. The latter matures in 2063, 40 years from now.
Let’s look at a comparison. Apple specified the proceeds from its bond offering would be used for share repurchases and dividends. Yet, Bristol-Myers said in its prospectus that it would use them for “general corporate purposes, including, but not limited to, the financing of the proposed acquisition of Mirati and the fees and expenses in connection therewith and with this offering.”
The notes offering increased its long-term debt by 14% to $36.6 billion. Its long-term debt accounts for 55.7% of its total capital. That’s not an overly leveraged capital structure. Apple’s debt-to-capital ratio is approximately 60.9%.
The drug company has ramped up its share repurchases in the past three years, buying back $14.3 billion in 2021 and 2022. It bought $5.2 billion through the first nine months of 2023. That’s an average price of $68.66 a share for the 284 million repurchased over the past 33 months.
Finally, thanks to a 30% decline in its share price in 2023, Bristol-Myers’ ROI on its share repurchases since the beginning of 2022 is -26.3%. Considering its shares have spent little time over $70 in the past five years, the buybacks have not added value for shareholders.
If you own BMY shares, I’d be very disappointed if it doesn’t make large buys in the final quarter of 2023.
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 Debt-Fueled Buybacks: 3 Stocks Undeterred by Rising Rates 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 Once upon a time, Apple (NASDAQ:AAPL) had zero debt. There’s responsible use of debt (AAPL) and irresponsible (RTX). Yet, Bristol-Myers said in its prospectus that it would use them for “general corporate purposes, including, but not limited to, the financing of the proposed acquisition of Mirati and the fees and expenses in connection therewith and with this offering.” The notes offering increased its long-term debt by 14% to $36.6 billion.
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Apple (AAPL) Source: Moab Republic / Shutterstock Once upon a time, Apple (NASDAQ:AAPL) had zero debt. There’s responsible use of debt (AAPL) and irresponsible (RTX). The iPhone manufacturer finished fiscal 2012 (September year-end) with zero long-term debt and $146.8 billion in cash, short-term, and long-term marketable securities.
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Apple (AAPL) Source: Moab Republic / Shutterstock Once upon a time, Apple (NASDAQ:AAPL) had zero debt. There’s responsible use of debt (AAPL) and irresponsible (RTX). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Bloomberg published an article in early November about RTX Corp. (NYSE:RTX) selling $6 billion in investment-grade bonds over various durations to help repay a short-term loan it got to cover its $10 billion accelerated share repurchase.
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Apple (AAPL) Source: Moab Republic / Shutterstock Once upon a time, Apple (NASDAQ:AAPL) had zero debt. There’s responsible use of debt (AAPL) and irresponsible (RTX). In fiscal 2013, it repurchased $23 billion (19.4 million shares) of its stock.
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2023-11-13 00:00:00 UTC
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Top Stock Reports for Apple, Broadcom & Adobe
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AAPL
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https://www.nasdaq.com/articles/top-stock-reports-for-apple-broadcom-adobe
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nan
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nan
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Monday, November 13, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have only modestly done better than the Zacks Tech sector this year (+43.4% vs. +41.3%), but they have handily outperformed the broader market (+43.4% vs. +16% for the S&P 500 index). The company expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter. Apple launched four new iPhone models at its product launch event on Sep 12.
Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available. Apple is benefiting from increasing customer engagement in the services segment.
The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
(You can read the full research report on Apple here >>>)
Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+74.4% vs. +54.9%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises.
Broadcom expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022. Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom’s prospects.
Expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year.
(You can read the full research report on Broadcom here >>>)
Adobe shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+77.5% vs. +51.3%). The company is benefiting from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth.
Rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat.
The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines and continued innovation. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Marsh & McLennan Companies, Inc. (MMC) and Enbridge Inc. (ENB).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Strong Demand for Networking Products Aids Broadcom (AVGO)
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Featured Reports
NextEra (NEE) Gains from Steady Investment, Renewable Focus
Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Marsh & McLennan (MMC) Strategic Buyouts Aid, Expenses High
Per the Zacks analyst, a number of acquisitions help Marsh & McLennan expand geographically, and diversify its portfolio. Yet, escalating expenses continue to weigh down margins.
Enbridge (ENB) Gains On Long-term Transportation Contracts
Enbridge generates stable fee-based revenues from its long-term oil and gas transportation contracts. Yet, its significant debt exposure concerns the Zacks analyst.
Solid Net Sales Orders Aid D.R. Horton (DHI), High Costs Ail
Per the Zacks analyst, increased net sales orders and affordability initiatives aid D.R. Horton. However, inflated costs and high mortgage rates mar prospects.
Solid In-force Business Aids Reinsurance Group (RGA)
Per the Zacks analyst, Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earning
Qorvo (QRVO) Rides on Healthy Demand, Portfolio Strength
Per the Zacks analyst, rising demand for key components across the android smartphone ecosystem and healthy traction in automotive, defense and aerospace will likely boost Qorvo's margins.
Under Armour's (UAA) Direct-To-Consumer Unit Performs Well
Per the Zacks analyst, Under Armour's direct-to-consumer (DTC) business is exhibiting strength and aiding its overall performance. DTC revenues increased 3% during second-quarter fiscal 2024.
New Upgrades
Strong Booking Trends Aid Royal Caribbean's (RCL) Prospects
Per the Zacks analyst Royal Caribbean is benefiting from solid bookings with respect to North America and European sailings. Also, strong pricing and solid onboard spending bodes well.
End-Market Strength to Aid Applied Industrial (AIT)
Per the Zacks analyst, strength across the food and beverage, lumber and wood, mining, pulp and paper among other end markets bodes well for the company. Acquired assets are driving the top line.
Xifaxan Boosts Bausch (BHC), Efforts to Restructure Look Good
Per the Zacks analyst, Bausch maintains momentum on strong growth of Xifaxan. The company's efforts to restructure business by separating eye health business and reduce debt are encouraging.
New Downgrades
Weakness in Construction Materials Unit Hurts Carlisle (CSL)
Per the Zacks analyst, Carlisle is struggling with the poor performance of the Carlisle Construction Materials segment due to project delays and uncertainty caused by higher interest rates.
Higher Costs, Geopolitical Woes Hurt Moelis & Company (MC)
Per the Zacks analyst, elevated costs due to Moelis & Company's hiring spree and rising inflation will hurt profits. Geopolitical and macroeconomic concerns add to ambiguity in the operating backdrop.
Softness in Biopharma Business Impede Bio-Rad (BIO) Growth
The Zacks analyst is worried about Bio-Rad witnessing reduced demand from biopharma customers for its process chromatography resins.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : 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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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Strong Demand for Networking Products Aids Broadcom (AVGO) Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Featured Reports NextEra (NEE) Gains from Steady Investment, Renewable Focus Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE). Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Strong Demand for Networking Products Aids Broadcom (AVGO) Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Featured Reports NextEra (NEE) Gains from Steady Investment, Renewable Focus Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Strong Demand for Networking Products Aids Broadcom (AVGO) Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Featured Reports NextEra (NEE) Gains from Steady Investment, Renewable Focus Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Strong Demand for Networking Products Aids Broadcom (AVGO) Adobe (ADBE) Rides on Growing Adoption of Cloud Applications Featured Reports NextEra (NEE) Gains from Steady Investment, Renewable Focus Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE). Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Enbridge Inc (ENB) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12551.0
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2023-11-13 00:00:00 UTC
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US STOCKS-Wall Street wavers after rally, focus on inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-wavers-after-rally-focus-on-inflation-data
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nan
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By Sinéad Carew and Sruthi Shankar
Nov 13 (Reuters) - Wall Street's three main stock indexes were making little progress in either direction on Monday as investors awaited a crucial inflation reading that could shape expectations around how long the U.S. Federal Reserve will keep interest rates elevated.
After the indexes enjoyed a rally on Friday investors turned their focus to Consumer Price Index (CPI) data, due out Tuesday morning. Economists expect a headline increase of 3.3% for October, easing from 3.7% in September. But core prices are expected to be unchanged from the previous month.
"Everyone's kind of in a holding pattern waiting to see what happens with the inflation data in morning," Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
While the CPI reading was likely the biggest concern, O'Rourke said that investors were also still digesting Moody's weaker U.S. credit outlook issued after market close on Friday.
Friday Moody's lowered its outlook on the U.S. credit rating to "negative" from "stable", citing large fiscal deficits and a decline in debt affordability.
This added to investor reluctance to make big decisions ahead of a weekend deadline that could result in a U.S. government shutdown, O'Rourke said.
U.S. House of Representatives Speaker Mike Johnson unveiled a Republican stopgap spending measure on Saturday aimed at averting a shutdown, but the measure quickly met opposition from lawmakers from both parties in Congress.
The Dow Jones Industrial Average .DJI rose 52.18 points, or 0.15%, to 34,335.28, the S&P 500 .SPX lost 0.82 points, or 0.02%, to 4,414.42 and the Nasdaq Composite .IXIC dropped 12.31 points, or 0.09%, to 13,785.80.
The major U.S. stock indexes had rebounded so far this month, fueled by a stronger-than-expected earnings season and hopes that U.S. interest rates are near their peak.
Traders have priced in a nearly 86% chance that the Fed will hold interest rates in December, according to the CME Group's FedWatch tool.
Among the S&P 500's 11 major sectors energy .SPNY was the biggest gainer, up 0.7%, while utilities .SPLRCU was the biggest loser, down more than 1%.
While Tesla TSLA.O shares, up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT.
Helping keep the Dow afloat, Boeing BA.N climbed 4.3% after Bloomberg News reported that China is considering resuming purchases of 737 Max aircraft.
And, Dubai's Emirates placed an order for 90 more Boeing 777X jets at the opening of the Dubai Airshow on Monday.
Medtech companies were rising with Dexcom DXCM.O adding 5%, Insulet PODD.O climbing more than 6% and Abbott ABT.N rising 2% as analysts commented on data about the cardiovascular benefits for Novo Nordisk's NOVOb.CO weight-loss drug Wegovy.
Advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored decliners.
The S&P 500 posted 23 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 44 new highs and 199 new lows.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Amruta Khandekar in Bengaluru; Editing by Maju Samuel and Aurora Ellis)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Tesla TSLA.O shares, up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. By Sinéad Carew and Sruthi Shankar Nov 13 (Reuters) - Wall Street's three main stock indexes were making little progress in either direction on Monday as investors awaited a crucial inflation reading that could shape expectations around how long the U.S. Federal Reserve will keep interest rates elevated. "Everyone's kind of in a holding pattern waiting to see what happens with the inflation data in morning," Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
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While Tesla TSLA.O shares, up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. By Sinéad Carew and Sruthi Shankar Nov 13 (Reuters) - Wall Street's three main stock indexes were making little progress in either direction on Monday as investors awaited a crucial inflation reading that could shape expectations around how long the U.S. Federal Reserve will keep interest rates elevated. After the indexes enjoyed a rally on Friday investors turned their focus to Consumer Price Index (CPI) data, due out Tuesday morning.
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While Tesla TSLA.O shares, up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. By Sinéad Carew and Sruthi Shankar Nov 13 (Reuters) - Wall Street's three main stock indexes were making little progress in either direction on Monday as investors awaited a crucial inflation reading that could shape expectations around how long the U.S. Federal Reserve will keep interest rates elevated. After the indexes enjoyed a rally on Friday investors turned their focus to Consumer Price Index (CPI) data, due out Tuesday morning.
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While Tesla TSLA.O shares, up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. By Sinéad Carew and Sruthi Shankar Nov 13 (Reuters) - Wall Street's three main stock indexes were making little progress in either direction on Monday as investors awaited a crucial inflation reading that could shape expectations around how long the U.S. Federal Reserve will keep interest rates elevated. Economists expect a headline increase of 3.3% for October, easing from 3.7% in September.
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12552.0
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2023-11-13 00:00:00 UTC
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Apple (NASDAQ:AAPL) Stock: An Under-the-Radar AI Play
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AAPL
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https://www.nasdaq.com/articles/apple-nasdaq%3Aaapl-stock%3A-an-under-the-radar-ai-play
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nan
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nan
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Apple (NASDAQ:AAPL), unlike its other tech peers, hasn’t been vocal about its AI (Artificial Intelligence) initiatives. However, this doesn’t indicate that the iPhone maker is not investing in AI or strengthening its capabilities. The tech behemoth has been advancing well with its AI strategy and is a solid under-the-radar stock for investors seeking to ride the AI wave.
Let’s delve deeper.
Apple Leveraging AI
During the Q4 conference call on November 2, Apple CEO Tim Cook said that AI and machine learning are the fundamental technologies behind its products. He added that when the company launched iOS 17, it introduced features like Personal Voice and Live Voicemail, with AI as the core driving technology behind these functionalities. Moreover, features like fall detection, crash detection, and ECG on its products underscore the crucial role of AI.
Although Apple incorporates AI-driven functionalities into its products, it refrains from explicitly branding them as such. Instead, Apple categorizes these capabilities according to the consumer benefits they provide, such as the ECG feature. However, it's important to recognize that the underlying technology powering these features is AI and machine learning, underscoring Apple's utilization of advanced AI technology in product development.
Highlighting Apple’s AI capabilities and solid opportunities ahead, Morgan Stanley analyst Erik Woodring maintained a Buy rating on Apple stock. Further, the analyst provided a price target of $210 on AAPL stock on November 3.
What Do Analysts Say About Apple?
Including Woodring, Apple stock has received 24 Buy and eight Hold recommendations for a Strong Buy consensus rating. Further, the average AAPL stock price target of $201.49 implies 8.1% upside potential from current levels.
Bottom Line
Apple faces challenges amid continued softness in hardware sales, particularly in the iPad and Wearables segments. Despite this, the company will likely benefit from robust Services revenue, an expanding user base of active devices, and heightened sales of premium iPhones, which will drive its top line and cushion earnings. Additionally, the promising growth prospects associated with AI provide a solid base for long-term growth and are reflected through the analysts’ Strong Buy consensus rating.
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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Apple (NASDAQ:AAPL), unlike its other tech peers, hasn’t been vocal about its AI (Artificial Intelligence) initiatives. Further, the analyst provided a price target of $210 on AAPL stock on November 3. Further, the average AAPL stock price target of $201.49 implies 8.1% upside potential from current levels.
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Further, the analyst provided a price target of $210 on AAPL stock on November 3. Apple (NASDAQ:AAPL), unlike its other tech peers, hasn’t been vocal about its AI (Artificial Intelligence) initiatives. Further, the average AAPL stock price target of $201.49 implies 8.1% upside potential from current levels.
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Apple (NASDAQ:AAPL), unlike its other tech peers, hasn’t been vocal about its AI (Artificial Intelligence) initiatives. Further, the analyst provided a price target of $210 on AAPL stock on November 3. Further, the average AAPL stock price target of $201.49 implies 8.1% upside potential from current levels.
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Further, the analyst provided a price target of $210 on AAPL stock on November 3. Apple (NASDAQ:AAPL), unlike its other tech peers, hasn’t been vocal about its AI (Artificial Intelligence) initiatives. Further, the average AAPL stock price target of $201.49 implies 8.1% upside potential from current levels.
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12553.0
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2023-11-13 00:00:00 UTC
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Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-nasdaq-100-etf-qqqm-be-on-your-investing-radar-9
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nan
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nan
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.
The fund is sponsored by Invesco. It has amassed assets over $15.33 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically 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.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. 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
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 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.63%.
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 50% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 49.11% of total assets under management.
Performance and Risk
QQQM seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The NASDAQ-100 Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on Nasdaq.
The ETF has added about 42.75% so far this year and was up about 34.74% in the last one year (as of 11/13/2023). In the past 52-week period, it has traded between $107 and $158.70.
The ETF has a beta of 1.16 and standard deviation of 23.58% for the trailing three-year period. With about 103 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ 100 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, QQQM 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 $95.55 billion in assets, Invesco QQQ has $210.90 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco NASDAQ 100 ETF (QQQM): 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 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.
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Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.
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Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Invesco NASDAQ 100 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 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): 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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2023-11-13 00:00:00 UTC
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3 Great Reasons to Invest in an S&P 500 ETF -- and 1 Reason to Avoid It
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AAPL
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https://www.nasdaq.com/articles/3-great-reasons-to-invest-in-an-sp-500-etf-and-1-reason-to-avoid-it
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nan
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nan
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Exchange-traded funds (ETFs) can be a fantastic choice for those looking for a low-effort investment that could help you make a lot of money over time. But with countless ETFs to choose from, it can be tough to decide where to invest.
S&P 500 ETFs track the S&P 500 index itself, so each fund includes stocks from 500 of the largest and strongest companies in the U.S. These companies range from tech behemoths like Apple and Amazon to century-old brands like Procter & Gamble and 3M.
While S&P 500 ETFs have plenty of perks, they're not the right investment for everyone. Here are three reasons you may want to buy this type of ETF, and one good reason to avoid it.
Image source: Getty Images.
Why the S&P 500 ETF can be a great investment
1. It's a low-effort investment
As with all ETFs, the stocks within the fund are chosen for you -- which can help take the guesswork out of investing. You don't need to research individual companies or keep up with industry trends. Simply invest whatever you can afford each month, and the fund will do the rest.
This ETF can be a smart option, then, for those looking for a "set it and forget it" type of investment. Whether you're new to the stock market or simply want an investment that requires next to no effort on your part, the S&P 500 ETF could be a good fit for your portfolio.
2. It can better protect your savings
Because each ETF contains stocks from 500 companies, this creates instant diversification and can limit your risk.
The hundreds of stocks within each S&P 500 ETF are also from a wide variety of industries, ranging from tech to healthcare to utilities to financials and more. In general, the more diverse your portfolio is, the lower your risk. Even if an entire industry takes a hit during a market downturn, your investment is more likely to survive when it's well diversified.
3. It's almost guaranteed to see positive long-term returns
There are never any guarantees when investing. However, investing in an S&P 500 ETF is about as close to guaranteed long-term returns as you can get in the stock market.
The S&P 500 itself has a decades-long history of recovering from even the worst downturns. In fact, analysts at Crestmont Research examined the index's rolling 20-year total returns and found that in every single 20-year period, the S&P 500 earned positive total returns. In other words, if you had invested in an S&P 500 ETF at any point in history and held it for 20 years, you'd have made money.
Over the last two decades alone, the S&P 500 has experienced remarkable returns -- despite facing some of the worst recessions and market crashes in history in those years.
^SPX data by YCharts
Since 2000, it's experienced everything from the dot-com bubble burst to the Great Recession to the COVID-19 crash to the most recent slump. Yet it's still up by more than 200% in that timeframe.
When to avoid the S&P 500
1. It's harder to build a significant amount of wealth
S&P 500 ETFs come with a slew of advantages, but there's one major drawback: They can only earn average returns. This type of investment is designed to follow the market, so it's impossible for it to beat the market.
To decide whether this is a dealbreaker for you, consider your investing goals. If you're looking primarily for a low-maintenance investment that can limit your risk while still helping you make money over time, the S&P 500 ETF is still a good choice -- despite its lower returns.
On the other hand, if you're willing to put more time and effort into your strategy, investing in individual stocks may be a better option. This approach does require more research (and can carry more risk), but if done well, you could potentially beat the market substantially. Over the long haul, that could result in earning tens or even hundreds of thousands of dollars more.
There's no single correct way to invest, so the right investment for you will depend on your goals and priorities. If you're looking for a simpler and safer investment that can help build wealth over time, the S&P 500 ETF may be a fantastic fit for your portfolio. But if you're looking to maximize your earnings, individual stocks may be the better option for you.
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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. Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Apple. The Motley Fool recommends 3M. 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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Exchange-traded funds (ETFs) can be a fantastic choice for those looking for a low-effort investment that could help you make a lot of money over time. It's harder to build a significant amount of wealth S&P 500 ETFs come with a slew of advantages, but there's one major drawback: They can only earn average returns. If you're looking primarily for a low-maintenance investment that can limit your risk while still helping you make money over time, the S&P 500 ETF is still a good choice -- despite its lower returns.
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In fact, analysts at Crestmont Research examined the index's rolling 20-year total returns and found that in every single 20-year period, the S&P 500 earned positive total returns. 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 11/6/2023 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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It's a low-effort investment As with all ETFs, the stocks within the fund are chosen for you -- which can help take the guesswork out of investing. Whether you're new to the stock market or simply want an investment that requires next to no effort on your part, the S&P 500 ETF could be a good fit for your portfolio. However, investing in an S&P 500 ETF is about as close to guaranteed long-term returns as you can get in the stock market.
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You don't need to research individual companies or keep up with industry trends. Whether you're new to the stock market or simply want an investment that requires next to no effort on your part, the S&P 500 ETF could be a good fit for your portfolio. The Motley Fool has positions in and recommends Amazon and Apple.
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12555.0
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2023-11-13 00:00:00 UTC
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FAANG Gives Way to the ‘Magnificent Seven’
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AAPL
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https://www.nasdaq.com/articles/faang-gives-way-to-the-magnificent-seven
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nan
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nan
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Remember the FAANG stocks? Well, they’ve morphed into a grouping now known as the “Magnificent Seven.” Netflix has gotten the boot and been replaced by another “N” company, Nvidia. Microsoft and Tesla have also joined the crew.
Now the hottest names in the U.S. market include Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. Extra points if you can make a word out of those initials!
Issuers Home in on the Magnificent Seven
ETF issuers are starting to dial into the potential of the new lineup, including the first ETF dedicated exclusively to the Magnificent Seven. Roundhill converted its Roundhill BIG Tech ETF (BIGT) to the Roundhill Magnificent Seven ETF (MAGS) just last week. The issuer had added Nvidia and Tesla in October, so really the fund’s name is just catching up with its portfolio.
And Direxion has included a “MAGMA” 2X fund in its most recent filing, with MAGMA referring to Microsoft, Apple, Alphabet/Google, Meta Platforms, and Amazon.com. Nvidia and Tesla will not be included in the mix, based on the prospectus.
However, MAGS is a fund that relies primarily on derivatives such as swaps to achieve exposure to the seven stocks it is targeting. The fund’s portfolio is also highly concentrated with its focus on just seven securities.
Looking at MGK
But there are other funds that hold those seven stocks. However, they’re not getting that exposure via derivatives but rather through direct ownership. Consider the $13.6 billion Vanguard Mega Cap Growth ETF (MGK). The fund includes the Magnificent Seven among its top holdings. Those stocks representing a stunning 56.7% of the fund’s total portfolio. Its exposure to the Magnificent Seven may represent the most concentrated exposure to these stocks of any U.S.-listed fund before MAGS.
MGK is up more than 40% year to date. That’s likely due in large part to the spectacular returns demonstrated by those seven stocks. However, there are another 83 securities in the fund’s portfolio to provide additional diversification. Also, large-caps have generally done well this year. MGK, in particular, focuses on only the largest of the large among U.S.-listed securities.
Further, as a passively managed ETF from Vanguard, MGK has an expense ratio of just 0.07% versus the 0.29% charged by MAGS. In addition to concentrated exposure (with some diversification) at a low price, MGK comes with the liquidity that accompanies a nearly $15 billion fund that invests in only the largest and most liquid stocks on the U.S. market. Plus, it carries equity risk rather than derivatives risk.
Beyond MGK
But MGK isn’t the only ETF offering exposure to the Magnificent Seven. There are plenty of other choices available to investors that simply own them as part of a diversified stock portfolio. The stocks represent 55% of the holdings of the $7.98 billion iShares Russell Top 200 Growth ETF (IWY), and 53% of the $569.6 million Motley Fool 100 Index ETF (TMFC).
The $2.6 billion Nuveen Growth Opportunities ETF (NUGO) currently has a little over 52% of its total portfolio invested in the Magnificent Seven. NUGO is an actively managed, semitransparent ETF, however. That means you will only see the true holdings on a monthly basis as opposed to daily.
Between something like the Vanguard Total Stock Market ETF (VTI), which aims to capture the entire investable U.S. equity market, and the highly exclusive MAGS, there are likely a range of concentrations in Magnificent Seven stocks offered by various funds. Investors just need to find the right exposure to suit their investment goals.
For more news, information, and analysis, visit VettaFi | ETF Trends.
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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Now the hottest names in the U.S. market include Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. However, MAGS is a fund that relies primarily on derivatives such as swaps to achieve exposure to the seven stocks it is targeting. The $2.6 billion Nuveen Growth Opportunities ETF (NUGO) currently has a little over 52% of its total portfolio invested in the Magnificent Seven.
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Now the hottest names in the U.S. market include Apple, Alphabet (Google), Meta Platforms, Amazon.com, Nvidia, Microsoft, and Tesla. The stocks represent 55% of the holdings of the $7.98 billion iShares Russell Top 200 Growth ETF (IWY), and 53% of the $569.6 million Motley Fool 100 Index ETF (TMFC). Between something like the Vanguard Total Stock Market ETF (VTI), which aims to capture the entire investable U.S. equity market, and the highly exclusive MAGS, there are likely a range of concentrations in Magnificent Seven stocks offered by various funds.
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Its exposure to the Magnificent Seven may represent the most concentrated exposure to these stocks of any U.S.-listed fund before MAGS. In addition to concentrated exposure (with some diversification) at a low price, MGK comes with the liquidity that accompanies a nearly $15 billion fund that invests in only the largest and most liquid stocks on the U.S. market. Between something like the Vanguard Total Stock Market ETF (VTI), which aims to capture the entire investable U.S. equity market, and the highly exclusive MAGS, there are likely a range of concentrations in Magnificent Seven stocks offered by various funds.
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Looking at MGK But there are other funds that hold those seven stocks. Its exposure to the Magnificent Seven may represent the most concentrated exposure to these stocks of any U.S.-listed fund before MAGS. Beyond MGK But MGK isn’t the only ETF offering exposure to the Magnificent Seven.
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12556.0
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2023-11-13 00:00:00 UTC
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US STOCKS-S&P 500 takes a pause ahead of U.S inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-takes-a-pause-ahead-of-u.s-inflation-data-0
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By Sinéad Carew and Sruthi Shankar
Nov 13 (Reuters) - The S&P 500 closed Monday's session slightly lower as investors held their breath before a crucial inflation reading that could provide clues as to how long the U.S. Federal Reserve will keep interest rates elevated.
After the indexes enjoyed a solid rally on Friday, the market turned its focus on Monday to Consumer Price Index (CPI) data, due out Tuesday morning. Economists expect a headline increase of 3.3% for October, easing from 3.7% in September. But core prices are expected to be unchanged from the previous month.
The CPI reading, along with labor market, "are clearly in the driver's seat for what matters to financial markets, because it dictates where Fed policy goes from here," said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company in Milwaukee, Wisconsin.
"The market has the expectation the Fed is done with interest rate hikes and for that to be true, you need to have continued progress on the inflation front," along with labor market cooling, he said.
Traders have priced in a nearly 86% chance the Fed holds interest rates steady in December, according to the CME Group's FedWatch tool.
While the CPI reading was the key issue keeping investors "in a holding pattern" on Monday, Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut said they were also digesting a weaker U.S. credit outlook issued.
Moody's late on Friday lowered its outlook on the U.S. credit rating to "negative" from "stable", citing large fiscal deficits and a decline in debt affordability.
This added to investor reluctance to make big decisions ahead of a weekend deadline that could potentially result in a U.S. government shutdown, O'Rourke said.
U.S. House of Representatives Speaker Mike Johnson unveiled a Republican stopgap spending measure on Saturday aimed at averting a shutdown, but the measure quickly met opposition from lawmakers from both parties in Congress.
However on Monday afternoon, top U.S. Senate Democrat Chuck Schumer expressed tentative support for Johnson's short-term funding bill that would keep the government open past the weekend.
The Dow Jones Industrial Average .DJI rose 54.77 points, or 0.16%, to 34,337.87, the S&P 500 .SPX lost 3.69 points, or 0.08%, to 4,411.55 and the Nasdaq Composite .IXIC dropped 30.37 points, or 0.22%, to 13,767.74.
The major U.S. stock indexes had rebounded so far this month, fueled by a stronger-than-expected earnings season and hopes that U.S. interest rates are near their peak.
Among the S&P 500's 11 major sectors energy .SPNY was the biggest gainer, ending up 0.7% while utilities .SPLRCU was the biggest loser, falling 1.2%.
Helping keep the Dow afloat, Boeing BA.N rallied 4% on Monday after Bloomberg News reported that China is considering resuming purchases of 737 Max aircraft.
And, Dubai's Emirates placed an order for 90 more Boeing 777X jets at the opening of the Dubai Airshow on Monday.
The S&P healthcare index .SPXHC was the benchmark's second biggest percentage gainer, adding 0.6%. It's biggest percentage gainer was dialysis company Davita Inc DVA.N, which rose 6.5%.
Other medtech companies rallying included Insulet PODD.O, which added 5.6% and Dexcom DXCM.O, up 4.6%, along with Abbott's ABT.N 1.9% gain as analysts reacted to data about the cardiovascular benefits for Novo Nordisk's NOVOb.CO weight-loss drug Wegovy.
While Tesla TSLA.O shares, finishing up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT.
Advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.
The S&P 500 posted 24 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 52 new highs and 227 new lows.
On U.S. exchanges 9.34 billion shares changed hands compared with the 10.97 billion after for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Sruthi Shankar and Amruta Khandekar in Bengaluru; Editing by Maju Samuel and Aurora Ellis)
((sinead.carew@thomsonreuters.com; +13322191897;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Tesla TSLA.O shares, finishing up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. By Sinéad Carew and Sruthi Shankar Nov 13 (Reuters) - The S&P 500 closed Monday's session slightly lower as investors held their breath before a crucial inflation reading that could provide clues as to how long the U.S. Federal Reserve will keep interest rates elevated. However on Monday afternoon, top U.S. Senate Democrat Chuck Schumer expressed tentative support for Johnson's short-term funding bill that would keep the government open past the weekend.
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While Tesla TSLA.O shares, finishing up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. After the indexes enjoyed a solid rally on Friday, the market turned its focus on Monday to Consumer Price Index (CPI) data, due out Tuesday morning. Traders have priced in a nearly 86% chance the Fed holds interest rates steady in December, according to the CME Group's FedWatch tool.
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While Tesla TSLA.O shares, finishing up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. By Sinéad Carew and Sruthi Shankar Nov 13 (Reuters) - The S&P 500 closed Monday's session slightly lower as investors held their breath before a crucial inflation reading that could provide clues as to how long the U.S. Federal Reserve will keep interest rates elevated. After the indexes enjoyed a solid rally on Friday, the market turned its focus on Monday to Consumer Price Index (CPI) data, due out Tuesday morning.
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While Tesla TSLA.O shares, finishing up more than 4%, added some support to the consumer discretionary index .SPLRCD declines in heavyweight stocks such as Apple AAPL.O and Microsoft MSFT.O helped weigh down the S&P 500 technology index .SPLRCT. The CPI reading, along with labor market, "are clearly in the driver's seat for what matters to financial markets, because it dictates where Fed policy goes from here," said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company in Milwaukee, Wisconsin. "The market has the expectation the Fed is done with interest rate hikes and for that to be true, you need to have continued progress on the inflation front," along with labor market cooling, he said.
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12557.0
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2023-11-13 00:00:00 UTC
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US STOCKS-Wall St falls as megacaps drag ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-megacaps-drag-ahead-of-inflation-data
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By Sruthi Shankar and Amruta Khandekar
Nov 13 (Reuters) - Wall Street's main indexes slipped on Monday as investors awaited a crucial inflation reading and other economic data this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated.
Megacap growth stocks were a big drag, as the benchmark U.S. 10-year Treasury yield US10YT=RR rose. Shares of Microsoft MSFT.O, Amazon.com AMZN.O and Apple AAPL.O fell between 0.5% and 1.5% in early trade.
Eight of the 11 major S&P 500 sectors were in the red, with rate-sensitive real estate stocks .SPLRCRdown 1.2% and leading declines.
This week's economic data as well as speeches from Fed officials will provide clues on the trajectory of interest rates amid growing expectations that the Fed is done hiking borrowing costs.
A report on Tuesday is expected to show headline consumer prices eased to 3.3% in October from 3.7% in September. However, core prices are seen unchanged from the previous month.
"If the year-over-year (number) continues to show a decline, then that seals the fact that the Fed is not going to raise in December and most likely they're done with the hiking campaign," said Peter Cardillo, chief market economist at Spartan Capital Securities.
The major U.S. stock indexes have rebounded strongly this month, fueled by a stronger-than-expected earnings season and on hopes that U.S. interest rates are near their peak.
The benchmark S&P 500 .SPX closed at near eight-week highs on Friday, while the tech-heavy Nasdaq .IXIC hit a two-month peak.
Traders have priced in a nearly 86% chance that the Fed will hold interest rates in December, but have pushed back bets of rate cuts to June from May, according to the CME Group's FedWatch tool.
Adding to the cautious mood, Moody's lowered its outlook on the U.S. credit rating to "negative" from "stable", citing large fiscal deficits and a decline in debt affordability.
"With the absence of macro news and the strong rally that we had on Friday, the downgrade and the anticipation of the inflation data is inducing some selling this morning," Cardillo said.
U.S. House of Representatives Speaker Mike Johnson unveiled a Republican stopgap spending measure on Saturday aimed at averting a government shutdown on Friday, but the measure quickly ran into opposition from lawmakers from both parties in Congress.
At 9:41 a.m. ET, the Dow Jones Industrial Average .DJI was down 20.28 points, or 0.06%, at 34,262.82, the S&P 500 .SPX was down 19.10 points, or 0.43%, at 4,396.14, and the Nasdaq Composite .IXIC was down 96.40 points, or 0.70%, at 13,701.71. Medtech companies such as Dexcom DXCM.O, Abbott ABT.N and Insulet PODD.O rose between 2% and 5% as analysts said data for cardiovascular benefits for Novo Nordisk's NOVOb.CO weight-loss drug Wegovy is better than feared for the companies.
Cushioning the Dow, Boeing BA.N climbed 5.1% after Bloomberg News reported that China is considering resuming purchases of 737 Max aircraft.
The S&P index recorded 11 new 52-week highs and one new low, while the Nasdaq recorded 19 new highs and 82 new lows.
(Reporting by Sruthi Shankar and Amruta Khandekar in Bengaluru; Editing by Maju Samuel)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Microsoft MSFT.O, Amazon.com AMZN.O and Apple AAPL.O fell between 0.5% and 1.5% in early trade. By Sruthi Shankar and Amruta Khandekar Nov 13 (Reuters) - Wall Street's main indexes slipped on Monday as investors awaited a crucial inflation reading and other economic data this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated. "If the year-over-year (number) continues to show a decline, then that seals the fact that the Fed is not going to raise in December and most likely they're done with the hiking campaign," said Peter Cardillo, chief market economist at Spartan Capital Securities.
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Shares of Microsoft MSFT.O, Amazon.com AMZN.O and Apple AAPL.O fell between 0.5% and 1.5% in early trade. By Sruthi Shankar and Amruta Khandekar Nov 13 (Reuters) - Wall Street's main indexes slipped on Monday as investors awaited a crucial inflation reading and other economic data this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated. The S&P index recorded 11 new 52-week highs and one new low, while the Nasdaq recorded 19 new highs and 82 new lows.
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Shares of Microsoft MSFT.O, Amazon.com AMZN.O and Apple AAPL.O fell between 0.5% and 1.5% in early trade. By Sruthi Shankar and Amruta Khandekar Nov 13 (Reuters) - Wall Street's main indexes slipped on Monday as investors awaited a crucial inflation reading and other economic data this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated. This week's economic data as well as speeches from Fed officials will provide clues on the trajectory of interest rates amid growing expectations that the Fed is done hiking borrowing costs.
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Shares of Microsoft MSFT.O, Amazon.com AMZN.O and Apple AAPL.O fell between 0.5% and 1.5% in early trade. By Sruthi Shankar and Amruta Khandekar Nov 13 (Reuters) - Wall Street's main indexes slipped on Monday as investors awaited a crucial inflation reading and other economic data this week that could shape expectations around how long the Federal Reserve will keep interest rates elevated. This week's economic data as well as speeches from Fed officials will provide clues on the trajectory of interest rates amid growing expectations that the Fed is done hiking borrowing costs.
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12558.0
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2023-11-13 00:00:00 UTC
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Apple Stock: The Good and Bad News for AAPL Investors
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-the-good-and-bad-news-for-aapl-investors
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) is a colossus and a member of the much-touted “Magnificent Seven” group of technology companies. So, AAPL stock deserves at least a “B” grade and most investors should feel fine holding some shares. Apple can’t execute perfectly in all areas and the company has to face challenges just like every other business does.
Apple has a pricey Vision Pro Headset for virtual reality applications. Let’s be honest, though. Apple’s bread and butter is the company’s smartphones. Apple sells its iPhones not only in North America and Europe, but in China as well. This isn’t a simple matter for the company, and as a result, Apple’s quarterly results may be less than perfect.
Mixed Blessings for AAPL Stock Investors
On Nov. 2 in the company’s fiscal 2023 fourth-quarter earnings press release, Apple CEO Tim Cook touted a “September quarter revenue record for iPhone.” This may be true, but it doesn’t tell the full story.
Maybe Cook can’t be blamed for accentuating the positive aspects of Apple’s financial results. After all, being a hype man is part of a chief executive’s job description.
Investors should know that Apple’s Q4 FY2023 iPhone revenue of $43.8 billion only represented an approximately 3% year-over-year increase compared to the year-earlier quarter’s 42.6 billion. That’s in line with Wall Street expectations, and it’s not bad, but it’s also not spectacular.
And with a “Magnificent Seven” company like Apple, the market wants nothing less than amazing results. Instead of “amazing,” Apple’s quarterly results could best be described as “mixed.”
Disappointingly, Apple posted its fourth consecutive quarter of declining year-over-year revenue. This time, Apple’s revenue of $89.5 billion signified a 1% decrease compared to the year-earlier quarter.
Apple’s Disappointing Product Sales
Apple’s sales slid in China, which is experiencing an uneven post-Covid-19 recovery. Specifically, Apple’s China revenue of $15.1 billion was down 2.5% on a year-over-year basis.
It’s also problematic that Apple experienced year-over-year declines in sales of certain product categories:
Wearable, home, and accessories revenue: $9.3 billion, down 3%
iPad revenue: $6.4 billion, down 10%
Mac revenue: $7.6 billion, down a whopping 33%
Investors should remember Apple’s most important product is the company’s iPhone. As we discussed earlier, Apple had decent, albeit not outstanding iPhone sales results.
Finally, Apple’s bottom-line results weren’t bad. As it turned out, Apple reported quarterly earnings per diluted share of $1.46, up 13% year over year and ahead of the analysts’ consensus estimate of $1.39 per share.
AAPL Stock May Be Appropriate for a Long-Term Holding
Apple, as huge and famous as the company is, can stumble sometimes. It’s a natural part of doing business in the highly competitive technology-gadget market.
So, investors should realize that Apple is a juggernaut that will likely survive its ups and downs, but also understand that it’s not always a perfect company. AAPL stock gets a fairly confident “B” grade, and you may decide it’s appropriate for a long-term share position.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Apple Stock: The Good and Bad News for AAPL Investors 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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Mixed Blessings for AAPL Stock Investors On Nov. 2 in the company’s fiscal 2023 fourth-quarter earnings press release, Apple CEO Tim Cook touted a “September quarter revenue record for iPhone.” This may be true, but it doesn’t tell the full story. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a colossus and a member of the much-touted “Magnificent Seven” group of technology companies. So, AAPL stock deserves at least a “B” grade and most investors should feel fine holding some shares.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a colossus and a member of the much-touted “Magnificent Seven” group of technology companies. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Apple Stock: The Good and Bad News for AAPL Investors appeared first on InvestorPlace. So, AAPL stock deserves at least a “B” grade and most investors should feel fine holding some shares.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a colossus and a member of the much-touted “Magnificent Seven” group of technology companies. So, AAPL stock deserves at least a “B” grade and most investors should feel fine holding some shares. Mixed Blessings for AAPL Stock Investors On Nov. 2 in the company’s fiscal 2023 fourth-quarter earnings press release, Apple CEO Tim Cook touted a “September quarter revenue record for iPhone.” This may be true, but it doesn’t tell the full story.
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So, AAPL stock deserves at least a “B” grade and most investors should feel fine holding some shares. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) is a colossus and a member of the much-touted “Magnificent Seven” group of technology companies. Mixed Blessings for AAPL Stock Investors On Nov. 2 in the company’s fiscal 2023 fourth-quarter earnings press release, Apple CEO Tim Cook touted a “September quarter revenue record for iPhone.” This may be true, but it doesn’t tell the full story.
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2023-11-13 00:00:00 UTC
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Should Vanguard Russell 1000 ETF (VONE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-etf-vone-be-on-your-investing-radar-10
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Russell 1000 ETF (VONE) is a passively managed exchange traded fund launched on 09/22/2010.
The fund is sponsored by Vanguard. It has amassed assets over $3.76 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
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 1.43%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.20% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.86% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 27.58% of total assets under management.
Performance and Risk
VONE seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of large-capitalization stocks in the United States.
The ETF has gained about 15.83% so far this year and is up about 12.60% in the last one year (as of 11/13/2023). In the past 52-week period, it has traded between $171.58 and $208.54.
The ETF has a beta of 1.02 and standard deviation of 17.90% for the trailing three-year period, making it a medium risk choice in the space. With about 1013 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 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, VONE is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $360.49 billion in assets, SPDR S&P 500 ETF has $413.35 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Russell 1000 ETF (VONE): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.86% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Russell 1000 ETF (VONE) is a passively managed exchange traded fund launched on 09/22/2010.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.86% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard Russell 1000 ETF (VONE) is a passively managed exchange traded fund launched on 09/22/2010.
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Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.86% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Russell 1000 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 6.86% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 ETF (VONE): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Costs Investors should also pay attention to an ETF's expense ratio.
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12560.0
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2023-11-12 00:00:00 UTC
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The ‘iPhone For AI’: Betting Big On Artificial Intelligence
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AAPL
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https://www.nasdaq.com/articles/the-iphone-for-ai%3A-betting-big-on-artificial-intelligence
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “The ‘iPhone For AI’: Betting Big On Artificial Intelligence” was previously published in October 2023. It has since been updated to include the most relevant information available.
Despite all the hype surrounding the internet throughout the 1990s and early 2000s, the internet didn’t really take off until Steve Jobs introduced the iPhone in 2007.
Until the iPhone’s release, the internet was something a few people used for work and even fewer used at home.
Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. And suddenly, the internet had gone mainstream, and internet companies started making money hand over fist.
Sure, internet stocks did fine before the iPhone’s launch. But as a group, internet stocks only rose 60% between the late 1990s and January 2007, when Jobs introduced the first iPhone.
Yet from January 2007 to today, internet stocks have soared more than 450%.
And the iPhone is what thrusted internet stocks into hyperdrive.
So, why is this important from where we sit? Well, I believe we’re about to get the iPhone for AI.
In many ways, AI parallels the internet. The two are both productivity game-changers. Like the internet, AI will allow us to do things faster, better, and cheaper.
Over the next 20 years, AI will unequivocally change society, just like the internet has over the past 20 years.
But even the internet didn’t go mainstream and truly change the world until the iPhone launched.
Similarly, AI won’t go mainstream and truly change the world until it has its own “iPhone moment.”
And we think that moment is coming very soon.
AI Is Swiftly Approaching Its ‘iPhone Moment’
OpenAI is arguably the top AI firm in the world. After all, it is the company that developed ChatGPT, the buzzy AI chatbot that kickstarted this whole AI Boom just under a year ago.
Now OpenAI is working to develop the iPhone for AI.
And it’s not going at it alone. In fact, it’s actually creating a global tech “super team” to build this AI iPhone.
For this mammoth project, the firm is teaming up with Jony Ive – the lead designer of the original iPhone – and Softbank CEO Masa Son – the world’s largest tech investor.
OpenAI is providing its AI technology. Ive is providing the design expertise. And Son is providing a whopping $1 billion in funding.
This is a tech super team embarking on a tech super project.
And the result will change the world. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago.
What will such a device look like?
No one knows – but we do have some clues.
Putting AI in the Palm of Our Hand
OpenAI’s biggest investor is tech titan Microsoft (MSFT). And both Microsoft and OpenAI are huge investors in another AI startup, Humane.
Humane was founded by two former Apple employees. And for years, the startup has been working to develop the next evolution of the iPhone.
Recently, Humane unveiled the culmination of its work: the Humane AI Pin.
Essentially, this wearable device – no bigger than a police badge – has all capabilities of an iPhone compacted into a shirt pin. There’s no screen, no keyboard, no headset or goggles.
It’s just a pin. And it uses cameras, sensors, projectors, and a microphone to interact with its wearer and their surroundings.
Now, details on this AI pin remain scant. But in Humane’s recent presentation, one of the firm’s founders used the pin to take a call, translate English to French, ask about the health specifications of a candy bar, and summarize the daily news.
Source: Humane
A full unveiling of the Humane AI Pin is expected in a month. Rumor has it that the company will also start selling the pin in November, too.
Is this pin the future? Will OpenAI’s “iPhone for AI” take a similar form?
We think so.
The Final Word
But we believe that what OpenAI builds with Jony Ive’s design input and Masa’s funding will be far superior.
Regardless, the future is sprinting toward us.
Some folks are calling AI a bubble – a fad or “hype train” just like NFTs were a few years ago.
Do so at your own peril.
History will be as unkind to those folks as it was to the people who laughed at the internet in the 1990s.
We’re confident that AI will change the world even more than the internet did.
And the pace of that change will skyrocket once OpenAI, Jony Ive, and Masa unveil the “iPhone for AI.”
To prepare for that pivotal moment, do everything you can to invest in the AI Boom before that vision becomes a reality.
And we think we have the best way for you to do just that.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post The ‘iPhone For AI’: Betting Big On Artificial Intelligence appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. For this mammoth project, the firm is teaming up with Jony Ive – the lead designer of the original iPhone – and Softbank CEO Masa Son – the world’s largest tech investor. But in Humane’s recent presentation, one of the firm’s founders used the pin to take a call, translate English to French, ask about the health specifications of a candy bar, and summarize the daily news.
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Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s note: “The ‘iPhone For AI’: Betting Big On Artificial Intelligence” was previously published in October 2023. In fact, it’s actually creating a global tech “super team” to build this AI iPhone.
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Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. AI Is Swiftly Approaching Its ‘iPhone Moment’ OpenAI is arguably the top AI firm in the world. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago.
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Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. Well, I believe we’re about to get the iPhone for AI. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago.
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2023-11-12 00:00:00 UTC
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How to Invest in Artificial Intelligence: 3 Stocks to Buy
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https://www.nasdaq.com/articles/how-to-invest-in-artificial-intelligence%3A-3-stocks-to-buy
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Welcome to the world of AI (artificial intelligence) investing! As technology rapidly evolves, learning how to invest in artificial intelligence becomes crucial. Savvy investors repeatedly focus on the AI sector, viewing it as a hub of breakthrough developments and investment opportunities. This is especially vital for seasoned stock market players and beginners aiming to expand their portfolios.
Investing in artificial intelligence goes beyond mere support for advanced technology. It involves engaging in a market movement that is reshaping the financial landscape. When considering AI investments, one must see AI stocks as central to technology stocks. However, it is also important to remember to adopt a balanced, risk-managed approach.
Learning how, and when, to invest in artificial intelligence companies is essential for staying ahead of market trends. AI’s growing influence across sectors underscores the importance of understanding its investment potential. This knowledge is crucial for those eager to leverage AI’s transformative power in the stock market.
Qualcomm (QCOM)
Source: Katherine Welles / Shutterstock.com
Qualcomm (NASDAQ:QCOM), a leader in the tech sector, has demonstrated impressive resilience, boasting a year-to-date (YTD) return of 15%. Despite facing a challenging market, the company’s robust strategy yielded revenues of $8.63 billion in its latest quarterly results.
Qualcomm is riding high on the financial tide, boasting an impressive treasure chest swelled by 77.4% to a dazzling $11.32 billion in cash and short-term assets. At the heart of their flourishing empire lies a dedication to AI mastery, notably through the groundbreaking Snapdragon X Elite chipset. This chip manages to outperform competitors like Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL). The technological marvel not only adds luster to Qualcomm’s already sparkling portfolio but also opens up exciting new investment horizons.
The company’s financial muscle is flexed in its latest cash flow statements, revealing a robust net income of $1.49 billion and a hefty $4.09 billion generated from its operations, showcasing its operational prowess. While their investing activities dipped into the red by $618 million, this can be seen as a strategic move to sow seeds for future growth. The net cash inflow of $2.35 billion cements Qualcomm’s position as a financial powerhouse, ready to conquer new frontiers.
Taiwan Semiconductor Manufacturing Company (TSM)
Source: ToyW / Shutterstock
Taiwan Semiconductor Manufacturing Company (NYSE:TSM), a key player in the semiconductor industry, has experienced a notable 31% YTD return. Despite facing a challenging market and a recent quarterly report showing a decrease in net income by 25%, TSMC’s enduring strength is evident in its substantial EPS growth of 355%. This resilience underscores its strategic importance in the rapidly evolving tech sector, particularly in the realm of artificial intelligence.
The company’s financial performance had more than just the EPS growth to be proud of. A notably impressive aspect is the 19% growth in total assets, which paints a promising picture for its future expansion. TSMC stands out in the market with a hefty market capitalization of $446.21 billion and an active trading scene, averaging 9.1 million in volume. Further strengthening its position is its diverse portfolio, highlighted by a substantial allocation in cash and short-term investments amounting to $1.55 trillion New Taiwan dollars.
As the semiconductor cycle shows signs of bottoming out, TSMC’s prospects appear increasingly promising. The company’s strategic investments and robust financial health, combined with a favorable industry outlook, make it a top pick for investors aiming to gain exposure to the AI sector.
UiPath (PATH)
Source: dennizn / Shutterstock.com
UiPath (NYSE:PATH), a leader in artificial intelligence and automation, intrigues investors with a 40% YTD return. The latest quarterly earnings show a revenue of $287.3 million, up 19%. However, operating expenses increased to $314.5 million, a 3% rise. Net income experienced a loss of $60.4 million, worsening by 50%, but EPS impressively grew to 9 cents, a 550% surge.
The company experienced a 32% increase in its EBITDA losses, reaching $70.3 million. However, its financial position remains strong, as evidenced by a 6% growth in its cash and short-term investments, totaling $1.83 billion.
Regarding UiPath’s cash flow dynamics, they are somewhat mixed. On the one hand, operational cash flow was positive at $44.3 million, jumping 287%. On the contrary, investing activities led to a $235.1 million loss, and financing activities declined by 33%. Consequently, the net change in cash showed a $217.3 million decrease. Nevertheless, free cash flow was positive at $97.9 million, a significant 516% increase.
UiPath presents a notable opportunity in AI. With its strong financials and market adaptability, it is positioned for potential long-term growth. Therefore, investors should closely watch UiPath’s developments in the evolving AI landscape.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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The 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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This chip manages to outperform competitors like Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL). Qualcomm is riding high on the financial tide, boasting an impressive treasure chest swelled by 77.4% to a dazzling $11.32 billion in cash and short-term assets. Despite facing a challenging market and a recent quarterly report showing a decrease in net income by 25%, TSMC’s enduring strength is evident in its substantial EPS growth of 355%.
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This chip manages to outperform competitors like Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL). Qualcomm (QCOM) Source: Katherine Welles / Shutterstock.com Qualcomm (NASDAQ:QCOM), a leader in the tech sector, has demonstrated impressive resilience, boasting a year-to-date (YTD) return of 15%. Taiwan Semiconductor Manufacturing Company (TSM) Source: ToyW / Shutterstock Taiwan Semiconductor Manufacturing Company (NYSE:TSM), a key player in the semiconductor industry, has experienced a notable 31% YTD return.
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This chip manages to outperform competitors like Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Welcome to the world of AI (artificial intelligence) investing! The company’s financial muscle is flexed in its latest cash flow statements, revealing a robust net income of $1.49 billion and a hefty $4.09 billion generated from its operations, showcasing its operational prowess.
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This chip manages to outperform competitors like Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Welcome to the world of AI (artificial intelligence) investing! When considering AI investments, one must see AI stocks as central to technology stocks.
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Guru Fundamental Report for AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-18
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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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Firing on All Cylinders Indeed
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https://www.nasdaq.com/articles/firing-on-all-cylinders-indeed
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In this podcast, Motley Fool host Dylan Lewis and analysts Ron Gross and Matt Argersinger discuss:
Why interest rate and unemployment news helped stocks.
Starbucks' triple-shot growth plan, Apple's flat growth, and why Shopify is firing on all cylinders.
Huge reactions to earnings reports from DoorDash and Roku.
Match's struggle to hold on to singles.
Two stocks worth watching: WK Kellogg and Quest Diagnostics.
Economist Marc Robinson breaks down the negotiations between the United Auto Workers and automakers Ford, Stellantis, and General Motors.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Starbucks
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 Starbucks 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 6, 2023
This video was recorded on Nov. 03, 2023.
Dylan Lewis: We've got the latest on three household names and three stocks that are down big, but might be poised for a turnaround. Motley Fool Money starts now. It's the Motley fool Money radio show. I'm Dylan Lewis. Joining me over the airwaves, it's Motley Fool senior analyst, Matt Argersinger, Ron Gross. Gentlemen, great to have you both with.
Ron Gross: How are you doing Dylan?
Dylan Lewis: We've got some big earnings to run through, but first we're going to take a snapshot of the big macro. Ron, we had a Fed meeting this week. We had jobs data this week, what did you see?
Ron Gross: It's been an interesting week, a lot of volatility. On Wednesday, the Fed unanimously easy for me to say, agreed to hold rates steady. As you will recall, that's following a string of 11 rate hikes, four in 2023, and Chair Jerome Powell said, getting inflation down to 2% has a "long way to go". Obviously, the investors, Wall Street are hearing higher longer and they don't typically like higher or longer, but toward the end of the week, we got some interesting data that caused treasury yields to back off and they had been very high, as high as since 2007, which is part of the cause for the weakness we're seeing in the market. We saw a weaker than expected jobs report come in. We saw wage inflation moderating. Two things that say, maybe the economy is cooling off, maybe the Fed is doing a good job in lowering our inflation rate, somewhere down closer to two. The unemployment rate ticked up a bit to 3.9%. Yields came down, stock market shot up later in the week, Thursday and Friday. Let's see what next week brings, but this week ended very strong.
Dylan Lewis: We saw some big time earnings results from some big time companies. We can get the earnings beat started and talk through some of those big reactions we saw Ron. Let's start with Starbucks. Shares up over 10% after the company reported earnings and revenue ahead of expectations. Matt, we joked earlier, I think maybe a couple of weeks ago, about the absurdity of the high priced Starbucks menu items. Are those double shot drinks doing the heavy lifting here?
Matt Argersinger: They are. The good news is yes, they are and Starbucks has been really able to pass along price increases, unlike a lot of other companies we'll probably talk about, but the good news is, it's coming from pol places. It's not just price increases, it's also coming from transactions. It hasn't felt really good to be a Starbucks shareholder lately. Going into the earnings report, you had a stock that's been mostly flat over the past three years. It's really underperformed the market. There's been uncertainty about who was going to be CEO and how long Howard Schultz would stay around, and of course, growth has stagnated, particularly in China, but here we go. Today it feels pretty good to be a shareholder. The Q4 results are really solid. Global, comparable store sales were up 8% and as I mentioned, it wasn't just average ticket, it was also transactions. It's not like Starbucks is seeing any drop off in customer traffic or transactions. We've seen a lot of companies report growth that's been totally based on price and not on volumes. Starbucks is winning on both ends. US comps were up 8%. China has been a little bit of struggle comps, there were up 5% and total revenue was up 11% to 9.4 billion. Probably the best part of the report in the Q4 was the operating margin which was up 300 basis points, earnings per share, up 31% to $1.06. All these figures were way ahead of a consensus. Finally the 90 day after rewards member is something I'd pay attention to. That number was up 14% in the US to 32.6 million members. Quite a strong finish to fiscal 2023 for Starbucks.
Dylan Lewis: Those are incredibly strong results and I know it's not all that Starbucks had for the Street this week. Their CEO Laxman Narasimhan unveiled the company's new long term strategy for the coffee chain. Matt, what's the plan?
Matt Argersinger: Yes, Narasimhan and the team held a special call with Starbucks shareholders. He outlined his new long term strategy and he's calling it, wait for it, the triple shot reinvention with two pumps. [LAUGHTER] This beverage order has five elements to it guys. One, elevating the brand. Two, strengthening and scaling the company's digital presence. Three, becoming truly global. Then here are the two pumps. We got one pump for unlocking efficiencies and a second pump for reinvigorating the partner culture. Don't have a lot of time to go into the details and context behind each of these, but there are a lot of investors who are probably wincing a bit, and I was certainly at the tortured coffee metaphor here, but they probably didn't wince at the company's guidance for fiscal 2024, so comps growth between 5 and 7%. Revenue growth between 10 12%. Earnings growth between 15 and 20%, and Narasimhan thinks those numbers are actually pretty sustainable for the next several years, not just in this new fiscal year. If Starbucks can meet these kinds of growth rates, I think shareholders are going to be feeling pretty good.
Ron Gross: I'd advocate for a third pump where we put the milk back out on the counter so I can put my own milk in my coffee once again, like we used to do pre-COVID.
Dylan Lewis: I would call that an efficiency gain, Ron. That's going to help through putting that milk out there. I'm 100% with you. I want to be able to dictate the color of my own coffee. We had results from Apple as well this week. Another company that needs no introduction, Ron. We just talked Starbucks results. The story there was some strength in China. Not exactly the case with Apple's results.
Ron Gross: No, really the opposite. Dylan, it ain't easy being a $2.7 trillion company. Why don't you try it sometime. A lot of stuff has to go right, and in this case, not everything is going well. Earnings were better than expected, and we'll talk about that in a second. Sales were disappointing, guidance was disappointing. Sales were down slightly, but this was the fourth consecutive quarter of declines. For market leading Apple, that's not what investors are looking to see. The iPhone business was up 2.8% for new iPhone 15 introduced in September, but all other categories basically showed weakness. Mac down 34%. iPad down 10%. Wearables down 3%. Only bright spot in addition to the iPhone was the service segment, which was up about 16%, that's Apple Care, iCloud storage, app store sales deals with Google. That was OK. That's actually the second largest segment now behind iPhone. It's important that that had some strength, but as you said, China, one of the bigger challenges. Apple reported its lowest revenue from the Greater China region since mid 2022. iPhone demand was strong, but Mac and iPad were very weak. Overall, China revenue fell 2.5%. Boiling all this down, you got some help from a lower tax rate, you got some help from the fact that they buy shares back, so shares outstanding were down. Earnings per share actually managed to grow pretty nicely at 13%. Not too bad. Company continues to return cash to shareholders, has $162 billion in the bank. Twenty-seven times forward earnings got to see if some growth folks, otherwise that starts to look pretty expensive.
Matt Argersinger: You hit that, the last point about valuation run and that's where I was going to go. Just if you looked at Apple entering the year, it was trading for around 21, 22 times earnings. A slight premium to the overall market, definitely always justified for something like Apple. But the stock is up 35% year to date. Even through these earnings, I didn't realize it had such a good year. Now, as you mentioned, about 27 times earnings feels like a premium valuation. Even Warren Buffett, who of course owns and loves Apple, is probably a little nervous about where the stock is trading. I notice Berkshire Hathaway was a steady buyer of the stock in last year and coming into the year, but he hasn't bought any shares over the last couple of quarters. I'm wondering if he's seeing the same valuation concerns that we are.
Ron Gross: It could be. A lot of the Talking Heads are focused on the fact that it's down 10, 11% from it's higher earlier in the year, but as you mentioned, still up 35% despite that pullback and selling rather richly at the moment. One of my biggest positions though, so I've got my fingers crossed. [laughs]
Dylan Lewis: Our final name for the big earnings wrap up, Shopify. The company's shares are up 25% this week after a strong earnings report pushed them higher. Matt, what is behind the big pop?
Matt Argersinger: Well yeah, hard to find anything not to like about Shopify results. Gross merchandise volume up 22% to 56.2 billion. That's a big number. The merchant solutions business which is the biggest revenue segment, it's where Shopify help sellers with payments, shipping, and working capital. Revenue there was up 24% and a big reason for that was Shopify payments. The gross payments volume grew to 32.8 billion and accounted for 58% of Shopify's gross merchandise volume. Their payments infrastructure is definitely gain an attraction within their customer base. You turn to subscription solutions, revenue there was up 29%, and part of the growth here was really about pricing. Shopify raised prices on its basic and premium plans and didn't note any meaningful drop-off in subscribers after doing that. Monthly recurring revenue was up 32%. Now, investors have gotten used to these growth rates on the top line, which are obviously still very impressive. But I think what's new with Shopify is just the profitability now. We know the company sold its logistics business to a partner over the summer, so taking all those operating and CapEx costs out of the equation has really boosted the company's cash flow. Operating income in the quarter was 122 million. That compares to an operating loss of 346 million a year ago. Free cash flow was 276 million and free cash flow margin was 16% and management noted that they expect that cash flow margin to remain in the high teens in the current quarter as well. This is a fast-growing company, but also a much more profitable company. I think that is what has investors excited. The only thing I would say is this is still a company that does a lot of stock-based compensation, over 100 million in the third quarter alone, so you have to take that free cash flow with a little grain of salt. Ron Shopify President Harley Finkelstein appeared on CNBC this week and I think he might owe you five bucks, because he said a company was firing on all cylinders, talking about the strong growth, the cost, discipline, and continuing to see some big brands coming over. I want to hear it from the man himself though. Do you agree with the assessment?
Ron Gross: I saw some of that interview and I agree that they certainly at the moment they're firing on all cylinders. He was very happy to be reporting those results to the interviewer for sure.
Dylan Lewis: Well, now you is your royalty, so it's great you go around. The show pays for itself. Coming up after the break, we've got one company riding the trend of convenience and a foul stock up 40% since reporting stay right here. This is Motley Fool Money.
Dylan Lewis: Welcome back to Motley Fool Money. I'm Dylan Lewis, Joined again over the airwaves by Matt Argersinger and Ron Gross. We're going to pick up right where we left off with earnings this time though, checking on three companies that have had a bit of a rough run over the past few years but might be showing some signs of life. Ron, first one up is DoorDash Company shares up nearly 20% after the leading food delivery company reported recent orders on the platform that we're hitting record levels. Based on the company's guidance, Ron seems like they're expecting some good times to continue.
Ron Gross: Yes, but stock's up 80% this year. Thirty-five billion dollar market gap for DoorDash. Does that sound right? Let's get into some of the numbers and we can discuss that they did post their strongest quarter since going public in 2020. Good for them. I am a customer, probably use it too often, so I'm with them. They projected better than expected growth and adjusted earnings for the current quarter. That's strong guidance as well. Part of the reason that we really saw the stock take off. Total order value on the app and total number of orders both rose 24% strong business, restaurants stayed strong, grocery business doubled. Revenue was up 27% as a result. Expenses were managed well and they managed to trim overall losses to 75 million. I will remind you it's a $35 billion market gap and they're trimming losses. They do have adjusted EBITDA dial. We play with some of the numbers and we see that it came in at 344 million, its strongest ever. It's a four fold increase over last year, 878 million in free cash flow on a trailing 12 month basis. Not profitable yet, but they are producing free cash flow if we do some adjusting, 35 times adjusted EBITDA though here. They've got to grow into this value in a humongous way. Can they do it? That's going to take some time I think, but it'll be fun to watch.
Dylan Lewis: Yeah, we might help them grow into that valuation. Ron is this idea of the macro trend of convenience. CEO Tony Ju has talked about that. It sounds like you're helping them out with some of those orders yourself, but generally the gist is consumers seem pretty happy to sit at home and if they can find some of those categories like grocery and expand beyond conventional food delivery, there might be something there for them.
Ron Gross: I think so. I think this is a business and I think it will be a profitable business if expenses are controlled appropriately. I just don't know if a 35 billion market cap is appropriate. Time will tell.
Dylan Lewis: We have a rough week for match shareholders. The online dating company down over 10% after reporting third-quarter earnings. Matt, it seemed like the key area of concern here was user growth trends especially with tender.
Matt Argersinger: That's the story. If you compare the stock chart of Match group with Zoom over the past five years, you'll see almost what looks like a perfect correlation. Like Zoom, Match was that perfect pandemic stock. People stuck at home. There wasn't a opportunities for social interactions. Match's services really boomed and the stock really behaved like that for a year or so. But now stock is down more than 80% of its high. It's close to a seven year low. I couldn't believe it when I looked at it. I think the results will tell you that unlike a Starbucks or a Shopify, subscribers here tend to be pretty price sensitive. Match group has raised or as management says, optimize pricing over the past year for many of its services, including tender, and I think that's helped revenue in the short term. But subscriber numbers are way down across the board. Paying members fell 800,000-15.7 million, in the third quarter. Tinder was the big loser, paying members there fell 6%, and revenue guidance for the current quarters was below management's prior guidance. All that taken together really hit the stock hard. I think this is somewhat of a network effects type of business. I'm not a user, I can't confirm that. But I think when you start losing subscribers in a business like this, the momentum of the business can really fall off. On the positive side, margins are higher, that's what the price hikes are doing. The business is generating a lot of free cash, but I think unless they can get subscriber growth going again. I don't know, there might be a lower floor for the stock.
Dylan Lewis: We'll wrap with another name in convenience, Roku. Shares of the streaming and ad company up 40%, four 0% following earning. Ron, this report felt like a company that had some good news and desperately needed some good news.
Ron Gross: It really did. Times have been tough here and there, but up 100% this year, the stock. It's getting some love for sure from investors. This was a strong report with signs of an advertising rebound and cost cutting. Helping the bottom line and future guidance, which I think really has got investors excited. Revenue was up 20%, platform revenue, which includes their ad sales and their distribution deals, and the Roku channel was up 18%, Roku added 2.3 million active accounts in the quarter. That's up 16% revenue per active user was down 7% year over year, but it was actually up 1% on a sequential basis. Moving in the right direction, we've got to get that number moving a little bit more quickly, more strongly. Gross margins narrowed a bit. Device margin growth was offset by narrowing platform gross margins, led to an adjusted EBITDA number. Again, adjusted, we have to play with some of the numbers to get this of $43 billion positive. Management said it remains cautious and certain amid an uncertain macro environment and an uneven ad market recovery. But they did guide to adjusted eta of $10 million for the fourth quarter. This is an $11 billion market cap company. Not putting up great numbers but maybe they're on track right now, they remain committed to positive adjusted EBITDA for full year 2024.
Dylan Lewis: Ron, I look at this name and some of the others and I think it's possible that we might be seeing some bottoming with some of these big growth text stock names. Is that what you're seeing here?
Ron Gross: Bottoming, it's interesting though, in the current interest rates environment, you've got to put up some strong numbers, still support some of these market caps. They're still pretty high. Just not as high as they were.
Dylan Lewis: Ron and Matt, we'll see you guys a little bit later in the show. Up next we've got a breakdown of the winds the United Auto workers notched in their deals with Ford, Stellantis, and GM. Stay right here. You're listening to Motley Fool Money
Ron Gross:Well, now Lord, Mr. Ford, I just wish that you could see what your simple horseless carriage has become.
Dylan Lewis: Welcome back to Motley Fool Money. I'm Dylan Lewis. Detroit might be able to breathe a sigh of relief as of weeks end, Ford, GM, and Stellantis all have established tentative deals with the United Auto Workers Union. The details are down and now it's up to union members to accept the contracts. We went to economist Marc Robinson, who worked for GM for over three decades, advising on negotiations, labor, and strategy for a breakdown on how the deals came together and lessons from these negotiations. Marc, we spoke with you in early October, and at the time, the conversation with the UAW and the automakers was these two sides and how they are angling in their negotiations. Very different story now.
Last week, we saw that there was a deal struck with Ford. We have news that there's a deal with Stellantis and GM. What happened over the last couple of weeks since we last checked in with you?
Marc Robinson: Well, they went through their escalation strategy, which they've been telegraphing for a while. They stopped firing shots across the bow and walked out of a negotiation session with Ford a couple of weeks ago, and struck Ford's most profitable plant, its Kentucky Truck Plant. They then waited actually two weeks to strike GM and Stellantis as most profitable plant. The day after they struck the GM's most profitable plant, they announced a tentative agreement with Ford. Some of this was kabuki, it was show, Shawn Fain had to demonstrate to its members that they had, as he put it on Sunday, gotten every last dime that was on the table. Looking at the deal, he got a lot of dimes. He got so many major advances for the members, but despite this extraordinary agreement, he still had to be and is today still concerned about ratification.
Dylan Lewis: Marc, let's talk a little bit about some of the advances that you were talking about there. I think if you're looking at the UAW side, from my perspective, it seems like the major wins that we're seeing based on what we know about these deals are significant pay raises, the return of cost of living adjustments, family relief. Are there some other things that really jump out to you as big wins for the UAW?
Marc Robinson: Yes. It was not just that they got significant wage increases overall. They essentially got rid of the two tier system, and it was actually multi tier system. The Detroit 3 had agreed, essentially, over the years, to bring some jobs back in or keep some plants open basically under concessions that the union made about wages and work rules. They just undid that. If I were the companies, I wouldn't expect that kind of possibility to be out there in the future, and that they may have some remorse about the decisions they made back then. They also covered these, in some cases, plants that didn't even exist yet. These joint venture battery plants that the Detroit 3 had in unprecedented fashion, set up with Korean battery suppliers, Samsung and LG Chem. Even though they weren't under the national agreement, in theory, the companies didn't even have to talk about them with the UAW as part of these national negotiations. They agreed to bring them under the national contract at assembly plant wages. In the case of Ford and Stellantis, who hadn't even opened up their plants yet, they agreed through essentially a sleight of hand to instantly have them be unionized and have them be under again at the national agreement wages. That was a massive win for the UAW, it's a big strategic defeat for the Detroit automakers. They may end up even rethinking their long-term battery strategy as a result of this.
Dylan Lewis: Marc, it seems like this was generally something that led to a lot of advances for the UAW. From the automaker perspective, are there wins? Because so much of the coverage and the press that I see on this is basically the UAW got a lot of what they were looking for.
Marc Robinson: I can't see any major wins that the automakers got. The only thing they were able to not agree to some things that the UAW demanded, like defined benefit pensions for new or higher workers, and big increases in existing pensions, and 32-hour work week, which the union I think never was very serious about. My rough farmers math is that each of the companies has another two billion dollars a year in labor cost by the end of the agreement. That's more than 33% increase in their labor costs, maybe up to 40%. That's a massive hit. The other thing is that, Ford, for example, was very proud of its non-confrontational relationship with the union and they viewed that as a competitive advantage over General Motors. Well, not only did Ford get struck, which is already a defeat for that strategy, but Shawn Fain went out of his way to diss the chairman and the CEO of Ford. He stood up Bill Ford, the chairman of the board, who was coming in for a special conversation with him in advance of the strike. He walked out 10 minutes into an important negotiation session and struck for his most profitable plan. That's not gentlemanly behavior, which I'm sure Shawn Fain would be perfectly comfortable being ungentlemanly. But there are hard feelings in the companies about this strike.
Dylan Lewis: You mentioned Shawn Fain there and the approach from the UAW with this strike was new and different, and Shawn Fain is a very new and different union leader. Do you think that contributed to the success of the negotiations?
Marc Robinson: Yes. I think that his style and aggressiveness contributed. There was a very interesting story in the Wall Street Journal about the 330 something advisors that Shawn Fain hired, not union members, I mean they came in as staffers. The combination of that fresh thinking and more strategic thinking and more nimble communications clearly had an impact on the strike. I think that some of the negotiation tactics were similar to things I've heard about for how Donald Trump negotiates. For example, GM, before it signed the tentative agreement, the UAW escalated and struck yet another plant just before the deal. That couldn't have been because GM was unwilling to sign the pattern. GM would have agreed to the pattern economics. A week earlier hey were said they were very close to a deal. What I think happened is that the union negotiators came into that session trying to get all three deals done at once. Again, there's no tradition around that. They then said, we want more here and we want more there. They had already agreed to not take more, but they grabbed it and that led to more confrontation, and probably more concessions from the Detroit three. But it's not a way they are used to negotiating and it may have some long term consequences for how they approach the union in the future.
Dylan Lewis: Do you think that there are tactics that other labor groups and maybe other industries might borrow from with what the UAW did?
Marc Robinson: Shawn Fain is hoping that in May 1, 2028, there are many union contracts that expire on the same day. He wants to call a general strike. He wants to change the way unions are perceived and bargain in America. Not sure he'll succeed, but definitely he wants to be leading a revitalized labor movement. His advisors, there's apparently a playbook that they published that they more or less followed. My guess is other unions will be downloading copies of that playbook.
Dylan Lewis: You have a C-Suite newsletter that you write. Right after the Ford deal was announced, you wrote that the gains were incredibly impressive. This is a record contract by any measure. However, it is something that still needs to be ratified. This is what we need to put to an end here. Are there reasons to worry about that?
Marc Robinson: Absolutely. Shawn Fain has raised expectations extraordinarily high. That may be some of the downside of his tactics is that the companies basically knew that the workers were going to be had very high expectations, and they wouldn't be able to get out of this with a cheaper contract just by waiting a couple more weeks. Just recently, the union members rejected a proposed agreement, a tentative agreement at Mack Trucks. Now it wasn't nearly as rich as the Detroit 3 agreement, which is in fact part of his problem. In 2015, what's now slants rejected a national agreement. There is history of it, there's a risk of it. One thing that Fain is clearly trying to do is to create the sense that the strike is over with his members by getting, reaching tentative agreements at all three, and ratifying all three and calling the workers back to work before ratification. He's trying to create a fait accompli, he may succeed, but there's a risk that he won't and if he doesn't, if there's a failed ratification at any one of the three, it's chaos.
Dylan Lewis: You're a game theorist and last time we had Jan, you were talking about how these are economic conversations and financial conversations, certainly for the union workers, but also, there is political posturing that goes on here and, right after the Ford deal was announced in principle, the company revealed that they expect it will add about $850 per vehicle to their manufacturing costs. For our audience as an investing audience is a financial disclosure. But I'm curious, is that also political posturing as we start thinking about things like ratification and the relationship between these automakers and their workers going forward?
Marc Robinson: Yes. They're also coming out with statements about how much the strike costs them. I would take those statements with a grain of salt because there have been very few people who have walked away from a dealership not having a car or truck that they wanted even with these strikes. Seems as though they could probably, with a little bit of overtime, make up for a large fraction of whatever they lost in a production during the strike. I think the accounting may allow them to show smaller earnings impact down the road. Then the headline figure on the cost of the strike would suggest.
Dylan Lewis: Marc, we're certainly not rooting for any more labor disputes or for people to be on the sidelines not working. But if that's the case, we'll be coming back to you and talking again soon. I really appreciate your time.
Marc Robinson: Pleasure talking to you.
Dylan Lewis: Listeners, you can catch Marc's latest writings at C-Suite on substack, and if you're interested in stock ideas, the Motley Fool has you covered there too, especially if you're interested in dividends. Our analysts at Motley Fool stock advisor put together a list of five quality dividend payers that are also recommendations in our stock advisor service. This report is free to you with no purchase necessary. You just need to go to fool.com/dividends and we'll email it directly to your inbox. That's fool.com/dividends with an S and we've got more stock. Talk ahead coming up after the break. Matt Argersinger and Ron Gross return with a couple stocks on their radar. Stay right here. You're listening to Motley Fool Money.
Dylan Lewis: As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Bill Lewis, joined again by Matt Argersinger and Ron Gross. Let's get over to stocks on our radar. Our man behind the glass, Rick Engdahl, is going to hit you with a question for our radar stocks round. Ron, you're up first. What are you looking at this week?
Ron Gross: This is an interesting one that caught my eye from our friends over at our microcap service firecrackers and it's WK, Kellogg, KLG. It's the number two seller of ready to eat cereal in America, Number 1 in Canada and the Caribbean and owns nine of the top 20 brands. That's Frosted Flakes, Rice Krispies, Raisin Bran, Fruit Loops, Frosted Mini-Wheats, and Special K. I happen to love cereal. Don't eat enough, but I should. It's delicious. It's still the top breakfast choice for kids. But there's a lot of competition out there from healthier food, so there has been some weakness here. It was recently spun off from the parent company, which is now known as Kellanova ticker, symbol K. They hold onto some of the international brands and they kept a rice crispy treat business that was smart because they are delicious. But we're left with this small microcap company, Kellogg. They've definitely had some problems. The shares are off significantly since it went public. That could create an opportunity. It's only a $900 million market cap company. So if they can put up add numbers of what they're hoping, which could be up to 400 million annually for a $900 million market cap company, this could be very interesting. It's a little dicey though, because it is in a category that is showing declines and we really don't see any significant catalyst from a business perspective in the foreseeable future.
Dylan Lewis: Rick, sounds like we've got a pure play cereal company here. What's your question?
Rick Engdahl: Yeah, I can't imagine a world without fruit loops that's clear. [laughs] Ron.
Ron Gross: Yes.
Rick Engdahl: I know the answer, but cereal first or milk first?
Ron Gross: Definitely cereal first, right?
Rick Engdahl: I've heard arguments the other way and I just don't believe it's. I just wanted to see if there was.
Dylan Lewis: You want the milk to water fall down over the cereal so that you don't want to dry stuff on top. I mean, we're all sensible people here. We know how this works.
Ron Gross: Not anarchy. [laughs]
Dylan Lewis: Matt, what is on your radar this week?
Matt Argersinger: I'm looking at Quest Diagnostics, tickers, DGX. It's a leading diagnostics and blood testing company. Think of Theranos, except legal and ethical. It pretty much operates at duopoly with Lab Corp, so most hospitals and clinics will use one or the other or both to outsource blood tests. Obviously quest revenue really soared in 2020, 2021 because of COVID 19 testing. No surprise that's fallen off big time. In fact, their COVID 19 testing revenue fell 92% year over year in the third quarter. But what's been great about the company and the results is just how well their base or non COVID testing business has held up volumes there were up almost 6% in the quarter that was well ahead of what management was expecting. Because of that resilience, management keeps raising full year guidance. Earnings per share are not expected to be between $8.65 and $8.75 for the full year. They're also expecting to generate at least 900 million in free cash flow. This is a really cash flow heavy business. Management tends to use that free cash flow to either make acquisitions pay a steady dividend, which they do, and buy back shares, and I think at less than 16 times earnings, it trades for a below market multiple. Yet it's a very strong cash flowing business with a really good competitive position, so I like where quest diagnostics is right now.
Dylan Lewis: Rick, a question about quest.
Rick Engdahl: Yes, but, [laughs] so in my extensive research for this segment here, I went to the website and the first thing that popped up was a photograph of a very healthy woman working on a laptop while doing a plank and smiling and I'm wondering, is this company just over promising? [laughs]
Dylan Lewis: It could be, but it's, it's aspirational and it's just showing you, what we're all hoping to achieve in life.
Rick Engdahl: Yeah.
Dylan Lewis: It's a lifestyle brand, Rick.
Rick Engdahl: Exactly.
Dylan Lewis: Which one's going on your watch list?
Rick Engdahl: I think I got to go with the fruit loops.
Dylan Lewis: Got to. How can you turn that down?
Rick Engdahl: I might do a plank while I'm meeting them.
Dylan Lewis: That's good balance. Rick, thanks for weighing in on our radar stocks. Matt and Ron thank you for bringing them to us. That's gonna do it for this week's Smart Fool Money radio show. Thanks for listening. We'll catch you next time.
Dylan Lewis has positions in Match Group and Shopify. Matthew Argersinger has positions in Match Group, Quest Diagnostics, Roku, Shopify, Starbucks, and Zoom Video Communications and has the following options: short November 2023 $130 puts on Quest Diagnostics. Rick Engdahl has positions in Apple, Berkshire Hathaway, Match Group, Roku, Shopify, Starbucks, and Zoom Video Communications. Ron Gross has positions in Apple, Berkshire Hathaway, and Starbucks. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, DoorDash, Match Group, Roku, Shopify, Starbucks, and Zoom Video Communications. The Motley Fool recommends General Motors, Quest Diagnostics, Stellantis, and WK Kellogg 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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Ron Shopify President Harley Finkelstein appeared on CNBC this week and I think he might owe you five bucks, because he said a company was firing on all cylinders, talking about the strong growth, the cost, discipline, and continuing to see some big brands coming over. Management tends to use that free cash flow to either make acquisitions pay a steady dividend, which they do, and buy back shares, and I think at less than 16 times earnings, it trades for a below market multiple. Rick Engdahl: Yes, but, [laughs] so in my extensive research for this segment here, I went to the website and the first thing that popped up was a photograph of a very healthy woman working on a laptop while doing a plank and smiling and I'm wondering, is this company just over promising?
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In this podcast, Motley Fool host Dylan Lewis and analysts Ron Gross and Matt Argersinger discuss: Why interest rate and unemployment news helped stocks. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, DoorDash, Match Group, Roku, Shopify, Starbucks, and Zoom Video Communications. The Motley Fool recommends General Motors, Quest Diagnostics, Stellantis, and WK Kellogg and recommends the following options: long January 2025 $25 calls on General Motors.
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In this podcast, Motley Fool host Dylan Lewis and analysts Ron Gross and Matt Argersinger discuss: Why interest rate and unemployment news helped stocks. Dylan Lewis: We saw some big time earnings results from some big time companies. Dylan Lewis: As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear.
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Dylan Lewis: We saw some big time earnings results from some big time companies. Ron Gross: Yes, but stock's up 80% this year. Dylan Lewis: Ron and Matt, we'll see you guys a little bit later in the show.
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2023-11-11 00:00:00 UTC
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Apple Stock: Bull vs. Bear
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https://www.nasdaq.com/articles/apple-stock%3A-bull-vs.-bear-4
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Apple (NASDAQ: AAPL) stock has surged 40% higher across 2023's trading. The tech giant also has a market capitalization of roughly $2.84 trillion, and ranks as the world's largest company.
There's no doubt that Apple is an industry-leading player in technology hardware and software, but is the stock still a smart buy at today's prices? Read on to see competing bull and bear cases for the stock presented by two Motley Fool contributors.
Image source: Apple.
Bull: Apple is arguably the most innovative tech company
Parkev Tatevosian: My bull case on Apple stock centers on its decades of history designing, creating, and selling innovative tech hardware that people have come to appreciate. Indeed, it is this capability of innovating that is likely to make Apple shareholders wealthier over the coming years.
The iPhone, iPad, Apple Watch, and AirPods are a few of the tech items you see daily, even if you don't own one of these products yourself. Sales of the aforementioned products have boosted Apple's revenue from $171 billion in 2013 to $394 billion in 2022. Apple has cleverly built a family of products that complement each other. An Apple Watch is more useful if you have an iPhone, and vice versa. This characteristic makes it more likely that consumers will stick to Apple's ecosystem when any items need upgrading.
What makes Apple an attractive investment is that it has accomplished those feats profitably. From 2013 to 2022, Apple's operating income increased from $49 billion to $119 billion. Overall, Apple has demonstrated it can repeatedly deliver innovative technologies to customers while simultaneously expanding the business's profits. Fortunately for investors, they can buy this company at a fair valuation.
AAPL PE Ratio (Forward 1y) data by YCharts
Apple is trading at a forward price-to-earnings ratio of roughly 26, which is a fair price considering the growth in revenue and profits mentioned earlier. It can be tempting to look for bargains in the stock market, but paying a reasonable price for an excellent business is also a good strategy to build wealth in the long run.
Bear: Great companies aren't always great stocks
Keith Noonan: Before diving into potential bearish scenarios for Apple stock, I should clarify that I think the stock stands a good chance of beating the market over the long term. As Parkev outlined above, the company has built an impressive ecosystem of products and services -- and it's an absolute monster of a profit-generating machine.
But while Apple has certainly served up some big innovations in the past, its recent hardware and software releases have been largely iterative. When it comes to the iPhone hardware that generates a huge portion of the company's overall sales and profits, the tech giant's annual hardware refreshes have largely come down to marginal improvements for camera technology and a few other bells and whistles in recent years.
Delivering relatively small technological improvements hasn't stopped the iPhone from serving up very impressive sales because Apple has an incredibly loyal customer base. The company arguably has the world's most valuable brand, and it's built a lifestyle around its products. But with the possible exception of its AirPods, Apple hasn't exactly delivered surprising product wins in recent years.
While the company is readying its augmented reality glasses and reportedly working on a self-driving smart car and other projects, it remains to be seen whether its new product offerings will wind up being successful. And notably, the company hasn't had much to show when it comes to artificial intelligence (AI).
Apple's massive user base gives it some inherent foundational strength in the AI space, but I think it would be hard to argue that the company has stronger footing than Microsoft based on what we've seen so far. AI is poised to be an absolute game changer, and there's a risk that Apple's overall position in tech will weaken if the company doesn't knock it out of the park with its own initiatives.
There's no doubt that Apple is a great company that deserves somewhat of a valuation premium. But the business is coming off four consecutive quarters of sales declines. Even with its many successes and strengths, Apple still has a lot of proving to do. If new product and service initiatives can't drive stronger growth, the stock could struggle or stagnate.
Should investors buy Apple stock?
If you're looking for blue-chip technology stocks with strong industry position and great brand strength, there's a lot to like about Apple. The company remains enormously profitable, and it has an impressive history of delivering successful products and services.
On the other hand, investors shouldn't dismiss the potential near-term downside risks or the possibility that the stock could deliver weaker-than-expected long-term performance. Apple's previous successes don't guarantee that it will score big wins in new categories, and it's possible the tech giant will face some disruptive pressures amid AI trends or see some of its other growth bets fall short.
For most investors, taking a buy-and-hold approach to Apple still looks like a sensible move. But it's also a good idea to study and weigh bearish scenarios before going all in on the stock.
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 6, 2023
Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has positions in Apple. 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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Apple (NASDAQ: AAPL) stock has surged 40% higher across 2023's trading. AAPL PE Ratio (Forward 1y) data by YCharts Apple is trading at a forward price-to-earnings ratio of roughly 26, which is a fair price considering the growth in revenue and profits mentioned earlier. It can be tempting to look for bargains in the stock market, but paying a reasonable price for an excellent business is also a good strategy to build wealth in the long run.
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AAPL PE Ratio (Forward 1y) data by YCharts Apple is trading at a forward price-to-earnings ratio of roughly 26, which is a fair price considering the growth in revenue and profits mentioned earlier. Apple (NASDAQ: AAPL) stock has surged 40% higher across 2023's trading. Bull: Apple is arguably the most innovative tech company Parkev Tatevosian: My bull case on Apple stock centers on its decades of history designing, creating, and selling innovative tech hardware that people have come to appreciate.
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Apple (NASDAQ: AAPL) stock has surged 40% higher across 2023's trading. AAPL PE Ratio (Forward 1y) data by YCharts Apple is trading at a forward price-to-earnings ratio of roughly 26, which is a fair price considering the growth in revenue and profits mentioned earlier. Bull: Apple is arguably the most innovative tech company Parkev Tatevosian: My bull case on Apple stock centers on its decades of history designing, creating, and selling innovative tech hardware that people have come to appreciate.
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Apple (NASDAQ: AAPL) stock has surged 40% higher across 2023's trading. AAPL PE Ratio (Forward 1y) data by YCharts Apple is trading at a forward price-to-earnings ratio of roughly 26, which is a fair price considering the growth in revenue and profits mentioned earlier. As Parkev outlined above, the company has built an impressive ecosystem of products and services -- and it's an absolute monster of a profit-generating machine.
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2023-11-11 00:00:00 UTC
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PYPL Outlook: Can Paypal Become an AI Stock?
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AAPL
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https://www.nasdaq.com/articles/pypl-outlook%3A-can-paypal-become-an-ai-stock
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Paypal (NASDAQ:PYPL) stock has had a rough go of it, but the company has a storied history. It gave Elon Musk his first big profit. Co-founder Peter Thiel became one of Silicon Valley’s leading political players. But that’s all ancient history. What PYPL stock has been doing lately is disappointing investors. Shares are down 22% in 2023. If you put $1,000 into Paypal 5 years ago, you’d have $650 now.
It’s up to Alex Chriss, hired away from Intuit (NASDAQ:INTU) as CEO in August, to change the story on PYPL stock. Chriss’ accomplishment at Intuit was buying Mailchimp, an e-mail marketing firm, for $12 billion, but that will not be his first move here.
Shrink to Win
During his firstearnings callas CEO, on Nov. 1, Chriss mainly promised efficiency. “Our cost base remains too high and it’s actually slowing us down,” he said. Expect layoffs by Christmas, which Wall Street is bound to love.
Chriss also wants to get PayPal away from being a pure transaction company. That’s what it became under former CEO Dan Schulman. While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. He also knows that Elon Musk’s original name for PayPal was X. The aim of X now to become what PayPal then promised to be, an “everything app” built around money.
The first step remains, however, cutting costs to improve margins. Chriss is buying back shares with extra cash flow, building a war chest. Paypal stock now sells for less than 17 times earnings and barely twice its yearly revenue. Chriss estimated full-year earnings for 2023 at $3.75 per share on his conference call, a raise from previous estimates of $3.49.
That should start the ball rolling.
The AI Growth Strategy
Chriss’ aim is to make PayPal a “platform company,” one that “can create meaningful profiles with the help of AI.”
That starts with using generative AI to enhance automated threat detection and response. Getting checkout systems to spot possible fraud as it happens is the goal. PayPal says the company has already cut its own loss rate in half with such systems, while doubling volumes.
That can also mean using AI to recommend upsells. The company conducted over 300 experiments using AI just in the first half of the year.
But there are risks to expanding outward. The Consumer Finance Protection Bureau (CFPB) wants apps like PayPal to follow the same regulations as banks. The CFPB has already warned customers of PayPal’s Venmo not to store money in their accounts, because it can be lost. PayPal has also been hit with a lawsuit over its transaction fees. Its seven-year old agreements with Visa (NYSE:V) are also drawing scrutiny.
No matter which direction PayPal looks to for growth, it’s clearly going to face competition, not just from other fintech companies but from governments.
The Bottom Line on PYPL Stock
Currently PayPal is being valued like a payment processor, and not a very good one. Fiserv (NYSE:FI), a traditional processor, is valued at almost three times revenue.
Chriss wants to see PayPal valued like a tech stock. If it were, the company’s value could easily double.
But getting there takes more than just saying “AI” or other Internet buzzwords that make you swoon. It means delivering results like those tech companies deliver. The market is not convinced PayPal can do that yet.
But for Chriss, these are early days. I’ve often said I bet the jockey and not the horse, the CEO and his vision matter to me. If Chriss can turn his current plate of buzzwords into results, I’m all ears.
I just want to see more.
As of this writing, Dana Blankenhorn had a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his free Substack newsletter.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL. It’s up to Alex Chriss, hired away from Intuit (NASDAQ:INTU) as CEO in August, to change the story on PYPL stock.
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He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL.
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While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Paypal (NASDAQ:PYPL) stock has had a rough go of it, but the company has a storied history.
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While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Paypal (NASDAQ:PYPL) stock has had a rough go of it, but the company has a storied history.
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12566.0
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2023-11-11 00:00:00 UTC
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Stock Buybacks: The Good and the Bad
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AAPL
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https://www.nasdaq.com/articles/stock-buybacks%3A-the-good-and-the-bad
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In this podcast, Motley Fool host Ricky Mulvey and analyst Jim Gillies discuss:
Economic takeaways from a trip to Las Vegas.
Share buybacks gone wrong.
An airplane leasing company that may be taking itself private.
Plus, Motley Fool host Alison Southwick and personal finance expert Robert Brokamp celebrate Halloween and discuss some financial horror stories.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Oct. 31, 2023.
Ricky Mulvey: Happy Halloween. Watch out for cannibals. You're listening to Motley Fool money. I'm Ricky Mulvey joined today by Jim Gillies. Jim, good to see you.
Jim Gillies: It's good to be seen, Ricky.
Ricky Mulvey: We're going to keep it a little later on Halloween. You just got back from Las Vegas, so you see anything weird out there?
Jim Gillies: What wasn't weird out there? Vegas. This was my first time going to Vegas where I wasn't working. In the past, when I've gone to Vegas, it's been maximum 48 hours. Usually occasionally less than 24 fly in, go give a talk talk in a hotel conference room. Maybe they buy you dinner. Hopefully they buy you a cab back to the airport, you fly out. This is the first time I've actually gone and experienced Vegas. Yes, the whole the one thing that struck me was the sheer amount of raw naked capitalism flowing through that city. I was with my significant other who last time she was there was 23 years ago. She was commenting constantly how it has grown from then. She says, I thought it was pretty crazy then. My inner hard charging capitalist was very impressed by the price of everything and how everyone was willingly paying it out. If you are gauging the American economy for signs of recession, do not go to Vegas, as much as I like paying for $23 cocktails and $95 to $100 filet mignons. I am happy to have at least spent a few days out of the Grand Canyon and Hoover Dam, and I am now safely back home.
Ricky Mulvey: Wait, you said you were impressed by the price of things. It's not like not cheap, very expensive? Yes.
Jim Gillies: Extremely expensive. From what I understand, that's not usually the way it used to be. No, you went to Vegas and everything was super cheap. No, they have decided that making money from gaming, although of course, they've also changed the odds on some of their gaming stuff to favor them. There's no $10 blackjack on the strip anymore. It's $25 blackjack. Blackjack no longer, you know, getting a blackjack no longer pays a 50% premium. Now it pays a 20% premium. Pays six to five instead of three to two. But that's my that's what little gambling I do. I like to play blackjack a little bit but.
Ricky Mulvey: You got to go to the downtown Vegas, They still got it a little bit, but let's talk about stocks. Let's talk about stocks because, it's the spookiest day of the year. It's Halloween. Let's find some cannibals. Companies like to reward their investors. They can pay out dividends, add some discipline, maybe some tax consequences. Or they can buy back shares a little bit less discipline, but significantly better tax consequences. If you've owned Apple for any period of time, you've probably benefited from share buybacks. If you've owned a legacy auto maker, you've experienced share buybacks, but you haven't necessarily benefited. To set the table, what are the signs of a share buyback plan going right? Because we're going to focus on, we got Jim Gillies here, so we're going to talk about a weird little company that you haven't heard of, [laughs] But what are the signs of some share buybacks going right?
Jim Gillies: Well, I mean, you've already mentioned one. That would be Apple, although I'm going to give Apple a B for their share buyback program. Even though Apple, over the past nine years, I believe, has taken out about 30% of their starting share count. Another company you may have heard of, eBay, has taken out, I believe, about 55% of their shares from about a decade ago. But the reason I give those guys B's is because, they buy back in any environment. But they can afford to, because they've got massive cash generation. They've got super strong balance sheets and they can pay for these buybacks through their cash generation with really out touching their balance sheet. But they don't pay any attention really, to valuation. Apple buys their shares back at ten times operating profit. They buy it back at 25 times operating profit. I'm going to suggest to you humbly, one of those is a better deal. A company like a Medpace Holdings, which I know Ricky, you and I have talked about on this show. Before. Medpace was doing fantastic in 2022, their stock got beaten down. They basically said, hey, guess what? We're going to buy back stock. They bought back 14% that's one seventh. They bought 14% of their company back in two quarters. Exhausted all of the cash they generated for about four or five years, took it out and the CEO bought a whole whack of shares himself, over $150 million worth. That's a buyback program that's done really well because the most recent quarter of the Medpace just had they bought back zero because the valuation is no longer as compelling. I like that type of buyback much better. But, you know, so we'll give Medpace an A, We'll give eBay and Apple the B, maybe a B plus, you know, But you really want to see a company that can afford the buybacks by generating their own cash and have at least some semblance of a look at valuation. Those are the best.
Ricky Mulvey: But the Medpace example, that's a little bit trickier in practice because generally management teams, if they get to pick their spots, they buy back shares when valuations are high, they have extra cash flow coming in. Not necessarily when valuation is low,.
Jim Gillies: It's like you're setting me up for the next part.
Ricky Mulvey: Well, then let's talk about let's talk about air cap. I was watching.
Jim Gillies: No, I thought you wanted to talk about a bad buyback.
Ricky Mulvey: Okay. Then let's talk about a bad buyback.
Jim Gillies: This is a company so nice, they've done it twice. The company is called the Sleep Number company. The makers of the Sleep Number bid the company, formerly known as Select Comfort, and they have done this maneuver twice. The first time in the mid 2000 from about 2004 through to just looking up my numbers here, from about 2004 up to about 2006 into 2007, company is very cash flow positive, they have no debt. The stock is up and up and up. Peaked at about 27, $28, then as the economy starts going up, they make beds, right? You might have, you might have heard of something happening in 2007. In 2008, some sort of a credit crisis tied to housing. Surely sales of beds is not tied to housing. Well, surprise, surprise, they were. Economy rolls over. This company starts making less cash than they had been making. They decide, well, our shares are now cheap, so we're going to buy back our stock. They blew their entire cash hoard they'd built up over the four or five years prior. They blew entirely on buybacks.
Jim Gillies: They then said, boy, our stock is still cheap. They took on a credit line, spent another 100 plus million on buying back their stock, and then the company went cash flow negative, and the credit crisis hit. Essentially, they would have been bankrupt aside from the fact that their lenders don't want the business, frankly. But the stock that had been close to $28 a couple of years earlier, bottomed in 2008, 2009 at $0.19. The stock started coming back. They had to sell equity to vulture financers basically to pay off their debt and have the company survive and they did. But they basically had bought shares back at $25-$30 and they sold it at 3 or $4 That is not good. That is a buyback plan done incredibly poorly. Naturally, of course, management here learned. Of course, they didn't. The stock meanders along, they started becoming one of the greatest buyback stories around the Sleep Number Company. Heading into COVID, they were just buying back and they really accelerated during COVID because of course everyone's trapped in their homes. Hey, we're not going out. Let's buy a new bed. The company again starts racking up the buybacks paying any price for a buyback. The stock at this point in time, I think it topped out around 160,150 ballpark. Now a lot of that is leveraged because the share count has shrunk so significantly from the previous go-round as they buy back, but they're buying back at any price.
COVID ends, rolls over. They're not making as much cash flow anymore. We might be going into recession, Vegas observations aside. Their cash generation has really fallen off a cliff, but oh, and by the way they also decided to supercharge these buybacks that got the stock. They shrunk the share account significantly. They supercharge those by borrowing almost $0.5 billion which now they have to find the money and by the way, they're not generating cash anymore. Shame about that $0.5 billion dollar debt you have at short term debt at ever higher interest rates. The stock is gone from 150 ish, I believe it's now down to about $16,17 so almost a 90% drop. The company is overlaid again with $0.5 billion in debt. It's now $380 million market cap I think, and the cash generation has again disappeared. I don't know that this stock is done falling and it's just like OK, if we do this again remember, buybacks should be done when you are cash generative, significantly have a strong balance sheet, maybe avoid leverage fueled buybacks in most cases. If you are in a cyclical industry, perhaps don't buy back stock on the way at industry cyclical peaks.
Ricky Mulvey: Now you want to talk about a company that has a lot of debt and is executing a ton of buybacks.
Jim Gillies: Yes, I do because I am nothing, if not persistent.
Ricky Mulvey: Contradictory.
Jim Gillies: Exactly.
Ricky Mulvey: AerCap, you were talking about this with Nick Sciple on the morning show yesterday for Motley Fool members. It's the largest aircraft leasing company. This is a company that takes out a lot of debt so they can buy planes, lease them out to different airlines, that kind of thing. CEO Aengus Kelly, which you pointed out was weird, basically told analysts that they're looking to take the company private at some point. It's about what is it, a $14 billion company ish and then they're going to take out, I think, two billion dollar worth of share pre-purchases just this year. How is this not the Sleep Number story?
Jim Gillies: Square that circle, sure. First off, you've said that they are not only the largest commercial airline lessor in the world. They're also the largest commercial airline owner in the world. That's not really well known because airlines, especially post COVID. They don't really want to own their planes anymore. Those are expensive. AerCap, the reason this is different is because this is a lessor. Debt is raw material to a lessor. It's like flour to Panera Bread. Now, intelligent use of that debt, of course, is required, but Aengus Kelly and the folks at AerCap have a pretty good history. A lot of that debt can be tied to various planes and what have you plus they've also got really long term leases with practically everyone in the world in terms of the airline companies. That doesn't bother me, although I will point out, and a lot of their debt, or their debt got amplified a little bit in the last couple of years because they took out a distressed portfolio of leases from GE Capital. They first were using their very significant cash flows to bring down some debt to get their leverage ratio at a predetermined level, which they've done in the past before with previous acquisitions which they already told you they were going to do.
They got to that level, then they start buying back their stock because again, there is a significant cash flow coming from leases because they lease to everybody. They make a lot of cash and they're able to buy back stock. A lot of the stock they bought back this year alone has actually been from GE. Because when they bought GE's Capital or GE Capital's portfolio of leases. They paid about half in cash, which was basically they took out debt to backstop the planes from the debt, handed that cash to GE who then paid off the debt that GE was carrying to backstop the planes. That's a bit of a shell maneuver, but OK, fine. They paid about a half in cash/debt backstopping the planes and the other half in AerCap shares. GE wanting to monetize those shares has been doing a series of secondary offerings, and every single time they do secondary offerings to sell those shares into the market, AerCap steps up and says, hey, we'll buy $500 million worth of shares. We'll buy it back from you at a slightly discount price, and so they're buying themselves back on the ship. This is another intelligently done. Once you realize that the structure of a leasing company is that debt is raw material, run your leverage ratio, the cash flows are long term and contractual.
They also sell assets. They'll buy a new plane, they'll run it for 8-12 years, maybe that plane has got a 25-30 year lifespan. They're depreciating the asset all the way along, and they're selling the plane after 8-12 years to a secondary carrier or a secondary lessor. When they do that, well, look, they're actually booking gains on sale which means their prior earnings were understated because they have been aggressively depreciating the asset. They sell that, they book extra gains, the proceeds from those asset sales get washed into, again, new purchases of planes, but also into buybacks. It tend to be a virtuous circle and I would encourage anyone interested in the AerCap story to go back from about 2010, '11 to just before COVID see how the cash flows they generated during good times and how they paid off the prior example of the back about 2011. They bought the aircraft portfolio from AIG, and what they did there and it's the same playbook and you're right, Ricky. In that conversation on the conference call with CEO Aengus Kelly, the question was, hey, your valuation is really low, would you consider taking the company private? He basically said, if the valuation stays where it is, at some point we're being so aggressively buying back our shares. Some point is going to make sense. There's your marching order Fools, get that valuation multiple up, otherwise the company's going to go away.
Ricky Mulvey: Generally, when I think about aircraft companies or airline companies, I think of low margin businesses with just changing migraine level headaches. I know leasing is different than operating a airline, but looking at some of the recent earnings for JetBlue and Delta Airlines. JetBlue's got engine problems, there's flying limits at major airports, you got waning domestic demand, higher oil prices is a problem. There's always something new where there's some macro problem going on. This is a lot of the customers, so what's so much better about leasing out planes and owning planes in the background than running an airline?
Jim Gillies: Sure. Well, it's the lessors don't have any of those problems you've just described there. That's the problem for the airlines. The lessor buys the plane, leases it out, long term contractual cash flows, and just says have at it, and everything's insured and what have you. They don't have the operating costs for running these things. They don't have the oil and gas and the fuel volatility, we'll call it. They don't have those as an issue. What the lessors are, they're just asset providers. There's the concept of discretionary spending like maybe we can squeeze an extra row into the airline if we move the seats a half inch each, they'll on the way. Maybe we can up capacity and we can change the routes or change the elevate. There's various ways that you can lower your costs as an airline. Another way is actually having the most up to date aircraft, what AerCap strives to provide. But the one thing that airlines can't do without, it's built in. They need planes.
Ricky Mulvey: Yes they do.
Jim Gillies: Your choice is either lease or own. To own is expensive, and then what do you do with the asset and especially coming out of COVID when a lot of the financial structures of the airlines are strapped. It's just easier to lease. Again, here is AerCap.
Ricky Mulvey: Jim Gillies as always. Thank you for your time and your insight.
Jim Gillies: Thank you.
Ricky Mulvey: If you want to chat about the show, I've been getting more active on our Motley Fool members boards. It's a community.fool.com. I'm still posting the show on X, but I don't know, I've been batting more ideas around chatting with listeners. I've found that it's generally a more positive and thoughtful place than major social media outlets. If you want to check this our, it's community.fool.com. Up next, Halloween theme continues. Allison and Bro have some financial horror stories they will share.
Robert Brokamp: Our first story, the Naughty, Rob the Nice. We lock our doors at night to prevent the monsters from sneaking in. But that doesn't always save us from the creepy and the crawly, because sometimes the monster is already inside the house. Our first tale begins with Mary Ellen Nice, whose husband of 61 years died and left behind a substantial estate that she could rely on for the rest of her life. Her son Chip Nice became the executor of his father's estate and eventually moved in with Mary Ellen to take care of her as she gradually showed more and more signs of dementia. Now, in such cases a good son would take care of both his mother and her money for her benefit, but also for the benefit of his siblings since they'll be the folks who eventually inherit the money that the mother doesn't need. But apparently, Chip wasn't such a good son or really a good brother. He got Mrs. Nice to execute a fraudulent power of attorney, gained access to her retirement accounts, and withdrew money for his own benefit. Now, after several years of this, one of Mrs. Nice's daughters, Julianne, caught on to what was happening and sued to have Chip removed from their mother's house and finances. A year later, Chip passed away and Julianne was put in charge of her mother's care and money. She looked through all her mom's past tax returns and saw all the retirement account distributions and all the taxes on those distributions which totaled more than $500,000. Now Julianne decided to refile the returns and seek refunds from the IRS based on the argument that these past returns overstated her mother's income.
After all, Mrs. Nice didn't actually get the money, so why should she have to pay taxes on it? The IRS disagreed the case went to Court and the Court sided with the IRS. Not only did Chip deplete his mother's portfolio by making fraudulent withdrawals, but also by creating a tax bill of more than a half million dollars. The lessons here are, well, unfortunately, people become less cognitively sharp and more vulnerable as they get older, and when someone is no longer able to manage their affairs, the person who steps in is often a son or a daughter. But that doesn't mean that person is qualified to handle the finances, either in terms of knowledge or frankly morals. Make sure you have a plan for who will manage your parents money when they're no longer able to, and you should have a plan for your own money as you age. There should be a way for all interested parties to keep an eye on what's happening. If one sibling is in charge of managing mom and dad's money, the other siblings should at least get account statements or be able to log into their accounts and see what's going on. I should point out that I learned this case from Ed Slott's IRA Advisor Newsletter. Ed Slott being a national IRA expert and author of many books, as well as the main man behind the IRAhelp.com website, which is an excellent resource. In the newsletter, Ed wrote that a diligent financial advisor can potentially prevent elder abuse and scams. I think he's right. Getting an objective, experienced financial expert involved might be another line of defense.
Alison Southwick: Gather around children because I'm going to tell you a story of When Dreams Become Nightmares. Join me as we enter a haunted house of financial terror because this is the curse of the HGTV Dream House. Thunder. Thanks to Stephen Guedel of Money Magazine for the article I'm about to crib, liberally. Here we go. It was probably a hot, sweltering day, because this story begins and ends in Texas. The Cruz family pulls up to their new dream home. Don, his wife Shelley, and their 10 year old Donald, marvel at the 6,000 square foot mansion that towers above them, more than seven times the size of their old house in Chicago. They can hardly believe it. After many years of trying out of 39 million people, they won HGTV's Dream Home Sweepstakes. The Lake Front Home came fully furnished, along with $250,000 cash prize and an SUV. "I feel like I'm looking at someone else's house, this can't possibly be ours." Shelley said as she beheld the massive great room with its 30 foot ceilings and six foot wide fireplace, the master bedroom suite, the hot tub, the indoor elevator, and the outdoor pool. But little did they know of the financial terror that was lurking in the shadows. In the 10 years that HGTV had been running the sweepstakes, the Cruze's were the first to make the fatal, not fatal, but still unfortunate decision to actually live in the house.
It wasn't long before their dream house turned into a financial nightmare. They were used to living off of $40,000 a year, so Don thought they could survive for quite some time on the $250,000 cash prize. But then the financial gremlins emerged. Upkeep on the house was $2,900 a month. Homeowners insurance ran $7,000 annually. That's on top of a $1,000 a month mortgage payment for the house back in Chicago, which they kept just in case. Smart thinking, by the way. Fixing up the family boat, that cost $11,000. A dog run for their three dogs worth $6,000 between family and friends eager to visit the dream home. The Cruzers had company nearly every weekend for about $1,000 apiece in entertaining. They donated $40,000 to charity, and they splurged spending $5,000 on Christmas presents, $2,000 for scuba lessons, and an $1,800 go cart. Within a year, the Cruze's had just $36,000 left from their winnings. But perhaps most terrifying of all, to pay off the tax bill of $672,000 that came with the house car and money as well as cover some other expenses. They had some unfortunate medical bills. They had decided to take out a $1,000,000 loan, which had monthly payments of around $8,000. Within three years, their fate was sealed. The family was out of money and four months behind on loan payments.
The Cruzes huddled in the living room, Don sobbed. There was nothing left to do but auction the house for sale and hope that the proceeds covered their bills. While all this happened 15 years ago, strangely, the allure of the HGTV Dream house continues to call to Don. When asked in 2020 if he regretted winning, he said he'd do it all over again. He'd return to the HGTV Dream house if he won today. I guess I need to take away here and the best one I'm seeing is classic, just take the money and run. According to the Country Living Magazine at the time of publication back in 2018, of the 21 people who've won the Dream Home over the year, only six or about 28% actually lived in the home for more than a year. The vast majority either took the cash alternative or sold the house back to the developer within a year of winning. The big reason for selling out is the tax bill, because that is no joke. Federal taxes alone are in the ballpark of 6 to 700,000 and if you had that lying around in the first place, you could just buy your own damn dream house. What do we know of the next HGTV House of Horrors? Not a whole lot. It's located in Anastasia Island, Florida, near St. Augustine and this December, you too can enter to win it if you dare.
Robert Brokamp: Our third story, A Tale of Tractor Terror. No collection of tales of money mayhem is complete without a good story about bad estate planning. After all, and I'm sorry to break the news to you, but we're all going to die and we're all going to leave behind a bunch of stuff yet according to Caring.com's 2023, Wills Survey, two out of three Americans do not have any type of estate planning documents that would tell our survivors who should get all that stuff. Our final story is about Cecil George Harris, a farmer in Saskatchewan who rode out into his fields on June 8, 1948. At one point, he climbed down from his tractor to do some maintenance. Unfortunately, he accidentally knocked the tractor into gear and got pinned underneath it. He wasn't found until 10 hours later. He was still alive, but he died the next day at the hospital. Now Cecil didn't have a will or so people thought. After Cecil's death, neighbors noticed that there were some words scrawled under the bumper of the tractor. They read, "In case I die in this mess, I leave all to the wife, Cecil George Harris." Now this is known as a holographic will. In other words, a handwritten will accompanied by the writer's signature. Some courts do not consider such wills valid, but others do. For example, Aretha Franklin's estate was recently settled based on a will she wrote in a notebook found under a couch cushion a year after her death.
In Cecil's case, his will scrawled out on his tractor with a pocket knife, was indeed accepted by the court. However, because wills are required to be filed with the court, the fender had to be removed and kept at the courthouse. In 1996, it was donated to the University of Saskatchewan College of Law for public display, and you can find pictures of it on the interwebs. The lesson here, of course, is to get an estate plan. It's quite shocking how many people die without estate planning documents. People you'd think would know better, people like Abraham Lincoln, Jimmy Hendrix, Martin Luther King, Sonny Bono, Picasso, Buddy Holly, Ulysses S Grant, and Prince, just to name a few. Without those documents, the courts decide who gets what, which could take a lot of time and a lot of money.
In Prince's case, the first bank appointed to be the administrator of his estate had to drill into the vault that held the master tapes of his music, because apparently Prince was the only person who knew the combination. It took more than a year after Prince's death for a court to name his six siblings as the legitimate heirs to his estate. It was finally settled in 2022, so six years after he died, valuing the total estate at $156 million. At that point two of the six heirs had already passed away. In Cecil Harris' case, his quick thinking while he's pinned under the tractor, spared his family some of the difficulties that come from dying without a will. But you can't rely on being able to write out your intentions during your final moments. Make sure you get at least a will. But a will is just one aspect of a solid estate plan. It should also include healthcare directives that allow someone to make healthcare decisions for you, including whether you want to be kept alive by artificial means. It should also include name and guardians of your minor children if you have them and who will manage their money until they become adults. In many cases, it couldn't include the equation of one or more trusts. All this is best arranged with the help of a qualified experienced estate planning attorney. With that, happy Halloween, everybody.
Ricky Mulvey: If you want more Spooky Stories, Bro went on our sister show, the Rule Breaker Investing podcast. To share them, the title of the episode is Financial Horror Stories, Volume 2, Scary Scams. I will include a link in today's show notes. As always, people on the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against, so don't buy yourself anything based solely on what you hear. I'm Ricky Mulvey. Thanks for listening. We'll be back tomorrow
Alison Southwick has positions in Apple. Jim Gillies has positions in AerCap, Apple, Medpace, and eBay and has the following options: long January 2025 $45 calls on eBay and short January 2025 $45 puts on eBay. Ricky Mulvey has no position in any of the stocks mentioned. Robert Brokamp, CFP(R) has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Medpace. The Motley Fool recommends AerCap, Delta Air Lines, Sleep Number, and eBay and recommends the following options: short January 2024 $45 calls on eBay. 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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Plus, Motley Fool host Alison Southwick and personal finance expert Robert Brokamp celebrate Halloween and discuss some financial horror stories. Ricky Mulvey: But the Medpace example, that's a little bit trickier in practice because generally management teams, if they get to pick their spots, they buy back shares when valuations are high, they have extra cash flow coming in. Her son Chip Nice became the executor of his father's estate and eventually moved in with Mary Ellen to take care of her as she gradually showed more and more signs of dementia.
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In this podcast, Motley Fool host Ricky Mulvey and analyst Jim Gillies discuss: Economic takeaways from a trip to Las Vegas. Plus, Motley Fool host Alison Southwick and personal finance expert Robert Brokamp celebrate Halloween and discuss some financial horror stories. The Motley Fool recommends AerCap, Delta Air Lines, Sleep Number, and eBay and recommends the following options: short January 2024 $45 calls on eBay.
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Because we're going to focus on, we got Jim Gillies here, so we're going to talk about a weird little company that you haven't heard of, [laughs] But what are the signs of some share buybacks going right? Ricky Mulvey: But the Medpace example, that's a little bit trickier in practice because generally management teams, if they get to pick their spots, they buy back shares when valuations are high, they have extra cash flow coming in. They got to that level, then they start buying back their stock because again, there is a significant cash flow coming from leases because they lease to everybody.
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We're going to buy back stock. They make a lot of cash and they're able to buy back stock. After all, Mrs. Nice didn't actually get the money, so why should she have to pay taxes on it?
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12567.0
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2023-11-11 00:00:00 UTC
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The 3 Priciest Magnificent Seven Stocks: Worth the Splurge?
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AAPL
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https://www.nasdaq.com/articles/the-3-priciest-magnificent-seven-stocks%3A-worth-the-splurge
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Last year, every major index plunged into bear market territory. While they eventually reversed course, the S&P 500’s gains were driven by just a handful of stocks. The so-called Magnificent 7 sticks are a group of mega-cap tech stocks identified by Bank of America (NYSE:BAC) Chief Investment Strategist Michael Hartnett as providing all the lift the stock index enjoyed. Without their gains, the S&P 500’s performance would have been essentially flat.
Specifically, the Magnificent Seven stocks are Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). The broad market index is weighted by market capitalization. These seven stocks have a combined weighting of 28% in the S&P 500. It means their performance applies outsized influence on the index — for good or bad.
The index pulled back once again since peaking at the end of July. However, most of that is due to Tesla tumbling 17% over the past three months. It’s only slightly offset by Amazon’s 7% gain. And that only came in the past week or so after it reported earnings. Before that, the seven stocks were down a collective 12.5%.
Of course, all the stocks are still sitting on enormous gains for the year, but the companies all still have rich valuations. Most sit well above the S&P 500’s 24.2 price-to-equity (PE) ratio. The following three stocks carry the highest PE ratio. Should you buy them? Let’s dig in and find out!
Tesla (TSLA)
Source: Zigres / Shutterstock.com
Despite being the one Magnificent Seven stock to lose the most value, electric car maker Tesla still carries a lofty valuation. Its PE ratio is 68 — almost three times greater than the S&P 500.
Tesla’s downfall began after its second-quarter earnings report. It said gross margins fell to a four-year low, and more price cuts were coming for its vehicles. The stock plunged again last month after CEO Elon Musk reiterated his price-cut initiative and said there would be more cost-cutting overall. Further delays for the vaunted Cybertruck also dimmed the market’s view.
With the stock down from its recent highs but still significantly above where they started the year, I’d be steering clear of the stock. Yes, Cathie Wood of Ark Invest believes Tesla is a $2,000 stock, but the EV maker’s business faces threats. Profitability will be under increasing pressure in the future as EV tax credits eventually dry up. Arguably it’s those credits creating EV demand.
Tesla also receives regulatory credits from the government, which it typically sells to other automakers. It sold $554 million in the third quarter and $1.4 billion-worth year-to-date. That’s an unsustainable revenue source. And when coupled with declining growth rates and margin compression, Tesla’s profits are in doubt. At nearly 200 times free cash flow, Tesla is a stock simply too rich to buy.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon’s reported excellent earnings, standing out amid gloomier results from other tech names. Earnings dramatically improved as cost-cutting measures previously implemented gained traction. The North American retail division saw operating profit margins jump to 4.9% compared to 0.5% losses last year. Amazon Web Services (AWS) hit $7 billion in operating income from $5.4 billion.
It is also apparent that AWS is becoming an artificial intelligence (AI) powerhouse. The entire company uses AI, from product suggestions on the retail side to robotics in the warehouses. Yet, at the cloud services shop, AI is now central to what happens. It offers a comprehensive suite of AI services, tools and resources for customer use. Many enterprise-class clients deploy the power of AWS to fire up their own AI-driven apps. One of the more important developments was the release of an AI-image generator tool for marketers that could result in greater revenue growth down the road.
At 74 times earnings, Amazon is no discounted stock, yet it rarely — if ever — has been. Analysts regularly called it overvalued, and it always traded at a premium. Growth, not a crash, followed. Investors may find lightning strikes again. AI is a transformative trend for all industries, and Amazon is at the forefront. It’s a leader that deserves the premium the market assigned.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
AI is precisely why Nvidia is the face of the Magnificent 7 stocks. Its stock more than tripled in 2023, almost twice the gains of second-place Meta Platforms. The chipmaker’s stock is closing in again on the all-time high it hit at the end of August.
Nvidia’s chips were designed for the kind of complex computing power AI demands. OpenAI’s ChatGPT used Nvidia’s A100 GPU to train the chatbot. That ushered in the world of generative AI we’re seeing today. Now its H100 chip is the next advance in AI computing and sought after by major tech outfits. Nvidia reports earnings later this month, and investors should see excellent growth.
Yet, at a PE ratio of 112, the chipmaker is the priciest stock of the lot. It also trades at 35 times sales and 111 times FCF. To say Nvidia is not cheap is an understatement. And therein lies the risk. At these lofty valuations, the chipmaker can’t afford to stumble, not even a little. It is priced for perfection. Although much of its operations have been perfect, it’s hard to maintain the pace.
Nvidia may also take a $5 billion hit on chips it was planning to sell to Chinese customers. Companies like Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) were buying up the chips, but new export controls in China put those orders in doubt. It may have to cancel them, which could be a big hit to earnings.
Nvidia is still a great company but now is not time to be buying its stock.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post The 3 Priciest Magnificent Seven Stocks: Worth the Splurge? 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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Specifically, the Magnificent Seven stocks are Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). Yes, Cathie Wood of Ark Invest believes Tesla is a $2,000 stock, but the EV maker’s business faces threats. Companies like Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) were buying up the chips, but new export controls in China put those orders in doubt.
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Specifically, the Magnificent Seven stocks are Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last year, every major index plunged into bear market territory. Amazon Web Services (AWS) hit $7 billion in operating income from $5.4 billion.
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Specifically, the Magnificent Seven stocks are Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Last year, every major index plunged into bear market territory. Nvidia (NVDA) Source: Poetra.RH / Shutterstock.com AI is precisely why Nvidia is the face of the Magnificent 7 stocks.
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Specifically, the Magnificent Seven stocks are Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). Nvidia reports earnings later this month, and investors should see excellent growth. Nvidia is still a great company but now is not time to be buying its stock.
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12568.0
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2023-11-10 00:00:00 UTC
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RPT-EXPLAINER-What is China’s Singles Day, and how is it celebrated?
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AAPL
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https://www.nasdaq.com/articles/rpt-explainer-what-is-chinas-singles-day-and-how-is-it-celebrated
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By Granth Vanaik
Nov 9 (Reuters) - Black Friday? No. Cyber Monday? Nope. Prime Day? Absolutely not. The world's biggest shopping event happens in China each year - and it's called Singles Day.
Originally a holiday to celebrate being single, as a counter to Valentine's Day, the event has grown into a weeks-long online shopping festival that peaks on Nov. 11.
WHEN DID THE IDEA OF SINGLES DAY ORIGINATE?
The idea for Singles Day had originated at China's Nanjing University back in 1993 and was originally called "Bachelor's Day." On the day, single people treat themselves with gifts and presents, while also organizing social gatherings and parties.
HOW MUCH DO CONSUMERS SPEND?
Last year, the total value of goods sold during the shopping bonanza - also known as "Double 11" - totaled 1.15 trillion yuan ($157.97 billion), according to data from consultancy firm Bain.
That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
Cyber Monday immediately follows Black Friday, which falls on the day after the U.S. Thanksgiving Day holiday, the busiest shopping day of the year in the United States.
But growth has been slowing even as overall sales for Singles Day hit record highs, with last year's 3% rise marking the slowest increase ever. The event has in recent years lost some of its novelty with the rise of other shopping festivals in China,including the midyear "618" sales that are the country's second largest.
Strict COVID-19 curbs in China impacted sales last year, but several industry experts are expecting a rebound, as the economy improves and livestream sales remain robust.
"We're optimistic about growth this year because the recovery seems to be stabilizing and consumption is on a more clear upward trend," said Jacob Cooke, co-founder and CEO of Beijing-based WPIC Marketing + Technologies.
His e-commerce consultancy firm expects sales for the Chinese shopping event to rise in the range between 14% and 18% from last year, which is higher than Adobe's projection for a 5.4% rise in Cyber Week sales.
WHAT MAJOR BRANDS AND PRODUCTS ARE SHOPPERS BUYING?
JD.com 9618.HK joined in 2012 and PDD Holdings-owned PDD.O Pinduoduo has also become a significant player, offering low cost products in competition with Alibaba-owned Tmall and Taobao platforms.
Last year, Chinese shoppers spent more on essentials, supplements, vitamins and pet-care products. Those products are expected to stay in demand this year, along with more lifestyle-focused products such as athletic wear and sports equipment.
"There is enormous demand among Chinese consumers for products and services that improve their lifestyles and facilitate self-expression," Cooke said.
HOW DOES SINGLES DAY COMPARE TO BLACK FRIDAY?
In comparison, U.S. shoppers last year had bought more Pokemon toys, Hot Wheels, TVs, footwear and air fryers during the key Black Friday and Cyber Monday shopping periods, according to Adobe.
From 2014 until 2021, Singles Day had posted growth rates of about 34% annually on average, versus Cyber Week's 17% average gain, according to data from consultancy Bain and from Adobe Analytics.
WHAT OTHER COMPANIES HOPE TO BENEFIT?
Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta.
Nike said in December "Double 11" demand in Greater China grew by mid-teens, outpacing the broader sports industry, with demand from Gen Z consumers for the brand growing by 45% during the shopping period in China on Tmall.
JD.com had Apple sold more than 1 billion yuan worth of products in the first minute of the event's final sales period.
However, for this year, several global companies ranging from L'Oreal to Estee Lauder have taken a cautious stance around the spending spree in China during the shopping event.
"The presale period of Tmall and particularly on -- in general, the Singles Day, confirms a softer trend versus a year ago," said Estee Lauder CEO Fabrizio Freda last week, adding that the company was more optimistic about the next part of the Singles Day events in November.
L'Oreal CEO Nicolas Hieronimus on a postearnings callwith analysts in October said it was too soon to comment on "Double 11."
"The shy consumers are less shy during the big events, and we have seen that whether it's during Valentine's Day, whether it is 6/18, the market has had its best peaks of growth during this moment," Hieronimus said, adding he had lots of hope for the shopping bonanza.
($1 = 7.2800 Chinese yuan renminbi)
Singles Day loses some luster as other big shopping events prop up https://tmsnrt.rs/40DGLAf
(Reporting by Granth Vanaik in Bengaluru; Editing by Aditya Soni and Diane Craft)
((Granth.Vanaik@thomsonreuters.com | X : https://twitter.com/Vanaik_Granth;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. "We're optimistic about growth this year because the recovery seems to be stabilizing and consumption is on a more clear upward trend," said Jacob Cooke, co-founder and CEO of Beijing-based WPIC Marketing + Technologies. In comparison, U.S. shoppers last year had bought more Pokemon toys, Hot Wheels, TVs, footwear and air fryers during the key Black Friday and Cyber Monday shopping periods, according to Adobe.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. Last year, the total value of goods sold during the shopping bonanza - also known as "Double 11" - totaled 1.15 trillion yuan ($157.97 billion), according to data from consultancy firm Bain. That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. Cyber Monday immediately follows Black Friday, which falls on the day after the U.S. Thanksgiving Day holiday, the busiest shopping day of the year in the United States. His e-commerce consultancy firm expects sales for the Chinese shopping event to rise in the range between 14% and 18% from last year, which is higher than Adobe's projection for a 5.4% rise in Cyber Week sales.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. The world's biggest shopping event happens in China each year - and it's called Singles Day. That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
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12569.0
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2023-11-10 00:00:00 UTC
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US STOCKS-Wall St rebounds as traders digest Powell comments
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rebounds-as-traders-digest-powell-comments
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By Amruta Khandekar and Shristi Achar A
Nov 10 (Reuters) - Wall Street's main indexes gained on Friday as investors assessed Federal Reserve Chair Jerome Powell's hawkish commentary and looked forward to key economic data next week for more cues on the monetary policy path.
Powell on Thursday said central bank officials "are not confident" that interest rates are yet high enough to finish the battle with inflation and would not hesitate to tighten policy further if needed.
The hawkish comments ended the S&P 500 .SPX and the Nasdaq's .IXIC longest winning streak in two years, which had been driven by expectations that the Fed was done with its hiking cycle after the central bank kept rates unchanged at its last meeting.
"The comments yesterday were such that the theme of 'higher for longer' is more likely to manifest. That's the downside," said Greg Bassuk, chief executive officer at AXS Investments.
"On the positive side, investors have seen strong earnings and a resilient economy. So all eyes are focused on any other economic data or Fed comments that could give better feedback regarding the direction of both the economy and the markets going forward."
Supporting equities on Friday, the yield on the benchmark 10-year Treasury note US10YT=RR eased to 4.6043%. US/
Megacap growth stocks traded higher, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.5% and 1.4%.
Information technology .SPLRCT, up 0.9% led sectoral gains, with nine out off 11 major S&P 500 sectors on the upside.
Traders are now pricing in an about 68% chance of a rate cut by the Fed at the June meeting, compared with bets of a cut in May before Powell spoke, according to the CME Group's FedWatch tool.
While this week has been light in terms of economic data, investors will get reports on consumer and producer prices as well as retail sales next week, which will further shape interest rate expectations ahead of the Fed's December meeting.
Among other stocks, gaming software maker Unity SoftwareU.Nfell 2.7% on missing third-quarter revenue estimates.
Plug PowerPLUG.O plunged 34.1% after the hydrogen fuelcell maker raised going concern doubts.
IlluminaILMN.O shares dropped 14.1% as the gene-testing company trimmed its full-year profit forecast for the second straight quarter.
The S&P 500 health sub-index .SPXHC fell 0.6%.
Advancing issues outnumbered decliners by a 1.74-to-1 ratio on the NYSE and by a 1.16-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and lows, while the Nasdaq recorded 24 new highs and 171 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Maju Samuel)
((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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US/ Megacap growth stocks traded higher, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.5% and 1.4%. By Amruta Khandekar and Shristi Achar A Nov 10 (Reuters) - Wall Street's main indexes gained on Friday as investors assessed Federal Reserve Chair Jerome Powell's hawkish commentary and looked forward to key economic data next week for more cues on the monetary policy path. Powell on Thursday said central bank officials "are not confident" that interest rates are yet high enough to finish the battle with inflation and would not hesitate to tighten policy further if needed.
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US/ Megacap growth stocks traded higher, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.5% and 1.4%. By Amruta Khandekar and Shristi Achar A Nov 10 (Reuters) - Wall Street's main indexes gained on Friday as investors assessed Federal Reserve Chair Jerome Powell's hawkish commentary and looked forward to key economic data next week for more cues on the monetary policy path. The S&P index recorded 14 new 52-week highs and lows, while the Nasdaq recorded 24 new highs and 171 new lows.
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US/ Megacap growth stocks traded higher, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.5% and 1.4%. By Amruta Khandekar and Shristi Achar A Nov 10 (Reuters) - Wall Street's main indexes gained on Friday as investors assessed Federal Reserve Chair Jerome Powell's hawkish commentary and looked forward to key economic data next week for more cues on the monetary policy path. The hawkish comments ended the S&P 500 .SPX and the Nasdaq's .IXIC longest winning streak in two years, which had been driven by expectations that the Fed was done with its hiking cycle after the central bank kept rates unchanged at its last meeting.
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US/ Megacap growth stocks traded higher, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.5% and 1.4%. By Amruta Khandekar and Shristi Achar A Nov 10 (Reuters) - Wall Street's main indexes gained on Friday as investors assessed Federal Reserve Chair Jerome Powell's hawkish commentary and looked forward to key economic data next week for more cues on the monetary policy path. Powell on Thursday said central bank officials "are not confident" that interest rates are yet high enough to finish the battle with inflation and would not hesitate to tighten policy further if needed.
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12570.0
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2023-11-10 00:00:00 UTC
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Apple to file challenge over Digital Markets Act in EU Court- Bloomberg News
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https://www.nasdaq.com/articles/apple-to-file-challenge-over-digital-markets-act-in-eu-court-bloomberg-news
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Adds details from the report in paragraph 2 and background
Nov 10 (Reuters) - Apple Inc AAPL.O is set to challenge the European Union's decision to put all of the App Store into the bloc's new digital antitrust list, Bloomberg News reported on Friday, citing people familiar with the matter.
Apple's appeal is still in draft form and could change before the Nov. 16 deadline to file challenges at the EU's General Court, according to the report.
Apple and the EU did not immediately respond to Reuters' requests for comment.
The EU in August adopted the Digital Services Act (DSA), which sets rules for companies operating large internet platforms.
(Reporting by Chandni Shah and Yuvraj Malik in Bengaluru; Editing by Anil D'Silva)
((Chandni.shah@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report in paragraph 2 and background Nov 10 (Reuters) - Apple Inc AAPL.O is set to challenge the European Union's decision to put all of the App Store into the bloc's new digital antitrust list, Bloomberg News reported on Friday, citing people familiar with the matter. Apple's appeal is still in draft form and could change before the Nov. 16 deadline to file challenges at the EU's General Court, according to the report. The EU in August adopted the Digital Services Act (DSA), which sets rules for companies operating large internet platforms.
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Adds details from the report in paragraph 2 and background Nov 10 (Reuters) - Apple Inc AAPL.O is set to challenge the European Union's decision to put all of the App Store into the bloc's new digital antitrust list, Bloomberg News reported on Friday, citing people familiar with the matter. Apple's appeal is still in draft form and could change before the Nov. 16 deadline to file challenges at the EU's General Court, according to the report. (Reporting by Chandni Shah and Yuvraj Malik in Bengaluru; Editing by Anil D'Silva) ((Chandni.shah@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report in paragraph 2 and background Nov 10 (Reuters) - Apple Inc AAPL.O is set to challenge the European Union's decision to put all of the App Store into the bloc's new digital antitrust list, Bloomberg News reported on Friday, citing people familiar with the matter. Apple's appeal is still in draft form and could change before the Nov. 16 deadline to file challenges at the EU's General Court, according to the report. (Reporting by Chandni Shah and Yuvraj Malik in Bengaluru; Editing by Anil D'Silva) ((Chandni.shah@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report in paragraph 2 and background Nov 10 (Reuters) - Apple Inc AAPL.O is set to challenge the European Union's decision to put all of the App Store into the bloc's new digital antitrust list, Bloomberg News reported on Friday, citing people familiar with the matter. Apple's appeal is still in draft form and could change before the Nov. 16 deadline to file challenges at the EU's General Court, according to the report. Apple and the EU did not immediately respond to Reuters' requests for comment.
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12571.0
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2023-11-10 00:00:00 UTC
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Prediction: Microsoft Will Overtake Apple as the World's Largest Company By 2025
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https://www.nasdaq.com/articles/prediction%3A-microsoft-will-overtake-apple-as-the-worlds-largest-company-by-2025
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Just because you're at the top doesn't mean you'll stay there long if you don't execute. For many years, Apple (NASDAQ: AAPL) held on to its claim as the world's largest company. However, thanks to declining sales (for four straight quarters), Apple's lead is slipping and Microsoft (NASDAQ: MSFT)is closing in.
At the current rate, I wouldn't be surprised if it happened by 2025. So, is it time to hop off the Apple train and adopt a new bedrock stock for every new investor's portfolio? Let's find out.
Microsoft is closing the gap rapidly
When discussing the world's largest company, I'm referring to its market cap, which is calculated by multiplying its share price by the number of shares outstanding. Essentially, it's how much money one would have to pay to own the company outright.
MSFT Market Cap data by YCharts.
While Apple maintained a fairly even spread throughout the past three years (besides a small period when Microsoft briefly overtook Apple), that gap has narrowed to under $150 billion. While that is a massive gap in its own right, it only represents a 5.3% gain in Microsoft's stock price or a 5% fall in Apple's.
That amount of movement can easily happen in a week or a month, so why do I think it will be 2025 before Microsoft truly takes over the title? While Microsoft may momentarily accomplish this task, I'm not concerned about one- or two-week movements; I want to see permanent control of the world's largest company title.
At the current rate, I think 2025 will be an easy-to-hit goal for Microsoft.
Microsoft's business focus will lead the company higher
The most recent set of quarterly results for this pair couldn't have been more different. Apple's revenue declined by 1%, while Microsoft's increased by 13%. This shouldn't come as a surprise as Apple's revenue streams are extremely consumer-facing. With the current state of the consumer plus housing prices soaring and inflation still taking a toll on wallets, Apple may struggle for a while.
On the other hand, Microsoft's cloud computing, artificial intelligence (AI) copilot, and other business solutions continue to grow rapidly. Microsoft is at the crossroads of two important business shifts: cloud computing and AI. As a result, its growth should remain healthy for some time. Even if the consumer regains their strength, it would be a large surprise for Apple's growth rate to be faster than Microsoft's.
Because of this stark difference in each company's outlook, the stocks trade for different price-to-earnings (P/E) ratios.
MSFT PE Ratio data by YCharts. PE Ratio = price-to-earnings ratio.
Microsoft earned its premium to the market (the S&P 500 trades for 25 times earnings), although Apple hasn't recently. The stock is currently relying on past execution to vouch for its current state, which doesn't seem like a winning investment strategy.
Microsoft has shown itself to be the better investment over the past year. With its exposure to key business trends, it should continue to put up strong growth and grow its earnings at a rapid pace. Apple will have to wait for the consumer to recover, taking the ball out of its court. Plus, with the smartphone renewal cycle elongating, Apple's business may struggle for a few years.
As a result, I think Microsoft will take the torch of the world's largest company monetarily throughout 2023 and 2024 but secure it for good starting in 2025.
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Keithen Drury 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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For many years, Apple (NASDAQ: AAPL) held on to its claim as the world's largest company. While Microsoft may momentarily accomplish this task, I'm not concerned about one- or two-week movements; I want to see permanent control of the world's largest company title. Microsoft's business focus will lead the company higher The most recent set of quarterly results for this pair couldn't have been more different.
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For many years, Apple (NASDAQ: AAPL) held on to its claim as the world's largest company. However, thanks to declining sales (for four straight quarters), Apple's lead is slipping and Microsoft (NASDAQ: MSFT)is closing in. MSFT Market Cap data by YCharts.
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For many years, Apple (NASDAQ: AAPL) held on to its claim as the world's largest company. While Apple maintained a fairly even spread throughout the past three years (besides a small period when Microsoft briefly overtook Apple), that gap has narrowed to under $150 billion. While that is a massive gap in its own right, it only represents a 5.3% gain in Microsoft's stock price or a 5% fall in Apple's.
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For many years, Apple (NASDAQ: AAPL) held on to its claim as the world's largest company. At the current rate, I wouldn't be surprised if it happened by 2025. Even if the consumer regains their strength, it would be a large surprise for Apple's growth rate to be faster than Microsoft's.
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12572.0
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2023-11-10 00:00:00 UTC
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Nvidia, Qualcomm Jumping Into CPU Arms Race. Can They Succeed?
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https://www.nasdaq.com/articles/nvidia-qualcomm-jumping-into-cpu-arms-race.-can-they-succeed
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Nvidia (NASDAQ:NVDA) and Qualcomm (NASDAQ:QCOM) are semiconductor kingpins that have a lot to gain from the generative artificial intelligence (AI) race. AI isn't the only significant growth driver, though, as both firms look to make a big splash into the CPU (central processing unit) chip waters, using none other than Arm's (NASDAQ:ARM) technology. For those unfamiliar with Arm, it's a firm that licenses its architecture to other companies seeking to create their own custom chips.
As Nvidia and Qualcomm rip a page out of the playbook of Apple (NASDAQ:AAPL) and its Arm-based Apple Silicon strategy, it will certainly be interesting to see how the next generation of Arm CPUs stack up against one another. Rising competition in the space is a big win for consumers but another potential hit to the chin for Intel (NASDAQ:INTC), the former CPU giant that's really suffered a fall from grace.
Nvidia and Qualcomm both have a lot to gain relative to what they stand to lose as they join the arms race. And for that reason, I'm bullish on both firms as they ready their CPUs for launch.
Qualcomm and Nvidia Could Gain at the Expense of Intel
Up ahead, Qualcomm's Snapdragon X Elite (along with its CPU core technology, Oryon) is slated to be launched in the middle of 2024. For now, Intel doesn't seem to view Qualcomm, Nvidia, or any other Arm CPU combatant as making a dent in the laptop market.
Given Apple's success with Apple Silicon and its latest M3 line of chips, I think it's quite worrisome for Intel to downplay the credible threat of Arm CPUs. Indeed, Intel does not have much room to be complacent as the rising trend of more firms making their own custom silicon (with the help of Arm) continues to take off.
Apple has been leading the charge when it comes to custom silicon. And the per-watt performance jump from Intel-based Macs has been absolutely remarkable. In fact, Apple really encouraged its Intel-based Mac users to make the jump to Apple Silicon in its "Scary Fast" event.
Following in Apple's Footsteps
Undoubtedly, the benchmarks for the M3, M3 Pro, and M3 Max chips were most impressive when compared to the original M1 line of chips. Compared to the M2 line, performance improvements seemed rather tame. That said, given that many Mac users are still on Intel-powered Macs, the real opportunity may lie in nudging pre-Apple Silicon users to make the leap. Given the power of Apple's ecosystem, it's not hard to imagine many Apple fans moving to Apple Silicon and away from Intel, perhaps for good.
As Qualcomm and Nvidia ready their own Arm offerings for launch over the medium term, there's a good chance that both firms could add pressure on the PC side.
Not to discount the turnaround efforts going on at Intel, but things are not looking good for Intel in the slightest as we move into the next generation of Arm-based CPUs. Perhaps the only thing scarier than Apple (and its Scary Fast M3 chip, which was unveiled the day before Halloween 2023) is Nvidia. The GPU kingpin is one of the hottest Magnificent Seven players in recent years. And if it sets sights on Arm CPUs, I would not bet against the firm as it looks to get in on the action.
Nvidia recognized the power of Arm early in the game, with its failed attempt to acquire it around three years ago in a proposed deal worth $40 billion. Though Nvidia's Arm acquisition hopes were called off in a hurry, the move doesn't appear to be stopping Nvidia from pursuing its grand Arm ambitions.
Moreover, while the relief rally in INTC stock has been going strong for around a year, I'd not be surprised if it's cut short at the hands of Qualcomm or Nvidia.
Is QCOM Stock a Buy, According to Analysts?
On TipRanks, QCOM stock comes in as a Moderate Buy. Out of 20 analyst ratings, there are 13 Buys, six Holds, and one Sell rating. The average Qualcomm stock price target is $135.59, implying upside potential of 9.7%. Analyst price targets range from a low of $100.00 per share to a high of $160.00 per share.
Is NVDA Stock a Buy, According to Analysts?
Meanwhile, NVDA stock comes in as a Strong Buy on TipRanks. Out of 38 analyst ratings, there are 37 Buys and one Hold recommendation. The average Nvidia stock price target is $645.65, implying upside potential of 34.6%. Analyst price targets range from a low of $560.00 per share to a high of $1,100 per share.
On the high end, Rosenblatt Securities sees NVDA stock more than doubling (129% upside) from current levels to $1,100.00 per share. That's a Street-high target and one that may not be so out of sight if Nvidia can repeat the magic with its Arm-based CPU as it continues sprinting with the AI ball.
The Bottom Line
Getting into the Arm CPU scene has the potential to be lucrative — just ask Apple. Even if the offerings of Qualcomm or Nvidia fail to live up to the hype, it certainly seems like Arm is allowing more firms to challenge Intel. The only question is whether Intel will be able to hold its own as more punches come its way.
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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As Nvidia and Qualcomm rip a page out of the playbook of Apple (NASDAQ:AAPL) and its Arm-based Apple Silicon strategy, it will certainly be interesting to see how the next generation of Arm CPUs stack up against one another. Rising competition in the space is a big win for consumers but another potential hit to the chin for Intel (NASDAQ:INTC), the former CPU giant that's really suffered a fall from grace. As Qualcomm and Nvidia ready their own Arm offerings for launch over the medium term, there's a good chance that both firms could add pressure on the PC side.
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As Nvidia and Qualcomm rip a page out of the playbook of Apple (NASDAQ:AAPL) and its Arm-based Apple Silicon strategy, it will certainly be interesting to see how the next generation of Arm CPUs stack up against one another. Nvidia (NASDAQ:NVDA) and Qualcomm (NASDAQ:QCOM) are semiconductor kingpins that have a lot to gain from the generative artificial intelligence (AI) race. The average Qualcomm stock price target is $135.59, implying upside potential of 9.7%.
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As Nvidia and Qualcomm rip a page out of the playbook of Apple (NASDAQ:AAPL) and its Arm-based Apple Silicon strategy, it will certainly be interesting to see how the next generation of Arm CPUs stack up against one another. For now, Intel doesn't seem to view Qualcomm, Nvidia, or any other Arm CPU combatant as making a dent in the laptop market. Given Apple's success with Apple Silicon and its latest M3 line of chips, I think it's quite worrisome for Intel to downplay the credible threat of Arm CPUs.
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As Nvidia and Qualcomm rip a page out of the playbook of Apple (NASDAQ:AAPL) and its Arm-based Apple Silicon strategy, it will certainly be interesting to see how the next generation of Arm CPUs stack up against one another. For now, Intel doesn't seem to view Qualcomm, Nvidia, or any other Arm CPU combatant as making a dent in the laptop market. Indeed, Intel does not have much room to be complacent as the rising trend of more firms making their own custom silicon (with the help of Arm) continues to take off.
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12573.0
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2023-11-10 00:00:00 UTC
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3 Recession-Resistant Stocks to Create a Multi-Asset Portfolio
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https://www.nasdaq.com/articles/3-recession-resistant-stocks-to-create-a-multi-asset-portfolio
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Recession-resistant stocks are essential to achieving stable, long term portfolio returns. The economy goes through periods of both economic expansions and contractions. These cycles can impact stock market returns, during both bull and bear markets.
New risks in the economy continue to emerge, keeping investors on edge. That is why its more important than ever to have a well diversified, multi-asset portfolio. While you do not have a crystal ball to tell the future, there are ways to hedge your portfolio to accommodate such risks.
Some recession-proof sectors include consumer-staples, healthcare and utilities. However, picking companies in these sectors will not guarantee you any level of success. If you’re a more risk averse investor, you’re probably better off holding mutual funds and ETFs such as SPDR S&P 500 ETF Trust (NYSE:SPY). However, that doesn’t mean that you can’t have a little fun with a small allocation to individual stocks.
Below are my top three recession-resistant stocks to buy right now!
SPDR S&P 500 ETF Trust (SPY)
Source: Pavel Ignatov / Shutterstock.com
S&P 500 ETF Trust is synonymous with the stock market and is the single best way to track large-cap U.S. equities. Over the last 2 decades, the S&P 500 has returned 10.20% per year. This translates to 7.47% per year on an inflation-adjusted basis. If you had invested $10,000 into the S&P 500 in 2003, assuming you re-invested the dividends, you’d have about $73,200.00 by the end of 2023.
The S&P 500 allows investors to gain exposure to the top 500 companies in the United States. It also provides investors with sector diversification, although the technology sector holds its largest weighting. Some of the sectors that the S&P 500 covers include technology, healthcare, consumer staples, financials, industrials, and energy.
The ETF’s top 10 largest holdings include technology companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA). They account for approximately 31% of the S&P 500’s total weighting. As of Nov. 6, the S&P 500’s market capitalization is estimated at $36.54 trillion. Additionally, the index has returned 14.73% year-to-date (YTD). With the new bull market on the horizon, the S&P 500 is a no-brainer recession-proof stock to buy and hold through market volatility.
Berkshire Hathaway (BRK-A, BRK-B)
Source: sdx15 / Shutterstock.com
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a multinational conglomerate holding company headquartered in Omaha, Nebraska. The company is majority owned by legendary investor Warren Buffett. He is largely considered the greatest investor of all time. Currently, Berkshire Hathaway’s market capitalization stands at $754.32 billion.
Berkshire Hathaway has had an impressive run over the last two decades. The stock has averaged a CAGR of 10%, slightly above the S&P 500’s 9.75% during the same period. However, these numbers may be skewed and slightly less than 10%. This may be a tell tale sign, as even Warren Buffett has struggled to beat the market over the last two decades.
On Monday, Nov. 5, Berkshire Hathaway reported its third quarter 2023 financial results. The company booked its first operating loss for the year of $12.77 billion, with operating earnings climbing 40% to $10.76 billion. Berkshire Hathaway is currently sitting on a record cash pile of $157.2 billion, as Warren Buffett seeks attractive returns in short-dated U.S. treasuries. If you’re looking for increased portfolio protection, Berkshire Hathaway is among the best recession-resistant stocks to consider.
SPDR Gold Shares (GLD)
Source: Misunseo / Shutterstock.com
SPDR Gold Shares (NYSEARCA:GLD) is an ETF that seeks to track the spot price of physical gold bullion. It is the largest ETF to invest directly into physical gold. The ETF is managed by State Street Global Advisors, the world’s 4th largest asset manager with approximately $3.6 trillion in AUM.
SPDR Gold Shares is unique in that it offers a relatively cost effective way to gain exposure to physical gold bullion. It is a much safer way to gain access to thegold market rather than investing into gold mining stocks. Investors can sleep better at night knowing that they are less exposed to the cyclicality of the gold mining sector.
Some of the largest hedge funds and institutions in the world hold SPDR Gold Shares including Ray Dalio’s Bridgewater Associates and Warren Buffett’s Berkshire Hathaway. There are a number of different ways to hedge your portfolio, and smart money tends to believe that a hard asset class like Gold should not be ignored. In 2023, the price of Gold rose more than 15% YTD as a result of ongoing macroeconomic headwinds threatening economic stability. If you want exposure to a hard asset, consider GLD as one of your best bets.
On the date of publication, Terel Miles 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.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.
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The post 3 Recession-Resistant Stocks to Create a Multi-Asset Portfolio appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ETF’s top 10 largest holdings include technology companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA). Berkshire Hathaway is currently sitting on a record cash pile of $157.2 billion, as Warren Buffett seeks attractive returns in short-dated U.S. treasuries. Some of the largest hedge funds and institutions in the world hold SPDR Gold Shares including Ray Dalio’s Bridgewater Associates and Warren Buffett’s Berkshire Hathaway.
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The ETF’s top 10 largest holdings include technology companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA). Berkshire Hathaway (BRK-A, BRK-B) Source: sdx15 / Shutterstock.com Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a multinational conglomerate holding company headquartered in Omaha, Nebraska. SPDR Gold Shares (GLD) Source: Misunseo / Shutterstock.com SPDR Gold Shares (NYSEARCA:GLD) is an ETF that seeks to track the spot price of physical gold bullion.
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The ETF’s top 10 largest holdings include technology companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Recession-resistant stocks are essential to achieving stable, long term portfolio returns. SPDR Gold Shares (GLD) Source: Misunseo / Shutterstock.com SPDR Gold Shares (NYSEARCA:GLD) is an ETF that seeks to track the spot price of physical gold bullion.
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The ETF’s top 10 largest holdings include technology companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA). Over the last 2 decades, the S&P 500 has returned 10.20% per year. It also provides investors with sector diversification, although the technology sector holds its largest weighting.
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2023-11-10 00:00:00 UTC
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EXPLAINER-What is China’s Singles Day, and how is it celebrated?
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https://www.nasdaq.com/articles/explainer-what-is-chinas-singles-day-and-how-is-it-celebrated-0
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By Granth Vanaik
Nov 9 (Reuters) - Black Friday? No. Cyber Monday? Nope. Prime Day? Absolutely not. The world's biggest shopping event happens in China each year - and it's called Singles Day.
Originally a holiday to celebrate being single, as a counter to Valentine's Day, the event has grown into a weeks-long online shopping festival that peaks on Nov. 11.
WHEN DID THE IDEA OF SINGLES DAY ORIGINATE?
The idea for Singles Day had originated at China's Nanjing University back in 1993 and was originally called "Bachelor's Day." On the day, single people treat themselves with gifts and presents, while also organizing social gatherings and parties.
HOW MUCH DO CONSUMERS SPEND?
Last year, the total value of goods sold during the shopping bonanza - also known as "Double 11" - totaled 1.15 trillion yuan ($157.97 billion), according to data from consultancy firm Bain.
That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
Cyber Monday immediately follows Black Friday, which falls on the day after the U.S. Thanksgiving Day holiday, the busiest shopping day of the year in the United States.
But growth has been slowing even as overall sales for Singles Day hit record highs, with last year's 3% rise marking the slowest increase ever. The event has in recent years lost some of its novelty with the rise of other shopping festivals in China,including the midyear "618" sales that are the country's second largest.
Strict COVID-19 curbs in China impacted sales last year, but several industry experts are expecting a rebound, as the economy improves and livestream sales remain robust.
"We're optimistic about growth this year because the recovery seems to be stabilizing and consumption is on a more clear upward trend," said Jacob Cooke, co-founder and CEO of Beijing-based WPIC Marketing + Technologies.
His e-commerce consultancy firm expects sales for the Chinese shopping event to rise in the range between 14% and 18% from last year, which is higher than Adobe's projection for a 5.4% rise in Cyber Week sales.
WHAT MAJOR BRANDS AND PRODUCTS ARE SHOPPERS BUYING?
JD.com 9618.HK joined in 2012 and PDD Holdings-owned PDD.O Pinduoduo has also become a significant player, offering low cost products in competition with Alibaba-owned Tmall and Taobao platforms.
Last year, Chinese shoppers spent more on essentials, supplements, vitamins and pet-care products. Those products are expected to stay in demand this year, along with more lifestyle-focused products such as athletic wear and sports equipment.
"There is enormous demand among Chinese consumers for products and services that improve their lifestyles and facilitate self-expression," Cooke said.
HOW DOES SINGLES DAY COMPARE TO BLACK FRIDAY?
In comparison, U.S. shoppers last year had bought more Pokemon toys, Hot Wheels, TVs, footwear and air fryers during the key Black Friday and Cyber Monday shopping periods, according to Adobe.
From 2014 until 2021, Singles Day had posted growth rates of about 34% annually on average, versus Cyber Week's 17% average gain, according to data from consultancy Bain and from Adobe Analytics.
WHAT OTHER COMPANIES HOPE TO BENEFIT?
Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta.
Nike said in December "Double 11" demand in Greater China grew by mid-teens, outpacing the broader sports industry, with demand from Gen Z consumers for the brand growing by 45% during the shopping period in China on Tmall.
JD.com had Apple sold more than 1 billion yuan worth of products in the first minute of the event's final sales period.
However, for this year, several global companies ranging from L'Oreal to Estee Lauder have taken a cautious stance around the spending spree in China during the shopping event.
"The presale period of Tmall and particularly on -- in general, the Singles Day, confirms a softer trend versus a year ago," said Estee Lauder CEO Fabrizio Freda last week, adding that the company was more optimistic about the next part of the Singles Day events in November.
L'Oreal CEO Nicolas Hieronimus on a postearnings callwith analysts in October said it was too soon to comment on "Double 11."
"The shy consumers are less shy during the big events, and we have seen that whether it's during Valentine's Day, whether it is 6/18, the market has had its best peaks of growth during this moment," Hieronimus said, adding he had lots of hope for the shopping bonanza.
($1 = 7.2800 Chinese yuan renminbi)
Singles Day loses some luster as other big shopping events prop up https://tmsnrt.rs/40DGLAf
(Reporting by Granth Vanaik in Bengaluru; Editing by Aditya Soni and Diane Craft)
((Granth.Vanaik@thomsonreuters.com | X : https://twitter.com/Vanaik_Granth;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. "We're optimistic about growth this year because the recovery seems to be stabilizing and consumption is on a more clear upward trend," said Jacob Cooke, co-founder and CEO of Beijing-based WPIC Marketing + Technologies. In comparison, U.S. shoppers last year had bought more Pokemon toys, Hot Wheels, TVs, footwear and air fryers during the key Black Friday and Cyber Monday shopping periods, according to Adobe.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. Last year, the total value of goods sold during the shopping bonanza - also known as "Double 11" - totaled 1.15 trillion yuan ($157.97 billion), according to data from consultancy firm Bain. That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. Cyber Monday immediately follows Black Friday, which falls on the day after the U.S. Thanksgiving Day holiday, the busiest shopping day of the year in the United States. His e-commerce consultancy firm expects sales for the Chinese shopping event to rise in the range between 14% and 18% from last year, which is higher than Adobe's projection for a 5.4% rise in Cyber Week sales.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. The world's biggest shopping event happens in China each year - and it's called Singles Day. That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
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2023-11-10 00:00:00 UTC
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Booking.com settles Italian tax dispute with 94-million euro payment
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https://www.nasdaq.com/articles/booking.com-settles-italian-tax-dispute-with-94-million-euro-payment
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By Emilio Parodi
MILAN, Nov 10 (Reuters) - Travel website Booking.com BKNG.O has agreed to pay about 94 million euros ($100.25 million) to settle a tax dispute in Italy, Genoa prosecutors said on Friday.
The announcement marks another high-profile tax deal between multinationals and Italian authorities, who previously settled cases with luxury groups such as Kering PRTP.PA and U.S. tech giants, including AppleAAPL.O, AmazonAMZN.O and Meta's META.O Facebook.
Booking.com welcomed the deal in a statement.
"While we maintain that we are and always have been in compliance with applicable Italian VAT laws, we can confirm that we have come to an amicable, mutual agreement with the Italian Revenue Agency relating to the period 2013 to 2021".
Italy's Guardia di Finanza tax police alleged in June 2021 that Booking.com evaded 153 million euros of value added tax (VAT) in connection with holiday rentals from 2013 to 2019.
Last November, Dutch magistrates accepted a European investigation order (OIE) sent by Italy allowing Italian prosecutors to question two former Booking.com chief financial officers as part of the investigation.
Subsequently prosecutors in Genoa extended their tax claims to include the year 2022. Friday's settlement follows direct talks between the company and the Italian revenue agency.
Under the settlement Booking.com filed its VAT return in Italy for the year 2022, for a tax amounting to more than 19 million euros, and undertook to act as tax substitute for all transactions with private individuals not registered for VAT, according to the prosecutors' statement.
TAX COLLECTION
The probe concerned VAT in Italy on payments between private individuals for rental properties advertised by the online travel agent owned by the U.S. group Booking Holdings inc., based in Delaware.
Booking.com works as an intermediary between property owners and guests.
Private accommodation sites which are not professionally run often have no VAT number, and Italian tax authorities believe the online travel agency should in such cases act as a withholding agent, collecting tax.
The Italian tax police checked 896,500 property owners who worked with Booking.com and concluded it did not pay VAT due to Italy, saying they believe that failure to levy the tax allowed the business to undercut other hotel groups.
The company had said at the time that hotel and bed-and-breakfast owners were themselves responsible for collecting and paying the VAT they owed in Italy and other European Union countries.
In another similar case involving a company's responsibility to collect tax on behalf of tax authorities, an Italian judge on Monday seized 780 million euros from short-term rentals platform Airbnb ABNB.O.
($1 = 0.9376 euros)
(Additional reporting by Toby Sterling in Amsterdam, editing by Alvise Armellini and Aurora Ellis)
((emilio.parodi@thomsonreuters.com; +39 06 8030 7744; Reuters Messaging:))
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 announcement marks another high-profile tax deal between multinationals and Italian authorities, who previously settled cases with luxury groups such as Kering PRTP.PA and U.S. tech giants, including AppleAAPL.O, AmazonAMZN.O and Meta's META.O Facebook. The probe concerned VAT in Italy on payments between private individuals for rental properties advertised by the online travel agent owned by the U.S. group Booking Holdings inc., based in Delaware. The company had said at the time that hotel and bed-and-breakfast owners were themselves responsible for collecting and paying the VAT they owed in Italy and other European Union countries.
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The announcement marks another high-profile tax deal between multinationals and Italian authorities, who previously settled cases with luxury groups such as Kering PRTP.PA and U.S. tech giants, including AppleAAPL.O, AmazonAMZN.O and Meta's META.O Facebook. By Emilio Parodi MILAN, Nov 10 (Reuters) - Travel website Booking.com BKNG.O has agreed to pay about 94 million euros ($100.25 million) to settle a tax dispute in Italy, Genoa prosecutors said on Friday. The probe concerned VAT in Italy on payments between private individuals for rental properties advertised by the online travel agent owned by the U.S. group Booking Holdings inc., based in Delaware.
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The announcement marks another high-profile tax deal between multinationals and Italian authorities, who previously settled cases with luxury groups such as Kering PRTP.PA and U.S. tech giants, including AppleAAPL.O, AmazonAMZN.O and Meta's META.O Facebook. Under the settlement Booking.com filed its VAT return in Italy for the year 2022, for a tax amounting to more than 19 million euros, and undertook to act as tax substitute for all transactions with private individuals not registered for VAT, according to the prosecutors' statement. Private accommodation sites which are not professionally run often have no VAT number, and Italian tax authorities believe the online travel agency should in such cases act as a withholding agent, collecting tax.
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The announcement marks another high-profile tax deal between multinationals and Italian authorities, who previously settled cases with luxury groups such as Kering PRTP.PA and U.S. tech giants, including AppleAAPL.O, AmazonAMZN.O and Meta's META.O Facebook. Under the settlement Booking.com filed its VAT return in Italy for the year 2022, for a tax amounting to more than 19 million euros, and undertook to act as tax substitute for all transactions with private individuals not registered for VAT, according to the prosecutors' statement. The Italian tax police checked 896,500 property owners who worked with Booking.com and concluded it did not pay VAT due to Italy, saying they believe that failure to levy the tax allowed the business to undercut other hotel groups.
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12576.0
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2023-11-10 00:00:00 UTC
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The S&P 500 Just Had Its Best Week of 2023. 2 Artificial Intelligence (AI) Stocks to Buy Before the Stock Market Rallies Further.
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https://www.nasdaq.com/articles/the-sp-500-just-had-its-best-week-of-2023.-2-artificial-intelligence-ai-stocks-to-buy
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The S&P 500 has been in rally mode this year, and after a brief stumble, the upward trend has resumed. In the week ended Nov. 3, the widely followed index jumped nearly 6%, marking its best performance for any week so far this year.
Helping fuel those gains has been excitement about the potential of artificial intelligence (AI). While some companies have been basking in the limelight of their AI ambitions, others have been quietly toiling away in the shadows, preferring to let the results of their efforts speak for themselves.
The S&P 500 is now just 5% below its all-time high, and many believe it's poised to make a run for the record. Given the potential for additional gains, now is likely the best time to buy these AI stocks before the general market updraft and AI product revelations drive their shares higher.
Image source: Getty Images.
1. AI stock No. 1: Apple
Of all the companies that have (purposely) avoided the AI spotlight this year, Apple (NASDAQ: AAPL) could well be the poster child. The iPhone maker has been hard at work in the realm of AI and -- in typical Apple fashion -- stayed out of the spotlight until it had something noteworthy to announce.
While some pundits have suggested Apple has fallen behind in the race for AI, CEO Tim Cook dismissed that notion in the conference call following its earnings release, saying many of the company's biggest innovations "would not be possible without AI." Cook was also quick to point out that not every AI-related feature is labeled as such. "We label them as to what their consumer benefit is," Cook said. "But the fundamental technology behind it is AI and machine learning."
In fact, there were a number of new features introduced with iOS 17 that are good examples. These include Personal Voice, an accessibility feature that uses machine learning to recreate a person's voice; and Live Voicemail, which allows users to read a transcription of a voice mail in real time, giving them the option to pick up the call before it ends. Cook also pointed to potentially life-saving features on the Apple Watch and iPhone, such as fall and crash detection as well as electrocardiogram measurement capabilities.
When asked specifically about generative AI, Cook was cagey as always, "Obviously, we have work going on," he said, declining to offer specifics. "You will see product advancements over time where those technologies are at the heart of them," he added.
Cook isn't the only one bullish on Apple's potential to wring profits from AI. Wedbush analyst Dan Ives believes that by rolling out additional use cases to its more than 2 billion active devices, Apple could harness AI to add between $30 and $40 to Apple's share price, or roughly 20% upside compared to Monday's closing price -- and that's just from AI.
Furthermore, Ives estimates that roughly 250 million of the 1.2 billion active iPhones haven't been upgraded in over four years.
If Ives is right -- and I believe he is -- there's plenty of pent-up demand for the iPhone, which gives Apple a fertile field to plow over the next few years.
2. AI stock No. 2: Amazon
Amazon (NASDAQ: AMZN) is another company that has avoided the AI spotlight, but that's mostly because the company has taken a different path with generative AI, integrating the technology into everything it does.
When it comes to digital retail Amazon is without equal, representing approximately 38% of all e-commerce sales in the U.S. in 2022, more than the next 14 competitors combined, according to online data provider Statista. It makes sense, then, that e-commerce would be a primary focus of Amazon's efforts. The company developed generative AI tools that sellers can use to write product descriptions. It also layered generative AI into its recommendations to improve the relevance of its product reviews, making this treasure trove of data more useful to shoppers.
Amazon Web Services (AWS) is also the undisputed leader in cloud infrastructure services, with 30% of the market, according to cloud data provider Canalys. AWS was also responsible for 16% of Amazon's revenue and 88% of its profits so far this year, which makes it another prime candidate for its efforts. This also puts the company in the enviable position to expand its lead by offering AI services to its cloud customers.
Finally, the company recently announced the general release of Amazon Bedrock, a cloud service that allows AWS customers to select from a number of AI models it offers, while helping develop generative AI applications from scratch. The service can also integrate proprietary user data, which makes these apps even more useful.
Yet for all this opportunity, Amazon is historically cheap, selling for just 2 times forward sales. This gives savvy investors the chance to buy shares for a song, before the market rally pushes Amazon stock even higher.
10 stocks we like better than Apple
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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. Danny Vena has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon 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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1: Apple Of all the companies that have (purposely) avoided the AI spotlight this year, Apple (NASDAQ: AAPL) could well be the poster child. Cook also pointed to potentially life-saving features on the Apple Watch and iPhone, such as fall and crash detection as well as electrocardiogram measurement capabilities. When it comes to digital retail Amazon is without equal, representing approximately 38% of all e-commerce sales in the U.S. in 2022, more than the next 14 competitors combined, according to online data provider Statista.
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1: Apple Of all the companies that have (purposely) avoided the AI spotlight this year, Apple (NASDAQ: AAPL) could well be the poster child. Given the potential for additional gains, now is likely the best time to buy these AI stocks before the general market updraft and AI product revelations drive their shares higher. Finally, the company recently announced the general release of Amazon Bedrock, a cloud service that allows AWS customers to select from a number of AI models it offers, while helping develop generative AI applications from scratch.
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1: Apple Of all the companies that have (purposely) avoided the AI spotlight this year, Apple (NASDAQ: AAPL) could well be the poster child. Given the potential for additional gains, now is likely the best time to buy these AI stocks before the general market updraft and AI product revelations drive their shares higher. 2: Amazon Amazon (NASDAQ: AMZN) is another company that has avoided the AI spotlight, but that's mostly because the company has taken a different path with generative AI, integrating the technology into everything it does.
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1: Apple Of all the companies that have (purposely) avoided the AI spotlight this year, Apple (NASDAQ: AAPL) could well be the poster child. Given the potential for additional gains, now is likely the best time to buy these AI stocks before the general market updraft and AI product revelations drive their shares higher. Cook isn't the only one bullish on Apple's potential to wring profits from AI.
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12577.0
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2023-11-10 00:00:00 UTC
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Zacks Market Edge Highlights: AAPL, SONY and IBM
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AAPL
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https://www.nasdaq.com/articles/zacks-market-edge-highlights%3A-aapl-sony-and-ibm
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For Immediate Release
Chicago, IL – November 10, 2023 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2181742/is-apples-magic-fading
Is Apple's Magic Fading?
Welcome to Episode #379 of the Zacks Market Edge Podcast.
(1:00) - Understanding Apple As An Innovator: Should You Be Investing?
(9:30) - Breaking Down Apple’s Performance Over The Past Few Decades
(19:45) - How Has Sony Performed vs The S&P 500 Overtime?
(27:15) - Taking A Look At IBM’s Long Term History: Could This Fit Into Your Portfolio Right Now?
(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO
Podcast@Zacks.com
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about Apple. As many long-time listeners of the podcast know, Tracey is not an Apple investor. Nor does she use its products. That’s right. She does not own an iPhone, and never has.
But after Apple reported the fourth straight quarterly sales decline, the first time it has done so since 2001, Tracey decided to look at Apple’s sales and earnings estimates.
Apple has been one of the best performing stocks of the last 20 years. As of Sep 2023, $10,000 invested 20 years ago, with dividends reinvested, was worth $5.08 million. And it keeps hitting new all-time highs.
But is the 20-year bull market in the stock about to end?
What Happens When Tech Growth Slows
1. Apple Inc. AAPL
Apple went public in 1980. It’s been a wild ride. In the 1990s, it was just 30 days away from bankruptcy before it got a bailout from Bill Gates and Microsoft. Apple went on to make some of the most iconic products of the century including the iPod, the iPad and, of course, the iPhone.
But in fiscal 2023, growth slowed. In the fourth quarter, iPhone sales only rose 2.8% year-over-year.
Apple’s revenue is expected to rise just 3.1% in fiscal 2024 with earnings growing 6.7%. That might be fine if the stock was cheap, but it’s not. Apple trades with a forward P/E of 27.4 and a P/S ratio of 7.3.
What valuation are you willing to pay for Apple’s single digit growth?
2. SONY Corp. SONY
SONY is not a stranger to having iconic products. In 1979, it launched a new handheld cassette player it called the “Walkman.” By 1999, SONY had sold 186 million of the Walkmans and the name “Walkman” became synonymous with ANY handheld cassette player with earphones.
Ultimately, the iPod and other MP3 players led to the Walkman’s demise. But SONY has plenty of other divisions, including gaming, music, cameras, and entertainment, to make up for it.
SONY’s growth has also slowed. It is expected to see revenue fall 1.4% in fiscal 2024 and earnings to gain just 1.3%. But i’s valuation is also much cheaper. SONY trades with a forward P/E of just 15.7. I’s P/S ratio is only 1.3.
Is this a buying opportunity in SONY?
3. IBM Corp. IBM
IBM was the dominant technology company of the 1960s and 70s. At one point, it produced 80% of computers in the United States. But by 2005, it had exited the PC business altogether.
IBM’s growth has also slowed. In 2023, it’s expected to grow revenue by just 1.1% and earnings by 3.3%. However, like SONY, it also has attractive valuations. IBM trades with a forward P/E of just 15.8 and a P/S ratio of 2.2.
But it’s the juicy dividend, currently yielding 4.5%, that attracts a lot of investors.
Should income investors have IBM on their short list?
What Else Do You Need to Know About Apple?
Tune into this week’s podcast to find out.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Sony Corporation (SONY) : 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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(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life. Apple Inc. AAPL Apple went public in 1980. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. AAPL Apple went public in 1980.
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(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. AAPL Apple went public in 1980.
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(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life. Apple Inc. AAPL Apple went public in 1980. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12578.0
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2023-11-10 00:00:00 UTC
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The 7 Next Trillion Dollar Companies to Invest in to Become a Millionaire
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AAPL
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https://www.nasdaq.com/articles/the-7-next-trillion-dollar-companies-to-invest-in-to-become-a-millionaire
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Millionaires, by investing in equities, are not made overnight. It takes years of grinding in the form of research that a high level of patience should back. Daily news and temporary headwinds tend to distract investors. That’s when conviction and patience play a critical role. Apple (NASDAQ:AAPL) was the first trillion-dollar Company; others have followed. In the coming years, the markets will continue to reward quality businesses through swelling valuations. This column focuses on the potential next trillion-dollar companies to invest.
It’s worth noting that the focus is immediately on the technology sector when we talk about trillion-dollar companies. I agree that the world of technology is dynamic, and areas like artificial intelligence and robotics have a substantial addressable market.
I have discussed a few technology stocks in this column. At the same time, I have focused on companies that can surprise investors as potential next trillion-dollar companies. Let’s discuss the reasons to be bullish on these stories until 2030.
Rio Tinto (RIO)
Source: Shutterstock
Investors will be surprised as I talk about a cyclical industrial commodity stock on the list of the next trillion-dollar companies. There are two reasons for this bullish view. First, industrial commodities are possibly the most undervalued asset class based on 20-year CAGR returns for different assets. As an asset class, commodities are likely to catch up in the coming years.
Further, the demand for metals supporting the global energy transition will likely surge. Rio Tinto (NYSE:RIO) is attractive from this perspective as the Company focuses on metals positioned to benefit from the focus on green energy.
An important point to note is that Rio has an investment-grade balance sheet. Even with weakness in commodities, the Company delivered a free cash flow of $3.7 billion for the first half of 2023. With high financial flexibility, the Company is positioned to invest aggressively in lithium, copper, and aluminum. The outlook for this 5.47% dividend yield stock is therefore bullish.
Chevron Corporation (CVX)
Source: Jeff Whyte / Shutterstock.com
I will talk about yet another cyclical stock that represents a potential next trillion-dollar company. Chevron Corporation (NYSE:CVX) is among the best oil and gas stocks. The recent correction is an excellent opportunity to enter a stock with an attractive dividend yield of 4.18%.
The first reason to like Chevron is the cash flow potential. Last year, Brent oil averaged $100.9 per barrel, and the Company reported an operating cash flow of $47.5 billion. Quality assets with an attractive break-even will continue to ensure that Chevron reports robust cash flows.
Along with the cash flow potential, Chevron has an investment-grade balance sheet. Recently, the Company announced the acquisition of Hess Corporation (NYSE:HES). Organic and acquisition-driven growth will ensure that production and cash flows continue to swell. Once Hess is acquired, Chevron expects to invest $19 to $22 billion annually.
I must add here that Chevron is also investing in renewable energy projects. In the next decade, this segment will be another key growth driver for the Company.
Costco Wholesale (COST)
Source: ESB Professional / Shutterstock.com
Costco Wholesale (NASDAQ:COST) stock is another name I would add to the list of trillion-dollar companies. In my view, Costco is possibly the best bet among retail stocks. Of course, the company does not have an asset-light model, which is preferred nowadays when scanning for massive value creators.
However, there are two primary reasons to like Costco. First, the United States economy is driven by consumption spending. An essential part of this is retail expenditure. Costco will, therefore, continue to benefit from a robust omnichannel presence.
Further, Costco had 697 warehouses in the U.S. and Canada as of Q4 2023. The Company, however, has only five warehouses in China. There is ample scope for expansion in emerging Asia, and that’s a potential growth driver for the coming decade.
I must add that Costco reported $4.6 billion in membership revenue in the last financial year. This revenue will likely continue to swell as the Company expands present. Robust recurring revenue will support value creation.
Lockheed Martin (LMT)
Source: ranchorunner / Shutterstock.com
I have intentionally avoided talking about technology names in the list of next trillion-dollar companies. Of course, I will discuss a few, but the focus is always on the technology sector as a massive value creator. There is ample quality outside the tech space that can deliver multi-bagger returns.
Lockheed Martin (NYSE:LMT) stock is a potential value creator if investors are willing to buy and hold until 2030. In 2022, global defense spending increased for the eighth consecutive year to $2.24 trillion. As points of friction increase globally, defense spending will likely accelerate. LMT stock has been subdued but looks poised for a big breakout rally.
I believe that there are three reasons to be bullish on Lockheed. First, the Company has an order backlog of $156 billion, and I expect continued acceleration in backlog, which will translate into higher cash flow.
Second, Lockheed is increasingly looking at international collaborations to boost growth. The Company’s recent orders include those from Norway, Korea, Philippines, among others. Additionally, Lockheed is investing in next-generation defense technology. This is likely to keep the Company ahead of the curve.
AstraZeneca (AZN)
Source: shutterstock.com/Romix Image
Biopharmaceutical stocks were in focus during the COVID-19 pandemic. However, the sector has been ignored in a post-pandemic world, and valuations are attractive. AstraZeneca (NASDAQ:AZN) is one stock I believe can be a potential multi-bagger by 2030.
First, I want to point out that various medical conditions are increasing globally. There is a continuous need for investment in research and development to discover drugs. As an example, globally, there were an estimated 20 million cases of cancer. Further, the cancer burden is expected to increase by 60% over the next two decades.
Coming to AstraZeneca, the Company has a deep pipeline of 172 projects. The pipeline of new molecular entities is for conditions that include oncology, respiratory, immunology, cardiovascular, and rare diseases, among others. A strong pipeline provides growth visibility for the coming years.
It’s worth noting that the Company has 30 potential Phase Three trials for the year. Of this, there are ten potential blockbuster opportunities. I would, therefore, remain bullish on healthy growth in the next few years.
Salesforce (CRM)
Source: IgorGolovniov / Shutterstock.com
Salesforce (NYSE:CRM) stock is an interesting bet among the potential trillion-dollar companies from the technology sector. At a forward price-earnings ratio of 26.3, CRM stock looks attractive and is poised to trend higher.
As an overview, Salesforce is a provider of customer relationship management technology. This description does not do complete justice to the Company’s potential with artificial intelligence likely to boost CRM growth. That’s one factor that still needs to be discounted in the stock.
From a financial perspective, it’s worth mentioning that Salesforce reported an operating cash flow of $5.3 billion for the first half of 2024. With an annual OCF potential of more than $10 billion, there is ample headroom to create value. Further, a strong cash buffer allows Salesforce to invest 3% to 4% of sales towards research and development.
Another critical point is that for Q2 2024, Salesforce reported 24% year-on-year revenue growth from Asia Pacific (APAC). This is significantly higher than the total revenue growth of 11%. Emerging markets will continue to be growth drivers in the coming years.
Li Auto (LI)
Source: Just_Super / Shutterstock.com
Li Auto (NASDAQ:LI) would be my wildest bet for the next trillion-dollar companies. Of course, I don’t expect it to happen anytime soon as I discuss 25x returns from current levels. However, I do believe that LI stock can create millionaires among investors willing to hold with patience for the next five to seven years.
One thing I like the most about Li Auto is that the Company executes its strategy perfectly. While few other Chinese EV stocks are pursuing aggressive global expansion, Li Auto is pursuing aggressive expansion within China. This is delivering results in the form of stellar delivery growth, and a narrow focus (for now) ensures that costs don’t go through the roof.
To put things into perspective, Li Auto reported a cash buffer of $12.13 billion as of Q3 2023. Further, the free cash flow for the quarter was $1.8 billion. Strong FCF allows the Company to invest in innovation and aggressive retail expansion. An annualized FCF potential of $6 to $8 billion indicates that the business is already a cash flow machine.
On the date of publication, Faisal Humayun 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.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post The 7 Next Trillion Dollar Companies to Invest in to Become a Millionaire 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 (NASDAQ:AAPL) was the first trillion-dollar Company; others have followed. Chevron Corporation (CVX) Source: Jeff Whyte / Shutterstock.com I will talk about yet another cyclical stock that represents a potential next trillion-dollar company. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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Apple (NASDAQ:AAPL) was the first trillion-dollar Company; others have followed. Salesforce (CRM) Source: IgorGolovniov / Shutterstock.com Salesforce (NYSE:CRM) stock is an interesting bet among the potential trillion-dollar companies from the technology sector. Li Auto (LI) Source: Just_Super / Shutterstock.com Li Auto (NASDAQ:LI) would be my wildest bet for the next trillion-dollar companies.
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Apple (NASDAQ:AAPL) was the first trillion-dollar Company; others have followed. At the same time, I have focused on companies that can surprise investors as potential next trillion-dollar companies. Costco Wholesale (COST) Source: ESB Professional / Shutterstock.com Costco Wholesale (NASDAQ:COST) stock is another name I would add to the list of trillion-dollar companies.
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Apple (NASDAQ:AAPL) was the first trillion-dollar Company; others have followed. This column focuses on the potential next trillion-dollar companies to invest. The first reason to like Chevron is the cash flow potential.
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12579.0
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2023-11-10 00:00:00 UTC
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Musk's X has a fraction of rivals' content moderators, EU says
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AAPL
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https://www.nasdaq.com/articles/musks-x-has-a-fraction-of-rivals-content-moderators-eu-says
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nan
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By Foo Yun Chee and Supantha Mukherjee
BRUSSELS/STOCKHOLM, Nov 10 (Reuters) - Elon Musk's X social media platform has just 2,294 content moderators to ensure users comply with EU online content rules, significantly fewer than Google GOOGL.O and TikTok, a senior European Commission official said on Friday.
Adopted recently, the EU's Digital Services Act (DSA) requires 19 very large online platforms and 2 very large online search engines, among them Google, X, TikTok, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O, to do more to tackle illegal and harmful content on their platforms.
X has triggered concerns after Musk laid off many employees responsible for monitoring and regulating content amid the spread of disinformation on the platform.
According to reports the companies submitted to the EU in September, X's 2,294 EU content moderators compared with 16,974 at Google's YouTube, 7,319 at Google Play and 6,125 at TikTok, the senior Commission official said, speaking on condition of anonymity.
Regulators are hoping that X will feel the pressure to boost its number of content moderators to catch up with its rivals, the official said. "There is an important aspect of the DSA, and that is peer pressure," she said.
The Commission has more than doubled the number of staff enforcing the DSA to 120 from 50, the official said.
There have been worries that the EU executive would not be able to deal with Big Tech companies' army of executives and lawyers, resulting in enforcement gaps.
Starting from Feb. 17 next year, all intermediary service providers will have to comply with the DSA, not just the 19 services named in April.
(Reporting by Foo Yun Chee; Editing by Jan Harvey)
((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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Adopted recently, the EU's Digital Services Act (DSA) requires 19 very large online platforms and 2 very large online search engines, among them Google, X, TikTok, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O, to do more to tackle illegal and harmful content on their platforms. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 10 (Reuters) - Elon Musk's X social media platform has just 2,294 content moderators to ensure users comply with EU online content rules, significantly fewer than Google GOOGL.O and TikTok, a senior European Commission official said on Friday. X has triggered concerns after Musk laid off many employees responsible for monitoring and regulating content amid the spread of disinformation on the platform.
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Adopted recently, the EU's Digital Services Act (DSA) requires 19 very large online platforms and 2 very large online search engines, among them Google, X, TikTok, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O, to do more to tackle illegal and harmful content on their platforms. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 10 (Reuters) - Elon Musk's X social media platform has just 2,294 content moderators to ensure users comply with EU online content rules, significantly fewer than Google GOOGL.O and TikTok, a senior European Commission official said on Friday. According to reports the companies submitted to the EU in September, X's 2,294 EU content moderators compared with 16,974 at Google's YouTube, 7,319 at Google Play and 6,125 at TikTok, the senior Commission official said, speaking on condition of anonymity.
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Adopted recently, the EU's Digital Services Act (DSA) requires 19 very large online platforms and 2 very large online search engines, among them Google, X, TikTok, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O, to do more to tackle illegal and harmful content on their platforms. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 10 (Reuters) - Elon Musk's X social media platform has just 2,294 content moderators to ensure users comply with EU online content rules, significantly fewer than Google GOOGL.O and TikTok, a senior European Commission official said on Friday. According to reports the companies submitted to the EU in September, X's 2,294 EU content moderators compared with 16,974 at Google's YouTube, 7,319 at Google Play and 6,125 at TikTok, the senior Commission official said, speaking on condition of anonymity.
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Adopted recently, the EU's Digital Services Act (DSA) requires 19 very large online platforms and 2 very large online search engines, among them Google, X, TikTok, Apple AAPL.O, Meta Platforms META.O and Microsoft MSFT.O, to do more to tackle illegal and harmful content on their platforms. By Foo Yun Chee and Supantha Mukherjee BRUSSELS/STOCKHOLM, Nov 10 (Reuters) - Elon Musk's X social media platform has just 2,294 content moderators to ensure users comply with EU online content rules, significantly fewer than Google GOOGL.O and TikTok, a senior European Commission official said on Friday. X has triggered concerns after Musk laid off many employees responsible for monitoring and regulating content amid the spread of disinformation on the platform.
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12580.0
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2023-11-10 00:00:00 UTC
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1 Growth Stock Down 7% to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/1-growth-stock-down-7-to-buy-right-now-0
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nan
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Apple's (NASDAQ: AAPL) stock has dipped about 7% since August, having posted four consecutive quarters of revenue declines. Investors have grown concerned amid dwindling product sales, which account for more than 70% of the company's revenue. Apple is being challenged by macroeconomic headwinds, which triggered reductions in consumer spending across the tech market.
The iPhone manufacturer posted fiscal 2023 earnings on Nov. 2, revealing net sales decreased by 3% year over year. Revenue fell in Apple's four product categories, with services reporting the only growth during the 12 months.
Apple has retained leading market share in multiple product categories despite recent hurdles. Meanwhile, its services business has continued to flourish, with the company still managing to hit over $99 billion in free cash flow. Alongside ventures into high-growth markets such as artificial intelligence (AI) and virtual/augmented reality, Apple remains an attractive long-term investment.
Here's why buying the dip in this growth stock stock is a good idea right now.
Services on a path to overtake iPhone revenue
Apple's services segment includes income from the App Store and subscription-based platforms such as Apple TV+, Music, iCloud, and more. The digital business has become a particularly lucrative area for the company over the years and is now its second-highest earning segment after the iPhone.
Services regularly hit profit margins above 70%, significantly higher than products' profit margins of 36%. Meanwhile, the segment is rapidly expanding and could eventually overtake the iPhone as Apple's most valuable division.
Services posted revenue growth of 9% in 2023, with iPhone sales dipping 2% year over year. The difference follows a similar trend from the year before when services posted double the revenue growth of Apple's smartphone segment.
Digital services have propped up Apple's business during recent challenges and proved less vulnerable to macroeconomic factors than products. The growth trajectory of services is positive as it will allow Apple to rely less on product sales over the long term, especially when economic headwinds arise.
Moreover, one of Apple's biggest hurdles over the last year has been a decrease in customers upgrading their devices as inflation has spiked. However, services allow the company to keep profiting from old products as users continue to buy apps and subscribe to its various platforms.
Apple has faced repeated declines this year. However, it appears to be playing the long game by expanding its services business and investing in alternative digital markets like artificial intelligence (AI).
Apple remains the favorite among consumers
Apple's dominance in consumer tech has seen it achieve leading market shares in most of its product categories. The company's priority on quality, user-friendly design language, and an interconnected ecosystem have paved the way for nearly unrivaled brand loyalty from consumers. The public's preference for Apple's offerings has been especially prevalent during a recent economic downturn.
According to Counterpoint Research, U.S. smartphone shipments decreased by 19% year over year in the third quarter of 2023. The declines sent Samsung and Alphabet sales plunging 26% and 37%, respectively. However, Apple's smartphone shipments fell a more moderate 11%, allowing it to retain its 55% market share.
Data by YCharts.
The popularity of Apple's products has saved it from the worst market declines, suggesting its command of the market remains an attractive reason to invest in its stock. The chart above shows how, despite recent hurdles, Apple delivered more stock growth over the last five years than any other company in what's considered the "Big Five" of tech.
In the same period, Apple's annual revenue rose 47% and operating income close to 80%. The company isn't out of the woods yet and could continue to see product revenue decline into the start of 2024. However, its dominance in consumer tech means it could profit significantly once economic challenges subside. Meanwhile, its booming services business is on a lucrative growth track.
While Apple's stock dip has been unfortunate for current investors, it has also lowered the price for new ones. The company's price-to-earnings (P/E) ratio currently sits at 29, significantly lower than the same metric for competitors Amazon or Microsoft. As a result, Apple shares offer more value than both of these tech giants, thanks to its recent dip.
Apple remains a powerful figure in tech, and I wouldn't bet against its long-term future. Right now is an excellent time to consider investing in its stock.
10 stocks we like better than Apple
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*Stock Advisor returns as of November 6, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. 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's (NASDAQ: AAPL) stock has dipped about 7% since August, having posted four consecutive quarters of revenue declines. The growth trajectory of services is positive as it will allow Apple to rely less on product sales over the long term, especially when economic headwinds arise. However, it appears to be playing the long game by expanding its services business and investing in alternative digital markets like artificial intelligence (AI).
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Apple's (NASDAQ: AAPL) stock has dipped about 7% since August, having posted four consecutive quarters of revenue declines. Apple has retained leading market share in multiple product categories despite recent hurdles. Services posted revenue growth of 9% in 2023, with iPhone sales dipping 2% year over year.
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Apple's (NASDAQ: AAPL) stock has dipped about 7% since August, having posted four consecutive quarters of revenue declines. Services on a path to overtake iPhone revenue Apple's services segment includes income from the App Store and subscription-based platforms such as Apple TV+, Music, iCloud, and more. Apple remains the favorite among consumers Apple's dominance in consumer tech has seen it achieve leading market shares in most of its product categories.
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Apple's (NASDAQ: AAPL) stock has dipped about 7% since August, having posted four consecutive quarters of revenue declines. Services posted revenue growth of 9% in 2023, with iPhone sales dipping 2% year over year. Apple remains the favorite among consumers Apple's dominance in consumer tech has seen it achieve leading market shares in most of its product categories.
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12581.0
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2023-11-10 00:00:00 UTC
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Buy These 2 Growth Stocks on the Dip
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AAPL
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https://www.nasdaq.com/articles/buy-these-2-growth-stocks-on-the-dip-11
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nan
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nan
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Macroeconomic headwinds have burdened companies across multiple markets this year, with consumer-reliant businesses being some of the hardest hit. Investors have pulled back on some of the historically most successful companies despite delivering years of long-term growth. As a result, now is an excellent time to consider buying the dip on stocks that are likely to flourish in the coming years.
Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. However, these companies remain the biggest names in their respective industries and will likely provide significant stock growth to investors over the long haul.
So, here are two attractive growth stocks to buy on the dip.
1. Apple: Undeniable brand loyalty that keeps customers coming back
Apple posted four consecutive quarters of revenue declines in its fiscal 2023, with total sales dipping 3% year over year. The company suffered from marketwide decreases in consumer spending, which brought revenue tumbling across its product categories.
Despite market challenges, shoppers have continued to show a strong preference for Apple's products, which will likely pay off over the long term. Counterpoint Research states that U.S. smartphone shipments decreased by 19% in the third quarter of 2023, with Samsung and Alphabet experiencing sales declines of 26% and 37%, respectively. Yet, the same period saw Apple report a more moderate decline of 11%, allowing it to retain its 55% market share in smartphones.
Moreover, while consumers haven't been keen to upgrade their devices amid spikes in inflation, Apple has still profited significantly from the digital services it offers through its products. Subscription-based platforms such as Apple TV+, Music, iCloud, and more have diversified Apple's business and proven less vulnerable to economic headwinds. Services revenue rose 9% in 2023 as profit margins hit 72%, remaining a bright spot for the company.
Shares in Apple have soared 255% over the last five years, outperforming rivals Microsoft, Alphabet, and Amazon. The company has a history of being one of the most reliable growth stocks over the long term and is well positioned to deliver substantial gains once the tech market recovers. The recent dip in its shares has only made its stock more attractive, with now being an excellent time to invest in Apple.
2. Disney: A very long-term buy
It hasn't been easy to be a Disney investor in recent years. The Covid-19 pandemic shuttered large portions of its business as theater and theme park closures stole billions of dollars in revenue. Then, an economic downturn in 2022 made it costly to expand in the streaming market, triggering countless restructuring moves to get the company back on track. As a result, Disney's stock is down 34% over the last three years.
However, the entertainment giant is in profitability mode and making big changes to its business to see significant growth over the long term. A bright spot for Disney has been its theme parks, experiences, and products division, which reported a 13% rise in revenue in the third quarter of 2023. Meanwhile, park admission sales increased by 18%. As a result, the company is heavily investing in improving guest experiences by expanding its parks worldwide while also introducing higher ticket prices and monetizing various aspects of the business.
One of Disney's weakest points over the last year has been its direct-to-consumer segment, which includes revenue from its various streaming platforms. However, it appears to be gradually inching toward profitability. The segment posted operating losses of $512 million in Q3, nearly half the losses it reported in the year-ago quarter. The company plans to introduce another price hike to its subscribers as it works to find a balance between offering value and meeting its bottom line.
Disney will report its fourth-quarter 2023 results this week, with expectations that it will reinstate its dividend after removing it during pandemic lockdowns. The company promised to bring it back before the end of the calendar year, which is quickly approaching. The return of its dividend would be a huge win for Disney and its stock, illustrating management's optimism for its future growth.
The Walt Disney Company isn't out of the woods after recent challenges. However, it remains one of the world's most recognizable brands, with millions of loyal customers. Recent restructuring moves, such as changing its CFO and pivoting its business away from streaming, are favorable for its long-term future. Now could be an excellent time to buy its stock for a bargain price, with plans to hold over many years.
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 6, 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Moreover, while consumers haven't been keen to upgrade their devices amid spikes in inflation, Apple has still profited significantly from the digital services it offers through its products. Then, an economic downturn in 2022 made it costly to expand in the streaming market, triggering countless restructuring moves to get the company back on track.
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Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Apple: Undeniable brand loyalty that keeps customers coming back Apple posted four consecutive quarters of revenue declines in its fiscal 2023, with total sales dipping 3% year over year. Disney: A very long-term buy It hasn't been easy to be a Disney investor in recent years.
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Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Apple: Undeniable brand loyalty that keeps customers coming back Apple posted four consecutive quarters of revenue declines in its fiscal 2023, with total sales dipping 3% year over year. Disney: A very long-term buy It hasn't been easy to be a Disney investor in recent years.
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Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Disney: A very long-term buy It hasn't been easy to be a Disney investor in recent years. As a result, Disney's stock is down 34% over the last three years.
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12582.0
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2023-11-10 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-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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12583.0
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2023-11-10 00:00:00 UTC
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Nearly Half of Warren Buffett's More Than $6 Billion in Annual Dividend Income Comes From Just 3 Stocks
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AAPL
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https://www.nasdaq.com/articles/nearly-half-of-warren-buffetts-more-than-%246-billion-in-annual-dividend-income-comes-from
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nan
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For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street and everyday investors with his investing prowess. Even with an occasional bad trade mixed in, the Oracle of Omaha has delivered an aggregate return of better than 4,300,000% for his company's Class A shares (BRK.A) spanning a little over 58 years.
What's great about Buffett's success is his willingness to share his investment philosophy. His "recipe" often involves buying brand-name companies with sustained moats and trusted management teams, and hanging on these stakes for the long haul.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what's commonly overlooked about Buffett's investment portfolio is his focus on dividend stocks and portfolio concentration. Even though the Oracle of Omaha and his investing lieutenants are overseeing a $343 billion portfolio that has stakes in over 50 securities, just a handful of these businesses account for the bulk of Berkshire's invested assets -- as well as its dividend income.
Over the next year, Warren Buffett and his team are expected to oversee the collection of more than $6 billion in dividend income. However, nearly half of this amount ($2.83 billion) will come from just three stocks.
Bank of America: $991,537,926 in annual dividend income
The Berkshire Hathaway holding that's bringing home more proverbial bacon for Warren Buffett and his team than any other stock is Bank of America (NYSE: BAC), which is commonly referred to as "BofA." The more than 1 billion shares of BofA held by Buffett's company are expected to produce north of $991 million in dividend income over the coming 12 months.
There's, arguably, no industry the Oracle of Omaha is more knowledgeable about than banking. That's probably why Bank of America is Berkshire's second-largest holding by market cap.
What makes bank stocks so special in Buffett's eyes is their ability to use time to their advantage. Even though financial stocks are cyclical and therefore exposed to higher loan losses and credit delinquencies during recessions, economic downturns tend to be short-lived. By comparison, the U.S. economy tends to expand for multiple years at a time, if not a full decade. Banks like BofA are able to take advantage of these long-winded periods of expansion by growing their loan portfolios and asset management segments.
The factor that sets Bank of America apart from its peers is the company's interest rate sensitivity. Changes in interest rates will increase or lower BofA's net interest income more than any other large U.S. bank. With the Federal Reserve raising its federal funds rate at the fastest pace in four decades to tackle historically high inflation, Bank of America has been a prime beneficiary. This rate-hiking cycle has added billions in net interest income each quarter, and the Fed doesn't appear to be particularly close to lowering rates anytime soon.
Credit should also be given to Bank of America's technology investments. As of the end of September 2023, just shy of three-quarters of its customers were banking online or via mobile app. Digital transactions and online loan sales are considerably less costly for banks than in-person or phone-based interactions. As consumers shift more of their banking to digital channels, BofA has the luxury of consolidating some of its branches and reducing its expenses.
Occidental Petroleum: $964,196,739 in annual dividend income (includes preferred stock dividends)
A second Warren Buffett stock that's generating an absolute boatload of annual dividend income is energy stock Occidental Petroleum (NYSE: OXY). Based on the more than 228 million shares of Occidental common stock owned by Berkshire Hathaway, the company's $0.72 base annual payout equates to about $164.2 million in annual income.
However, Buffett's company also owns $10 billion worth of Occidental preferred stock that yields 8% annually. Berkshire received this preferred stock (along with warrants for common shares of Occidental) in exchange for handing over $10 billion that helped facilitate Occidental Petroleum's acquisition of Anadarko in 2019. Collectively, Berkshire is netting more than $964 million in annual income from Occidental.
The core catalyst for this sizable investment is the expectation that the spot price for crude oil will rise. Fueling this thesis is multiple years of capital underinvestment by energy majors during the COVID-19 pandemic. When coupled with Russia's invasion of Ukraine and the uncertainty this invasion creates for Europe's energy supply needs, there's a strong possibility of global crude oil supply constraints for years to come. Tight supply should provide an upward lift on the spot price of crude oil.
Despite being an integrated energy company that operates downstream chemical plants, Occidental derives most of its revenue from the drilling side of the equation. In other words, Occidental is something of a leveraged play among integrated operators, based on the spot price of crude oil. If the price rises, Occidental should disproportionately benefit relative to its peers. But if it declines, the opposite is true.
The other thing that's noteworthy about this investment is that Occidental is carrying around quite a bit of net debt (nearly $19.7 billion). The Oracle of Omaha typically invests in businesses that have pristine balance sheets and plenty of financial flexibility. That isn't the case with Occidental. It'll require a sustained high spot price for crude oil to continue reducing its outstanding debt.
Image source: Apple.
Apple: $878,937,967 in annual dividend income
The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL).
By itself, Apple represents more than 47% of Berkshire's $343 billion in invested assets. Perhaps it's no surprise that the nearly 915.6 million shares of Apple owned by the Oracle of Omaha's company are yielding almost $879 million in annual dividend income. Given Apple's mammoth operating cash flow, there's a good chance its base annual payout will head even higher over time.
Apple's primary catalyst has long been its innovation. The advent of the iPhone has put Apple on the leading edge of smartphone innovation for more than a decade. Since introducing a 5G-capable version of the iPhone during the fourth quarter of 2020, Apple has maintained around half (if not more) of the U.S. smartphone market share.
The next step in Apple's evolution is its ongoing development as a platforms company. CEO Tim Cook is spearheading this transition that emphasizes subscription services. The benefit of a subscription-driven segment is consistent operating cash flow, a higher long-term operating margin, and eventually less revenue volatility associated with major iPhone upgrade cycles.
But the primary reason Warren Buffett is so infatuated with Apple, which he's referred to as "better business than any we own," might be its capital-return program. On top of having the second-largest nominal-dollar dividend in the U.S., behind only Microsoft, Apple has repurchased more than $600 billion worth of its common stock since kicking off its buyback program 10 years ago. These repurchases are steadily increasing Berkshire's stake in Apple over time.
10 stocks we like better than Bank of America
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 Bank of America 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 October 30, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). The more than 1 billion shares of BofA held by Buffett's company are expected to produce north of $991 million in dividend income over the coming 12 months. This rate-hiking cycle has added billions in net interest income each quarter, and the Fed doesn't appear to be particularly close to lowering rates anytime soon.
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Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). Occidental Petroleum: $964,196,739 in annual dividend income (includes preferred stock dividends) A second Warren Buffett stock that's generating an absolute boatload of annual dividend income is energy stock Occidental Petroleum (NYSE: OXY). Based on the more than 228 million shares of Occidental common stock owned by Berkshire Hathaway, the company's $0.72 base annual payout equates to about $164.2 million in annual income.
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Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). Bank of America: $991,537,926 in annual dividend income The Berkshire Hathaway holding that's bringing home more proverbial bacon for Warren Buffett and his team than any other stock is Bank of America (NYSE: BAC), which is commonly referred to as "BofA." Occidental Petroleum: $964,196,739 in annual dividend income (includes preferred stock dividends) A second Warren Buffett stock that's generating an absolute boatload of annual dividend income is energy stock Occidental Petroleum (NYSE: OXY).
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Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). Even though the Oracle of Omaha and his investing lieutenants are overseeing a $343 billion portfolio that has stakes in over 50 securities, just a handful of these businesses account for the bulk of Berkshire's invested assets -- as well as its dividend income. Bank of America: $991,537,926 in annual dividend income The Berkshire Hathaway holding that's bringing home more proverbial bacon for Warren Buffett and his team than any other stock is Bank of America (NYSE: BAC), which is commonly referred to as "BofA."
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12584.0
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2023-11-09 00:00:00 UTC
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Is Apple's Magic Fading?
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AAPL
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https://www.nasdaq.com/articles/is-apples-magic-fading
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nan
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nan
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(1:00) - Understanding Apple As An Innovator: Should You Be Investing?
(9:30) - Breaking Down Apple’s Performance Over The Past Few Decades
(19:45) - How Has Sony Performed vs The S&P 500 Overtime?
(27:15) - Taking A Look At IBM’s Long Term History: Could This Fit Into Your Portfolio Right Now?
(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO
Podcast@Zacks.com
Welcome to Episode #379 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about Apple. As many long-time listeners of the podcast know, Tracey is not an Apple investor. Nor does she use its products. That’s right. She does not own an iPhone, and never has.
But after Apple reported the fourth straight quarterly sales decline, the first time it has done so since 2001, Tracey decided to look at Apple’s sales and earnings estimates.
Apple has been one of the best performing stocks of the last 20 years. As of Sep 2023, $10,000 invested 20 years ago, with dividends reinvested, was worth $5.08 million. And it keeps hitting new all-time highs.
But is the 20-year bull market in the stock about to end?
What Happens When Tech Growth Slows
1. Apple Inc. (AAPL)
Apple went public in 1980. It’s been a wild ride. In the 1990s, it was just 30 days away from bankruptcy before it got a bailout from Bill Gates and Microsoft. Apple went on to make some of the most iconic products of the century including the iPod, the iPad and, of course, the iPhone.
But in fiscal 2023, growth slowed. In the fourth quarter, iPhone sales only rose 2.8% year-over-year.
Apple’s revenue is expected to rise just 3.1% in fiscal 2024 with earnings growing 6.7%. That might be fine if the stock was cheap, but it’s not. Apple trades with a forward P/E of 27.4 and a P/S ratio of 7.3.
What valuation are you willing to pay for Apple’s single digit growth?
2. SONY Corp. (SONY)
SONY is not a stranger to having iconic products. In 1979, it launched a new handheld cassette player it called the “Walkman.” By 1999, SONY had sold 186 million of the Walkmans and the name “Walkman” became synonymous with ANY handheld cassette player with earphones.
Ultimately, the iPod and other MP3 players led to the Walkman’s demise. But SONY has plenty of other divisions, including gaming, music, cameras, and entertainment, to make up for it.
SONY’s growth has also slowed. It is expected to see revenue fall 1.4% in fiscal 2024 and earnings to gain just 1.3%. But it’s valuation is also much cheaper. SONY trades with a forward P/E of just 15.7. It’s P/S ratio is only 1.3.
Is this a buying opportunity in SONY?
3. IBM Corp. (IBM)
IBM was the dominant technology company of the 1960s and 70s. At one point, it produced 80% of computers in the United States. But by 2005, it had exited the PC business altogether.
IBM’s growth has also slowed. In 2023, it’s expected to grow revenue by just 1.1% and earnings by 3.3%. However, like SONY, it also has attractive valuations. IBM trades with a forward P/E of just 15.8 and a P/S ratio of 2.2.
But it’s the juicy dividend, currently yielding 4.5%, that attracts a lot of investors.
Should income investors have IBM on their short list?
What Else do you Need to Know About Apple?
Tune into this week’s podcast to find out.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right 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
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Sony Corporation (SONY) : 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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(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Welcome to Episode #379 of the Zacks Market Edge Podcast. Apple Inc. (AAPL) Apple went public in 1980. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Welcome to Episode #379 of the Zacks Market Edge Podcast. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. (AAPL) Apple went public in 1980.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here. (33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Welcome to Episode #379 of the Zacks Market Edge Podcast. Apple Inc. (AAPL) Apple went public in 1980.
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(33:30) - Episode Roundup: AAPL, SONY, IBM, VOO Podcast@Zacks.com Welcome to Episode #379 of the Zacks Market Edge Podcast. Apple Inc. (AAPL) Apple went public in 1980. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Sony Corporation (SONY) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12585.0
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2023-11-09 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-17
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12586.0
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2023-11-09 00:00:00 UTC
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Apple Sales Are in Decline, but 1 Other Stock Is Taking It on the Chin
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AAPL
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https://www.nasdaq.com/articles/apple-sales-are-in-decline-but-1-other-stock-is-taking-it-on-the-chin
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nan
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nan
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Unlike the Android smartphone market that's starting to bottom out, Apple (NASDAQ: AAPL) products are still in a bit of a downturn. Sure, the iPhone 15 looks like a hit, and MacBook demand is bottoming, but other products are still coming off of peak sales levels in 2022 as consumer spending cools.
That's having an outsized effect on Apple suppliers, and especially wireless connectivity chip specialist Skyworks Solutions (NASDAQ: SWKS). The stock keeps falling and by some metrics looks dirt cheap, but there might be better ways to play the next bull market for mobile technology.
Apple's declines blast a key chip partner
Apple reported a modest year-over-year uptick in iPhone revenue (up 2.8%) during its final quarter of fiscal 2023 (the three months ended in September), ending a not-so-great year for Apple's bread-and-butter product. To kick off fiscal 2024, management said the iPhone 15 is a hit, and momentum will continue through its next quarter (the three months ending in December 2023).
MacBook revenue, which just fell 34% year over year in the last quarter, is also expected to begin a rebound. This will no doubt be helped by the recent surprise announcement of new MacBooks powered by the M3 chip.
The problem is, Apple product sales overall fell in fiscal 2023, and especially so in non-iPhone revenue. Apple has a large software and services segment that can help offset the pain. Nevertheless, the falling hardware sales had a big impact on Skyworks Solutions, which still counts nearly 70% of its sales from Apple.
APPLE PRODUCT SEGMENT
FISCAL 2023 REVENUE
YOY INCREASE (DECREASE)
iPhone
$200.6 billion
(2.4%)
Mac
$29.4 billion
(27%)
iPad
$28.3 billion
(3.4%)
Wearables, home, and accessories
$39.8 billion
(3.4%)
Services
$85.2 billion
9.1%
Data source: Apple. YOY = year over year.
SKYWORKS SOLUTIONS METRIC
FISCAL 2023
YOY INCREASE (DECREASE)
Revenue
$4.77 billion
(13%)
Earnings per share
$6.13
(22%)
Free cash flow
$1.65 billion
76%
Data source: Skyworks Solutions.
A good bet on an upturn?
The lone positive in the above report from Skyworks is the free-cash-flow (FCF) print, which made a recovery from depressed levels in 2022 (when the downturn for chips tied to consumer markets began) to an FCF profit margin of nearly 35% in the last year. That's a similar dynamic that worked in the favor of fellow mobile chipmaker Qualcomm as well.
The good news is that Skyworks management believes an FCF margin of over 30% is sustainable, too.
The bad news, though, is that Skyworks' business outside of smartphones (including mostly iPhone, but some Android and other non-smartphone sales, too) will remain in decline. Skyworks' guidance for the final three months of calendar year 2023 (like Apple, the first quarter of fiscal 2024) implies revenue will be down 6% from a year ago at the midpoint.
What's really frustrating is that Skyworks is still joined at the hip to Apple and the now sluggish smartphone market overall, while other companies (again, like Qualcomm) have made far more robust headway in places like automotive technology. It's not for lack of trying. Remember, Skyworks made that big automotive and infrastructure acquisition from Silicon Laboratories over two years ago, and it's still not having the big impact on the business's transformation like what was expected.
At any rate, by some metrics, Skyworks stock looks really cheap at just under 15 times trailing-12-month earnings and less than 9 times FCF. But the market hasn't been impressed with the lack of guidance for a more pronounced upswing in sales activity for this chipmaker. I sold my shares in Skyworks a few months ago, and at this point, the company still appears to be taking it on the chin from Apple's overall lackluster product sales growth. Qualcomm looks like the better mobile chip stock at this point in time.
10 stocks we like better than Skyworks Solutions
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*Stock Advisor returns as of November 6, 2023
Nicholas Rossolillo has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple and Qualcomm. The Motley Fool recommends Silicon Laboratories and Skyworks Solutions. 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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Unlike the Android smartphone market that's starting to bottom out, Apple (NASDAQ: AAPL) products are still in a bit of a downturn. Sure, the iPhone 15 looks like a hit, and MacBook demand is bottoming, but other products are still coming off of peak sales levels in 2022 as consumer spending cools. What's really frustrating is that Skyworks is still joined at the hip to Apple and the now sluggish smartphone market overall, while other companies (again, like Qualcomm) have made far more robust headway in places like automotive technology.
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Unlike the Android smartphone market that's starting to bottom out, Apple (NASDAQ: AAPL) products are still in a bit of a downturn. iPhone $200.6 billion (2.4%) Mac $29.4 billion (27%) iPad $28.3 billion (3.4%) Wearables, home, and accessories $39.8 billion (3.4%) Services $85.2 billion 9.1% Data source: Apple. Revenue $4.77 billion (13%) Earnings per share $6.13 (22%) Free cash flow $1.65 billion 76% Data source: Skyworks Solutions.
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Unlike the Android smartphone market that's starting to bottom out, Apple (NASDAQ: AAPL) products are still in a bit of a downturn. Apple's declines blast a key chip partner Apple reported a modest year-over-year uptick in iPhone revenue (up 2.8%) during its final quarter of fiscal 2023 (the three months ended in September), ending a not-so-great year for Apple's bread-and-butter product. Nevertheless, the falling hardware sales had a big impact on Skyworks Solutions, which still counts nearly 70% of its sales from Apple.
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Unlike the Android smartphone market that's starting to bottom out, Apple (NASDAQ: AAPL) products are still in a bit of a downturn. The good news is that Skyworks management believes an FCF margin of over 30% is sustainable, too. Skyworks' guidance for the final three months of calendar year 2023 (like Apple, the first quarter of fiscal 2024) implies revenue will be down 6% from a year ago at the midpoint.
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12587.0
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2023-11-09 00:00:00 UTC
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Arm shares sink as some analysts question valuation after weak forecast
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AAPL
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https://www.nasdaq.com/articles/arm-shares-sink-as-some-analysts-question-valuation-after-weak-forecast
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nan
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nan
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By Arsheeya Bajwa
Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September.
The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value.
Several analysts raised questions about the valuation of the company, which is grappling with uncertainty stemming from new accounting rules on how revenue from large, multi-year license deals must be recognized in its books.
"We are surprised by its weaker royalty outlook vs its smartphone customers like Mediatek and Qualcomm," said HSBC analyst Frank Lee.
Qualcomm QCOM.O sees 10% sequential sales growth in smartphones given overall Android smartphone restocking. On the other hand, Arm only guided for mid to high single-digit sequential sales growth for its royalty revenues, the brokerage added.
Lee said Arm's current FY24 price-to-earnings ratio still remains at a significant premium, adding that the valuation "is still stretched in our view despite share price correction."
The SoftBank Group-controlled firm trades at 45 times its 12-month forward earnings estimates, compared with investor darling Nvidia's NVDA.O 29.66 and the industry median of 18.13, according to LSEG data.
Arm on Wednesday forecast a third-quarter revenue range with a midpoint of $760 million, below analysts' estimates of $767.84 million, according to LSEG data.
But its annual revenue forecast was above estimates, as it benefited from a surge in companies designing new chips to tap the boom in artificial intelligence applications.
"(Arm) along with the broader semi industry is seeing strong design activity for data center and AI integration/penetration... but, it will take some time before this begins generating meaningful revenues for some," said Justin Sumner, a senior portfolio manager at Voya Investment Management, an Arm shareholder.
A dominant player in mobile phone chips, Arm has been looking to expand into other areas such as data center servers and personal computer chips.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)
((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. By Arsheeya Bajwa Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September. Several analysts raised questions about the valuation of the company, which is grappling with uncertainty stemming from new accounting rules on how revenue from large, multi-year license deals must be recognized in its books.
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The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. Qualcomm QCOM.O sees 10% sequential sales growth in smartphones given overall Android smartphone restocking. On the other hand, Arm only guided for mid to high single-digit sequential sales growth for its royalty revenues, the brokerage added.
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The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. By Arsheeya Bajwa Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September. Arm on Wednesday forecast a third-quarter revenue range with a midpoint of $760 million, below analysts' estimates of $767.84 million, according to LSEG data.
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The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. By Arsheeya Bajwa Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September. Qualcomm QCOM.O sees 10% sequential sales growth in smartphones given overall Android smartphone restocking.
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12588.0
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2023-11-09 00:00:00 UTC
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5 Tech ETFs That Outperformed XLK in the Past Week
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AAPL
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https://www.nasdaq.com/articles/5-tech-etfs-that-outperformed-xlk-in-the-past-week
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nan
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nan
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Wall Street has regained momentum to start November, with the Nasdaq Composite Index in the longest winning streak in two years. The renewed confidence is driven by a decline in Treasury yields, which has particularly favored technology stocks like Salesforce CRM, Apple AAPL, and Microsoft MSFT (read: ETFs to Tap Microsoft's Longest Win Streak Since 2021).
While almost all the ETFs in the space gained handsomely in the past week, we have highlighted five that are leading the rally. These include ARK Innovation ETF ARKK, ARK Next Generation Internet ETF ARKW, First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, Global X Blockchain ETF BKCH and VanEck Vectors Digital Transformation ETF DAPP.
The 10-Year Treasury yields dropped to 4.57%, boosting investor confidence, particularly in mega-cap growth stocks. This shift in the bond market reflects a broader investor sentiment that the Fed is nearing the end of its interest rate hiking cycle, which has been a critical concern for markets in the past few months.
Most traders are betting against a rate hike this year, with some expecting a rate cut by March. According to the CME FedWatch tool, 90% of traders are sticking with their bet that there won't be a hike this year, while 25% expect a rate cut in March. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low.
Further, the sector outlook remains solid. The expansion of artificial intelligence (AI) applications holds the promise of ushering in fresh opportunities for growth within the sector. The global digital shift has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping, thereby bolstering strength in the sector. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology will continue to fuel a rally (read: 5 Sector ETFs at the Forefront of the Market Rally Last Week).
The tech titans have strong balance sheets, durable revenue streams and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn and have demonstrated improved cost discipline.
Moreover, the technology sector has a solid Zacks Sector Rank, being in the top 25%, which suggests continued outperformance in the coming months.
Let’s dig into the details of the abovementioned ETFs:
ARK Innovation ETF (ARKK) – Up 16.6%
ARK Innovation ETF is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to the areas of DNA Technologies and Genomic Revolution, Automation, Robotics, Energy Storage, Artificial Intelligence, Next Generation Internet and Fintech Innovation. In total, the fund holds 32 securities in its basket, with some concentration on the top firms.
ARK Innovation ETF has gathered $7 billion in its asset base and charges 75 bps in fees per year from investors. It trades in average daily volume of 14 million shares.
ARK Next Generation Internet ETF (ARKW) – Up 13.8%
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 34 stocks in its basket.
ARK Next Generation Internet ETF has amassed $1.3 billion in its asset base and charges 88 bps in annual fees. It trades in an average daily volume of 262,000 shares.
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) – Up 11.3%
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem.
First Trust SkyBridge Crypto Industry holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $20.2 million in its asset base and trades in an average daily volume of 176,000 shares (read: 5 ETFs at the Forefront of Bitcoin's Thrilling Ascent).
Global X Blockchain ETF (BKCH) – Up 10.5%
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket, with nearly double-digit allocation to the four top firms.
Global X Blockchain ETF has gathered $70 million in its asset base and trades in an average daily volume of 124,000 shares. It charges 50 bps in annual fees.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 9.2%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 22 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 81,000. DAPP has accumulated $50.5 million in its asset base.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
ARK Innovation ETF (ARKK): ETF Research Reports
Global X Blockchain ETF (BKCH): ETF Research Reports
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): 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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The renewed confidence is driven by a decline in Treasury yields, which has particularly favored technology stocks like Salesforce CRM, Apple AAPL, and Microsoft MSFT (read: ETFs to Tap Microsoft's Longest Win Streak Since 2021). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports To read this article on Zacks.com click here. According to the CME FedWatch tool, 90% of traders are sticking with their bet that there won't be a hike this year, while 25% expect a rate cut in March.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports To read this article on Zacks.com click here. The renewed confidence is driven by a decline in Treasury yields, which has particularly favored technology stocks like Salesforce CRM, Apple AAPL, and Microsoft MSFT (read: ETFs to Tap Microsoft's Longest Win Streak Since 2021). These include ARK Innovation ETF ARKK, ARK Next Generation Internet ETF ARKW, First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, Global X Blockchain ETF BKCH and VanEck Vectors Digital Transformation ETF DAPP.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports To read this article on Zacks.com click here. The renewed confidence is driven by a decline in Treasury yields, which has particularly favored technology stocks like Salesforce CRM, Apple AAPL, and Microsoft MSFT (read: ETFs to Tap Microsoft's Longest Win Streak Since 2021). These include ARK Innovation ETF ARKK, ARK Next Generation Internet ETF ARKW, First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, Global X Blockchain ETF BKCH and VanEck Vectors Digital Transformation ETF DAPP.
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The renewed confidence is driven by a decline in Treasury yields, which has particularly favored technology stocks like Salesforce CRM, Apple AAPL, and Microsoft MSFT (read: ETFs to Tap Microsoft's Longest Win Streak Since 2021). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report ARK Next Generation Internet ETF (ARKW): ETF Research Reports ARK Innovation ETF (ARKK): ETF Research Reports Global X Blockchain ETF (BKCH): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports To read this article on Zacks.com click here. These include ARK Innovation ETF ARKK, ARK Next Generation Internet ETF ARKW, First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, Global X Blockchain ETF BKCH and VanEck Vectors Digital Transformation ETF DAPP.
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12589.0
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2023-11-09 00:00:00 UTC
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Notable Thursday Option Activity: ZM, ASLE, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-zm-asle-aapl
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Zoom Video Communications Inc (Symbol: ZM), where a total volume of 45,626 contracts has been traded thus far today, a contract volume which is representative of approximately 4.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 186.7% of ZM's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $80 strike put option expiring November 17, 2023, with 16,004 contracts trading so far today, representing approximately 1.6 million underlying shares of ZM. Below is a chart showing ZM's trailing twelve month trading history, with the $80 strike highlighted in orange:
AerSale Corp (Symbol: ASLE) options are showing a volume of 3,920 contracts thus far today. That number of contracts represents approximately 392,000 underlying shares, working out to a sizeable 157.8% of ASLE's average daily trading volume over the past month, of 248,395 shares. Particularly high volume was seen for the $17.50 strike call option expiring April 19, 2024, with 1,415 contracts trading so far today, representing approximately 141,500 underlying shares of ASLE. Below is a chart showing ASLE's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 899,156 contracts thus far today. That number of contracts represents approximately 89.9 million underlying shares, working out to a sizeable 152.9% of AAPL's average daily trading volume over the past month, of 58.8 million shares. Especially high volume was seen for the $185 strike call option expiring November 10, 2023, with 75,034 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $185 strike highlighted in orange:
For the various different available expirations for ZM options, ASLE options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding American Electric Power
BKCC market cap history
Institutional Holders of RUDR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $185 strike call option expiring November 10, 2023, with 75,034 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing ASLE's trailing twelve month trading history, with the $17.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 899,156 contracts thus far today. That number of contracts represents approximately 89.9 million underlying shares, working out to a sizeable 152.9% of AAPL's average daily trading volume over the past month, of 58.8 million shares.
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Below is a chart showing ASLE's trailing twelve month trading history, with the $17.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 899,156 contracts thus far today. That number of contracts represents approximately 89.9 million underlying shares, working out to a sizeable 152.9% of AAPL's average daily trading volume over the past month, of 58.8 million shares. Especially high volume was seen for the $185 strike call option expiring November 10, 2023, with 75,034 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL.
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That number of contracts represents approximately 89.9 million underlying shares, working out to a sizeable 152.9% of AAPL's average daily trading volume over the past month, of 58.8 million shares. Especially high volume was seen for the $185 strike call option expiring November 10, 2023, with 75,034 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing ASLE's trailing twelve month trading history, with the $17.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 899,156 contracts thus far today.
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That number of contracts represents approximately 89.9 million underlying shares, working out to a sizeable 152.9% of AAPL's average daily trading volume over the past month, of 58.8 million shares. Especially high volume was seen for the $185 strike call option expiring November 10, 2023, with 75,034 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing ASLE's trailing twelve month trading history, with the $17.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 899,156 contracts thus far today.
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12590.0
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2023-11-09 00:00:00 UTC
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What Tepid Outlook? Buy Apple ETFs for These 5 Factors
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AAPL
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https://www.nasdaq.com/articles/what-tepid-outlook-buy-apple-etfs-for-these-5-factors
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nan
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nan
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Apple AAPL posted impressive fourth-quarter fiscal 2023 results last week, but its Q1 outlook disappointed investors. While Apple topped expectations for revenues, earnings and iPhone sales, investors remained cautious due to concerns about iPhone sales weakness in China (a key market for Apple) and a fourth consecutive quarter of year-over-year revenue decline.
Should You Really Care About China?
While likely sales slowdown in China is a concern, investors should not overlook other booming areas. Let’s highlight those emerging fields.
India: A Rising Star in Apple’s Portfolio
Apple’s investments in India have been strategic and have already started to pay off. Despite making up only 4% of total iPhone sell-through in the 12 months prior to September 2023, unit sales in India increased a massive 31%. This growth stands in contrast to declines in major markets like the United States, China and Europe, per UBS analyst David Vogt, as quoted on Yahoo Finance.
Apple's CEO, Tim Cook, highlighted the importance of India as a budding market with immense prospects. He mentioned that Apple expects more people to enter the middle class in India, which could boost the company's presence in the country.
Services Business Resilience Amid Hardware Struggles, AI Investments in Place
Apple's Services business confirmed consistent growth, offsetting declining hardware sales and promising strong performance in 2024. The Services portfolio, which includes revenues from cloud services, App store, Apple Music, AppleCare, Apple Pay, and licensing and other services, has now become the cash cow. The services segment may make up for falling iPhone sales.
During Apple's Q4earnings call CEO Tim Cook highlighted the company's recent advancements in AI technology, showcasing features like Personal Voice and Live Voicemail in iOS 17 as examples. Cook also confirmed Apple's active involvement in generative AI technologies.
Mac Sales Rebound in the Cards
The Mac segment has been struggling in recent quarters. Despite a 34% year-over-year revenue decline in the Mac segment in Q4, Apple anticipates a significant turnaround with the introduction of its new M3 chip-powered products.
For 2024, Apple anticipates potential growth opportunities with new MacBooks featuring M3 chips and the launch of the Vision Pro headset. Apple’s focus on augmented reality/virtual reality (AR/VR) technologies presents growth opportunities in the long haul.
Decent Valuation & Return Prospects Compared to Industry
Going by valuation metrics, the P/E (ttm) of AAPL is 30.7 times versus the industry-average of 28.8 times. The forward P/E of AAPL is 28.2 times versus the industry score of 26.7 times. Though these measures point to a slightly higher valuation of Apple than the industry, a higher P/E is not always a sign of worry. It shows investors’ confidence in a particular stock among the bunch.
Investors should note that the return-on-equity of Apple is 160.8%, higher than the industry average of 137.9%. Return-on-assets of Apple is marginally higher than the industry measures. The estimated 3-5 year EPS growth of Apple is now 11.1% versus the industry measure of 9.4%.
More Upside Waiting for Price Target?
Based on short-term price targets offered by 26 analysts, the average price target for Apple is $202.96. The forecasts range from a low of $140.00 to a high of $240.00. The average price target represents an increase of 13.24% from the last closing price of $179.23 (as of Nov 7, 2023).
Apple currently has an average brokerage recommendation (ABR) of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated on the basis of actual recommendations (Buy, Hold, Sell etc.) made by 29 brokerage firms. The current ABR compares to an ABR of 1.71 a month ago based on 29 recommendations.
Of the 29 recommendations deriving the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 58.62% and 10.34% of all recommendations. A month ago, Strong Buy made up 58.62%, while Buy represented 10.34%.
ETFs to Tap
Although the Apple stock has upside potential, investors who are still doubtful about Apple’s apparent tepid outlook, may play Apple-heavy ETFs as the basket approach minimizes company-specific risks.
Technology Select Sector SPDR Fund XLK – Apple has 22.89% exposure
Fidelity MSCI Information Technology Index ETF FTEC – Apple has 22.32% exposure
Vanguard Information Technology ETF VGT – Apple has 21.25% exposure
iShares Global Tech ETF IXN – Apple has 20.84% exposure
iShares U.S. Technology ETF IYW – Apple has 18.08% exposure
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Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
iShares Global Tech ETF (IXN): 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 posted impressive fourth-quarter fiscal 2023 results last week, but its Q1 outlook disappointed investors. Decent Valuation & Return Prospects Compared to Industry Going by valuation metrics, the P/E (ttm) of AAPL is 30.7 times versus the industry-average of 28.8 times. The forward P/E of AAPL is 28.2 times versus the industry score of 26.7 times.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL posted impressive fourth-quarter fiscal 2023 results last week, but its Q1 outlook disappointed investors. Decent Valuation & Return Prospects Compared to Industry Going by valuation metrics, the P/E (ttm) of AAPL is 30.7 times versus the industry-average of 28.8 times.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL posted impressive fourth-quarter fiscal 2023 results last week, but its Q1 outlook disappointed investors. Decent Valuation & Return Prospects Compared to Industry Going by valuation metrics, the P/E (ttm) of AAPL is 30.7 times versus the industry-average of 28.8 times.
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Apple AAPL posted impressive fourth-quarter fiscal 2023 results last week, but its Q1 outlook disappointed investors. Decent Valuation & Return Prospects Compared to Industry Going by valuation metrics, the P/E (ttm) of AAPL is 30.7 times versus the industry-average of 28.8 times. The forward P/E of AAPL is 28.2 times versus the industry score of 26.7 times.
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12591.0
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2023-11-09 00:00:00 UTC
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3 Tech Stocks to Buy in the ‘Green Zone’
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-to-buy-in-the-green-zone
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With top names in the tech sector rallying lately, you may be curious to know which are the tech stocks to buy.
One way to get started is through TradeSmith. TradeSmith offers investors valuable tools for determining which stocks to buy. A good example is its Health Indicator feature. This comprehensive indicator provides an overall picture of a stock’s current health.
Using this metric, you can quickly find potential opportunities to explore. Broken down into three “zones” (green, yellow, and red), you’ll have a general idea about whether it’s best to be bullish, bearish, or neutral on a particular stock.
As you may have guessed, stocks in the “Green Zone” are performing well, with little indication that the trend is on the verge of shifting.
A stock in the “Yellow Zone” has corrected by more than 50% of its volatility quotient (VQ), a proprietary TradeSmith metric that helps measure a stock’s risk. When a stock in your portfolio goes from green to yellow, it may be a good time to reassess whether to maintain the position.
Stocks entering the “Red Zone” have corrected by more than their calculated volatility quotient. VQ can be useful when adding stop losses to your positions. View any move into the “Red Zone” as a warning sign to exit your position for now.
These three tech stocks to buy are currently in the “Green Zone.”
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. Shares in the iPhone maker initially stumbled at the start of November, following the release of results for the quarter ending Sept. 30, 2023.
Mostly, due to the company’s underwhelming guidance for the current quarter. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back.
As CEO Tim Cook discussed in the earnings release, Apple reported record iPhone and Services sales for the quarter. Earnings per share jumped 13% year over year, and results came in ahead of sell-side forecasts. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) has been in the “Green Zone” for over five months. Like other tech stocks, shares in the enterprise software provider pulled back slightly during the late summer and early fall, as macroeconomic concerns like high interest rates and a possible 2024 recession weighed on the markets.
Yet with investor sentiment bouncing back, CRM stock has begun climbing back toward its 52-week high. Salesforce’s next earnings results may bode well for shares from here. Why? Although analysts have already upped their forecasts for last quarter, the company could still report an earnings topper.
If Salesforce beats these forecasts, provides an upward revision to full-year guidance, or unveils more details about its efforts to capitalize on the generative AI trends, current price trends may continue following earnings. TradeSmith’s volatility quotient for CRM is 28.47%, which makes it a medium risk stock.
Yelp (YELP)
Source: BigTunaOnline / Shutterstock.com
Yelp (NYSE:YELP) has been in the “Green Zone” for over five months. So far this year, shares in the consumer review portal operator have performed strongly, which has made it one of the tech stocks to buy. This comes following an extended period of underperformance during 2021 and 2022.
What’s been driving this strong performance for YELP stock in 2023? While at first zooming higher after the emergence of activist investor involvement in the stock back in May, the reporting of strong quarterly results and updates to outlook have helped to extend this rally.
Even as YELP has rallied by roughly 60% year to date, given improving results, a relatively low valuation (13 times forward earnings), and the continued push from the above-mentioned activist to sell the company, present trends could continue. TradeSmith’s volatility quotient for YELP is 31.66%, which makes it a high risk stock.
The TradeSmith Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
TradeSmith’s mission is to put easy-to-use, technology-based tools into the hands of individual, self-directed investors. TradeSmith began as a simple way to track portfolios using trailing stops and has evolved to become a powerful suite of risk-management and portfolio analysis tools.
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The post 3 Tech Stocks to Buy in the ‘Green Zone’ 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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These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock.
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These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock.
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These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock.
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These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock.
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12592.0
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2023-11-09 00:00:00 UTC
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3 Mega-Cap Stocks Analysts Like Better Than Apple
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AAPL
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https://www.nasdaq.com/articles/3-mega-cap-stocks-analysts-like-better-than-apple
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nan
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nan
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Shares of Apple (AAPL) once again sold off after the company announced its quarterly results last week. The tech giant reported revenue of $89.5 billion and adjusted earnings of $1.46 per share in fiscal Q4 of 2023 (ended in September). While Apple surpassed consensus estimates for revenue of $89.28 billion and earnings of $1.39 per share, its sales have now declined for four consecutive quarters.
Its iPhone business segment was the only hardware business that reported sales growth in Q4, and investors appear wary as the company lacks a clear path to growth this holiday season after several quarters of revenue shrinkage. Moreover, while Wall Street analysts expected Apple to increase revenue by 5% in Q1 of fiscal 2024, the tech behemoth estimated flat top-line growth compared to the year-ago period.
Wall Street is hardly giving up on the tech giant yet, with an average rating of “moderate buy.” Out of the 29 analysts covering Apple, 17 recommend “strong buy" (down from 18 two months ago), three recommend “moderate buy,” and nine recommend “hold.” The average target price for AAPL is $202.96, which is 11% above the current trading price.
www.barchart.com
While these consensus forecasts are still moderately bullish, there are three mega-cap tech stocks analysts like even better than Apple. Here's a look at three “strong buy” rated stocks that have been scoring analyst upgrades in recent months - not downgrades.
Amazon Stock
The largest e-commerce company in the world, Amazon (AMZN) also leads the public cloud segment. It is also the third largest digital advertising platform in the world, after Alphabet’s (GOOGL) Google and Meta Platforms (META).
Amazon accounts for 7.5% of the global digital ad market and grew ad sales by 26% to $12 billion in Q3. Comparatively, ad sales for Meta and Google were up 24% and 11%, respectively, in Q3.
Despite its massive size, Amazon is forecast to end 2024 with $600 billion in sales, up from $514 billion in 2022. Its profit margins are also estimated to improve from a loss of $0.27 per share in 2022 to earnings of $2.96 per share in 2024.
Out of the 41 analysts covering Amazon, 37 recommend “strong buy” - up from 34 a month ago - three recommend “moderate buy,” and one recommends “hold.” The average target price for AMZN is $172.12, which is 22% above current levels.
www.barchart.com
Microsoft Stock
Another mega-cap company, Microsoft (MSFT), is firing on all cylinders. Up 51% in 2023, Microsoft stock is trading near all-time highs as it continues to enjoy an early-mover advantage in artificial intelligence (AI).
In fiscal Q1 of 2024 (ended in September), Microsoft reported revenue of $56 billion, an increase of 13% year over year. Its software and cloud businesses drove sales, and analysts are targeting a revenue increase of 4.8% to $222 billion in fiscal 2024.
Out of the 36 analysts covering Microsoft, no fewer than 30 recommend “strong buy,” while three recommend “moderate buy,” and three recommend “hold.” Plus, MSFT no longer has any “sell” ratings, as of a month ago. The average target price for MSFT is $393.01, which is 8.5% above the current trading price.
www.barchart.com
Nvidia Stock
The final tech stock on my list is Nvidia (NVDA), which has surged 224% YTD and a whopping 827% in the past five years. Nvidia is among the key players in the AI space, as its chips and data centers are used to power AI platforms. Basically, Nvidia is selling shovels amid a gold rush, making it a top ancillary investment in this highly disruptive vertical.
Valued at $1.15 trillion, Nvidia is among the fastest-growing tech stocks globally. It is forecast to increase sales from $27 billion in fiscal 2023 to $78 billion in fiscal 2025. Its adjusted earnings are forecast to surge over 400% to $16.07 per share in this period.
Out of the 35 analysts covering NVDA stock, 31 recommend “strong buy,” while only three recommend “moderate buy” and one recommends “hold.” That's up from 28 “strong buys” and three “holds” just a few months back. The average target price for NVDA stock is $625.53, which is 32% above the current trading price.
www.barchart.com
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple (AAPL) once again sold off after the company announced its quarterly results last week. Wall Street is hardly giving up on the tech giant yet, with an average rating of “moderate buy.” Out of the 29 analysts covering Apple, 17 recommend “strong buy" (down from 18 two months ago), three recommend “moderate buy,” and nine recommend “hold.” The average target price for AAPL is $202.96, which is 11% above the current trading price. While Apple surpassed consensus estimates for revenue of $89.28 billion and earnings of $1.39 per share, its sales have now declined for four consecutive quarters.
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Wall Street is hardly giving up on the tech giant yet, with an average rating of “moderate buy.” Out of the 29 analysts covering Apple, 17 recommend “strong buy" (down from 18 two months ago), three recommend “moderate buy,” and nine recommend “hold.” The average target price for AAPL is $202.96, which is 11% above the current trading price. Shares of Apple (AAPL) once again sold off after the company announced its quarterly results last week. Out of the 41 analysts covering Amazon, 37 recommend “strong buy” - up from 34 a month ago - three recommend “moderate buy,” and one recommends “hold.” The average target price for AMZN is $172.12, which is 22% above current levels.
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Wall Street is hardly giving up on the tech giant yet, with an average rating of “moderate buy.” Out of the 29 analysts covering Apple, 17 recommend “strong buy" (down from 18 two months ago), three recommend “moderate buy,” and nine recommend “hold.” The average target price for AAPL is $202.96, which is 11% above the current trading price. Shares of Apple (AAPL) once again sold off after the company announced its quarterly results last week. Out of the 41 analysts covering Amazon, 37 recommend “strong buy” - up from 34 a month ago - three recommend “moderate buy,” and one recommends “hold.” The average target price for AMZN is $172.12, which is 22% above current levels.
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Wall Street is hardly giving up on the tech giant yet, with an average rating of “moderate buy.” Out of the 29 analysts covering Apple, 17 recommend “strong buy" (down from 18 two months ago), three recommend “moderate buy,” and nine recommend “hold.” The average target price for AAPL is $202.96, which is 11% above the current trading price. Shares of Apple (AAPL) once again sold off after the company announced its quarterly results last week. While Apple surpassed consensus estimates for revenue of $89.28 billion and earnings of $1.39 per share, its sales have now declined for four consecutive quarters.
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12593.0
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2023-11-09 00:00:00 UTC
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Is iShares U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-u.s.-equity-factor-etf-lrgf-a-strong-etf-right-now-6
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nan
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nan
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Making its debut on 04/28/2015, smart beta exchange traded fund iShares U.S. Equity Factor ETF (LRGF) provides investors broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock. LRGF has been able to amass assets over $1.42 billion, making it one of the largest ETFs in the Style Box - All Cap Value. Before fees and expenses, LRGF seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.08% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.61%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For LRGF, it has heaviest allocation in the Information Technology sector --about 31.10% of the portfolio --while Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.78% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
Its top 10 holdings account for approximately 27.44% of LRGF's total assets under management.
Performance and Risk
So far this year, LRGF has gained about 14.14%, and is up about 15.05% in the last one year (as of 11/09/2023). During this past 52-week period, the fund has traded between $38.44 and $46.09.
The ETF has a beta of 0.98 and standard deviation of 17.68% 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
IShares U.S. Equity Factor ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $8.03 billion in assets, iShares Core S&P U.S. Value ETF has $13.70 billion. DFAT has an expense ratio of 0.28% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): 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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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.78% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Making its debut on 04/28/2015, smart beta exchange traded fund iShares U.S. Equity Factor ETF (LRGF) provides investors broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.78% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Making its debut on 04/28/2015, smart beta exchange traded fund iShares U.S. Equity Factor ETF (LRGF) provides investors broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.78% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Making its debut on 04/28/2015, smart beta exchange traded fund iShares U.S. Equity Factor ETF (LRGF) provides investors broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 6.78% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Making its debut on 04/28/2015, smart beta exchange traded fund iShares U.S. Equity Factor ETF (LRGF) provides investors broad exposure to the Style Box - All Cap Value category of the market.
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12594.0
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2023-11-09 00:00:00 UTC
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3 Dividend Stocks That Can Help Secure Your Financial Future
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AAPL
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https://www.nasdaq.com/articles/3-dividend-stocks-that-can-help-secure-your-financial-future
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nan
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nan
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Are you worried about your finances, and whether you'll be able to retire? You're not alone: Many Americans are growing concerned about the rising cost of living and what the future will hold.
One way you can improve your financial situation in the years ahead, however, is by putting money into dividend stocks, which can be a source of recurring income for you now and later in life. Three pillars that are excellent investments to buy and hold for decades are Realty Income (NYSE: O), Coca-Cola (NYSE: KO), and Bank of America (NYSE: BAC).
1. Realty Income
A real estate investment trust (REIT) can make for a great dividend stock. As long as it has strong tenants and a promising outlook, it can potentially be a pillar to build your portfolio around.
What is attractive about Realty Income is its diversification. Its portfolio has more than 1,300 clients spanning 85 industries. Its largest clients include many big retailers such as Dollar General, Walgreens Boots Alliance, and Dollar Tree. But none of those tenants account for even 4% of Realty Income's portfolio.
One of the most attractive features of the stock is its high yield of 6% -- that's more than three times the S&P 500 average of 1.6%.
Another great reason to own the stock is that it pays dividends monthly. Most dividend stocks make payments every quarter, but Realty Income provides a much more consistent stream of payouts. The REIT has an impressive streak of paying dividends for 640 consecutive months -- that's more than 53 years.
With plenty of stability and profit margins often at 20% or wider, Realty Income is one of the safest high-yielding stocks for your portfolio right now.
2. Coca-Cola
Coca-Cola is also known for its long-term stability, making it another excellent investment to build your portfolio around. Its dividend yield of 3.2% is above average, and the company has increased it consistently over the years.
In the past decade, it has raised its quarterly payouts by 64%, from $0.28 to $0.46. That averages out to a compound annual growth rate of just over 5%. It has increased its payout annually for more than 60 consecutive years. Future dividend payments are never a guarantee, but it would be downright shocking for Coca-Cola to interrupt its impressive streak.
The company's resiliency is on full display this year as net sales are up 6% through the first nine months of 2023. While that is largely due to price increases and could slow next year, it's a great example of Coke's pricing power. It can raise prices and pass on rising costs to consumers and still not suffer a huge decline in demand.
With one of the best brands in the world, Coca-Cola can be a great investment to hold for decades and help strengthen your financial position.
3. Bank of America
Bank of America is a top bank stock, yielding 3.4%. It's one of the safer bank stocks, and billionaire investor Warren Buffett has stuck with it. While he has sold off other bank stocks, Bank of America accounts for 8.5% of all holdings in Buffett's Berkshire Hathaway portfolio -- second only to Apple, which makes up 47.5% of Berkshire's holdings. Coca-Cola is a bit lower at 6.6% of the Berkshire portfolio.
Investing in a top bank stock such as Bank of America is a good way to bet on the country, which Buffett always encourages people to do. As long as the economy is doing well, one of the nation's largest banks should, too.
Over the trailing 12 months, Bank of America has reported nearly $29 billion in profit, which is just under 29% of its total revenue during that stretch ($101.2 billion).
There's always the risk that if the economy deteriorates, the bank may reduce its dividend payments, as it did during the Great Recession. But as the economy inevitably improves, the dividend will recover, as it has during the past decade.
Trading below its book value, Bank of America is a good stock to load up on right now. Even though investors might be concerned about the economy in the short term, in the long run, this is still a fantastic business to own a piece of.
10 stocks we like better than Realty Income
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*Stock Advisor returns as of November 6, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Realty Income. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One way you can improve your financial situation in the years ahead, however, is by putting money into dividend stocks, which can be a source of recurring income for you now and later in life. With plenty of stability and profit margins often at 20% or wider, Realty Income is one of the safest high-yielding stocks for your portfolio right now. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Realty Income.
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Three pillars that are excellent investments to buy and hold for decades are Realty Income (NYSE: O), Coca-Cola (NYSE: KO), and Bank of America (NYSE: BAC). While he has sold off other bank stocks, Bank of America accounts for 8.5% of all holdings in Buffett's Berkshire Hathaway portfolio -- second only to Apple, which makes up 47.5% of Berkshire's holdings. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Realty Income.
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Bank of America Bank of America is a top bank stock, yielding 3.4%. While he has sold off other bank stocks, Bank of America accounts for 8.5% of all holdings in Buffett's Berkshire Hathaway portfolio -- second only to Apple, which makes up 47.5% of Berkshire's holdings. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Its dividend yield of 3.2% is above average, and the company has increased it consistently over the years. Bank of America Bank of America is a top bank stock, yielding 3.4%. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Realty Income.
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12595.0
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2023-11-09 00:00:00 UTC
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2 Under-the-Radar Tech Stocks To Buy in 2023
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AAPL
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https://www.nasdaq.com/articles/2-under-the-radar-tech-stocks-to-buy-in-2023-4
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There are thousands of tech stocks for investors to choose from, but most tend to focus on just a handful of names. That's understandable to some degree since companies like Apple, Microsoft and Meta Platforms generate huge profits from their global customer bases.
The good news is that stepping just outside of that small bubble of popular tech stocks can yield excellent diversification and some attractive values. Let's look at a few of these unsung heroes that are worth placing on your investing watchlist.
1. Garmin
If you like Apple for its tech innovation, then consider owning its less-celebrated rival Garmin (NYSE: GRMN). The GPS device giant recently posted impressive earnings results, with Q3 sales rising 12% to $1.3 billion. Assisting in that boost was growth in four of Garmin's five main product categories that span smartwatches and fitness trackers along with more complicated marine and aviation platforms. "We delivered outstanding performance in the third quarter," Chief Executive Officer Cliff Pemble told investors in early November .
Garmin's finances are outstanding, too. Cash flow is solidly positive and profit margin is holding above 20% of sales, not far from the peak that investors saw of roughly 25% of sales during the pandemic.
Garmin is planning to press its advantage on innovation across its GPS device niches with a packed calendar of new releases in the coming years. Investors can review a long track record of wins on this score when judging the company's prospects. Looking further out, shareholders can expect to benefit from Garmin's success at boosting sales and profit margins into 2024 and beyond.
2. Palo Alto Networks
You might be turned off by Microsoft's $2.7 trillion market valuation, a reflection of its dominant presence in several huge software niches. If that describes you, consider Palo Alto Networks (NASDAQ: PANW) as a way to gain focused exposure to the cybersecurity industry .
Palo Alto Networks reported a blazing 18% sales spike for the selling period that ran through late July. Revenue was lifted by demand for more comprehensive cybersecurity solutions and for the company's unique platform that incorporates loads of artificial intelligence (AI) tech. This niche is proving resilient even as IT managers scale back on spending in other areas, and that factor is helping propel Palo Alto Networks' forward.
As in the case of Garmin, there's a lot to like about this company's financial performance as well. Palo Alto Networks reported positive earnings last year and management is determined to build on those successes in fiscal 2024 and beyond. Adjusted income -- meaning not based on generally accepted accounting principles (GAAP) -- should rise by about 20% this year, the company estimates, as free cash flow lands at nearly 40% of sales.
Sure, it will be many years before Palo Alto can achieve anything approaching the over 40% of sales profit margin that Microsoft routinely generates. But the software-as-a-service specialist has a good shot at lifting margins into the double-digit percentages, potentially by 2025. That's a growth story that many shareholders will enjoy watching as the cybersecurity industry continues expanding in the coming years.
10 stocks we like better than Garmin
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 Garmin 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 6, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Demitri Kalogeropoulos has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple, Garmin, Meta Platforms, Microsoft, and Palo Alto Networks. 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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Assisting in that boost was growth in four of Garmin's five main product categories that span smartwatches and fitness trackers along with more complicated marine and aviation platforms. Revenue was lifted by demand for more comprehensive cybersecurity solutions and for the company's unique platform that incorporates loads of artificial intelligence (AI) tech. Adjusted income -- meaning not based on generally accepted accounting principles (GAAP) -- should rise by about 20% this year, the company estimates, as free cash flow lands at nearly 40% of sales.
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That's understandable to some degree since companies like Apple, Microsoft and Meta Platforms generate huge profits from their global customer bases. Palo Alto Networks reported positive earnings last year and management is determined to build on those successes in fiscal 2024 and beyond. The Motley Fool has positions in and recommends Apple, Garmin, Meta Platforms, Microsoft, and Palo Alto Networks.
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Sure, it will be many years before Palo Alto can achieve anything approaching the over 40% of sales profit margin that Microsoft routinely generates. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple, Garmin, Meta Platforms, Microsoft, and Palo Alto Networks.
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Looking further out, shareholders can expect to benefit from Garmin's success at boosting sales and profit margins into 2024 and beyond. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Apple, Garmin, Meta Platforms, Microsoft, and Palo Alto Networks.
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12596.0
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2023-11-09 00:00:00 UTC
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AAPL Stock: Should You Buy the Apple Dip?
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AAPL
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https://www.nasdaq.com/articles/aapl-stock%3A-should-you-buy-the-apple-dip
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) has surged 40% year-to-date, garnering a “buy” rating from analysts, with an updated target price of $187.73. In the consumer electronics sector, Apple has continued to remain the dominant force, providing continued innovation in key areas many view as the next profit centers for the company.
The company has historically generated value through brand positioning and innovation. These factors are expected to drive long-term wealth creation, making AAPL stock a prime choice for dividend growth. Robust cash flow, record services revenue, wearables sector growth, and AI device investment support this outlook.
Apple’s Q4 Numbers
Apple reported its fourth consecutive quarter of declining year-over-year sales with $89.5 billion in revenue for the three months ending September 30, nearly in line with analysts’ expectations. However, net income grew by nearly 11% to $22.96 billion, surpassing projections.
Apple’s shares declined over 1% in after-hours trading following the earnings report. CEO Tim Cook mentioned an uneven macroeconomic environment but highlighted ongoing investments in the company’s future.
Product segment revenue decreased over 5% year-over-year in the September quarter, driven mainly by Mac and iPad sales declines. However, iPhone revenue increased by 3% YoY to $43.8 billion, setting a September quarter sales record. Apple also reached a record number of actively used devices across all products and regions.
The sales figures might hint at iPhone 15’s performance, as some analysts were concerned about minimal upgrades. However, the iPhone 15 launched only eight days before the quarter’s end, with its true impact to be seen in the holiday quarter.
Apple unveiled upgrades to computers earlier. While some analysts expressed doubts about the iPhone 15 cycle, Cook stated it’s too early to make predictions on upgrade and switcher rates. A 2.5% year-over-year drop in China sales raised concerns about Apple’s position in that market.
Apple Expands Its Services
In contrast to Apple’s slight 1% revenue decline in fiscal Q4, its services revenue surged by 16% year over year. While services represent 25% of total sales, they contribute significantly, comprising 39% of gross profit because of a substantial 71% gross profit margin.
The broad-based growth in Apple’s services segment is clear in the all-time revenue records achieved in various service categories. This includes App Store, advertising, AppleCare, iCloud, payment services, and video. The strength underscores the importance of Apple’s services business, as highlighted by CEO Tim Cook during the fiscal Q4 earnings call.
It’s Hard to Bet Against Apple
Apple’s Q1 revenue guidance appeared flat year-over-year, but it’s more positive than it seems. The upcoming Q1 has one less week than the previous year, which added seven percentage points to last year’s revenue.
Excluding this extra week, Apple’s guidance shows 7% growth. This is noteworthy, given the challenging economic environment marked by inflation and high interest rates.
Apple’s services segment, demonstrating robust and sustained growth, is expected to continue providing double-digit growth, significantly contributing to earnings. With this strength, there’s potential for Apple’s services business to represent over half of the company’s profit.
The combination of a loyal customer base and substantial net cash holdings justifies the stock’s current valuation. While there are inherent risks such as underperformance in the services business or stagnant sales growth, prospective investors should conduct thorough research before investing.
On the date of publication, Chris MacDonald has a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post AAPL Stock: Should You Buy the Apple Dip? 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 Apple (NASDAQ:AAPL) has surged 40% year-to-date, garnering a “buy” rating from analysts, with an updated target price of $187.73. These factors are expected to drive long-term wealth creation, making AAPL stock a prime choice for dividend growth. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) has surged 40% year-to-date, garnering a “buy” rating from analysts, with an updated target price of $187.73. These factors are expected to drive long-term wealth creation, making AAPL stock a prime choice for dividend growth. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) has surged 40% year-to-date, garnering a “buy” rating from analysts, with an updated target price of $187.73. These factors are expected to drive long-term wealth creation, making AAPL stock a prime choice for dividend growth. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) has surged 40% year-to-date, garnering a “buy” rating from analysts, with an updated target price of $187.73. These factors are expected to drive long-term wealth creation, making AAPL stock a prime choice for dividend growth. On the date of publication, Chris MacDonald has a LONG position in AAPL.
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12597.0
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2023-11-09 00:00:00 UTC
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EXPLAINER-What is China’s Singles Day, and how is it celebrated?
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AAPL
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https://www.nasdaq.com/articles/explainer-what-is-chinas-singles-day-and-how-is-it-celebrated
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nan
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By Granth Vanaik
Nov 9 (Reuters) - Black Friday? No. Cyber Monday? Nope. Prime Day? Absolutely not. The world's biggest shopping event happens in China each year - and it's called Singles Day.
Originally a holiday to celebrate being single, as a counter to Valentine's Day, the event has grown into a weeks-long online shopping festival that peaks on Nov. 11.
WHEN DID THE IDEA OF SINGLES DAY ORIGINATE?
The idea for Singles Day had originated at China's Nanjing University back in 1993 and was originally called "Bachelor's Day." On the day, single people treat themselves with gifts and presents, while also organizing social gatherings and parties.
HOW MUCH DO CONSUMERS SPEND?
Last year, the total value of goods sold during the shopping bonanza - also known as "Double 11" - totaled 1.15 trillion yuan ($157.97 billion), according to data from consultancy firm Bain.
That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
Cyber Monday immediately follows Black Friday, which falls on the day after the U.S. Thanksgiving Day holiday, the busiest shopping day of the year in the United States.
But growth has been slowing even as overall sales for Singles Day hit record highs, with last year's 3% rise marking the slowest increase ever. The event has in recent years lost some of its novelty with the rise of other shopping festivals in China,including the midyear "618" sales that are the country's second largest.
Strict COVID-19 curbs in China impacted sales last year, but several industry experts are expecting a rebound, as the economy improves and livestream sales remain robust.
"We're optimistic about growth this year because the recovery seems to be stabilizing and consumption is on a more clear upward trend," said Jacob Cooke, co-founder and CEO of Beijing-based WPIC Marketing + Technologies.
His e-commerce consultancy firm expects sales for the Chinese shopping event to rise in the range between 14% and 18% from last year, which is higher than Adobe's projection for a 5.4% rise in Cyber Week sales.
WHAT MAJOR BRANDS AND PRODUCTS ARE SHOPPERS BUYING?
JD.com 9618.HK joined in 2012 and PDD Holdings-owned PDD.O Pinduoduo has also become a significant player, offering low cost products in competition with Alibaba-owned Tmall and Taobao platforms.
Last year, Chinese shoppers spent more on essentials, supplements, vitamins and pet-care products. Those products are expected to stay in demand this year, along with more lifestyle-focused products such as athletic wear and sports equipment.
"There is enormous demand among Chinese consumers for products and services that improve their lifestyles and facilitate self-expression," Cooke said.
HOW DOES SINGLES DAY COMPARE TO BLACK FRIDAY?
In comparison, U.S. shoppers last year had bought more Pokemon toys, Hot Wheels, TVs, footwear and air fryers during the key Black Friday and Cyber Monday shopping periods, according to Adobe.
From 2014 until 2021, Singles Day had posted growth rates of about 34% annually on average, versus Cyber Week's 17% average gain, according to data from consultancy Bain and from Adobe Analytics.
WHAT OTHER COMPANIES HOPE TO BENEFIT?
Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta.
Nike said in December "Double 11" demand in Greater China grew by mid-teens, outpacing the broader sports industry, with demand from Gen Z consumers for the brand growing by 45% during the shopping period in China on Tmall.
JD.com had Apple sold more than 1 billion yuan worth of products in the first minute of the event's final sales period.
However, for this year, several global companies ranging from L'Oreal to Estee Lauder have taken a cautious stance around the spending spree in China during the shopping event.
"The presale period of Tmall and particularly on -- in general, the Singles Day, confirms a softer trend versus a year ago," said Estee Lauder CEO Fabrizio Freda last week, adding that the company was more optimistic about the next part of the Singles Day events in November.
L'Oreal CEO Nicolas Hieronimus on a postearnings callwith analysts in October said it was too soon to comment on "Double 11."
"The shy consumers are less shy during the big events, and we have seen that whether it's during Valentine's Day, whether it is 6/18, the market has had its best peaks of growth during this moment," Hieronimus said, adding he had lots of hope for the shopping bonanza.
($1 = 7.2800 Chinese yuan renminbi)
Singles Day loses some luster as other big shopping events prop up https://tmsnrt.rs/40DGLAf
(Reporting by Granth Vanaik in Bengaluru; Editing by Aditya Soni and Diane Craft)
((Granth.Vanaik@thomsonreuters.com | X : https://twitter.com/Vanaik_Granth;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. "We're optimistic about growth this year because the recovery seems to be stabilizing and consumption is on a more clear upward trend," said Jacob Cooke, co-founder and CEO of Beijing-based WPIC Marketing + Technologies. In comparison, U.S. shoppers last year had bought more Pokemon toys, Hot Wheels, TVs, footwear and air fryers during the key Black Friday and Cyber Monday shopping periods, according to Adobe.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. Last year, the total value of goods sold during the shopping bonanza - also known as "Double 11" - totaled 1.15 trillion yuan ($157.97 billion), according to data from consultancy firm Bain. That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. Cyber Monday immediately follows Black Friday, which falls on the day after the U.S. Thanksgiving Day holiday, the busiest shopping day of the year in the United States. His e-commerce consultancy firm expects sales for the Chinese shopping event to rise in the range between 14% and 18% from last year, which is higher than Adobe's projection for a 5.4% rise in Cyber Week sales.
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Last year, Apple AAPL.O, Nike and L'Oreal OREP.PA were also among the biggest winners from the event, along with Chinese home appliance makers such as Haier and Midea and sportswear brand Anta. The world's biggest shopping event happens in China each year - and it's called Singles Day. That is more than four times the $35.3 billion U.S. shoppers spent last year during Cyber Week, the period from Black Friday to Cyber Monday, per data from Adobe Analytics.
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12598.0
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2023-11-09 00:00:00 UTC
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Apple Agrees To Pay $25 Mln To Settle Employment Discrimination Allegations
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AAPL
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https://www.nasdaq.com/articles/apple-agrees-to-pay-%2425-mln-to-settle-employment-discrimination-allegations
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nan
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nan
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(RTTNews) - Apple Inc. (AAPL) agreed to pay $25 million to settle allegations that the company illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens whose permission to live in and work in the United States does not expire, the U.S. Justice Department said in a statement on Thursday.
The settlement resolves the department's determination that Apple violated the Immigration and Nationality act or INA's anti-discrimination requirements during Apple's recruitment for positions falling under the permanent labor certification program or PERM.
The PERM program is administered by the U.S. Department of Labor and the U.S. Department of Homeland Security. It allows employers to sponsor workers for lawful permanent resident status in the United States after completing recruitment and meeting other program requirements. Any U.S. employer that utilizes the PERM program cannot illegally discriminate in hiring or recruitment based on citizenship or immigration status.
The U.S. department's investigation, which started in February 2019, found that Apple did not advertise positions Apple sought to fill through the PERM program on its external job website, even though its standard practice was to post other job positions on this website. It also required all PERM position applicants to mail paper applications, even though the company permitted electronic applications for other positions.
In some instances, Apple did not consider certain applications for PERM positions from Apple employees if those applications were submitted electronically, as opposed to paper applications submitted through the mail. These less effective recruitment procedures nearly always resulted in few or no applications to PERM positions from applicants whose permission to work does not expire.
As per the $25 million settlement, Apple is required to pay $6.75 million in civil penalties and establish an $18.25 million back pay fund for eligible discrimination victims. The agreement also requires Apple to ensure that its recruitment for PERM positions more closely matches its standard recruitment practices.
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) - Apple Inc. (AAPL) agreed to pay $25 million to settle allegations that the company illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens whose permission to live in and work in the United States does not expire, the U.S. Justice Department said in a statement on Thursday. It allows employers to sponsor workers for lawful permanent resident status in the United States after completing recruitment and meeting other program requirements. Any U.S. employer that utilizes the PERM program cannot illegally discriminate in hiring or recruitment based on citizenship or immigration status.
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(RTTNews) - Apple Inc. (AAPL) agreed to pay $25 million to settle allegations that the company illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens whose permission to live in and work in the United States does not expire, the U.S. Justice Department said in a statement on Thursday. It also required all PERM position applicants to mail paper applications, even though the company permitted electronic applications for other positions. In some instances, Apple did not consider certain applications for PERM positions from Apple employees if those applications were submitted electronically, as opposed to paper applications submitted through the mail.
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(RTTNews) - Apple Inc. (AAPL) agreed to pay $25 million to settle allegations that the company illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens whose permission to live in and work in the United States does not expire, the U.S. Justice Department said in a statement on Thursday. The settlement resolves the department's determination that Apple violated the Immigration and Nationality act or INA's anti-discrimination requirements during Apple's recruitment for positions falling under the permanent labor certification program or PERM. The U.S. department's investigation, which started in February 2019, found that Apple did not advertise positions Apple sought to fill through the PERM program on its external job website, even though its standard practice was to post other job positions on this website.
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(RTTNews) - Apple Inc. (AAPL) agreed to pay $25 million to settle allegations that the company illegally discriminated in hiring and recruitment against U.S. citizens and certain non-U.S. citizens whose permission to live in and work in the United States does not expire, the U.S. Justice Department said in a statement on Thursday. Any U.S. employer that utilizes the PERM program cannot illegally discriminate in hiring or recruitment based on citizenship or immigration status. These less effective recruitment procedures nearly always resulted in few or no applications to PERM positions from applicants whose permission to work does not expire.
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12599.0
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2023-11-09 00:00:00 UTC
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REUTERS NEXT: Santander's Botin targets auto finance, renewables in U.S. banking push
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AAPL
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https://www.nasdaq.com/articles/reuters-next%3A-santanders-botin-targets-auto-finance-renewables-in-u.s.-banking-push
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nan
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By Alessandra Galloni
NEW YORK, Nov 9 (Reuters) - Banco Santander Executive Chair Ana Botin plans to deepen the lender's corporate banking presence in the U.S. in renewable finance, auto lending and wealth as part of a broader strategy to expand in the world's biggest economy.
"Our strategy is very focused on playing to our strengths," she said in an interview at the Reuters NEXT conference in New York. "We will do better than our peers in a normalized interest-rate environment."
Last month, Santander beat expectations, reporting a 20% rise in quarterly net profits thanks to strong performance in its home market as rising interest rates boosted income. It is betting on international expansion for the longer term.
Spain's biggest bank is trying to double its business in U.S. investment banking, despite recent results being hit by loan losses, higher funding costs and expenses from efforts to scale up.
Net profit in the U.S. fell 50% in the third quarter, the bank reported last month, while net interest income, the difference between earnings on loans minus deposit costs, fell 15%.
Provisions rose 49% in the quarter against the same period a year ago.
As part of efforts to grow the unit, the Spanish bank is hiring staff from the stricken Credit Suisse. Reuters reported in July that Santander was planning to hire around 150 bankers primarily in the U.S.
LEVEL PLAYING FIELD
Botin also called for a level playing field between banks and big tech companies such as Apple Inc AAPL.O, which are competing more in areas such as payments.
"All we are saying is, in terms of taxes, in terms of transparency, let's have the same," Botin said.
"I'd love to compete with Apple as long as we are competing on same terms," she said.
Santander is investing in its payments business PagoNxt as one of five key business areas, competing with the likes of Apple Pay.
The payments business has delivered reliable income for banks in recent years given high transaction volumes, but investors have grown more cautious about the sector, with stretched valuations under pressure.
To view the live broadcast of the World Stage go to the Reuters NEXT news page: https://www.reuters.com/world/reuters-next/
Santander tops forecast as strong Europe offsets weaker US
(Reporting by Alessandra Galloni; Writing by Lananh Nguyen, Saeed Azhar, Lawrence White; Editing by Mark Porter and Lisa Shumaker)
((Lananh.Nguyen@thomsonreuters.com; +1 (646) 696 4829;))
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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Botin also called for a level playing field between banks and big tech companies such as Apple Inc AAPL.O, which are competing more in areas such as payments. By Alessandra Galloni NEW YORK, Nov 9 (Reuters) - Banco Santander Executive Chair Ana Botin plans to deepen the lender's corporate banking presence in the U.S. in renewable finance, auto lending and wealth as part of a broader strategy to expand in the world's biggest economy. The payments business has delivered reliable income for banks in recent years given high transaction volumes, but investors have grown more cautious about the sector, with stretched valuations under pressure.
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Botin also called for a level playing field between banks and big tech companies such as Apple Inc AAPL.O, which are competing more in areas such as payments. By Alessandra Galloni NEW YORK, Nov 9 (Reuters) - Banco Santander Executive Chair Ana Botin plans to deepen the lender's corporate banking presence in the U.S. in renewable finance, auto lending and wealth as part of a broader strategy to expand in the world's biggest economy. Last month, Santander beat expectations, reporting a 20% rise in quarterly net profits thanks to strong performance in its home market as rising interest rates boosted income.
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Botin also called for a level playing field between banks and big tech companies such as Apple Inc AAPL.O, which are competing more in areas such as payments. By Alessandra Galloni NEW YORK, Nov 9 (Reuters) - Banco Santander Executive Chair Ana Botin plans to deepen the lender's corporate banking presence in the U.S. in renewable finance, auto lending and wealth as part of a broader strategy to expand in the world's biggest economy. Net profit in the U.S. fell 50% in the third quarter, the bank reported last month, while net interest income, the difference between earnings on loans minus deposit costs, fell 15%.
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Botin also called for a level playing field between banks and big tech companies such as Apple Inc AAPL.O, which are competing more in areas such as payments. By Alessandra Galloni NEW YORK, Nov 9 (Reuters) - Banco Santander Executive Chair Ana Botin plans to deepen the lender's corporate banking presence in the U.S. in renewable finance, auto lending and wealth as part of a broader strategy to expand in the world's biggest economy. Net profit in the U.S. fell 50% in the third quarter, the bank reported last month, while net interest income, the difference between earnings on loans minus deposit costs, fell 15%.
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