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12600.0
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2023-11-09 00:00:00 UTC
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Should iShares Russell Top 200 ETF (IWL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-etf-iwl-be-on-your-investing-radar-8
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nan
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The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $995.68 million, 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 find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.36%.
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 32.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.73% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 37.38% of total assets under management.
Performance and Risk
IWL seeks to match the performance of the Russell Top 200 Index before fees and expenses. The Russell Top 200 Index is a float-adjusted, capitalization-weighted index that measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF return is roughly 19.56% so far this year and it's up approximately 19.92% in the last one year (as of 11/09/2023). In the past 52-week period, it has traded between $88.60 and $110.14.
The ETF has a beta of 0.99 and standard deviation of 17.73% for the trailing three-year period, making it a medium risk choice in the space. With about 202 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 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, IWL 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 $357.32 billion in assets, SPDR S&P 500 ETF has $408.82 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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iShares Russell Top 200 ETF (IWL): 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 8.73% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 ETF (IWL): 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. The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.73% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.73% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell Top 200 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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Click to get this free report iShares Russell Top 200 ETF (IWL): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.73% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares Russell Top 200 ETF (IWL) was launched on 09/22/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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12601.0
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2023-11-09 00:00:00 UTC
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Apple supplier Luxshare to invest $330 mln more in northern Vietnam
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-luxshare-to-invest-%24330-mln-more-in-northern-vietnam
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nan
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nan
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HANOI, Nov 10 (Reuters) - Apple AAPL.O supplier Luxshare Precision Industry Co 002475.SZ has been awarded a license to invest an additional $330 million in its plant in Vietnam's northern province of Bac Giang, raising the total investment to $504 million, provincial authorities said.
The new facility at Luxshare-ICT, Luxshare's arm in Vietnam, will be on a plot of 29.1 hectares (72 acres) and will produce cables for smart devices, communications equipment, touch pens, smart positioning tags and smartwatches, Bac Giang authorities said in a statement dated Wednesday.
The facility is expected to be completed in 12 to 24 months, it added.
China-based Luxshare, one of Apple's main AirPods makers, started investing in Vietnam since 2019. Its additional investment in the country comes as other manufacturers seek to further diversify production away from China.
Earlier this year, another Apple supplier, Foxconn, set up a new factory in central Vietnam and raised its investment in the country by $250 million to make electric vehicles and telecom parts.
Luxshare did not immediately respond to a request for comment.
(Reporting by Phuong Nguyen; Editing by Lincoln Feast.)
((Phuong.Nguyen@thomsonreuters.com; +84-24-3852-9623;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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HANOI, Nov 10 (Reuters) - Apple AAPL.O supplier Luxshare Precision Industry Co 002475.SZ has been awarded a license to invest an additional $330 million in its plant in Vietnam's northern province of Bac Giang, raising the total investment to $504 million, provincial authorities said. The new facility at Luxshare-ICT, Luxshare's arm in Vietnam, will be on a plot of 29.1 hectares (72 acres) and will produce cables for smart devices, communications equipment, touch pens, smart positioning tags and smartwatches, Bac Giang authorities said in a statement dated Wednesday. Earlier this year, another Apple supplier, Foxconn, set up a new factory in central Vietnam and raised its investment in the country by $250 million to make electric vehicles and telecom parts.
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HANOI, Nov 10 (Reuters) - Apple AAPL.O supplier Luxshare Precision Industry Co 002475.SZ has been awarded a license to invest an additional $330 million in its plant in Vietnam's northern province of Bac Giang, raising the total investment to $504 million, provincial authorities said. The new facility at Luxshare-ICT, Luxshare's arm in Vietnam, will be on a plot of 29.1 hectares (72 acres) and will produce cables for smart devices, communications equipment, touch pens, smart positioning tags and smartwatches, Bac Giang authorities said in a statement dated Wednesday. Earlier this year, another Apple supplier, Foxconn, set up a new factory in central Vietnam and raised its investment in the country by $250 million to make electric vehicles and telecom parts.
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HANOI, Nov 10 (Reuters) - Apple AAPL.O supplier Luxshare Precision Industry Co 002475.SZ has been awarded a license to invest an additional $330 million in its plant in Vietnam's northern province of Bac Giang, raising the total investment to $504 million, provincial authorities said. The new facility at Luxshare-ICT, Luxshare's arm in Vietnam, will be on a plot of 29.1 hectares (72 acres) and will produce cables for smart devices, communications equipment, touch pens, smart positioning tags and smartwatches, Bac Giang authorities said in a statement dated Wednesday. Earlier this year, another Apple supplier, Foxconn, set up a new factory in central Vietnam and raised its investment in the country by $250 million to make electric vehicles and telecom parts.
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HANOI, Nov 10 (Reuters) - Apple AAPL.O supplier Luxshare Precision Industry Co 002475.SZ has been awarded a license to invest an additional $330 million in its plant in Vietnam's northern province of Bac Giang, raising the total investment to $504 million, provincial authorities said. The new facility at Luxshare-ICT, Luxshare's arm in Vietnam, will be on a plot of 29.1 hectares (72 acres) and will produce cables for smart devices, communications equipment, touch pens, smart positioning tags and smartwatches, Bac Giang authorities said in a statement dated Wednesday. The facility is expected to be completed in 12 to 24 months, it added.
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12602.0
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2023-11-09 00:00:00 UTC
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3 Quantum Computing Stocks to Make You the Millionaire Next Door
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AAPL
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https://www.nasdaq.com/articles/3-quantum-computing-stocks-to-make-you-the-millionaire-next-door-0
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Have you ever wished you could go back in time and invest in trailblazing companies like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), or Tesla (NASDAQ:TSLA) before they hit it big? Well, you may just have that chance again today with quantum computing stocks.
The futuristic field of quantum computing has faced some bumps on its road to mainstream adoption lately. The recent Nasdaq correction has hit many once-hot quantum computing stocks hard. But this correction also presents a golden buying opportunity for investors who take the long view.
Quantum computing may sound like science fiction, but it’s likely to become a commercial reality sooner than you think. Leading experts predict quantum computers will reach the tipping point of usefulness within this decade. When that happens, early investors could be richly rewarded.
The problem is, quantum computing technology is highly complex and many companies trading in this space have business models that are speculative. We’re in the early innings of this technological revolution, so plenty of quantum stocks carry substantial risk.
However, the long-term growth prospects in quantum computing are too great to ignore. Quantum computing could drive massive progress in fields like AI, materials science, cryptography, and more. It could fundamentally reshape our digital infrastructure and lead to innovations we can’t even imagine yet.
Scooping up promising quantum computing stocks now, while they’re under pressure and trading at a discount, could put you firmly on the path to long-term wealth creation. Let’s dive in!
Honeywell (HON)
Source: josefkubes / Shutterstock.com
Of all the quantum computing stocks, Honeywell (NASDAQ:HON) strikes me as one of the safer yet potentially lucrative options for investors. Naturally, the quantum computing market is highly-volatile and speculative at this early stage. However, Honeywell has stood out from the pack thanks to its ties to the defense and aerospace industries. The company has been a prime beneficiary of higher defense spending in cutting-edge areas like aerospace and intelligence. With geopolitical tensions rising, Honeywell’s government business seems poised for further growth.
That said, Honeywell also has an intriguing pure-play quantum computing segment called Honeywell Quantum. Since its formation in 2021, Honeywell Quantum has quickly become a quantum computing leader. It recently became the first company to “integrate quantum-computing-hardened encryption keys into smart meters for gas, water and electric utilities”
While HON stock has sagged recently amid a broader market downturn (and a revenue miss in its latest quarter), I view this as a buying opportunity. At 20-times forward earnings, Honeywell seems attractively-priced, given its leading positions in must-have aerospace and defense technologies. The company generates mountains of recurring revenue and cash flow to support future R&D and growth initiatives like quantum computing. The company aims to launch a powerful quantum computer called Model H1 in 2023.
For a relatively low-risk play on the quantum computing revolution, Honeywell fits the bill nicely. The company offers stability from its government-contracted businesses, while also providing upside from emerging technologies like quantum computing.
IONQ (IONQ)
Source: Shutterstock
If you desire a pure-play quantum computing stock, look no further than IONQ (NYSE:IONQ). Since going public, IONQ has emerged as one of the frontrunners in the quantum computing race. While very speculative, IONQ offers tantalizing growth potential.
IONQ has pioneered the use of trapped ions to construct quantum computers. This approach aims to minimize error rates and heating effects compared to rival technologies. The company uses ytterbium atoms suspended in electromagnetic fields for its qubits. Thus far, the results look highly promising.
Earlier this year, IONQ unveiled its next-generation quantum computer called Forte. With a planned 32 algorithmic qubits, it would be the world’s most powerful trapped ion-based quantum computer on the market. Previously, IONQ’s systems were only accessible via the cloud. However, Forte will also be available as an on-premise solution for select partners. This quarter, IONQ achieved a major milestone by reaching quantum volume 29.
Let’s put the good news on the sidelines for now. There are a lot of caveats with this company, but my biggest problem with IONQ is unprofitability. Currently, its balance sheet held over $509 million in cash against $44 million in losses in the most recent quarter. Profitability remains years away, as product development costs weigh heavily on its bottom line.
Another big caveat for me is the stock’s massive volatility. Unless you are okay with that sort of risk and are willing to hold for years, I would recommend you avoid pure plays like these and focus more on the two other stocks in this list.
IBM (IBM)
Source: JHVEPhoto / Shutterstock.com
Back to the established giants on this list, IBM (NYSE:IBM) looks ideally positioned to capitalize on the commercialization of quantum computing. Indeed, if any company can make quantum computing mainstream, IBM seems like the top contender.
While much less speculative than pure plays, IBM still offers substantial upside potential, in my view. The company operates the IBM Quantum Network, which allows customers to access IBM’s advanced quantum computing systems. Over 210 Fortune 500 companies leverage this network for research and education. As quantum computing grows more practical, IBM’s massive customer base gives it an enormous head start over rivals.
Additionally, IBM continues pushing the boundaries on quantum computing performance. Last year, it unveiled its new Osprey processor, which has a quantum volume of 128, double its previous system. IBM aims to launch a 1,121-qubit quantum computer this year, more than doubling its power again. Indeed, IBM may very well become the first to develop quantum computers powerful enough for mainstream business and scientific use.
Besides its growth upside, IBM also offers safety. At just 16-times earnings, IBM is cheap compared to other large tech firms. It generates prodigious free cash flow to support both growing the quantum business and rewarding shareholders.
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 3 Quantum Computing Stocks to Make You the Millionaire Next Door 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 Have you ever wished you could go back in time and invest in trailblazing companies like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), or Tesla (NASDAQ:TSLA) before they hit it big? Scooping up promising quantum computing stocks now, while they’re under pressure and trading at a discount, could put you firmly on the path to long-term wealth creation. The company generates mountains of recurring revenue and cash flow to support future R&D and growth initiatives like quantum computing.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Have you ever wished you could go back in time and invest in trailblazing companies like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), or Tesla (NASDAQ:TSLA) before they hit it big? The company aims to launch a powerful quantum computer called Model H1 in 2023. While much less speculative than pure plays, IBM still offers substantial upside potential, in my view.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Have you ever wished you could go back in time and invest in trailblazing companies like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), or Tesla (NASDAQ:TSLA) before they hit it big? That said, Honeywell also has an intriguing pure-play quantum computing segment called Honeywell Quantum. Since its formation in 2021, Honeywell Quantum has quickly become a quantum computing leader.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Have you ever wished you could go back in time and invest in trailblazing companies like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), or Tesla (NASDAQ:TSLA) before they hit it big? That said, Honeywell also has an intriguing pure-play quantum computing segment called Honeywell Quantum. Source: Shutterstock If you desire a pure-play quantum computing stock, look no further than IONQ (NYSE:IONQ).
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12603.0
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2023-11-09 00:00:00 UTC
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Apple agrees to $25 million settlement with US over hiring of immigrants
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AAPL
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https://www.nasdaq.com/articles/apple-agrees-to-%2425-million-settlement-with-us-over-hiring-of-immigrants
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nan
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nan
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By Daniel Wiessner
Nov 9 (Reuters) - Apple Inc AAPL.O will pay $25 million to settle claims by the U.S. Department of Justice that the company illegally favored immigrant workers over U.S. citizen and green card holders for certain jobs, the agency said on Thursday.
The Justice Department in a statement said Apple did not recruit U.S. citizens or permanent residents for jobs that were eligible for a federal program allowing employers to sponsor immigrant workers for green cards, in violation of a federal law that bars discrimination based on citizenship.
The settlement is the largest ever for the Justice Department involving claims of discrimination based on citizenship, the agency said. It requires Apple to pay $6.75 million in civil penalties and $18.25 million to an unspecified number of affected workers.
Apple in a statement said it had "unintentionally not been following the DOJ standard."
“We have implemented a robust remediation plan to comply with the requirements of various government agencies as we continue to hire American workers and grow in the U.S.," the company said.
According to the Justice Department, Apple did not advertise job openings that were eligible for the program, known as the permanent labor certification or PERM program, on its website as it routinely does for other positions. And the company required applicants for those jobs to mail paper applications even though it usually permits electronic applications, the department said.
"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," the department said.
The Justice Department did not specify which Apple jobs were affected by the recruitment procedures or how Apple may have benefited from them.
Foreign labor can often be cheaper than hiring U.S. workers, and immigrants who rely on their employers for green card sponsorship are seen as less likely to leave for a different job.
Along with the payout, Apple agreed to align its recruiting for PERM jobs with its normal practices. The company will be required to conduct more expansive recruitment and train employees on anti-discrimination laws, according to the settlement.
(Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and Deepa Babington)
((daniel.wiessner@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 Daniel Wiessner Nov 9 (Reuters) - Apple Inc AAPL.O will pay $25 million to settle claims by the U.S. Department of Justice that the company illegally favored immigrant workers over U.S. citizen and green card holders for certain jobs, the agency said on Thursday. “We have implemented a robust remediation plan to comply with the requirements of various government agencies as we continue to hire American workers and grow in the U.S.," the company said. Foreign labor can often be cheaper than hiring U.S. workers, and immigrants who rely on their employers for green card sponsorship are seen as less likely to leave for a different job.
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By Daniel Wiessner Nov 9 (Reuters) - Apple Inc AAPL.O will pay $25 million to settle claims by the U.S. Department of Justice that the company illegally favored immigrant workers over U.S. citizen and green card holders for certain jobs, the agency said on Thursday. The Justice Department in a statement said Apple did not recruit U.S. citizens or permanent residents for jobs that were eligible for a federal program allowing employers to sponsor immigrant workers for green cards, in violation of a federal law that bars discrimination based on citizenship. The settlement is the largest ever for the Justice Department involving claims of discrimination based on citizenship, the agency said.
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By Daniel Wiessner Nov 9 (Reuters) - Apple Inc AAPL.O will pay $25 million to settle claims by the U.S. Department of Justice that the company illegally favored immigrant workers over U.S. citizen and green card holders for certain jobs, the agency said on Thursday. The Justice Department in a statement said Apple did not recruit U.S. citizens or permanent residents for jobs that were eligible for a federal program allowing employers to sponsor immigrant workers for green cards, in violation of a federal law that bars discrimination based on citizenship. The Justice Department did not specify which Apple jobs were affected by the recruitment procedures or how Apple may have benefited from them.
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By Daniel Wiessner Nov 9 (Reuters) - Apple Inc AAPL.O will pay $25 million to settle claims by the U.S. Department of Justice that the company illegally favored immigrant workers over U.S. citizen and green card holders for certain jobs, the agency said on Thursday. The Justice Department in a statement said Apple did not recruit U.S. citizens or permanent residents for jobs that were eligible for a federal program allowing employers to sponsor immigrant workers for green cards, in violation of a federal law that bars discrimination based on citizenship. "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," the department said.
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12604.0
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2023-11-09 00:00:00 UTC
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Setback for Apple as EU court adviser backs EU's $14 bln tax order
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AAPL
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https://www.nasdaq.com/articles/setback-for-apple-as-eu-court-adviser-backs-eus-%2414-bln-tax-order
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nan
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nan
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By Foo Yun Chee and Bart H. Meijer
LUXEMBOURG, Nov 9 (Reuters) - A lower tribunal which sided with Apple in its challenge against a 13-billion-euro ($14 billion) EU tax order made a series of legal errorsand should review the case again, an adviser to Europe's top court said on Thursday, in a potential setback for the iPhone maker.
The tax case against Apple was part of EU antitrust chief Margrethe Vestager's crackdown against deals between multinationals and EU countries which regulators saw as unfair state aid.
The European Commission in its 2016 decision said Apple benefited from two Irish tax rulings for more than two decades which artificially reduced its tax burden to as low as 0.005% in 2014.
The General Court in 2020 upheld Apple's challenge, saying that regulators had not met the legal standard to show Apple had enjoyed an unfair advantage.
Advocate General Giovanni Pitruzzella at the EU Court of Justice (CJEU) said CJEU judges should set aside the General Court ruling and refer the case back to the lower tribunal.
"The judgment of the General Court on 'tax rulings' adopted by Ireland in relation to Apple should be set aside," he said in a non-binding opinion.
He said the General Court committed a series of errors in law and had also failed "to assess correctly the substance and consequences of certain methodological errors that, according to the Commission decision, vitiated the tax rulings".
The CJEU, which will rule in the coming months, usually follow four out of five such recommendations.
The case is C-465/20 P Commission v Ireland and Others.
($1 = 0.9346 euros)
(Reporting by Foo Yun Chee and Bart Meijer; editing by Jason Neely)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee and Bart H. Meijer LUXEMBOURG, Nov 9 (Reuters) - A lower tribunal which sided with Apple in its challenge against a 13-billion-euro ($14 billion) EU tax order made a series of legal errorsand should review the case again, an adviser to Europe's top court said on Thursday, in a potential setback for the iPhone maker. "The judgment of the General Court on 'tax rulings' adopted by Ireland in relation to Apple should be set aside," he said in a non-binding opinion. ($1 = 0.9346 euros) (Reporting by Foo Yun Chee and Bart Meijer; editing by Jason Neely) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee and Bart H. Meijer LUXEMBOURG, Nov 9 (Reuters) - A lower tribunal which sided with Apple in its challenge against a 13-billion-euro ($14 billion) EU tax order made a series of legal errorsand should review the case again, an adviser to Europe's top court said on Thursday, in a potential setback for the iPhone maker. Advocate General Giovanni Pitruzzella at the EU Court of Justice (CJEU) said CJEU judges should set aside the General Court ruling and refer the case back to the lower tribunal. ($1 = 0.9346 euros) (Reporting by Foo Yun Chee and Bart Meijer; editing by Jason Neely) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee and Bart H. Meijer LUXEMBOURG, Nov 9 (Reuters) - A lower tribunal which sided with Apple in its challenge against a 13-billion-euro ($14 billion) EU tax order made a series of legal errorsand should review the case again, an adviser to Europe's top court said on Thursday, in a potential setback for the iPhone maker. Advocate General Giovanni Pitruzzella at the EU Court of Justice (CJEU) said CJEU judges should set aside the General Court ruling and refer the case back to the lower tribunal. He said the General Court committed a series of errors in law and had also failed "to assess correctly the substance and consequences of certain methodological errors that, according to the Commission decision, vitiated the tax rulings".
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By Foo Yun Chee and Bart H. Meijer LUXEMBOURG, Nov 9 (Reuters) - A lower tribunal which sided with Apple in its challenge against a 13-billion-euro ($14 billion) EU tax order made a series of legal errorsand should review the case again, an adviser to Europe's top court said on Thursday, in a potential setback for the iPhone maker. Advocate General Giovanni Pitruzzella at the EU Court of Justice (CJEU) said CJEU judges should set aside the General Court ruling and refer the case back to the lower tribunal. "The judgment of the General Court on 'tax rulings' adopted by Ireland in relation to Apple should be set aside," he said in a non-binding opinion.
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12605.0
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2023-11-09 00:00:00 UTC
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China smartphone market perks up as sales of new Xiaomi model off to roaring start
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AAPL
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https://www.nasdaq.com/articles/china-smartphone-market-perks-up-as-sales-of-new-xiaomi-model-off-to-roaring-start
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nan
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nan
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By Yelin Mo and Brenda Goh
BEIJING, Nov 9 (Reuters) - Xiaomi's 1810.HK sales of more than 1 million units of its latest flagship smartphone in the week since its launch are a fresh sign that a slump in China's phone market could be nearing an end, analysts said.
Demand in the world's biggest smartphone market has long been in decline, with the COVID-19 pandemic and then a faltering economic recovery persuading customers to wait longer before upgrading their phones.
"Sales of the Mi 14 series have exceeded 1 million units and the phones are still in severe short supply," Xiaomi Chief Executive Lei Jun wrote on the microblogging platform Weibo this week.
The model went on sale in China on Oct. 31. It uses Qualcomm's cutting-edge Snapdragon 8 Gen 3 processor and Xiaomi's proprietary HyperOS software.
The robust launch "reinforces signs of the market bottoming out," said Will Wong, an analyst with industry research firm IDC.
It comes on the heels of a big jump in sales for Huawei HWT.UL as shoppers snapped up its Mate 60 series phones - a comeback for the company after the U.S. imposed export controls on it in 2019.
IDC predicts the Chinese market is on track to achieve year-on-year sales growth in the fourth quarter after ten consecutive quarters of decline. It did not specify the level of growth.
U.S. chip designer Qualcomm also said last week that it is seeing strong demand from smartphone companies, especially in China.
The Mi 14 series, priced between 3,999 yuan and 6,499 yuan ($550-$890), represents an attempt by Xiaomi to make deeper inroads into the premium smartphone market and compete with Apple AAPL.O and Huawei.
($1 = 7.2856 Chinese yuan)
(Reporting by Yelin Mo and Brenda Goh; Editing by Edwina Gibbs)
((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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The Mi 14 series, priced between 3,999 yuan and 6,499 yuan ($550-$890), represents an attempt by Xiaomi to make deeper inroads into the premium smartphone market and compete with Apple AAPL.O and Huawei. By Yelin Mo and Brenda Goh BEIJING, Nov 9 (Reuters) - Xiaomi's 1810.HK sales of more than 1 million units of its latest flagship smartphone in the week since its launch are a fresh sign that a slump in China's phone market could be nearing an end, analysts said. Demand in the world's biggest smartphone market has long been in decline, with the COVID-19 pandemic and then a faltering economic recovery persuading customers to wait longer before upgrading their phones.
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The Mi 14 series, priced between 3,999 yuan and 6,499 yuan ($550-$890), represents an attempt by Xiaomi to make deeper inroads into the premium smartphone market and compete with Apple AAPL.O and Huawei. By Yelin Mo and Brenda Goh BEIJING, Nov 9 (Reuters) - Xiaomi's 1810.HK sales of more than 1 million units of its latest flagship smartphone in the week since its launch are a fresh sign that a slump in China's phone market could be nearing an end, analysts said. "Sales of the Mi 14 series have exceeded 1 million units and the phones are still in severe short supply," Xiaomi Chief Executive Lei Jun wrote on the microblogging platform Weibo this week.
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The Mi 14 series, priced between 3,999 yuan and 6,499 yuan ($550-$890), represents an attempt by Xiaomi to make deeper inroads into the premium smartphone market and compete with Apple AAPL.O and Huawei. By Yelin Mo and Brenda Goh BEIJING, Nov 9 (Reuters) - Xiaomi's 1810.HK sales of more than 1 million units of its latest flagship smartphone in the week since its launch are a fresh sign that a slump in China's phone market could be nearing an end, analysts said. "Sales of the Mi 14 series have exceeded 1 million units and the phones are still in severe short supply," Xiaomi Chief Executive Lei Jun wrote on the microblogging platform Weibo this week.
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The Mi 14 series, priced between 3,999 yuan and 6,499 yuan ($550-$890), represents an attempt by Xiaomi to make deeper inroads into the premium smartphone market and compete with Apple AAPL.O and Huawei. By Yelin Mo and Brenda Goh BEIJING, Nov 9 (Reuters) - Xiaomi's 1810.HK sales of more than 1 million units of its latest flagship smartphone in the week since its launch are a fresh sign that a slump in China's phone market could be nearing an end, analysts said. Demand in the world's biggest smartphone market has long been in decline, with the COVID-19 pandemic and then a faltering economic recovery persuading customers to wait longer before upgrading their phones.
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12606.0
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2023-11-09 00:00:00 UTC
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3 Things Warren Buffett's Top 5 Stocks All Have in Common
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AAPL
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https://www.nasdaq.com/articles/3-things-warren-buffetts-top-5-stocks-all-have-in-common
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nan
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nan
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Billionaire investor Warren Buffett knows how to pick winners in the stock market. And there's no big secret about the types of companies he likes to invest in. He values consistency, profitability, and companies whose futures remain bright.
The top five holdings in Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) stock portfolio today are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX). All five of these stocks have the following three things in common:
1. They all generate profit margins in excess of 10%
Warren Buffett is a value investor at heart, and one thing that's always going to be crucial to him is a company's prospects for profitability. All five of these businesses should be able to consistently report profits. Over the past year, their margins have all been comfortably above 10%.
AAPL Profit Margin (Quarterly) data by YCharts.
These margins can and will fluctuate, however. Chevron and other oil and natural gas companies have struggled at times in the past due to low oil prices -- and the price of crude even briefly turned negative during the early stages of the pandemic. But that was an anomaly. Under normal conditions, Chevron runs a business that should be profitable.
Bank of America offers the highest margin of these five businesses, but it, too, could struggle if a recession occurs and there is a slowdown in economic activity. It isn't immune to the effects of a downturn.
Downturns can impact any business, but the key takeaway here is that in the long run and over the course of regular operating activities, investors should expect these businesses to post profits. That is a key criterion Buffett uses when selecting stocks.
2. They all have strong brands
Another feature that's common to all these companies is that they have strong brands that consumers are familiar with.
Apple: The iPad and iPhone maker is able to command premium prices for its devices and services due to the strong brand loyalty it engenders. In recent years, Apple hasn't made remarkably radical improvements to its devices. Its updates often include adding cameras or making modest design changes, and yet, sales for iPhones remain strong -- they came in at over $200 billion in the company's most recent fiscal year (which ended in September). That was comparable to the $205 billion Apple reported in the prior year -- not bad, given the overall macroeconomic environment.
Bank of America: This is one of the largest banks in the country, trailing only JPMorgan Chase in assets. It has long been a popular option for consumers, reporting growth in consumer checking accounts for 19 consecutive quarters. On the small business side, its growth streak sits at 35 consecutive quarters.
American Express: American Express caters to more of an affluent customer base, and that may be a reason it is the credit card company in Berkshire's top five holdings, rather than Visa or Mastercard. Amex is coming off a third quarter during which it produced record earnings per share ($3.30 in its latest quarter). That also marked the sixth straight quarter during which its revenue hit a record. Demand for its cards remains resilient.
Coca-Cola: The iconic soft drink company is known all over the world. There aren't many brands that are stronger than Coca-Cola, if there are any at all. And that brand power allowed the company to raise prices this year without putting a big dent into demand. Things are going so well for the business that Coca-Cola recently raised its guidance for both its top and bottom lines.
Chevron: The mammoth oil and natural gas company has over 8,000 Texaco- and Chevron-branded retail gas stations in the country. It's not hard for consumers to find its gas stations. And while price may be the main reason people pick a gas station, there's some brand loyalty here too. Within six months of launching its Chevron Texaco Rewards program, there were 1 million people using it.
3. All five pay dividends and increase them
Buffett loves dividends. Receiving recurring income is an excellent way for investors to pad their overall gains from an investment. While some of these stocks have relatively low yields at the moment, it's likely all five were purchased by Berkshire at times when their yields were above average. Getting above-average yields isn't too hard when the S&P 500 average is 1.6%.
All of these companies have also been relatively consistent in increasing their payouts in recent years:
AAPL Dividend data by YCharts.
It's OK to be a little greedy when it comes to dividends, as long as the underlying businesses are sound. And growing payouts can help offset the effects of inflation.
Investors can apply similar logic when picking stocks
Picking stocks can be as simple or complicated as investors want the process to be. For long-term value investors, it doesn't need to be difficult. Finding businesses that are profitable and pay dividends can be achieved by using a stock screener. There is a bit of judgment involved in assessing the strength of a brand, however. But consumers can gauge the strength of that, too, by assessing how popular a business is and how devoted and loyal its customers are.
Berkshire Hathaway's top five stock portfolio holdings should serve as a reminder that investors don't need to go to great lengths searching for the next big stock. Sometimes, some of the best investments are right out there in plain view.
10 stocks we like better than Berkshire Hathaway
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. 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, JPMorgan Chase, Mastercard, and Visa. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top five holdings in Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) stock portfolio today are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX). AAPL Profit Margin (Quarterly) data by YCharts. All of these companies have also been relatively consistent in increasing their payouts in recent years: AAPL Dividend data by YCharts.
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The top five holdings in Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) stock portfolio today are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX). AAPL Profit Margin (Quarterly) data by YCharts. All of these companies have also been relatively consistent in increasing their payouts in recent years: AAPL Dividend data by YCharts.
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The top five holdings in Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) stock portfolio today are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX). AAPL Profit Margin (Quarterly) data by YCharts. All of these companies have also been relatively consistent in increasing their payouts in recent years: AAPL Dividend data by YCharts.
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All of these companies have also been relatively consistent in increasing their payouts in recent years: AAPL Dividend data by YCharts. The top five holdings in Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) stock portfolio today are Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), Coca-Cola (NYSE: KO), and Chevron (NYSE: CVX). AAPL Profit Margin (Quarterly) data by YCharts.
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12607.0
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2023-11-08 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-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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12608.0
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2023-11-08 00:00:00 UTC
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Apple's Annual Buybacks Hit a 3-Year Low. Should Investors Be Concerned?
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AAPL
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https://www.nasdaq.com/articles/apples-annual-buybacks-hit-a-3-year-low.-should-investors-be-concerned
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nan
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nan
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On Nov. 2, Apple (NASDAQ: AAPL) reported its fourth-quarter and full-year fiscal 2023 results. Despite beating top- and bottom-line expectations, the company saw its stock fall as much as 2.4% on Friday, although it finished the day down just 0.5%.
A lot of attention is focused on Apple's slowing revenue and low iPhone sales growth. But another concerning point is that its stock repurchases hit a three-year low in fiscal 2023.
Let's discuss the importance of Apple's buybacks, why they are an integral part of the long-term investment thesis, and if the company's slowing growth -- paired with lower buybacks -- is enough to justify selling the blue chip stock.
Image source: Getty Images.
$604 billion of buybacks
Apple bought back just $77.55 billion in stock in fiscal 2023 compared to $89.4 billion in fiscal 2022 and $86 billion in fiscal 2021. Here's what Apple's buybacks look like over the last 10 years.
AAPL stock buyback (annual) data by YCharts.
Although Apple bought back less stock than in the past couple of fiscal years, it still has one of the most impressive buyback programs out there. Over the last 10 years, it has bought back $604 billion worth of its stock. For context, that's about how much the entire company was worth 10 years ago. Or put another way, it's roughly the current value of Netflix and JPMorgan Chase combined.
Warren Buffett has long said that buybacks (for a good company) are better for long-term value generation than dividends, which is one of the core reasons Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) doesn't pay a dividend and instead uses extra cash to reinvest in the company or repurchase stock. So it's no wonder Berkshire's largest public equity holding is Apple, a company that shares Buffett's ideology.
The power of buybacks
Buybacks only work if a company grows in value over time, which is exactly what has happened with Apple, especially over the last seven years or so. If a stock doesn't grow in value, then buybacks are arguably an ineffective use of capital that would have been better spent improving the underlying business or paying dividends.
Apple has put on a master class on the effectiveness of buybacks. Over the last decade, it has reduced its outstanding-share count by a whopping 37.8%. Reducing outstanding shares boosts earnings per share (EPS) since there are fewer shares to go around. In other words, buybacks artificially grow EPS.
The best way to see the power of buybacks at work is to look at net income compared to EPS over time. In Apple's case, its net income has grown by 145.5% over the last 10 years and 75.5% over the last five years. But its diluted EPS has grown by 280.2% over the last 10 years and 106.4% over the last five years.
AAPL net income (annual) data by YCharts.
This massive buyback program has been an excellent use of capital because the stock has done so well. But it has also kept the company's valuation in check.
Apple earned $97 billion in fiscal 2023, or $6.13 in diluted EPS. But 10 years ago, it had 25.19 billion shares outstanding compared to just 15.55 billion today.
If the company hadn't bought back any stock over the last decade, its EPS would be just $3.85 in fiscal 2023 -- which would give Apple a 45.9 price-to-earnings (P/E) ratio instead of its current P/E of 28.8.
In sum, Apple's strategic buybacks, paired with its growing business, have allowed the company to grow in value without the stock becoming insanely overpriced. A 28.8 P/E is still a premium to the S&P 500's 24.6 P/E. But it is much more reasonable than a 45.9 P/E, which would be way too expensive for a company like Apple.
Apple is improving the quality of its business
Revenue in fiscal 2023 fell 1% year over year, but the growth of Apple's high-margin services business paints a rosy picture for investors.
Apple's business model is centered around expanding its product ecosystem. Traditionally, it has done this through existing product updates and new products. It has had a lot of success with its product innovations, including the iPhone, Mac, iPad, Air Pods, Apple Watch, and more.
But more recently, the company has taken its growth a step further by expanding services like Apple TV+, Apple Pay, Apple Podcasts, Apple Music, iCloud, and more. The services business is important because it provides a high-margin recurring revenue stream that doesn't rely on new product sales.
In fiscal 2023, services made up 22.2% of revenue but 35.7% of its gross profit, illustrating the segment's contribution to Apple's profitability.
What to watch
As mentioned, buybacks are especially effective if a business can grow in value over time. Given Apple's slowing growth and the fact that the stock is more expensive than in past years, buybacks simply aren't as attractive as they once were.
Management is making the right decision to pull back on stock repurchases. Ideally, Apple would allocate more capital toward improving the business and getting its growth back on track. Or maybe even making an acquisition to boost growth and diversify the business. But simply throwing money at buybacks when the core business has stalled isn't the best idea.
Apple has an excellent track record of doing what is best for its shareholders. And for that reason, investors should trust it to manage its capital allocation in a way that ensures the business is set up for long-term growth.
Management knows it can't solely rely on buybacks to boost EPS; it needs to grow earnings organically, too. All told, Apple's slowing buybacks aren't a reason to sell the stock. But it also doesn't look like a screaming buy right now, either.
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 October 30, 2023
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, 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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On Nov. 2, Apple (NASDAQ: AAPL) reported its fourth-quarter and full-year fiscal 2023 results. AAPL stock buyback (annual) data by YCharts. AAPL net income (annual) data by YCharts.
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On Nov. 2, Apple (NASDAQ: AAPL) reported its fourth-quarter and full-year fiscal 2023 results. AAPL stock buyback (annual) data by YCharts. AAPL net income (annual) data by YCharts.
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On Nov. 2, Apple (NASDAQ: AAPL) reported its fourth-quarter and full-year fiscal 2023 results. AAPL stock buyback (annual) data by YCharts. AAPL net income (annual) data by YCharts.
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On Nov. 2, Apple (NASDAQ: AAPL) reported its fourth-quarter and full-year fiscal 2023 results. AAPL stock buyback (annual) data by YCharts. AAPL net income (annual) data by YCharts.
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12609.0
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2023-11-08 00:00:00 UTC
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Samsung, Qualcomm flag concerns with India's push for live TV on phones
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AAPL
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https://www.nasdaq.com/articles/samsung-qualcomm-flag-concerns-with-indias-push-for-live-tv-on-phones
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nan
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nan
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By Munsif Vengattil
NEW DELHI, Nov 8 (Reuters) - Samsung and Qualcomm are among those opposing India's choice of technology to bring live TV broadcasts on smartphones, arguing the required hardware changes will push up a device's cost by $30, according to letters reviewed by Reuters.
India is considering a policy to mandate equipping smartphones with hardware to receive live TV signals without the need for cellular networks. It has proposed use of so-called ATSC 3.0 technology popular in North America that allows precise geo-locating of TV signals and provides high picture quality.
Companies however say their existing smartphones in India are not equipped to work with ATSC 3.0, and any efforts to add that compatibility will raise cost of each device by $30 as more components need to be added. Some fear their existing manufacturing plans can be hurt.
In a joint letter to India's communication ministry, Samsung, Qualcomm, and telecom gear makers Ericsson and Nokia said adding direct-to-mobile broadcasting can also degrade battery performance of devices and cellular reception.
"We do not find any merit in progressing discussion on the adoption of this," said the letter dated Oct. 17 and reviewed by Reuters.
The four companies and India's communication ministry did not respond to requests for comment. The proposal is still under deliberation and could be changed, and there is no fixed timeline for implementation, according to a source with direct knowledge.
Digital broadcast of TV channels on smartphones has seen limited adoption in countries such as South Korea and United States. It has not gained traction due to the lack of devices that support the technology, executives say.
The policy pushback is the latest from firms operating in India's smartphone sector. In recent months, they pushed back on India's move to make phones compatible with a home-grown navigation system and another proposal to mandate security testing for handsets.
For India's government, the live TV broadcast features are a way to offload the congestion on telecom networks due to higher video consumption.
The India Cellular and Electronics Association (ICEA), a lobbying group of smartphone makers that represents Apple and Xiaomi as well as other companies, opposed the move privately in a letter dated Oct 16, saying no major handset maker globally currently supports ATSC 3.0.
Samsung tops India's smartphone market with a 17.2% share, while Xiaomi follows with a 16.6% share, according to research firm Counterpoint. Apple holds 6%.
"The inclusion of any technology which is not proven and globally acceptable ... will derail the pace of domestic manufacturing," said the ICEA letter, reviewed by Reuters.
(Reporting by Munsif Vengattil; Editing by Aditya Kalra and Raju Gopalakrishnan)
((munsif.vengattil@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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Companies however say their existing smartphones in India are not equipped to work with ATSC 3.0, and any efforts to add that compatibility will raise cost of each device by $30 as more components need to be added. In a joint letter to India's communication ministry, Samsung, Qualcomm, and telecom gear makers Ericsson and Nokia said adding direct-to-mobile broadcasting can also degrade battery performance of devices and cellular reception. In recent months, they pushed back on India's move to make phones compatible with a home-grown navigation system and another proposal to mandate security testing for handsets.
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By Munsif Vengattil NEW DELHI, Nov 8 (Reuters) - Samsung and Qualcomm are among those opposing India's choice of technology to bring live TV broadcasts on smartphones, arguing the required hardware changes will push up a device's cost by $30, according to letters reviewed by Reuters. India is considering a policy to mandate equipping smartphones with hardware to receive live TV signals without the need for cellular networks. In a joint letter to India's communication ministry, Samsung, Qualcomm, and telecom gear makers Ericsson and Nokia said adding direct-to-mobile broadcasting can also degrade battery performance of devices and cellular reception.
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By Munsif Vengattil NEW DELHI, Nov 8 (Reuters) - Samsung and Qualcomm are among those opposing India's choice of technology to bring live TV broadcasts on smartphones, arguing the required hardware changes will push up a device's cost by $30, according to letters reviewed by Reuters. In a joint letter to India's communication ministry, Samsung, Qualcomm, and telecom gear makers Ericsson and Nokia said adding direct-to-mobile broadcasting can also degrade battery performance of devices and cellular reception. The India Cellular and Electronics Association (ICEA), a lobbying group of smartphone makers that represents Apple and Xiaomi as well as other companies, opposed the move privately in a letter dated Oct 16, saying no major handset maker globally currently supports ATSC 3.0.
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India is considering a policy to mandate equipping smartphones with hardware to receive live TV signals without the need for cellular networks. In a joint letter to India's communication ministry, Samsung, Qualcomm, and telecom gear makers Ericsson and Nokia said adding direct-to-mobile broadcasting can also degrade battery performance of devices and cellular reception. "The inclusion of any technology which is not proven and globally acceptable ... will derail the pace of domestic manufacturing," said the ICEA letter, reviewed by Reuters.
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12610.0
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2023-11-08 00:00:00 UTC
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The S&P 500 Is Rallying. Here's Where to Invest $5,000 Right Now.
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AAPL
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https://www.nasdaq.com/articles/the-sp-500-is-rallying.-heres-where-to-invest-%245000-right-now.
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nan
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nan
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After reaching bear market lows a year ago, market indexes have had their ups and downs -- pushed lower by fears of interest rate hikes, then higher as certain companies reported solid earnings. Overall, though, the indexes have generally advanced as investors think ahead and aim to prepare for the next bull market.
In fact, the S&P 500 just completed its best week of 2023, rising more than 5%.
Why should we believe a bull market is on the way? Because history shows us market turmoil doesn't last forever, and bull markets always follow bear markets.
Image source: Getty Images.
So, today -- as indexes gain momentum -- is an ideal time for you to think about better market times and either start investing or continue along your current path with confidence. You can do this with any amount of money, but for our example, imagine you have $5,000 and you want that cash to multiply over time. Let's find out where to invest it.
Your comfort with risk
Before you make any decisions, first, it's important to consider your comfort with risk. If you're uncomfortable with it, you probably should avoid companies that haven't yet reached profitability, face significant challenges ahead, or are involved in some stage of recovery. You're better off with players with a strong track record of growth and that have brand strength -- and don't forget to pick up some dividend stocks, too, since they will pay you annually no matter what the market is doing.
These "safer" stocks might not climb the most in a bull market, but they generally rise steadily over time. So they have the potential to offer you solid rewards in the long term.
Coca-Cola (NYSE: KO) is a great example, with strong earnings and a track record of share performance, as well as more than 50 straight years of annual dividend growth. The company's brand strength and vast array of beverages -- from Minute Maid juices to Dasani water -- mean its dominance should continue.
You also could pick Procter & Gamble (NYSE: PG), the maker of famous household brands like Bounty paper towels and Tide laundry detergent. These and other popular daily-use products have helped it grow earnings even during tough economic times.
If you're a more aggressive investor, now is the time to get in on growth stocks -- those that might be leading current market gains -- as long as their valuations still look reasonable, as well as certain players that have been left behind. These sorts of stocks often excel in bull markets, so they could be heading for a phase of strong performance.
Amazon and Apple
Buying Amazon (NASDAQ: AMZN) is a great idea today. The e-commerce and cloud computing company is a leader in these two high-growth markets,
Plus, Amazon's earnings are on the rise, it's investing in the hot area of artificial intelligence (AI) to improve its processes and better serve clients, and the stock is still reasonably priced even after recent gains. It trades for 52 times forward earnings estimates, which isn't ridiculous for a growth stock, and that's lower than earlier levels of more than 80.
You also might consider Apple (NASDAQ: AAPL). The company's iPhone revenue recently set a quarterly record, and its services business posted all-time record revenue.
The services sector is particularly interesting because its margins are high, meaning Apple can generate significant profit. Shares have advanced recently but still trade for only 27 times forward earnings estimates, which is dirt cheap considering the company's market strength and its prospects.
These are just a few examples, but many others exist. Aggressive investors also should consider growth stocks that have promising long-term outlooks but have been left behind, such as e-commerce companies Etsy and Chewy. You can pick them up for a song right now.
Cautious investors and aggressive investors
So, how should you distribute your $5,000? If you're a cautious investor, then favor safer stocks as mentioned above, and consider putting $3,000 to $4,000 in those sorts of players. You also could consider putting a portion of your money in an index tracker or a consumer staples exchange-traded fund (ETF). Then, you might choose to invest in a couple of riskier stocks with a smaller portion of your cash -- $1,000 or less, for example.
Aggressive investors might choose to invest primarily in high growth stocks right now, favoring both long-established industry leaders like Apple as well as younger growth stories like Chewy. In this case, you could put about $4,000 into these sorts of stocks, then invest the remaining $1,000 in dividend payers or other safety choices.
Now, let's consider your investment horizon. If you truly aim to maximize your gains, it's essential to invest for the long term -- at least five years. That offers companies time to grow and deliver on their promises, and you the opportunity to benefit.
It's impossible to predict whether recent index gains will lead to lasting strength or if we'll have to wait longer for the shift into a new bull market. But in either case, today is a great time to get in on cheap stocks, stocks with momentum, and shares that could rise in a bull market.
These players might climb in the near term, but more importantly, they could offer you greater rewards over time.
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, Apple, Chewy, and Etsy. 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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You also might consider Apple (NASDAQ: AAPL). You're better off with players with a strong track record of growth and that have brand strength -- and don't forget to pick up some dividend stocks, too, since they will pay you annually no matter what the market is doing. Coca-Cola (NYSE: KO) is a great example, with strong earnings and a track record of share performance, as well as more than 50 straight years of annual dividend growth.
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You also might consider Apple (NASDAQ: AAPL). You're better off with players with a strong track record of growth and that have brand strength -- and don't forget to pick up some dividend stocks, too, since they will pay you annually no matter what the market is doing. Shares have advanced recently but still trade for only 27 times forward earnings estimates, which is dirt cheap considering the company's market strength and its prospects.
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You also might consider Apple (NASDAQ: AAPL). If you're a more aggressive investor, now is the time to get in on growth stocks -- those that might be leading current market gains -- as long as their valuations still look reasonable, as well as certain players that have been left behind. The e-commerce and cloud computing company is a leader in these two high-growth markets, Plus, Amazon's earnings are on the rise, it's investing in the hot area of artificial intelligence (AI) to improve its processes and better serve clients, and the stock is still reasonably priced even after recent gains.
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You also might consider Apple (NASDAQ: AAPL). You're better off with players with a strong track record of growth and that have brand strength -- and don't forget to pick up some dividend stocks, too, since they will pay you annually no matter what the market is doing. But in either case, today is a great time to get in on cheap stocks, stocks with momentum, and shares that could rise in a bull market.
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12611.0
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2023-11-08 00:00:00 UTC
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Warren Buffett's Latest $1.1 Billion Buy Brings His Total Investment in This Stock to More Than $72 Billion in 5 Years
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-latest-%241.1-billion-buy-brings-his-total-investment-in-this-stock-to-more
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nan
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In 1973, when conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) held its first annual shareholder meeting, a few dozen people attended. Nowadays, you'll find approximately 40,000 shareholders attending Berkshire's annual meetings.
The lure for these investors is the chance to hear the Oracle of Omaha, Warren Buffett, offer his nuggets of wisdom on investing and the U.S. economy. Since becoming CEO of Berkshire in 1965, Buffett has overseen a greater than 4,300,000% aggregate return in his company's Class A shares (BRK.A). This works out to a nearly 20% annualized return spanning six decades, which is why investors are always eager to discover what stocks one of the world's greatest and revered money managers is buying.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett has steadily added to a handful of core holdings
Generally, mirroring Warren Buffett's buying and selling activity is pretty simple. Money managers with at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission (SEC) no later than 45 days following the end of a quarter. A 13F provides a snapshot of what transactions these top asset managers made in the most recent quarter. Berkshire Hathaway is expected to file its 13F after the closing bell on Nov. 14.
Then again, investors don't have to wait nearly a week to see some of the moves Buffett and his investing lieutenants (Todd Combs and Ted Weschler) have been making.
Thanks to Form 4 filings with the SEC, which are required in instances where a greater than 10% stake is held in a publicly traded company, investors know that Buffett and his team can't stop buying shares of energy stock Occidental Petroleum (NYSE: OXY).
In the 22-month stretch between the start of January 2022 and end of October 2023, Berkshire Hathaway has built up a more than 228 million-share stake in oil and gas stock Occidental. Such a large position signals that the Oracle of Omaha expects crude oil prices to remain elevated for the foreseeable future.
Despite some economic data points and predictive indicators suggesting the U.S. could soon be in a recession, a couple of macro factors are working in favor of crude oil. Russia's war with Ukraine has cast doubt over Europe's energy supply needs. Meanwhile, multiple years of reduced capital spending by energy companies during the COVID-19 pandemic is limiting the ability to quickly increase global oil supply. As a general rule, when the supply of an all-important commodity is constrained, the price of that commodity tends to be pushed higher.
Occidental Petroleum generates most of its revenue from drilling, and it's quite sensitive to swings in the spot price of crude oil. If the spot price of oil does head higher, Occidental can expect a sizably positive impact on its operating cash flow.
The Oracle of Omaha also can't help himself when it comes to tech stock Apple (NASDAQ: AAPL). Even though Apple already accounts for 47% of Berkshire Hathaway's $343 billion of invested assets, he and his team have been purchasing additional shares of the iPhone maker from time to time.
During Berkshire Hathaway's annual shareholder meeting in May, Buffett referred to Apple as "a better business than any we own." It's a particularly strong comment given that Berkshire owns railroad BNSF and insurance company GEICO, which are superstar businesses on their own.
What Apple brings to the table for Berkshire Hathaway is virtually unsurpassed operating cash flow and a rich history of innovation. Although Apple has no intention of abandoning the physical products (iPhone, Mac, and iPad) that have endeared the company with so many consumers, it's begun focusing more of its attention on growing its services segment. A subscription-driven operating focus should lift the company's operating margin over time, as well as smooth out the revenue fluctuations often observed when Apple makes big changes to its flagship smartphone.
Image source: Getty Images.
The Oracle of Omaha has purchased more than $72 billion in shares of this stock
Yet in spite of the popularity of these two stocks, there's another company that's hands-down Warren Buffett's favorite stock to buy.
Don't get me wrong: The roughly $11.2 billion estimated cost basis in Occidental since the start of 2022, and $36.3 billion estimated cost basis in Apple since the beginning of 2016 aren't drops in the bucket. However, the more than $72 billion the Oracle of Omaha has used to purchase shares of another stock, which you won't find in Berkshire Hathaway's 13Fs, is double the amount spent buying shares of Apple.
This mystery stock can be located by perusing Berkshire Hathaway's quarterly reports. Near the end of the company's third-quarter operating results, just prior to reaching the executive certifications, you'll find the share-repurchase activity. That's right: The stock Warren Buffett has sunk more than $72 billion into is his own company!
The all-important date for Buffett and his shareholders is July 17, 2018. Prior to this date, buybacks could only be made if shares of Berkshire Hathaway traded at or below 120% of book value (i.e., no more than 20% above book value, based on the most recent quarterly report). With Berkshire Hathaway stock not falling to or below this level for well over a half-decade prior to this date, not a cent of the company's cash went toward buybacks.
But things changed in a big way on July 17, 2018. The company's board passed new measures that simplified the share buyback process. As long as Berkshire Hathaway has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet, and both Buffett and executive vice chairman Charlie Munger agree their company's stock is intrinsically cheap, repurchases can be undertaken in perpetuity.
During the September-ended quarter, Buffett and Munger oversaw the repurchase of 1,899 Class A shares (BRK.A) and 143,675 Class B shares (BRK.B). Collectively, Berkshire's dynamic duo spent $1,086,610,865 buying back their own company's shares during the third quarter. This marked the 21st consecutive quarter of buybacks since the board amended the rules governing share repurchases, and pushed collective buybacks to more than $72 billion in about five years.
Since Berkshire Hathaway doesn't pay a dividend, Warren Buffett's primary means to reward his shareholders -- in case a nearly 20% annualized return covering nearly six decades isn't enough -- is by repurchasing shares of Class A and B stock.
The clearest benefit of buybacks is the steady reduction in outstanding shares. For businesses with steady or growing net income (i.e., Berkshire Hathaway, sans unrealized investment gains and losses), a declining outstanding share count will result in higher earnings per share (EPS) over time. This makes Berkshire Hathaway stock even more fundamentally attractive to long-term investors.
The other benefit to Berkshire's aggressive buyback program is that it's slowly but surely increasing the ownership stakes of existing shareholders.
Considering the pullback the broader market experienced in October, I'd be shocked if Warren Buffett and Charlie Munger aren't buying their favorite stock once again -- but we'll have to wait until February to get that answer.
10 stocks we like better than Berkshire Hathaway
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*Stock Advisor returns as of October 30, 2023
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Oracle of Omaha also can't help himself when it comes to tech stock Apple (NASDAQ: AAPL). Thanks to Form 4 filings with the SEC, which are required in instances where a greater than 10% stake is held in a publicly traded company, investors know that Buffett and his team can't stop buying shares of energy stock Occidental Petroleum (NYSE: OXY). Although Apple has no intention of abandoning the physical products (iPhone, Mac, and iPad) that have endeared the company with so many consumers, it's begun focusing more of its attention on growing its services segment.
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The Oracle of Omaha also can't help himself when it comes to tech stock Apple (NASDAQ: AAPL). In 1973, when conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) held its first annual shareholder meeting, a few dozen people attended. Thanks to Form 4 filings with the SEC, which are required in instances where a greater than 10% stake is held in a publicly traded company, investors know that Buffett and his team can't stop buying shares of energy stock Occidental Petroleum (NYSE: OXY).
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The Oracle of Omaha also can't help himself when it comes to tech stock Apple (NASDAQ: AAPL). The Oracle of Omaha has purchased more than $72 billion in shares of this stock Yet in spite of the popularity of these two stocks, there's another company that's hands-down Warren Buffett's favorite stock to buy. However, the more than $72 billion the Oracle of Omaha has used to purchase shares of another stock, which you won't find in Berkshire Hathaway's 13Fs, is double the amount spent buying shares of Apple.
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The Oracle of Omaha also can't help himself when it comes to tech stock Apple (NASDAQ: AAPL). During Berkshire Hathaway's annual shareholder meeting in May, Buffett referred to Apple as "a better business than any we own." The Oracle of Omaha has purchased more than $72 billion in shares of this stock Yet in spite of the popularity of these two stocks, there's another company that's hands-down Warren Buffett's favorite stock to buy.
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12612.0
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2023-11-08 00:00:00 UTC
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3 Top E-Commerce Stocks to Buy in November
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AAPL
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https://www.nasdaq.com/articles/3-top-e-commerce-stocks-to-buy-in-november-1
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nan
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One of the best tips for investing in the stock market is to choose companies that are active in industries that are likely to expand over the long term. E-commerce is an attractive growth market: Online sales made up just 4% of all U.S. retail purchases in 2010, but that figure has soared to more than 15% this year. The sector has massive growth potential and could have much to offer new investors.
As tech advances and sectors like artificial intelligence (AI) create more efficient ways to target customers and track shopping trends, e-commerce companies will likely continue to benefit from consistent gains. The industry presents an exciting investment opportunity with several stocks that could skyrocket in the coming years.
So, here are three top e-commerce stocks to buy in November.
1. Amazon
It's impossible to overlook Amazon (NASDAQ: AMZN), with its leading 38% e-commerce market share in the U.S., in any discussion about e-commerce. Its dominance in the space is illustrated by the fact that Walmart's share, the second largest, comes in at just 6%.
Amazon's command of the market left it vulnerable to macroeconomic headwinds in 2022, causing steep declines in its retail segments. However, its various restructuring moves have led to a solid comeback this year, returning its e-commerce business to profitability. The company's North American segment topped $4 billion in operating income in the third quarter, a significant improvement from the $412 million in losses it reported in the year-ago quarter.
Meanwhile, Amazon's growing ventures in AI strengthen its long-term prospects in retail. The company is developing the tech necessary to boost efficiency across its business and better serve customers. Amazon is on a promising growth path, and you won't want to miss out on its potential in e-commerce.
2. Apple
Apple (NASDAQ: AAPL) might not be the first company that comes to mind when thinking about e-commerce, but the potency of its products has allowed it to attain the third-largest market share in the industry. Its position in the sector is impressive, considering its range of products is substantially smaller than those of market leaders Amazon and Walmart.
Apple has won over consumers, achieving leading market shares in smartphones, tablets, headphones, and smartwatches. The success of these devices propelled Apple's annual revenue to soar 47% over the last five years, with operating income up 79%. Sales in these product categories have decreased over the last year, affected by a marketwide slump. However, Apple's dominance means it is well positioned to profit significantly once macroeconomic headwinds subside.
In the meantime, Apple is gradually expanding its reach in e-commerce by venturing into fintech. Over the last few years, the company has launched its own credit card, a savings account, and a new buy now pay later program.
As the biggest name in consumer tech, Apple dominates one of the most lucrative areas of e-commerce. Its stock has slid by 9% since July alongside economic challenges, but that only makes it more attractive as a long-term buy this November.
3. Alphabet
Countless e-commerce businesses have come to depend on Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) advertising services to reach new customers and boost sales. The company has much to gain as online retail sales grow and is well-equipped to meet increased demand for digital ads with the billions of users it attracts through platforms like YouTube and Google Search daily.
Alphabet has become a master at advertising over the years, offering clients advanced targeting services and tools to create scalable ad campaigns. The tech giant's success in the industry sent its annual revenue skyrocketing 107% since 2019, while operating income rose 130%.
Like Amazon, Alphabet is heavily investing in AI, developing technology to improve its business and retain its dominating position in advertising by offering top-of-the-line services. The company's solid outlook caught Wall Street's attention this year, with its share up about 47% since Jan. 1.
Yet, despite the stellar growth, Alphabet's price-to-earnings ratio sits at an attractive 25. The metric makes Alphabet's stock a bargain right now and too good to pass up.
10 stocks we like better than Amazon
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of October 30, 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, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) might not be the first company that comes to mind when thinking about e-commerce, but the potency of its products has allowed it to attain the third-largest market share in the industry. As tech advances and sectors like artificial intelligence (AI) create more efficient ways to target customers and track shopping trends, e-commerce companies will likely continue to benefit from consistent gains. The company has much to gain as online retail sales grow and is well-equipped to meet increased demand for digital ads with the billions of users it attracts through platforms like YouTube and Google Search daily.
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Apple Apple (NASDAQ: AAPL) might not be the first company that comes to mind when thinking about e-commerce, but the potency of its products has allowed it to attain the third-largest market share in the industry. The company's North American segment topped $4 billion in operating income in the third quarter, a significant improvement from the $412 million in losses it reported in the year-ago quarter. Alphabet Countless e-commerce businesses have come to depend on Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) advertising services to reach new customers and boost sales.
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Apple Apple (NASDAQ: AAPL) might not be the first company that comes to mind when thinking about e-commerce, but the potency of its products has allowed it to attain the third-largest market share in the industry. Amazon It's impossible to overlook Amazon (NASDAQ: AMZN), with its leading 38% e-commerce market share in the U.S., in any discussion about e-commerce. Alphabet Countless e-commerce businesses have come to depend on Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) advertising services to reach new customers and boost sales.
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Apple Apple (NASDAQ: AAPL) might not be the first company that comes to mind when thinking about e-commerce, but the potency of its products has allowed it to attain the third-largest market share in the industry. E-commerce is an attractive growth market: Online sales made up just 4% of all U.S. retail purchases in 2010, but that figure has soared to more than 15% this year. That's right -- they think these 10 stocks are even better buys.
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12613.0
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2023-11-08 00:00:00 UTC
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Is WisdomTree U.S. LargeCap ETF (EPS) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-etf-eps-a-strong-etf-right-now-8
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nan
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The WisdomTree U.S. LargeCap ETF (EPS) was launched on 02/23/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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 sponsored by Wisdomtree. It has amassed assets over $688.08 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses.
The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.08% for EPS, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.84%.
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.
For EPS, it has heaviest allocation in the Information Technology sector --about 24.10% of the portfolio --while Financials and Healthcare round out the top three.
Taking into account individual holdings, Alphabet Inc-Cl A (GOOGL) accounts for about 6.08% of the fund's total assets, followed by Apple Inc (AAPL) and Meta Platformsinc. Cl A (FB).
The top 10 holdings account for about 32.33% of total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. LargeCap ETF has added about 12.57% so far, and it's up approximately 14.07% over the last 12 months (as of 11/08/2023). EPS has traded between $40.69 and $48.62 in this past 52-week period.
The fund has a beta of 1.01 and standard deviation of 16.79% for the trailing three-year period, which makes EPS a medium risk choice in this particular space. With about 506 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $48.12 billion in assets, Vanguard Value ETF has $97.03 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : 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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Taking into account individual holdings, Alphabet Inc-Cl A (GOOGL) accounts for about 6.08% of the fund's total assets, followed by Apple Inc (AAPL) and Meta Platformsinc. Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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 WisdomTree U.S. LargeCap ETF (EPS) was launched on 02/23/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Alphabet Inc-Cl A (GOOGL) accounts for about 6.08% of the fund's total assets, followed by Apple Inc (AAPL) and Meta Platformsinc. Alternatives WisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Alphabet Inc-Cl A (GOOGL) accounts for about 6.08% of the fund's total assets, followed by Apple Inc (AAPL) and Meta Platformsinc. IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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Taking into account individual holdings, Alphabet Inc-Cl A (GOOGL) accounts for about 6.08% of the fund's total assets, followed by Apple Inc (AAPL) and Meta Platformsinc. Click to get this free report WisdomTree U.S. LargeCap ETF (EPS): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : 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 WisdomTree U.S. LargeCap ETF (EPS) was launched on 02/23/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
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12614.0
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2023-11-08 00:00:00 UTC
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Should Strive 500 ETF (STRV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-strive-500-etf-strv-be-on-your-investing-radar-1
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nan
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nan
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Launched on 09/15/2022, the Strive 500 ETF (STRV) 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 Strive Etfs. It has amassed assets over $283.10 million, making it one of the average sized 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
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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.24%.
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 29.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 29.4% of total assets under management.
Performance and Risk
STRV seeks to match the performance of the SOLACTIVE GBS UNITED STATES 500 INDEX before fees and expenses. The Solactive GBS United States 500 Index is a float-adjusted, capitalization weighted index consisting of equity securities of the 500 largest companies in the U.S. stock market.
The ETF has gained about 16.68% so far this year and was up about 17.71% in the last one year (as of 11/08/2023). In the past 52-week period, it has traded between $23.76 and $29.31.
The ETF has a beta of 0.98 and standard deviation of 17.16% for the trailing three-year period. With about 504 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive 500 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, STRV is a good 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 $356.72 billion in assets, SPDR S&P 500 ETF has $407.38 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Strive 500 ETF (STRV): ETF Research Reports
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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
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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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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Strive 500 ETF (STRV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/15/2022, the Strive 500 ETF (STRV) 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 Strive 500 ETF (STRV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Why Large Cap Blend Large cap companies usually have a market capitalization above $10 billion.
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Click to get this free report Strive 500 ETF (STRV): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Strive 500 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 7.10% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Strive 500 ETF (STRV): 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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12615.0
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2023-11-08 00:00:00 UTC
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Apple co-founder Wozniak suffers possible stroke in Mexico -local media
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AAPL
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https://www.nasdaq.com/articles/apple-co-founder-wozniak-suffers-possible-stroke-in-mexico-local-media
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Adds Apple background in paragraphs 5-6
MEXICO CITY, Nov 8 (Reuters) - Apple co-founder Steve Wozniak was hospitalized in Mexico City on Wednesday due to a possible stroke, Mexican media outlets reported.
The 73-year-old scientist and tech entrepreneur was scheduled to participate in a World Business Forum event in the Mexican capital's Santa Fe neighborhood.
Event organizers did not immediately respond to a request for comment. Wozniak had been set to speak at the conference at 4:20 p.m. local time.
Reuters could not immediately confirm the reports that Wozniak had been hospitalized.
In the 1976, Wozniak founded the fledgling Apple Computer company along with his more famous business partner Steve Jobs, the acclaimed investor and longtime Apple CEO who died in 2011.
Their business pioneered personal computing and went on to be the world's most valuable company, known for the design and functionality of a range of consumer electronics, including laptop and desktop computers, and the iPhone mobile phone.
(Reporting by Anthony Esposito and Valentine Hilaire; Editing by David Alire Garcia & Shri Navaratnam)
((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151; Reuters Messaging: david.aliregarcia.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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Adds Apple background in paragraphs 5-6 MEXICO CITY, Nov 8 (Reuters) - Apple co-founder Steve Wozniak was hospitalized in Mexico City on Wednesday due to a possible stroke, Mexican media outlets reported. The 73-year-old scientist and tech entrepreneur was scheduled to participate in a World Business Forum event in the Mexican capital's Santa Fe neighborhood. (Reporting by Anthony Esposito and Valentine Hilaire; Editing by David Alire Garcia & Shri Navaratnam) ((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151; Reuters Messaging: david.aliregarcia.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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Adds Apple background in paragraphs 5-6 MEXICO CITY, Nov 8 (Reuters) - Apple co-founder Steve Wozniak was hospitalized in Mexico City on Wednesday due to a possible stroke, Mexican media outlets reported. The 73-year-old scientist and tech entrepreneur was scheduled to participate in a World Business Forum event in the Mexican capital's Santa Fe neighborhood. In the 1976, Wozniak founded the fledgling Apple Computer company along with his more famous business partner Steve Jobs, the acclaimed investor and longtime Apple CEO who died in 2011.
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Adds Apple background in paragraphs 5-6 MEXICO CITY, Nov 8 (Reuters) - Apple co-founder Steve Wozniak was hospitalized in Mexico City on Wednesday due to a possible stroke, Mexican media outlets reported. In the 1976, Wozniak founded the fledgling Apple Computer company along with his more famous business partner Steve Jobs, the acclaimed investor and longtime Apple CEO who died in 2011. (Reporting by Anthony Esposito and Valentine Hilaire; Editing by David Alire Garcia & Shri Navaratnam) ((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151; Reuters Messaging: david.aliregarcia.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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Adds Apple background in paragraphs 5-6 MEXICO CITY, Nov 8 (Reuters) - Apple co-founder Steve Wozniak was hospitalized in Mexico City on Wednesday due to a possible stroke, Mexican media outlets reported. Reuters could not immediately confirm the reports that Wozniak had been hospitalized. In the 1976, Wozniak founded the fledgling Apple Computer company along with his more famous business partner Steve Jobs, the acclaimed investor and longtime Apple CEO who died in 2011.
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12616.0
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2023-11-08 00:00:00 UTC
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Peek Under The Hood: PDP Has 12% Upside
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AAPL
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https://www.nasdaq.com/articles/peek-under-the-hood%3A-pdp-has-12-upside
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco Dorsey Wright Momentum ETF (Symbol: PDP), we found that the implied analyst target price for the ETF based upon its underlying holdings is $86.35 per unit.
With PDP trading at a recent price near $77.37 per unit, that means that analysts see 11.60% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PDP's underlying holdings with notable upside to their analyst target prices are BridgeBio Pharma Inc (Symbol: BBIO), AMETEK Inc (Symbol: AME), and Apple Inc (Symbol: AAPL). Although BBIO has traded at a recent price of $29.39/share, the average analyst target is 58.78% higher at $46.67/share. Similarly, AME has 19.98% upside from the recent share price of $146.50 if the average analyst target price of $175.78/share is reached, and analysts on average are expecting AAPL to reach a target price of $202.96/share, which is 11.62% above the recent price of $181.82. Below is a twelve month price history chart comparing the stock performance of BBIO, AME, and AAPL:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco Dorsey Wright Momentum ETF PDP $77.37 $86.35 11.60%
BridgeBio Pharma Inc BBIO $29.39 $46.67 58.78%
AMETEK Inc AME $146.50 $175.78 19.98%
Apple Inc AAPL $181.82 $202.96 11.62%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
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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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Invesco Dorsey Wright Momentum ETF PDP $77.37 $86.35 11.60% BridgeBio Pharma Inc BBIO $29.39 $46.67 58.78% AMETEK Inc AME $146.50 $175.78 19.98% Apple Inc AAPL $181.82 $202.96 11.62% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PDP's underlying holdings with notable upside to their analyst target prices are BridgeBio Pharma Inc (Symbol: BBIO), AMETEK Inc (Symbol: AME), and Apple Inc (Symbol: AAPL). Similarly, AME has 19.98% upside from the recent share price of $146.50 if the average analyst target price of $175.78/share is reached, and analysts on average are expecting AAPL to reach a target price of $202.96/share, which is 11.62% above the recent price of $181.82.
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Three of PDP's underlying holdings with notable upside to their analyst target prices are BridgeBio Pharma Inc (Symbol: BBIO), AMETEK Inc (Symbol: AME), and Apple Inc (Symbol: AAPL). Similarly, AME has 19.98% upside from the recent share price of $146.50 if the average analyst target price of $175.78/share is reached, and analysts on average are expecting AAPL to reach a target price of $202.96/share, which is 11.62% above the recent price of $181.82. Invesco Dorsey Wright Momentum ETF PDP $77.37 $86.35 11.60% BridgeBio Pharma Inc BBIO $29.39 $46.67 58.78% AMETEK Inc AME $146.50 $175.78 19.98% Apple Inc AAPL $181.82 $202.96 11.62% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AME has 19.98% upside from the recent share price of $146.50 if the average analyst target price of $175.78/share is reached, and analysts on average are expecting AAPL to reach a target price of $202.96/share, which is 11.62% above the recent price of $181.82. Three of PDP's underlying holdings with notable upside to their analyst target prices are BridgeBio Pharma Inc (Symbol: BBIO), AMETEK Inc (Symbol: AME), and Apple Inc (Symbol: AAPL). Below is a twelve month price history chart comparing the stock performance of BBIO, AME, and AAPL: Below is a summary table of the current analyst target prices discussed above:
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Invesco Dorsey Wright Momentum ETF PDP $77.37 $86.35 11.60% BridgeBio Pharma Inc BBIO $29.39 $46.67 58.78% AMETEK Inc AME $146.50 $175.78 19.98% Apple Inc AAPL $181.82 $202.96 11.62% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PDP's underlying holdings with notable upside to their analyst target prices are BridgeBio Pharma Inc (Symbol: BBIO), AMETEK Inc (Symbol: AME), and Apple Inc (Symbol: AAPL). Similarly, AME has 19.98% upside from the recent share price of $146.50 if the average analyst target price of $175.78/share is reached, and analysts on average are expecting AAPL to reach a target price of $202.96/share, which is 11.62% above the recent price of $181.82.
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12617.0
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2023-11-08 00:00:00 UTC
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1 Semiconductor Stock Set to Join Apple, Amazon, Microsoft, Alphabet, and NVIDIA in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/1-semiconductor-stock-set-to-join-apple-amazon-microsoft-alphabet-and-nvidia-in-the-%241
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Nvidia has been the chip stock in vogue this year, with investors pushing the company past a $1 trillion market cap. But another semiconductor company, one with close ties to Nvidia, could be the next to join it and the other tech giants in the $1 trillion club.
Taiwan Semiconductor Manufacturing (NYSE: TSM), known as TSMC, supplies all the chip designers with the actual final products that go into smartphones, laptops, and data centers.
While the company has lots of exposure to the AI chip boom -- including as a supplier of all of Nvidia's AI chips -- it has felt pressure from the downturn in semiconductors. It's the market leader in chip manufacturing, grabbing the majority of the market. And while that means cyclical setbacks are inevitable, it also means it will be a major participant in the next boom in semiconductors.
Image source: Getty Images.
McKinsey estimates the global semiconductor industry will grow more than 80% this decade, surpassing $1 trillion in revenue by 2030. This is one of the best stocks to take advantage of that secular growth, and it has the potential to reach a $1 trillion market cap in the next few years, joining Apple, Amazon, Microsoft, and Alphabet -- not to mention Nvidia.
The must-have chipmaker for the next generation of semiconductors
There's a reason TSMC commands more than half the market for chip manufacturing. It's one of just two companies capable of producing the highest-performing, most power-efficient semiconductors.
Its newest-generation process uses a 3-nanometer node. This smaller node (an improvement over the previous generation's 5nm) allows it to fit more transistors onto a piece of silicon. Increased transistor density means faster processing speeds with less power consumption. The only other chip foundry producing 3nm chips at scale is Samsung.
Apple started using TSMC's 3nm process for its A17 chips found in the iPhone 15. It has been a longtime customer of TSMC's, using it for iPhone chips since the launch of the iPhone 6 in 2014, switching away from Samsung. When it launched its own chip designs for Macs in 2020, it used TSMC's 5nm process.
It is becoming increasingly expensive to make further advancements in shrinking down dies to fit more transistors onto a chip. With its huge market share, that gives TSMC an advantage. It can leverage the fixed costs of research and development and equipment to continually push the envelope in technological capabilities. That in turn cements its position as the go-to chipmaker for any company like Nvidia and Apple looking to produce cutting-edge chips.
TSMC's competitive advantages in scale and technology should support its fat gross margin, which came in at 54.3%. That will go down as it ramps up 3nm nodes, but management expects to maintain a long-term average gross margin wider than 53%.
Turning the corner
While artificial intelligence (AI) chips are booming, most of TSMC's business has nothing to do with AI, at least right now. More than a third of its business is tied to smartphones, which have seen shipments decline for eight straight quarters as of midyear.
But there are signs of the company turning the corner, and moving toward balancing its capital expenses with its production. Management expects to slow capital expenditures in 2024 as it focuses on greater efficiency, increasing its output for AI chips, and hedges against macroeconomic uncertainty.
Meanwhile, it expects the 3nm process to ramp up faster than expected, indicating strong demand for Apple's iPhone 15, and it gave a better-than-expected outlook for the fourth quarter.
Its new fourth-quarter forecast suggests a 5% decline in revenue for the full year, an improvement from the 10% decline it projected at the end of the second quarter.
While investors have awarded the stock since that earnings release, it still trades at an attractive valuation around just 16 times forward earnings estimates. That's one of the best values you'll find in the semiconductor industry.
Joining the $1 trillion club
TSMC's market cap today is still a far cry from $1 trillion at $480 billion. It will have to more than double to reach $1 trillion. But that's not out of the question over the next few years.
First, I think there's room for multiple expansion. The stock has been beaten up amid a cyclical downturn. Its five-year median price-to-earnings multiple is 21.5. If its price expands to that level in 2024, it'll add about $200 billion in market cap.
Moreover, TSMC will benefit from a growing number of companies using the fabless, contract business model. That includes some of those members of the $1 trillion club developing their own chips for AI and data centers, which will power the future growth of the industry. With its leading technology, it's positioned to outperform the overall market, which could grow at a double-digit percentage rate for the rest of the decade (barring major macroeconomic setbacks).
Despite already being a giant in the industry, there's a lot to like about TSMC at this price. It's a strong candidate to join the $1 trillion club over the next few years.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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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. Adam Levy has positions in Alphabet, Amazon, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing (NYSE: TSM), known as TSMC, supplies all the chip designers with the actual final products that go into smartphones, laptops, and data centers. This is one of the best stocks to take advantage of that secular growth, and it has the potential to reach a $1 trillion market cap in the next few years, joining Apple, Amazon, Microsoft, and Alphabet -- not to mention Nvidia. With its leading technology, it's positioned to outperform the overall market, which could grow at a double-digit percentage rate for the rest of the decade (barring major macroeconomic setbacks).
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That includes some of those members of the $1 trillion club developing their own chips for AI and data centers, which will power the future growth of the industry. Adam Levy has positions in Alphabet, Amazon, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing.
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Nvidia has been the chip stock in vogue this year, with investors pushing the company past a $1 trillion market cap. While the company has lots of exposure to the AI chip boom -- including as a supplier of all of Nvidia's AI chips -- it has felt pressure from the downturn in semiconductors. This is one of the best stocks to take advantage of that secular growth, and it has the potential to reach a $1 trillion market cap in the next few years, joining Apple, Amazon, Microsoft, and Alphabet -- not to mention Nvidia.
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Nvidia has been the chip stock in vogue this year, with investors pushing the company past a $1 trillion market cap. This is one of the best stocks to take advantage of that secular growth, and it has the potential to reach a $1 trillion market cap in the next few years, joining Apple, Amazon, Microsoft, and Alphabet -- not to mention Nvidia. That in turn cements its position as the go-to chipmaker for any company like Nvidia and Apple looking to produce cutting-edge chips.
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12618.0
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2023-11-08 00:00:00 UTC
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Taiwan's land squeeze pits advanced chips against ancestral temples
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AAPL
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https://www.nasdaq.com/articles/taiwans-land-squeeze-pits-advanced-chips-against-ancestral-temples
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nan
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By Sarah Wu
HSINCHU/LONGTAN, Taiwan, Nov 8 (Reuters) - Wearing rain ponchos and holding photos of their ancestral temples near Hsinchu, Taiwan's semiconductor capital, 40 residents braved lashing winds in early October to protest plans to take their rural land for cutting-edge chip production.
Two weeks later, Taiwan Semiconductor Manufacturing Co Ltd 2330.TW (TSMC), the world's largest contract chipmaker, dropped plans to build a factory as part of the science park expansion in the bucolic Longtan district nearby - a development that heartened protesters and laid bare one of Taiwan's increasingly fraught "five shortages".
If the land crunch on the densely populated and mountainous island pushes TSMC to shift more production outside Taiwan - countries such as the United States, Japan and Germany have offered it billions in incentives to do so - it could weaken the backbone of Taiwan's economy, analysts say.
"TSMC's expansion in Taiwan has strategic significance for Taiwan's economy and national security," Economy Minister Wang Mei-hua told reporters after the announcement by TSMC, known on the island as "the sacred mountain protecting the country".
Last year, Taiwan's chip industry generated T$4.837 trillion ($150.27 billion) in revenue, nearly half of which came from TSMC, compared with Taiwan's GDP of T$22.667 trillion ($704.21 billion). The sector employs 327,000 people and creates 704,000 jobs indirectly, according to the economy ministry.
With TSMC making most of the world's advanced chips, which power everything from Apple's AAPL.O iPhones to Nvidia's NVDA.O AI data centres, Taiwan is scrambling to find land for the industry and cement its position as a critical node in the global tech supply chain.
"Taiwan's limited land and limited energy have always created a lot of pressure," GlobalWafers 6488.TWO CEO Doris Hsu told reporters. "Besides TSMC, all tech companies - when they want to expand in Taiwan - have to consider land and whether residents in the area would support the industry being there."
'OUR ROOTS'
In July, at the first hearing for the proposed expansion, activists unfurled a "stop land pillage" banner and Hsu Shih-jung, a land economics professor at National Chengchi University, shouted his objections.
"Taiwanese society has become a stratified society," he said. "Rich people, the semiconductor industry, bigwigs - they can own land, they can plunder land. Us ordinary folks - prepare for eviction at any moment."
Standing in an overflowing three-story hall in Longtan, Hsinchu Science Park Administration officials emphasised that they would provide fair compensation and pointed to the T$600-650 billion worth of two-nanometre and below chips that would be produced annually and the 5,900 jobs that would be created.
"It was like they were drawing a big pie, but that pie was not for us," said resident Chen Ting-yen, 39, who attended the hearing.
Chen, a restaurant and food delivery worker, and her multi-generational household live in a small house built by her father-in-law Wei Hsin-hsi. Next door is their family's ancestral temple and graves.
"Our earliest ancestors who came to Taiwan - you want me to dig them up?" she said.
"These are our roots," Chen said. "Roots cannot be moved."
The Liao family's ancestral temple also falls within the expansion area. Hundreds of relatives from across the island gather there during Lunar New Year and other festivals.
"Our whole family would be scattered," if the temple is torn down, said Liao Chen-nan, 75.
'FIVE SHORTAGES'
The chip industry has long complained about Taiwan's "five shortages": land, water, energy, labour, and talent. The sector's rapid growth in recent years, which has sent prices of industrial land soaring, is further testing the island's ability to support its prized chipmakers.
After protests, including one outside Taiwan's presidential office, TSMC said it "respects the local community and regulatory authorities" and will work with the government to find suitable land elsewhere on the island, which is about the size of Belgium.
"There are many options and we do not expect any impact on our plan to grow in Taiwan," the company said in a statement.
Taiwan's government - determined to keep its crown jewel's most advanced technology at home - has said it will provide alternative options.
Available land is "absolutely sufficient" to meet the industry's needs, the economy ministry told Reuters, adding that there are already 426 hectares for new semiconductor factories in central and southern Taiwan's science parks.
The Longtan expansion had proposed acquiring 159 more hectares in the north, where TSMC and many chip companies are based. The government is required to compensate landowners at market value.
Although TSMC has encountered opposition from residents and environmental groups before, its economic heft as Asia's most valuable company has allowed it to keep expanding on the island. It has repeatedly vowed to remain "rooted" in Taiwan.
Considering the island's resource constraints, however, TSMC TSM.N must also expand abroad, senior vice president Cliff Hou said this year.
In December, the company more than tripled its planned investment at its new Arizona plant to $40 billion.
Taiwan still accounts for 90% of TSMC's production, including its most advanced chips, the ministry told Reuters.
"If it really becomes impossible for TSMC to build factories in Taiwan and it moves abroad, the impact on Taiwan's entire economy would not just be from the lack of land now, but from the entire industry starting to move abroad in the coming years," Isaiah Research analyst Lucy Chen said, referring to the robust chip supply chain that developed alongside TSMC.
The science park administration, which had noted that Hsinchu and Longtan are running out of space to create advanced chips, said it would proceed with the expansion for other companies.
Residents have continued to protest, calling for the project to be axed altogether, while politicians from other cities have been vying for TMSC's advanced factory.
Chen Chi-mai, mayor of Kaohsiung, where TSMC is building a 2-nanometre factory, told reporters that his southern city is equipped for more chip production.
"Opportunities are reserved for those who are prepared," he said.
($1 = 32.1880 Taiwan dollars)
(Reporting by Sarah Wu; Additional reporting by Yimou Lee; Editing by Ben Blanchard and Gerry Doyle)
((S.Wu@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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With TSMC making most of the world's advanced chips, which power everything from Apple's AAPL.O iPhones to Nvidia's NVDA.O AI data centres, Taiwan is scrambling to find land for the industry and cement its position as a critical node in the global tech supply chain. Standing in an overflowing three-story hall in Longtan, Hsinchu Science Park Administration officials emphasised that they would provide fair compensation and pointed to the T$600-650 billion worth of two-nanometre and below chips that would be produced annually and the 5,900 jobs that would be created. After protests, including one outside Taiwan's presidential office, TSMC said it "respects the local community and regulatory authorities" and will work with the government to find suitable land elsewhere on the island, which is about the size of Belgium.
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With TSMC making most of the world's advanced chips, which power everything from Apple's AAPL.O iPhones to Nvidia's NVDA.O AI data centres, Taiwan is scrambling to find land for the industry and cement its position as a critical node in the global tech supply chain. Standing in an overflowing three-story hall in Longtan, Hsinchu Science Park Administration officials emphasised that they would provide fair compensation and pointed to the T$600-650 billion worth of two-nanometre and below chips that would be produced annually and the 5,900 jobs that would be created. Taiwan still accounts for 90% of TSMC's production, including its most advanced chips, the ministry told Reuters.
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With TSMC making most of the world's advanced chips, which power everything from Apple's AAPL.O iPhones to Nvidia's NVDA.O AI data centres, Taiwan is scrambling to find land for the industry and cement its position as a critical node in the global tech supply chain. By Sarah Wu HSINCHU/LONGTAN, Taiwan, Nov 8 (Reuters) - Wearing rain ponchos and holding photos of their ancestral temples near Hsinchu, Taiwan's semiconductor capital, 40 residents braved lashing winds in early October to protest plans to take their rural land for cutting-edge chip production. "TSMC's expansion in Taiwan has strategic significance for Taiwan's economy and national security," Economy Minister Wang Mei-hua told reporters after the announcement by TSMC, known on the island as "the sacred mountain protecting the country".
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With TSMC making most of the world's advanced chips, which power everything from Apple's AAPL.O iPhones to Nvidia's NVDA.O AI data centres, Taiwan is scrambling to find land for the industry and cement its position as a critical node in the global tech supply chain. "Besides TSMC, all tech companies - when they want to expand in Taiwan - have to consider land and whether residents in the area would support the industry being there." "These are our roots," Chen said.
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12619.0
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2023-11-08 00:00:00 UTC
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1 Exceptional Warren Buffett ETF to Buy Hand Over Fist in 2024
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AAPL
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https://www.nasdaq.com/articles/1-exceptional-warren-buffett-etf-to-buy-hand-over-fist-in-2024
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nan
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nan
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Investing in the stock market is one of the most effective ways to generate wealth, but the investments you choose can make or break your portfolio.
For many investors, exchange-traded funds (ETFs) can be a smart option. ETFs are baskets of securities bundled together into a single investment, and they can be a simpler and more straightforward way to invest compared to buying individual stocks.
There are countless ETFs to choose from, all with unique advantages and disadvantages. But there's one ETF, in particular, owned and highly recommended by legendary investor Warren Buffett -- and it could be a fantastic buy heading into 2024.
A powerhouse ETF to keep your money safer
For the most part, Warren Buffett's portfolio consists of individual stocks. However, he does own one type of ETF -- the S&P 500 ETF. Through his holding company Berkshire Hathaway, Buffett owns both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPRD S&P 500 ETF Trust (NYSEMKT: SPY).
S&P 500 ETFs are a fantastic option for those looking to make a lot of money over time with much less risk and effort than individual stocks. This type of investment tracks the S&P 500 index itself, and each fund includes stocks from 500 of the largest and strongest companies in the U.S.
The companies in the S&P 500 are among the best of the best, ranging from tech giants like Apple and Amazon to household names like Coca-Cola and Procter & Gamble. With so many powerhouse stocks, this type of ETF is far more likely to recover from downturns and see long-term growth.
In fact, research shows that it's actually harder to lose money with an S&P 500 ETF than to make money. Analysts at Crestmont Research examined the S&P 500's 20-year total returns to determine how often the index saw positive gains.
They 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 -- regardless of how volatile the market was during that time.
Not only is it lower risk, but the S&P 500 is also incredibly low maintenance because all the stocks are already chosen for you. By investing in just one fund, you'll instantly have a well-diversified portfolio full of strong stocks. All you have to do is hold on to it for as long as possible.
Building long-term wealth in the stock market
S&P 500 ETFs are long-term investments, and given enough time, it's possible to earn hundreds of thousands of dollars or more with little effort on your part.
Nobody knows how stocks will perform over time, but historically, the market itself has earned an average annual return of around 10% per year. While you likely won't earn 10% returns each and every year, the highs and lows should average out to roughly 10% annually over decades.
If you were to invest, say, $200 per month in an S&P 500 ETF while earning 10% average annual returns, here's approximately how much you could accumulate over time:
NUMBER OF YEARS TOTAL PORTFOLIO VALUE
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via investor.gov.
The sooner you can get started investing, the easier it will be to accumulate hundreds of thousands of dollars or more. Even if you can't afford to invest much right now, time is your most valuable asset. By contributing even a few dollars per week, you could earn more than you might think over time.
One downside to consider, however, is the fact that this investment can only earn average returns. It's impossible for an S&P 500 ETF to beat the market, as it's designed to simply follow the market. If you're looking to maximize your earnings, investing in individual stocks may be a better strategy.
Warren Buffett has long recommended the S&P 500 ETF to other investors, and he even owns two of these funds himself. If you're looking for a safer investment that requires very little effort on your part, an S&P 500 ETF could be a fantastic buy in 2024 and beyond.
10 stocks we like better than Vanguard S&P 500 ETF
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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. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A powerhouse ETF to keep your money safer For the most part, Warren Buffett's portfolio consists of individual stocks. The companies in the S&P 500 are among the best of the best, ranging from tech giants like Apple and Amazon to household names like Coca-Cola and Procter & Gamble. 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 -- regardless of how volatile the market was during that time.
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Through his holding company Berkshire Hathaway, Buffett owns both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPRD S&P 500 ETF Trust (NYSEMKT: SPY). Building long-term wealth in the stock market S&P 500 ETFs are long-term investments, and given enough time, it's possible to earn hundreds of thousands of dollars or more with little effort on your part. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF.
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ETFs are baskets of securities bundled together into a single investment, and they can be a simpler and more straightforward way to invest compared to buying individual stocks. Building long-term wealth in the stock market S&P 500 ETFs are long-term investments, and given enough time, it's possible to earn hundreds of thousands of dollars or more with little effort on your part. If you were to invest, say, $200 per month in an S&P 500 ETF while earning 10% average annual returns, here's approximately how much you could accumulate over time:
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S&P 500 ETFs are a fantastic option for those looking to make a lot of money over time with much less risk and effort than individual stocks. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 ETF wasn't one of them! The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF.
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12620.0
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2023-11-08 00:00:00 UTC
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3 Top Tech Stocks to Buy in November
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AAPL
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https://www.nasdaq.com/articles/3-top-tech-stocks-to-buy-in-november-0
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nan
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nan
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The Nasdaq-100 index has dipped about 5% since mid-July as macroeconomic headwinds have caused declines across the tech market. Over the last three months, many of the biggest names in the industry have experienced either dips in their stock prices or little to no growth. However, recent challenges are why it's crucial to have a long-term mindset when investing in tech stocks.
The sector is in a near-constant state of innovation and is known for rewarding patient investors with substantial returns. For instance, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have experienced stock declines of 9% and 2%, respectively, since July. Meanwhile, Amazon's (NASDAQ: AMZN) stock has risen slightly at 4%. However, the chart below proves that stockholders who bought in five years ago are still significantly up on their investments.
Apple, Microsoft, and Amazon remain leaders in their respective markets and likely have much to offer investors over the long term. A recent sell-off in tech could be the perfect time to invest in these companies and reap the rewards for years to come. So, here are three top tech stocks to buy in November.
Data by YCharts
1. Apple
Apple hasn't had it easy this year as an economic downturn has caused reductions in consumer spending across tech. The company's earnings release on Nov. 2 represented its fourth consecutive quarter of revenue declines, with net sales tumbling 3% year over year for fiscal 2023. Apple's product segments were hit particularly hard, with iPhone revenue dipping 2% for the year and Mac sales plunging 27%.
Despite the declines, the company's Q4 2023 outperformed analyst expectations on several fronts. Earnings per share hit $1.46, beating forecasts by $0.07. Meanwhile, revenue for the quarter came in just slightly higher than expected. The bright spot for Apple over the last year and its recent quarter has been services, which hit revenue growth of 16% in Q4 and 9% for the year.
While the challenges haven't been favorable for current stockholders, they have reduced the cost of entry for new ones. Apple's price-to-earnings ratio has decreased by 11% since July to about 28, meaning its shares offer more value than any other company on this list. Apple remains one of the biggest names in tech and has a big chance to rally in the long term, with a booming services business and a growing venture into AI. November is an excellent time to consider adding Apple shares to your portfolio.
2. Microsoft
Microsoft has emerged as one of the most exciting artificial intelligence (AI) companies in 2023. The tech giant arguably has more earnings potential in the industry than almost any other organization, and that's thanks to the dominance of its products and vast financial resources.
The company was an early investor in AI, sinking $1 billion into ChatGPT developer OpenAI in 2019. Microsoft has since increased that figure by another $10 billion, achieving a 49% stake in the start-up. The partnership has allowed the company to bring AI upgrades across its product lineup, including Word, Excel, Bing, Azure, and more.
The combination of Microsoft's nearly unrivaled dominance in productivity software with OpenAI's technology creates endless earning opportunities. In addition to attracting new cloud customers to Azure, the company is monetizing its AI offerings on Microsoft 365 and enjoying boosts to revenue as a result.
In Q1 2024 (ended September 2023), revenue rose nearly 13% year over year, beating Wall Street estimates by $2 billion. The growth came alongside a 13% increase in productivity income (which includes Microsoft 365 revenue) and a 19% bump in cloud sales.
Microsoft is on a promising growth trajectory and has much to gain as the AI market expands, making now a compelling time to buy its stock before it's too late.
3. Amazon
Amazon has made an impressive comeback this year after its stock plunged 50% in 2022, burdened by macroeconomic headwinds. The company's stock has climbed 65% since Jan. 1, being one of the few tech companies to keep Wall Street consistently bullish in recent months. Amazon has rallied investors with significant growth in its e-commerce segments and a promising expansion into AI.
In Q3 2023, revenue rose close to 13% year over year, beating expectations by $1.5 billion. The growth was mainly thanks to improvements in Amazon's retail segments, with its North American division reporting an 11% boost in revenue and international sales rising 16%.
In addition to e-commerce growth, Amazon is using its leading market share in cloud computing to carve out a lucrative position in AI. The company is rapidly expanding its AI tools on AWS, cashing in on the soaring demand for such services.
Amazon is back on a growth path, with solid long-term outlooks in e-commerce and AI. Meanwhile, the company's average 12-month price target of $172 projects stock growth of 24% and indicates it still has plenty to offer new investors. Amazon is a top tech stock this November and seems too good to pass up.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of October 30, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, 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 instance, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have experienced stock declines of 9% and 2%, respectively, since July. Apple remains one of the biggest names in tech and has a big chance to rally in the long term, with a booming services business and a growing venture into AI. Microsoft is on a promising growth trajectory and has much to gain as the AI market expands, making now a compelling time to buy its stock before it's too late.
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For instance, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have experienced stock declines of 9% and 2%, respectively, since July. In Q1 2024 (ended September 2023), revenue rose nearly 13% year over year, beating Wall Street estimates by $2 billion. Amazon has rallied investors with significant growth in its e-commerce segments and a promising expansion into AI.
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For instance, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have experienced stock declines of 9% and 2%, respectively, since July. The bright spot for Apple over the last year and its recent quarter has been services, which hit revenue growth of 16% in Q4 and 9% for the year. Microsoft is on a promising growth trajectory and has much to gain as the AI market expands, making now a compelling time to buy its stock before it's too late.
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For instance, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have experienced stock declines of 9% and 2%, respectively, since July. Microsoft is on a promising growth trajectory and has much to gain as the AI market expands, making now a compelling time to buy its stock before it's too late. Amazon has rallied investors with significant growth in its e-commerce segments and a promising expansion into AI.
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12621.0
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2023-11-08 00:00:00 UTC
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Meta Platforms Stock (NASDAQ:META): Analysts Remain Bullish About Further Upside
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-stock-nasdaq%3Ameta%3A-analysts-remain-bullish-about-further-upside
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nan
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nan
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Social media giant Meta Platforms (NASDAQ:META) recently reported market-crushing third-quarter earnings that reflected the company’s strong execution and recovery in the digital ad market. While management’s cautionary comments about potential ad softness due to the ongoing Middle East turmoil overshadowed the solid beat, Wall Street analysts remain bullish on the stock and see further upside despite a stellar 166% year-to-date rally in META stock.
Meta Firing on All Cylinders
Meta suffered for a couple of quarters due to weak digital ad spending amid macro pressures, Apple’s (NASDAQ:AAPL) iOS privacy policy changes that impacted the ability to effectively target ads, and rising competition from TikTok. However, the company bounced back strongly this year with the help of strategic initiatives that helped improve user engagement. Also, gradual recovery in the digital ad market aided top-line improvement.
In Q3 2023, Meta’s revenue grew 23% year-over-year to $34.1 billion, with the online commerce vertical contributing the most to the top-line growth. Further, the company’s earnings per share (EPS) jumped 168% to $4.39, handily surpassing analysts’ consensus estimate of $3.64. The company’s streamlining efforts and aggressive cost cuts in what CEO Mark Zuckerberg calls “the year of efficiency” drove the massive increase in the bottom line.
Additionally, Meta continues to experience increased user engagement. Family Daily Active People (DAP), which indicates the number of users who used any one of the company’s apps (Facebook, Instagram, Messenger, and WhatsApp), increased 7% to 3.14 billion on average for September 2023. The company is leveraging generative artificial intelligence (AI) to drive further user engagement and boost its customer base.
Is Meta a Buy, Sell, or Hold?
Following the Q3 print, Citigroup analyst Ronald Josey increased the price target for Meta Platforms stock to $425 from $385 and reaffirmed a Buy rating on October 26. While the company’s Q4 revenue guidance midpoint was about 2% below consensus due to geopolitical uncertainty, Josey believes that the guidance is "likely to prove conservative" as the holiday shopping season ramps.
Josey is also encouraged by the continued AI-induced improvement in engagement and Meta's product roadmap. Additionally, on October 30, Josey reacted to the news of Meta launching advertising-free subscription tiers for users in Europe. He thinks that this move removes a key regulatory overhang on the stock.
On November 1, another Meta bull, Loop Capital analyst Rob Sanderson, reiterated a Buy rating on the stock with a price target of $375. He raised his FY23 EPS estimate to $14.58 from $13.71 and FY24 estimate to $17.88 from $17.34.
Sanderson highlighted the continued product momentum in Reels, Advantage+, and messaging, noting the significant interest in recent launches of gen-AI products across most of Meta's family of apps.
Overall, Meta scores Wall Street’s Strong Buy consensus rating based on 36 Buys versus just one Hold rating. The average price target of $384.62 implies 20.3% upside potential.
Conclusion
Meta Platform has delivered robust performance this year and has impressed investors with its initiatives to revive its top-line growth and improve profitability. Despite near-term macro pressures, Analysts remain highly bullish about the road ahead, as the company is working on further enhancing its apps with generative AI.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta Firing on All Cylinders Meta suffered for a couple of quarters due to weak digital ad spending amid macro pressures, Apple’s (NASDAQ:AAPL) iOS privacy policy changes that impacted the ability to effectively target ads, and rising competition from TikTok. The company’s streamlining efforts and aggressive cost cuts in what CEO Mark Zuckerberg calls “the year of efficiency” drove the massive increase in the bottom line. Family Daily Active People (DAP), which indicates the number of users who used any one of the company’s apps (Facebook, Instagram, Messenger, and WhatsApp), increased 7% to 3.14 billion on average for September 2023.
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Meta Firing on All Cylinders Meta suffered for a couple of quarters due to weak digital ad spending amid macro pressures, Apple’s (NASDAQ:AAPL) iOS privacy policy changes that impacted the ability to effectively target ads, and rising competition from TikTok. Social media giant Meta Platforms (NASDAQ:META) recently reported market-crushing third-quarter earnings that reflected the company’s strong execution and recovery in the digital ad market. Following the Q3 print, Citigroup analyst Ronald Josey increased the price target for Meta Platforms stock to $425 from $385 and reaffirmed a Buy rating on October 26.
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Meta Firing on All Cylinders Meta suffered for a couple of quarters due to weak digital ad spending amid macro pressures, Apple’s (NASDAQ:AAPL) iOS privacy policy changes that impacted the ability to effectively target ads, and rising competition from TikTok. Social media giant Meta Platforms (NASDAQ:META) recently reported market-crushing third-quarter earnings that reflected the company’s strong execution and recovery in the digital ad market. Following the Q3 print, Citigroup analyst Ronald Josey increased the price target for Meta Platforms stock to $425 from $385 and reaffirmed a Buy rating on October 26.
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Meta Firing on All Cylinders Meta suffered for a couple of quarters due to weak digital ad spending amid macro pressures, Apple’s (NASDAQ:AAPL) iOS privacy policy changes that impacted the ability to effectively target ads, and rising competition from TikTok. Additionally, Meta continues to experience increased user engagement. Following the Q3 print, Citigroup analyst Ronald Josey increased the price target for Meta Platforms stock to $425 from $385 and reaffirmed a Buy rating on October 26.
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12622.0
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2023-11-08 00:00:00 UTC
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Stock Market News for Nov 8, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-nov-8-2023
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nan
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nan
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U.S. stocks ended higher on Tuesday, with the S&P 500 and Nasdaq notching their longest winning streak in more than two years, as bond yields retreated, sending tech stocks on a rally while investors awaited comments from Fed officials. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% or 56.74 points to close at 34,152.60 points, registering its longest winning streak since July 26, 2023.
The S&P 500 rose 0.3% or 12.40 points, to finish at 4,378.38 points, recording its longest winning streak since Nov 8, 2021. Tech and consumer discretionary stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) each rose 1.1%. Six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq jumped 0.9% or 121.08 points to end at 13,639.86 points, also notching its longest winning streak since Nov 8, 2021.
The fear-gauge CBOE Volatility Index (VIX) was down 0.54% to 14.81. A total of 10.8 billion shares were traded on Tuesday, lower than the last 20-session average of 10.94 billion. Decliners outnumbered advancers on the NYSE by a 1.2-to-1 ratio. On the Nasdaq, a 1.1-to-1 ratio favored declining issues.
Bond Yields Retreat, Tech Stocks Rally
The upbeat sentiment continued into Tuesday, which saw the Nasdaq and the S&P 500 rising for the eighth straight session, while the Dow climbed for the seventh straight day.
The benchmark 10-year Treasury note retreated further, declining for the fifth time in the past six sessions on expectations that the Fed is done with its monetary tightening cycle and another interest rate hike may not be implemented.
The 10-year Treasury yield which hit a 16-year high and crossed the 5% mark last month fell to 4.5% last Friday following the release of the jobs data. However, it rebounded slightly on Monday only to decline again on Tuesday to 4.57%.
A decline in bond yields sent tech stocks on a rally. Shares of Salesforce, Inc. (CRM) jumped 2.1%, while Apple, Inc. (AAPL) and Microsoft Corporation (MSFT) rose 1.5% and 1.1%, respectively. Salesforce has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
\Oil prices also declined sharply on Tuesday, particularly the U.S. benchmark, which dropped below $80 a barrel after data from China raised concerns over demand. This is its lowest level since August. A decline in oil prices could further ease inflation worries and boost investors’ confidence.
Investors are also awaiting additional comments from Fed officials to get a clear picture of its next course of action with interest rates.
Economic Data
U.S. trade deficit rose once again in September to $61.5 billion or 4.9%. Total consumer credit climbed $9.1 billion in September after declining $15.8 billion in August.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : 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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Shares of Salesforce, Inc. (CRM) jumped 2.1%, while Apple, Inc. (AAPL) and Microsoft Corporation (MSFT) rose 1.5% and 1.1%, respectively. 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 To read this article on Zacks.com click here. The benchmark 10-year Treasury note retreated further, declining for the fifth time in the past six sessions on expectations that the Fed is done with its monetary tightening cycle and another interest rate hike may not be implemented.
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Shares of Salesforce, Inc. (CRM) jumped 2.1%, while Apple, Inc. (AAPL) and Microsoft Corporation (MSFT) rose 1.5% and 1.1%, respectively. 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 To read this article on Zacks.com click here. U.S. stocks ended higher on Tuesday, with the S&P 500 and Nasdaq notching their longest winning streak in more than two years, as bond yields retreated, sending tech stocks on a rally while investors awaited comments from Fed officials.
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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 To read this article on Zacks.com click here. Shares of Salesforce, Inc. (CRM) jumped 2.1%, while Apple, Inc. (AAPL) and Microsoft Corporation (MSFT) rose 1.5% and 1.1%, respectively. U.S. stocks ended higher on Tuesday, with the S&P 500 and Nasdaq notching their longest winning streak in more than two years, as bond yields retreated, sending tech stocks on a rally while investors awaited comments from Fed officials.
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Shares of Salesforce, Inc. (CRM) jumped 2.1%, while Apple, Inc. (AAPL) and Microsoft Corporation (MSFT) rose 1.5% and 1.1%, respectively. 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 To read this article on Zacks.com click here. U.S. stocks ended higher on Tuesday, with the S&P 500 and Nasdaq notching their longest winning streak in more than two years, as bond yields retreated, sending tech stocks on a rally while investors awaited comments from Fed officials.
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12623.0
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2023-11-08 00:00:00 UTC
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Nearly Half of Warren Buffett's $6.1 Billion in Annual Dividends Comes From These 3 Stocks
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https://www.nasdaq.com/articles/nearly-half-of-warren-buffetts-%246.1-billion-in-annual-dividends-comes-from-these-3-stocks
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Warren Buffett loves a good dividend stock. Berkshire Hathaway's portfolio is positioned to collect over $6.1 billion in dividends over the next year. But just three stocks make up nearly half of that massive sum of cash. This goes to show that when Buffett finds a good company paying a good dividend, he's not afraid of doubling down on it (or more).
Investors may want to look at Buffett's biggest dividend payers for potential ideas for their own dividend portfolio. Here they are.
Bank of America ($991,537,926)
Buffett will collect nearly $1 billion from Bank of America (NYSE: BAC) over the next year. Berkshire owns 1.03 billion shares of the bank stock, which he's continued to add to in 2023. The stock has severely underperformed this year and currently trades around a 52-week low. But that may make it a buying opportunity for investors.
While the financial sector has struggled in the wake of the banking crisis earlier this year, Bank of America is in a worse position than many of its peers. Its balance sheet contains much more longer-duration bonds. That means it's locked in lower interest rates from before the Federal Reserve started increasing the federal funds rate, and it needs to wait for those assets to mature. Meanwhile, it needs to pay higher interest rates to deposit holders.
As a result, Bank of America's net interest income growth slowed to just 4% last quarter. Management expects net interest income to decline year over year in the fourth quarter on a fully tax-equivalent basis.
But, there's good news for investors. This quarter should be the nadir of its net interest income levels. "The good news is we believe [net investment income] will likely trough around the fourth quarter level of $14 billion and begin to grow again in the middle of next year," CFO Alastair Borthwick said during Bank of America's third-quarter earnings call.
Bank of America stock now trades at a price to tangible book value of less than 1.2. That's well below its biggest peers, making the stock look very attractive. At today's price, the stock will yield about 3.38%.
Apple ($878,937,967)
Apple (NASDAQ: AAPL) pays a relatively modest dividend of less than $1 per share. But when you own over 915 million shares, like Buffett does, that adds up to a big annual paycheck for holding the stock. Apple has been one of Buffett's best performers this year, and he's continued to add to his position in 2023.
The company has continued to capitalize on its position as the leading smartphone, tablet, and smartwatch manufacturer. Its brand gives it tremendous pricing power, and that shows up in its gross margin. Its gross margin expanded 80 basis points over the past year to 44.1%.
The biggest story for Apple is its expanding services segment. Services have managed to mitigate declining device sales this year, helping Apple maintain strong net income performance. In fact, Apple's net income increased in the second half of the year despite a decline in total net sales and an increase in operating expenses.
The sales of Apple's popular devices and services are an absolute cash cow for the company and its investors. While the tech giant is reinvesting heavily in research and development to fuel its future growth, it has plenty of cash to spare for its massive capital return program. It authorized a $90 billion share repurchase program in May and raised its dividend for the 11th straight year. Investors can expect that trend to continue for the foreseeable future.
Apple shares currently trade at a premium price with a forward P/E ratio over 28. That said, there are a few reasons the stock deserves a premium price, not least of which is its capital return program, and it may very well still deserve a spot in your portfolio.
Occidental Petroleum ($867,853,018)
Buffett's company owns a 25% stake in Occidental Petroleum's (NYSE: OXY) common stock, which pays a dividend of $0.72 per year for a small 1.14% yield. But it's paying Buffett a lot more than that.
Buffett acquired $10 billion of preferred Occidental Petroleum shares in 2019 when it raised funds to acquire Anadarko. Those shares pay an 8% dividend. While Occidental's bought back nearly 12% of those shares, Buffett's still set to collect an extra $706.5 million from Occidental over the next year if he keeps his current stake.
The Anadarko acquisition left Occidental with a huge amount of debt right before the start of the pandemic. And when oil prices plunged, the company suspended its dividend. This precarious position left shares trading around $11 per share in March 2020. Buffett actually sold his initial position in Occidental during that period for a substantial loss.
But he came back to the company's common stock in 2022 after it reinstated its dividend, buying a whopping 15% stake in the company by the end of March. He's continued to add to that position over the last year and a half and secured regulatory approval to buy up to 50% of the entire company.
Buffett's been buying Occidental with good reason. The balance sheet is back on track. Its position in the Permian Basin gives it a source of low-cost oil production. And it's more focused on increasing the efficiency of its existing facilities than expanding into new oil production. That should give it a steady stream of growing free cash flow to return to shareholders.
Meanwhile, the stock trades for just 7.2 times free cash flow. That's well below its historic levels, which means there's still an opportunity to buy one of Buffett's favorite companies at a fair price.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Adam Levy has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, 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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Apple ($878,937,967) Apple (NASDAQ: AAPL) pays a relatively modest dividend of less than $1 per share. "The good news is we believe [net investment income] will likely trough around the fourth quarter level of $14 billion and begin to grow again in the middle of next year," CFO Alastair Borthwick said during Bank of America's third-quarter earnings call. Services have managed to mitigate declining device sales this year, helping Apple maintain strong net income performance.
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Apple ($878,937,967) Apple (NASDAQ: AAPL) pays a relatively modest dividend of less than $1 per share. Management expects net interest income to decline year over year in the fourth quarter on a fully tax-equivalent basis. Occidental Petroleum ($867,853,018) Buffett's company owns a 25% stake in Occidental Petroleum's (NYSE: OXY) common stock, which pays a dividend of $0.72 per year for a small 1.14% yield.
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Apple ($878,937,967) Apple (NASDAQ: AAPL) pays a relatively modest dividend of less than $1 per share. Bank of America ($991,537,926) Buffett will collect nearly $1 billion from Bank of America (NYSE: BAC) over the next year. Occidental Petroleum ($867,853,018) Buffett's company owns a 25% stake in Occidental Petroleum's (NYSE: OXY) common stock, which pays a dividend of $0.72 per year for a small 1.14% yield.
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Apple ($878,937,967) Apple (NASDAQ: AAPL) pays a relatively modest dividend of less than $1 per share. Berkshire owns 1.03 billion shares of the bank stock, which he's continued to add to in 2023. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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12624.0
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2023-11-08 00:00:00 UTC
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Amazon cuts jobs in music streaming unit
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AAPL
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https://www.nasdaq.com/articles/amazon-cuts-jobs-in-music-streaming-unit
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By Greg Bensinger
Nov 8 (Reuters) - Amazon.com AMZN.O has begun cutting jobs in its Music division, the company said on Wednesday, confirming the latest of several rounds of layoffs over the past year that have affected more than 27,000 employees of the retail giant.
Employees in Latin America, North America and Europe received notices that their jobs had been eliminated Wednesday, according to people familiar with the matter. An Amazon spokesperson confirmed the layoff after being contacted by Reuters. She declined to say how many employees were impacted.
No mass layoff filings had recently been made in Washington state, where Amazon is based, California or New York, among the largest employee centers for the company, according to a review of Worker Adjustment and Retraining Notification sites.
The cuts come even as Amazon reported third-quarter net income that far exceeded analyst estimates and forecast revenue in the year’s final quarter roughly in line with expectations. The fourth quarter is Amazon’s most crucial, as it in includes holiday shopping.
Amazon has been quietly trimming jobs, including communications staff in its Studios, Video and Music divisions last month.
Amazon Music, which also includes podcasts, competes with Spotify SPOT.O, Pandora, Alphabet’s GOOGL.O Google and Apple AAPL.O in offering unlimited music streaming services for a fee. It raised the monthly subscription price earlier this year by a dollar to $10.99.
Amazon's cloud stabilizing, shoppers cautious heading into holiday season
(Reporting by Greg Bensinger; Editing by Peter Henderson and Lisa Shumaker)
((greg.bensinger@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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Amazon Music, which also includes podcasts, competes with Spotify SPOT.O, Pandora, Alphabet’s GOOGL.O Google and Apple AAPL.O in offering unlimited music streaming services for a fee. By Greg Bensinger Nov 8 (Reuters) - Amazon.com AMZN.O has begun cutting jobs in its Music division, the company said on Wednesday, confirming the latest of several rounds of layoffs over the past year that have affected more than 27,000 employees of the retail giant. No mass layoff filings had recently been made in Washington state, where Amazon is based, California or New York, among the largest employee centers for the company, according to a review of Worker Adjustment and Retraining Notification sites.
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Amazon Music, which also includes podcasts, competes with Spotify SPOT.O, Pandora, Alphabet’s GOOGL.O Google and Apple AAPL.O in offering unlimited music streaming services for a fee. By Greg Bensinger Nov 8 (Reuters) - Amazon.com AMZN.O has begun cutting jobs in its Music division, the company said on Wednesday, confirming the latest of several rounds of layoffs over the past year that have affected more than 27,000 employees of the retail giant. Amazon has been quietly trimming jobs, including communications staff in its Studios, Video and Music divisions last month.
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Amazon Music, which also includes podcasts, competes with Spotify SPOT.O, Pandora, Alphabet’s GOOGL.O Google and Apple AAPL.O in offering unlimited music streaming services for a fee. By Greg Bensinger Nov 8 (Reuters) - Amazon.com AMZN.O has begun cutting jobs in its Music division, the company said on Wednesday, confirming the latest of several rounds of layoffs over the past year that have affected more than 27,000 employees of the retail giant. No mass layoff filings had recently been made in Washington state, where Amazon is based, California or New York, among the largest employee centers for the company, according to a review of Worker Adjustment and Retraining Notification sites.
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Amazon Music, which also includes podcasts, competes with Spotify SPOT.O, Pandora, Alphabet’s GOOGL.O Google and Apple AAPL.O in offering unlimited music streaming services for a fee. By Greg Bensinger Nov 8 (Reuters) - Amazon.com AMZN.O has begun cutting jobs in its Music division, the company said on Wednesday, confirming the latest of several rounds of layoffs over the past year that have affected more than 27,000 employees of the retail giant. Employees in Latin America, North America and Europe received notices that their jobs had been eliminated Wednesday, according to people familiar with the matter.
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12625.0
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2023-11-08 00:00:00 UTC
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Why Investors Are Pouring Billions Into Covered-Call ETFs
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https://www.nasdaq.com/articles/why-investors-are-pouring-billions-into-covered-call-etfs
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Covered-call ETFs that use options strategies to generate exceptionally high yields have been immensely popular over the past couple of years. Investors have poured more than $20 billion into these ETFs in 2023 so far, per Bloomberg data.
In addition to high yields, these strategies generally reduce portfolio volatility, but investors should remember that there is no free lunch in investing. These strategies work best in sideways markets but underperform in strong bull markets. They provide some protection when stocks fall.
Last year, which was brutal for stocks, these ETFs fell less than the broader indexes. This year, however, stocks have staged a very impressive rally, and these funds are lagging.
Roni Israelov, CIO of Boston-based financial services firm NDVR, calls these strategies a “Devil’s Bargain.” His research shows trading options to generate income undermines investment returns.
The JPMorgan Equity Premium Income ETF JEPI has gathered about $13 billion in new money this year and is now the largest actively managed ETF. The fund uses proprietary research to select about 130 stocks and then writes S&P 500 Index call options to generate income.
Amazon AMZN and Microsoft MSFT are the largest holdings in the fund, which is up about 5.5% so far in 2023.
The Global X Nasdaq 100 Covered Call ETF QYLD buys the stocks in the Nasdaq 100 Index and then sells call options on the same index. Apple AAPL and NVIDIA NVDA are among the top holdings.
To learn more about JEPI, QYLD, the JPMorgan Nasdaq Equity Premium Income ETF JEPQ and the Global X S&P 500 Covered Call ETF XYLD, please watch the short video above.
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Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL and NVIDIA NVDA are among the top holdings. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Global X S&P 500 Covered Call ETF (XYLD): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Covered-call ETFs that use options strategies to generate exceptionally high yields have been immensely popular over the past couple of years.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Global X S&P 500 Covered Call ETF (XYLD): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and NVIDIA NVDA are among the top holdings. The Global X Nasdaq 100 Covered Call ETF QYLD buys the stocks in the Nasdaq 100 Index and then sells call options on the same index.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Global X S&P 500 Covered Call ETF (XYLD): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and NVIDIA NVDA are among the top holdings. The Global X Nasdaq 100 Covered Call ETF QYLD buys the stocks in the Nasdaq 100 Index and then sells call options on the same index.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Global X S&P 500 Covered Call ETF (XYLD): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL and NVIDIA NVDA are among the top holdings. The JPMorgan Equity Premium Income ETF JEPI has gathered about $13 billion in new money this year and is now the largest actively managed ETF.
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12626.0
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2023-11-08 00:00:00 UTC
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Reuters NEXT-Apple is not passing on costs of climate goals to consumers, exec says
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https://www.nasdaq.com/articles/reuters-next-apple-is-not-passing-on-costs-of-climate-goals-to-consumers-exec-says
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Adds details on Apple's environmental efforts in paragraphs 5-10
Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York.
“We don’t factor in a premium to take care of the work that we’re doing," Apple Vice President Lisa Jackson said in an interview with Reuters Editor-in-Chief Alessandra Galloni.
Apple, with a roughly $2.8 trillion market capitalization, which makes it the world's most valuable publicly traded company, wants to show a way forward that can apply to other businesses, Jackson said. Apple CEO Tim Cook has set the tone, according to Jackson.
"I want to do it in a way that other businesses can say this isn't because they’re Apple," said Jackson, referring to Cook's direction. "It's because they understand how to make clean energy and (recyclable) materials work in the manufacturing chains and drive emissions down."
Apple has been aggressive among large U.S. companies in advocating for stricter public environmental policies. In September it endorsed legislation in California to require companies to report on their greenhouse gas emissions, even though trade groups in the state opposed the idea that recently became law.
Under Jackson, formerly the head of the U.S. Environmental Protection Agency, Apple was also an early backer of federal rules to require companies to disclose emissions from their value chains.
Many other executives from large U.S. companies oppose the idea, which has not been finalized by securities regulators. Critics say it is easier for a tech company like Apple to meet such goals than it would be for corporations in more energy-intensive industries.
In her remarks on Wednesday, Jackson nodded at the challenges of figuring out and reporting supply-chain details. "Even making the windmills to generate renewable energy has a carbon footprint, and so you have to account for that," she said.
For a recent model of the Apple Watch, the company has reduced 78% of its carbon footprint but not some 8 kilograms of emissions for each device. "We just right now don't have the ability to take care" of that, which includes the environmental impact of transportation and logistics.
Jackson also said Apple is working with smaller processing companies to recycle rare earths and other materials. "That's somewhere Apple can invest and then help to scale and bring (other) businesses along," she said.
(Reporting By Jeffrey Dastin and Kenneth Li in New York and Ross Kerber in Boston; Editing by Daniel Wallis)
((Jeffrey.Dastin@thomsonreuters.com; +1 424 434 7548;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details on Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. “We don’t factor in a premium to take care of the work that we’re doing," Apple Vice President Lisa Jackson said in an interview with Reuters Editor-in-Chief Alessandra Galloni. Apple, with a roughly $2.8 trillion market capitalization, which makes it the world's most valuable publicly traded company, wants to show a way forward that can apply to other businesses, Jackson said.
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Adds details on Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. "It's because they understand how to make clean energy and (recyclable) materials work in the manufacturing chains and drive emissions down." Many other executives from large U.S. companies oppose the idea, which has not been finalized by securities regulators.
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Adds details on Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. Apple, with a roughly $2.8 trillion market capitalization, which makes it the world's most valuable publicly traded company, wants to show a way forward that can apply to other businesses, Jackson said. Under Jackson, formerly the head of the U.S. Environmental Protection Agency, Apple was also an early backer of federal rules to require companies to disclose emissions from their value chains.
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Adds details on Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. "I want to do it in a way that other businesses can say this isn't because they’re Apple," said Jackson, referring to Cook's direction. "It's because they understand how to make clean energy and (recyclable) materials work in the manufacturing chains and drive emissions down."
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12627.0
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2023-11-08 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-9
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The virtual reality (VR) market is expected to hit $25 billion this year, according to Fortune Business Insights, whose researchers forecast it will expand at a compound annual rate of 31% through 2030.
VR is by no means a new technology -- it has shown up in various forms and devices over the last few decades. However, recent advances in technologies such as chip design and artificial intelligence (AI) finally made it possible to deliver a truly immersive VR experience. The technology has come a long way, and has applications in a range of industries, from healthcare to education, design, gaming, and more.
The next few years could see the public adoption of VR surge as it finally takes its place in the mainstream, rather than just in a niche of the gaming community. As a result, this could be an excellent time to invest in the budding industry for the long term.
So, here are two stocks to buy to invest in virtual reality.
1. Apple
Apple (NASDAQ: AAPL) announced its first virtual reality/augmented reality (VR/AR) headset in June. The Vision Pro is expected to begin shipping in early 2024 and could become a major growth driver for the company over the long term.
The iPhone company is already the biggest name in consumer tech, and its history suggests it could eventually leapfrog current VR leaders Meta and Sony, and dominate the market. The tech giant wasn't the first company to produce smartphones, tablets, Bluetooth headphones, or smartwatches. However, public adoption of each of these devices skyrocketed once Apple launched its versions of them.
The company enjoys nearly unrivaled brand loyalty, which could help it attract consumers willing to try out a VR system created using Apple's familiar and user-friendly design.
The Vision Pro will debut at $3,499, which prices out most consumers. However, the company appears to be playing the long game, and will likely bring down the device's cost with future iterations, making it more accessible to the masses over time.
Apple shares have tumbled by around 8% since mid-July as macroeconomic headwinds caused repeated declines in its product segments. However, those economic challenges won't last forever, and Apple's dominance in tech will likely offer consistent gains over the long term. It could be worth buying the dip and investing in this VR stock ahead of the launch of the Vision Pro.
2. Microsoft
While Apple is focused on the consumer side of VR, Microsoft (NASDAQ: MSFT) offers an excellent way to invest in the commercial side of the industry. In 2016, the company launched its first headset, the HoloLens, and released a sequel to the device in 2019.
The HoloLens 2 retails for $3,500, similar to the Vision Pro. However, that price may be slightly more palatable as the device is geared more toward companies than consumers. Microsoft says the HoloLens 2 can boost productivity in multiple industries, such as manufacturing, engineering/construction, healthcare, and education.
The headset promises to increase manufacturing efficiency by 90%, allowing workers to collaborate instantly from anywhere. In engineering, Microsoft states the device will save organizations that use it significant amounts of money, and increase their efficiency in a range of ways.
Microsoft has become a favorite on Wall Street this year, with its shares up nearly 50% since Jan. 1. The company has rallied investors with a major push into AI, acquiring a 49% stake in ChatGPT developer OpenAI. AI will likely play a critical role in the future of VR, and Microsoft is well positioned to keep up with the market.
Microsoft shares soared by more than 230% over the last five years. The company is one of the biggest names in tech, with vast resources and seemingly endless growth potential. Its VR business is small for now, but I wouldn't bet against it investing more into the sector if demand for the technology rises. Now could be the perfect time to buy its stock and profit from the expanding VR industry.
10 stocks we like better than Apple
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) announced its first virtual reality/augmented reality (VR/AR) headset in June. The virtual reality (VR) market is expected to hit $25 billion this year, according to Fortune Business Insights, whose researchers forecast it will expand at a compound annual rate of 31% through 2030. However, recent advances in technologies such as chip design and artificial intelligence (AI) finally made it possible to deliver a truly immersive VR experience.
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Apple Apple (NASDAQ: AAPL) announced its first virtual reality/augmented reality (VR/AR) headset in June. The virtual reality (VR) market is expected to hit $25 billion this year, according to Fortune Business Insights, whose researchers forecast it will expand at a compound annual rate of 31% through 2030. Microsoft While Apple is focused on the consumer side of VR, Microsoft (NASDAQ: MSFT) offers an excellent way to invest in the commercial side of the industry.
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Apple Apple (NASDAQ: AAPL) announced its first virtual reality/augmented reality (VR/AR) headset in June. It could be worth buying the dip and investing in this VR stock ahead of the launch of the Vision Pro. Microsoft While Apple is focused on the consumer side of VR, Microsoft (NASDAQ: MSFT) offers an excellent way to invest in the commercial side of the industry.
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Apple Apple (NASDAQ: AAPL) announced its first virtual reality/augmented reality (VR/AR) headset in June. So, here are two stocks to buy to invest in virtual reality. In 2016, the company launched its first headset, the HoloLens, and released a sequel to the device in 2019.
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12628.0
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2023-11-08 00:00:00 UTC
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3 Russell 2000 Stocks That Are Growing Faster Than the S&P 500
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https://www.nasdaq.com/articles/3-russell-2000-stocks-that-are-growing-faster-than-the-sp-500
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Small-cap stocks have been on a dreadful run over the past decade or so. With the rise of the tech titans, more and more of the market’s total capitalization has gone to just a few firms such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) while leaving small companies in the dust.
However, these things tend to run in cycles. And, over the longer-term, investing firm MSCI has found that small-caps outperform the rest of the market. That’s especially true when coming out of a recession — meaning that small-caps could be entering a sweet spot for superior returns in the next year or two.
Part of the reason why small-caps have struggled recently is a lack of growth as compared to large tech firms. However, the Russell 2000 Index contains, as its name would suggest, two thousand companies. There are some growth gems among them. Here are three small-cap stocks to own with sizzling growth rates in recent years.
Vicor (VICR)
Source: MarySan / Shutterstock
Vicor (NASDAQ:VICR) designs and manufactures modular power components. These are used for converting, controlling and regulating power supplies for a goods in a variety of industries including aerospace, defense, telecommunications, and transportation among others.
The firm has grown rapidly in recent years as markets such as telecom and electrical vehicles have driven a great increase in demand for power components. Indeed, VICR stock shot up from $60 to more than $90 this summer on a blisteringly hot earnings report. But things have gone in reverse now.
VICR stock tumbled in October following a solid earnings report. The decline came due to a weak bookings number, suggesting that the current lag in industrial activity is hitting Vicor’s business. It’s true that the company may see its rapid earnings growth cool off in 2024.
But the longer-term story should reassert itself once things pick back up. VICR stock is now under $40 per share, which is a massive drawdown from where it was just a few months ago. That seems overblown given the firm’s strong track record of earnings and revenue growth in recent years.
First Bancorp (FBP)
Source: Shutterstock
First Bancorp (NYSE:FBP) is the holding company for FirstBank Puerto Rico. This is one of the relatively few banks that serves the Puerto Rican market.
While Puerto Rico is part of the United States, it is technically an unincorporated territory. As such, it operates under a much different legal and economic framework than the 50 states of the country. In addition, Puerto Ricans primarily speak Spanish rather than English. Given these factors, most U.S. banks have little interest in the Puerto Rican market, leaving it to a handful of local banks specialized in that jurisdiction’s particular needs.
Puerto Rico went through hard times. Between an economic bust and multiple devastating hurricanes, Puerto Rico’s economy slumped and much of its population left during the 2010s.
However, the island has enjoyed a recovery since 2020. Between becoming a COVID-19 remote work beneficiary, the island’s tax-favored status has also attracted numerous wealthy investors who have taken up residence there.
Throw in a favorable interest rate environment, and First Bancorp has seen its net interest income soar more than 50% since 2017. It earns a net interest margin (NIM) of 4.4%, which is far above the median U.S. regional bank. And its isolated geographical market should keep it safe from the deposit flight that plagued some mainland U.S. banks this year. All that makes FBP stock a great play on Puerto Rico’s continuing revival.
Livent (LTHM)
Source: Bjoern Wylezich/ShutterStock.com
Livent (NYSE:LTHM) is a specialty chemical company focused on the production of lithium.
Like many lithium firms, Livent has enjoyed incredible growth in recent years. Livent’s revenues soared from $388 million in 2019 to $813 million last year, with additional growth expected for full-year 2023.
Livent built its business on a highly-profitable low-cost series of lithium deposits in Argentina. Additionally, the firm is planning to merge with Allkem to add to and diversify its operations. At the moment, LTHM stock goes for less than 8x forward earnings.
Despite the positives, shares have gotten pummeled this year amid a large sell-off in the spot lithium market. That’s a headwind, to be certain. But it appears to be far overdone. Morningstar analyst Seth Goldstein believes Livent shares are worth an amazing $38/share compared to their current $14 share price today.
On the date of publication, Ian Bezek 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.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
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The post 3 Russell 2000 Stocks That Are Growing Faster Than the S&P 500 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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With the rise of the tech titans, more and more of the market’s total capitalization has gone to just a few firms such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) while leaving small companies in the dust. These are used for converting, controlling and regulating power supplies for a goods in a variety of industries including aerospace, defense, telecommunications, and transportation among others. The firm has grown rapidly in recent years as markets such as telecom and electrical vehicles have driven a great increase in demand for power components.
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With the rise of the tech titans, more and more of the market’s total capitalization has gone to just a few firms such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) while leaving small companies in the dust. Vicor (VICR) Source: MarySan / Shutterstock Vicor (NASDAQ:VICR) designs and manufactures modular power components. First Bancorp (FBP) Source: Shutterstock First Bancorp (NYSE:FBP) is the holding company for FirstBank Puerto Rico.
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With the rise of the tech titans, more and more of the market’s total capitalization has gone to just a few firms such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) while leaving small companies in the dust. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Small-cap stocks have been on a dreadful run over the past decade or so. Here are three small-cap stocks to own with sizzling growth rates in recent years.
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With the rise of the tech titans, more and more of the market’s total capitalization has gone to just a few firms such as Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) while leaving small companies in the dust. Part of the reason why small-caps have struggled recently is a lack of growth as compared to large tech firms. Here are three small-cap stocks to own with sizzling growth rates in recent years.
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12629.0
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2023-11-08 00:00:00 UTC
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AMD and Intel Respond to CPU Competitors Qualcomm and Apple
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AAPL
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https://www.nasdaq.com/articles/amd-and-intel-respond-to-cpu-competitors-qualcomm-and-apple
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nan
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nan
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In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Nov. 7, 2023. The video was published on Nov. 8, 2023.
10 stocks we like better than Advanced Micro Devices
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 Advanced Micro Devices 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
Jose Najarro has positions in Advanced Micro Devices and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). Check out the short video to learn more, consider subscribing, and click the special offer link below. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them!
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In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). See the 10 stocks *Stock Advisor returns as of November 6, 2023 Jose Najarro has positions in Advanced Micro Devices and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). Check out the short video to learn more, consider subscribing, and click the special offer link below. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Jose Najarro has positions in Advanced Micro Devices and Qualcomm.
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12630.0
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2023-11-08 00:00:00 UTC
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Why Apple's Services Business Is Such a Big Catalyst for the Stock
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AAPL
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https://www.nasdaq.com/articles/why-apples-services-business-is-such-a-big-catalyst-for-the-stock
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nan
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nan
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Some investors may be baffled by Apple (NASDAQ: AAPL) stock's strong performance recently, including a gain of more than 5% over the last week and nearly 39% year to date. They may wonder: Shouldn't the fact that Apple's revenue declined nearly 3% year over year in fiscal 2023 weigh on stock price performance? But there's a strong catalyst bubbling under the surface, keeping the bulls upbeat.
One key part of Apple's business bulls are betting on is none other than its services segment -- a segment consisting of revenue streams that are more consistent, reliable, and predictable than the company's hardware sales. We're talking about Apple's revenue from advertising, AppleCare, cloud services, digital content, and payment services. Together, these high-margin, fast-growing parts of Apple's business are transforming the company.
Here's a closer look at why Apple's services business is such a strong catalyst for the stock.
A loyal user base
You can't talk about Apple's services business without acknowledging its installed base of active devices, numbered in the billions. Though Apple didn't provide an updated figure on exactly how many Apple devices are being actively used around the world, Apple's chief financial officer Luca Maestri did say during the company's fiscal fourth-quarterearnings callthat it "continues to grow at a nice pace..." As of the company's last update on its size, Apple said it boasted more than two billion active devices.
This installed base "establishes a solid foundation" for continued expansion of its services business, Maestri said during the company'searnings call
Broad-based growth drivers for the segment
Highlighting services' incredible momentum, the segment's fiscal Q4 16% year-over-year revenue growth was fueled by growth in every services category and geographic segment. This is "a direct result of the strength of our ecosystem," Maestri explained.
One area of services worth calling out, which management said continued to grow at a strong pace during fiscal Q4, is paid subscriptions.
"We have well over 1 billion paid subscriptions across the services on our platform, nearly double the number we had only three years ago," Maestri noted.
A flywheel effect
Notably, there's a flywheel effect at play for Apple's services business. Increasing content and features for its services segment leads to more engagement, and greater engagement leads to more satisfied customers and ultimately bolsters the total number of active devices. More active devices, of course, means Apple can invest more aggressively in content and features.
Maestri described this flywheel effect during the tech company's fiscal fourth-quarterearnings call
And really then we step back and we think about why is it that our services business is doing well, and it's because we have an installed base of customers that continues to grow at a very nice pace, and the engagement in our ecosystem continues to grow.
We have more transacting accounts. We have more paid accounts. We have more subscriptions on the platform. And we continue to ... add content and features. We're adding a lot of content on TV+, new games on Apple Arcade, new features, new storage plans for iCloud. So it's the combination of all these things and the fact that the engagement in the ecosystem is improving, and therefore, it benefits every service category.
A high-margin business
But services' strong top-line growth and broad-based underlying momentum is only half of the picture. Investors can't fully appreciate Apple's services business until they realize how lucrative it is. Apple's services gross profit margin in fiscal Q4 was 70.9%. This compares to its average gross profit margin of 36.6% for its hardware. In fact, Apple's strong growth in services, combined with the segment's high gross profit margin, is the main reason the company grew its earnings per share 13% year over year in fiscal Q4 despite revenue falling almost 1%.
Today, Apple's services business accounts for less than a fourth of revenue and 39% of its gross profit. This powerful catalyst, however, looks poised to only become more important to the company over time. Patient and long-term oriented investors, therefore, have a good reason to be bullish 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
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. 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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Some investors may be baffled by Apple (NASDAQ: AAPL) stock's strong performance recently, including a gain of more than 5% over the last week and nearly 39% year to date. One area of services worth calling out, which management said continued to grow at a strong pace during fiscal Q4, is paid subscriptions. "We have well over 1 billion paid subscriptions across the services on our platform, nearly double the number we had only three years ago," Maestri noted.
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Some investors may be baffled by Apple (NASDAQ: AAPL) stock's strong performance recently, including a gain of more than 5% over the last week and nearly 39% year to date. A loyal user base You can't talk about Apple's services business without acknowledging its installed base of active devices, numbered in the billions. This installed base "establishes a solid foundation" for continued expansion of its services business, Maestri said during the company'searnings call Broad-based growth drivers for the segment Highlighting services' incredible momentum, the segment's fiscal Q4 16% year-over-year revenue growth was fueled by growth in every services category and geographic segment.
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Some investors may be baffled by Apple (NASDAQ: AAPL) stock's strong performance recently, including a gain of more than 5% over the last week and nearly 39% year to date. Though Apple didn't provide an updated figure on exactly how many Apple devices are being actively used around the world, Apple's chief financial officer Luca Maestri did say during the company's fiscal fourth-quarterearnings callthat it "continues to grow at a nice pace..." As of the company's last update on its size, Apple said it boasted more than two billion active devices. This installed base "establishes a solid foundation" for continued expansion of its services business, Maestri said during the company'searnings call Broad-based growth drivers for the segment Highlighting services' incredible momentum, the segment's fiscal Q4 16% year-over-year revenue growth was fueled by growth in every services category and geographic segment.
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Some investors may be baffled by Apple (NASDAQ: AAPL) stock's strong performance recently, including a gain of more than 5% over the last week and nearly 39% year to date. Here's a closer look at why Apple's services business is such a strong catalyst for the stock. Maestri described this flywheel effect during the tech company's fiscal fourth-quarterearnings call And really then we step back and we think about why is it that our services business is doing well, and it's because we have an installed base of customers that continues to grow at a very nice pace, and the engagement in our ecosystem continues to grow.
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12631.0
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2023-11-07 00:00:00 UTC
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US consumer watchdog proposes rules for Big Tech payments, digital wallets
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AAPL
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https://www.nasdaq.com/articles/us-consumer-watchdog-proposes-rules-for-big-tech-payments-digital-wallets
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nan
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nan
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WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards.
The Consumer Financial Protection Bureau's proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O and PayPal PYPL.O to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct, and compliance with laws barring unfair and deceptive practices.
Since becoming director in 2021, Chopra has steadily increased CFPB scrutiny of the sector, seeking information in 2021 on how Big Tech companies use consumer data and last year launching an inquiry into their payments platforms.
In a statement on Tuesday, Chopra said the tech sector had expanded into financial services traditionally provided by the closely regulated banking sector.
In a speech last month Chopra said CFPB research had found tech giants collected vast amounts of consumer payments data with few limits, scant transparency and confusing corporate policies, putting consumers at risk of Chinese-style surveillance by the companies.
Representatives of Big Tech companies have previously highlighted their efforts to protect consumer data.
Tuesday's proposal would apply to companies handling more than 5 million transactions a year. The agency said the rule would also foster competition by ensuring that both traditional financial players and the tech sector were equally subject to the same oversight.
The proposal is now subject to a notice-and-comment period expected to end in early 2024.
(Reporting by Douglas Gillison in Washington Additional reporting by Chris Prentice in New York Editing by Michelle Price and Matthew Lewis)
((douglas.gillison@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Consumer Financial Protection Bureau's proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O and PayPal PYPL.O to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct, and compliance with laws barring unfair and deceptive practices. WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards. Since becoming director in 2021, Chopra has steadily increased CFPB scrutiny of the sector, seeking information in 2021 on how Big Tech companies use consumer data and last year launching an inquiry into their payments platforms.
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The Consumer Financial Protection Bureau's proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O and PayPal PYPL.O to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct, and compliance with laws barring unfair and deceptive practices. WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards. In a statement on Tuesday, Chopra said the tech sector had expanded into financial services traditionally provided by the closely regulated banking sector.
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The Consumer Financial Protection Bureau's proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O and PayPal PYPL.O to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct, and compliance with laws barring unfair and deceptive practices. WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards. In a speech last month Chopra said CFPB research had found tech giants collected vast amounts of consumer payments data with few limits, scant transparency and confusing corporate policies, putting consumers at risk of Chinese-style surveillance by the companies.
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The Consumer Financial Protection Bureau's proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O and PayPal PYPL.O to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct, and compliance with laws barring unfair and deceptive practices. Since becoming director in 2021, Chopra has steadily increased CFPB scrutiny of the sector, seeking information in 2021 on how Big Tech companies use consumer data and last year launching an inquiry into their payments platforms. In a statement on Tuesday, Chopra said the tech sector had expanded into financial services traditionally provided by the closely regulated banking sector.
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12632.0
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2023-11-07 00:00:00 UTC
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China boosts green aluminium certification as demand grows
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AAPL
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https://www.nasdaq.com/articles/china-boosts-green-aluminium-certification-as-demand-grows
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nan
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By Siyi Liu and Mai Nguyen
Nov 7 (Reuters) - A Beijing-backed industry association that began certifying low-carbon aluminium in June said it expects to accredit about 2.75 million metric tons as green this year, equivalent to about 7% of industry production, and rising to 4 million tons in 2024.
China is by far the world's biggest producer of aluminium, which can be highly polluting given its heavy electricity use. In China, that power is mainly fuelled by coal, although the industry has been increasing its use of hydropower and other renewable sources.
Ma Cunzhen, director of the China Green Metal Certification Center (CGMC) under the China Nonferrous Metal Industry Association, told Reuters that demand for a greener supply chain from global brands such as Apple AAPL.O , Audi and BMW BMWG.DE is pushing Chinese aluminium smelters to seek proof that their products generate low emissions.
The CGMC has certified 2.24 million tons of green aluminium so far from 28 companies including the country's biggest smelters, and is assessing another 500,000 tons this year, a process that usually takes a week per application, Ma said.
"We are seeing great responses from companies who are seeking to get the assessment as soon as possible," Ma said.
Among big players, Chalco's 601600.SS Qinghai unit and Henan Zhongfu Industrial's 600595.SS Sichuan province operation have obtained CGMC verification, according to their websites.
CGMC provides the certificate for aluminium made with only renewable power sources such as hydro, wind or solar, Ma said.
While there is a modest premium in Europe for green-certified aluminium, smelters in China are not yet able to charge more for having the verification, according to Asian traders, bankers and producers.
In China, using coal-fired power for the electrolysis process generates nearly 14 tons of carbon dioxide per ton of primary aluminium, which can shrink to under 2 tons using renewable power sources, Ma said.
A one-year certificate costs 2 yuan ($0.2748) a ton, a small fraction of the current aluminium price of 19,190 yuan a ton on the Shanghai Futures Exchange SAFcv1.
The European Union's Carbon Border Adjustment Mechanism (CBAM), set to take full effect in 2026, is expected to further boost demand for green certification, Ma said.
State-backed Chinese research house Antaike predicts that domestic demand for green aluminium will more than double from 5 million tons in 2022 to 12 million tons in 2030, while demand ex-China will double to 3 million tons in the same period.
($1 = 7.2785 yuan)
China green aluminium demand by sectors https://tmsnrt.rs/3sfQUXg
(Reporting by Siyi Liu in Beijing and Mai Nguyen in Hanoi; Editing by Tony Munroe and Tomasz Janowski)
((Siyi.Liu@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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Ma Cunzhen, director of the China Green Metal Certification Center (CGMC) under the China Nonferrous Metal Industry Association, told Reuters that demand for a greener supply chain from global brands such as Apple AAPL.O , Audi and BMW BMWG.DE is pushing Chinese aluminium smelters to seek proof that their products generate low emissions. Among big players, Chalco's 601600.SS Qinghai unit and Henan Zhongfu Industrial's 600595.SS Sichuan province operation have obtained CGMC verification, according to their websites. The European Union's Carbon Border Adjustment Mechanism (CBAM), set to take full effect in 2026, is expected to further boost demand for green certification, Ma said.
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Ma Cunzhen, director of the China Green Metal Certification Center (CGMC) under the China Nonferrous Metal Industry Association, told Reuters that demand for a greener supply chain from global brands such as Apple AAPL.O , Audi and BMW BMWG.DE is pushing Chinese aluminium smelters to seek proof that their products generate low emissions. The CGMC has certified 2.24 million tons of green aluminium so far from 28 companies including the country's biggest smelters, and is assessing another 500,000 tons this year, a process that usually takes a week per application, Ma said. State-backed Chinese research house Antaike predicts that domestic demand for green aluminium will more than double from 5 million tons in 2022 to 12 million tons in 2030, while demand ex-China will double to 3 million tons in the same period.
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Ma Cunzhen, director of the China Green Metal Certification Center (CGMC) under the China Nonferrous Metal Industry Association, told Reuters that demand for a greener supply chain from global brands such as Apple AAPL.O , Audi and BMW BMWG.DE is pushing Chinese aluminium smelters to seek proof that their products generate low emissions. In China, using coal-fired power for the electrolysis process generates nearly 14 tons of carbon dioxide per ton of primary aluminium, which can shrink to under 2 tons using renewable power sources, Ma said. State-backed Chinese research house Antaike predicts that domestic demand for green aluminium will more than double from 5 million tons in 2022 to 12 million tons in 2030, while demand ex-China will double to 3 million tons in the same period.
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Ma Cunzhen, director of the China Green Metal Certification Center (CGMC) under the China Nonferrous Metal Industry Association, told Reuters that demand for a greener supply chain from global brands such as Apple AAPL.O , Audi and BMW BMWG.DE is pushing Chinese aluminium smelters to seek proof that their products generate low emissions. By Siyi Liu and Mai Nguyen Nov 7 (Reuters) - A Beijing-backed industry association that began certifying low-carbon aluminium in June said it expects to accredit about 2.75 million metric tons as green this year, equivalent to about 7% of industry production, and rising to 4 million tons in 2024. The CGMC has certified 2.24 million tons of green aluminium so far from 28 companies including the country's biggest smelters, and is assessing another 500,000 tons this year, a process that usually takes a week per application, Ma said.
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12633.0
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2023-11-07 00:00:00 UTC
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Taiwan October exports drop unexpectedly but recovery seen ahead
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AAPL
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https://www.nasdaq.com/articles/taiwan-october-exports-drop-unexpectedly-but-recovery-seen-ahead
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nan
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By Sarah Wu
TAIPEI, Nov 7 (Reuters) - Taiwan's exports fell unexpectedly in October on weak global demand for the island's technology products, as sluggish sales to China offset strong shipments to the United States ahead of the year-end holiday shopping season.
October exports fell 4.5% in value from a year earlier to $38.11 billion, the finance ministry said on Tuesday, missing analysts' forecasts in a Reuters poll for a 1.05% expansion.
Shipments also worsened on the 3.4% expansion in September.
For November, the ministry predicted exports would be between +3% to +6%.
Strong technology driven by artificial intelligence (AI) was not enough to offset sluggish global demand for consumer electronics, the ministry said, adding that a high base from a year earlier also contributed to the decline in exports.
The ministry said, however, Taiwan's exports should "stabilize" in the near future thanks to new technologies including AI and new product launches by international vendors.
"The dawn is breaking," ministry official Beatrice Tsai told reporters, describing the exports outlook for this quarter.
Taiwan's export-dependent economy grew faster than expected in the third quarter, helped by domestic consumption, though exports remained weak as flagging global demand hit sales of the island's hi-tech products.
The ministry expected exports this year to drop about 10%, the biggest dip in eight years.
In October, Taiwan's total shipments of electronic components fell 7.4% from the year before to $15.64 billion, with semiconductor exports down 6.5%.
Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, while providing chips for auto companies and lower-end consumer goods.
Taiwan's exports to China fell 3.6% in October from a year earlier to $14.18 billion, after the prior month's drop of 8.8%. The Chinese economy is beginning to stabilise after a rocky post-COVID recovery.
Taiwan's exports to the United States rose 12.1% to a record high for any month, but slowing from 17.7% growth in September.
October imports, often seen as a leading indicator of re-exports of finished products, dropped 12.3% to $32.34 billion. That compared with economists' forecasts for a 14.55% fall.
(Reporting by Sarah Wu and Yimou Lee; Editing by Bernadette Baum)
((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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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, while providing chips for auto companies and lower-end consumer goods. By Sarah Wu TAIPEI, Nov 7 (Reuters) - Taiwan's exports fell unexpectedly in October on weak global demand for the island's technology products, as sluggish sales to China offset strong shipments to the United States ahead of the year-end holiday shopping season. Strong technology driven by artificial intelligence (AI) was not enough to offset sluggish global demand for consumer electronics, the ministry said, adding that a high base from a year earlier also contributed to the decline in exports.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, while providing chips for auto companies and lower-end consumer goods. By Sarah Wu TAIPEI, Nov 7 (Reuters) - Taiwan's exports fell unexpectedly in October on weak global demand for the island's technology products, as sluggish sales to China offset strong shipments to the United States ahead of the year-end holiday shopping season. Strong technology driven by artificial intelligence (AI) was not enough to offset sluggish global demand for consumer electronics, the ministry said, adding that a high base from a year earlier also contributed to the decline in exports.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, while providing chips for auto companies and lower-end consumer goods. By Sarah Wu TAIPEI, Nov 7 (Reuters) - Taiwan's exports fell unexpectedly in October on weak global demand for the island's technology products, as sluggish sales to China offset strong shipments to the United States ahead of the year-end holiday shopping season. October exports fell 4.5% in value from a year earlier to $38.11 billion, the finance ministry said on Tuesday, missing analysts' forecasts in a Reuters poll for a 1.05% expansion.
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Taiwanese firms such as TSMC 2330.TW, TSM.N, the world's largest contract chipmaker, are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech giants, while providing chips for auto companies and lower-end consumer goods. By Sarah Wu TAIPEI, Nov 7 (Reuters) - Taiwan's exports fell unexpectedly in October on weak global demand for the island's technology products, as sluggish sales to China offset strong shipments to the United States ahead of the year-end holiday shopping season. October exports fell 4.5% in value from a year earlier to $38.11 billion, the finance ministry said on Tuesday, missing analysts' forecasts in a Reuters poll for a 1.05% expansion.
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12634.0
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2023-11-07 00:00:00 UTC
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Warren Buffett's Best 5 Artificial Intelligence (AI) Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-best-5-artificial-intelligence-ai-stocks
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nan
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nan
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Warren Buffett has been at the helm of the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company since 1965. He has steered the conglomerate to an average annual return of 19.8% during that 58-year stretch, double the return of the S&P 500 index over the same period.
But that doesn't tell the whole story. Thanks to the effects of compounding, a $1,000 investment in Berkshire in 1965 would be worth a whopping $37.8 million today. The same investment in the S&P 500 would be worth just $247,080.
Buffett's investing strategy is simple. He buys stakes in profitable companies with steady growth, especially if they regularly return money to shareholders and have strong management teams.
Image source: Getty Images.
Technology stocks normally don't fit Buffett's strategy
Most technology companies focus on growth over profitability, rarely having spare cash to return to shareholders. That also means very few of them capture Buffett's attention. However, a handful of high-quality tech stocks have found their way into Berkshire's portfolio over the years -- even if Buffett himself didn't make the decision.
Nonetheless, artificial intelligence (AI) is one technology that will likely impact companies across many industries. While Buffett would never base his investment decisions on the potential of AI, it's becoming clear that Berkshire's long-term success might depend heavily on the technology.
Below, I'll highlight five of the best AI stocks in Berkshire's $342 billion portfolio of publicly listed securities.
1. Coca-Cola
Coca-Cola (NYSE: KO) stock has been in Berkshire's portfolio since 1988. As a result, there's no way AI factored into Buffett's decision to buy. However, the beverage giant is applying the technology in a couple of ways, and it even appointed a global head of generative AI in June.
The company used AI to craft a recent marketing campaign called Masterpiece, which featured a short video created with generative AI content. In September, it also launched a new promotional soda called Coca-Cola Y3000 Zero Sugar, which was formulated by AI. The company collected consumer data relating to how they imagined the future and then fed it into an AI model to produce a drink resembling what Coca-Cola might taste like in the year 3000.
While these initiatives seem gimmicky, they highlight how AI can boost productivity even in a non-technology company. Over the long term, investors should expect more marketing campaigns -- and more products -- to be designed by AI. And Buffett might be glad Berkshire still holds $22.9 billion worth of Coca-Cola stock when that happens.
2. Amazon
Amazon (NASDAQ: AMZN) is using AI more directly than Coca-Cola. In fact, it wants to be a key distributor of the technology to millions of businesses around the world through its cloud computing platform, Amazon Web Services (AWS).
Amazon hopes to accelerate its objectives in the AI industry with its latest $4 billion investment in generative AI start-up Anthropic. Anthropic will be required to train its future models on Amazon's Trainium and Inferentia data center chips, which could attract more AI developers who currently rely on Nvidia's hardware instead. Plus, Anthropic will use AWS as its primary cloud provider and will make all its future models available on the platform for customers to use.
Berkshire made its first purchase of Amazon stock in 2019, and while Buffett often expresses regret for not identifying the company's potential sooner, he might be very happy to catch this AI phase going forward.
3. Snowflake
Like Amazon, Snowflake (NYSE: SNOW) is a provider of cloud computing services with a growing presence in AI. Its revolutionary Data Cloud technology helps businesses aggregate their valuable data from across different cloud platforms, giving them maximum visibility and powerful analytical insights.
Data is the nectar of any AI model. Without it, AI is simply stagnant and can't be trained for further improvement. Therefore, the technology is a natural fit for Snowflake, given its customers use the platform to house so much of their critical information.
Snowflake has brought Nvidia's NeMo software to its platform, which is a framework for developers seeking to build large language models. Plus, the company recently acquired a start-up called Neeva, which uses AI to allow non-technical employees to search through data using natural language instead of programming language. That means more employees within an organization will be able to draw valuable insights from advanced data analysis.
Finally, Snowflake is developing new programs in-house, like Document AI, which enables customers to rapidly analyze unstructured data in legal contracts or invoices.
Snowflake is a tiny holding for Berkshire, representing just 0.3% of the conglomerate's portfolio, but it could have a significant amount of exposure to AI going forward.
4. Bank of America
As I touched on earlier, AI is going to impact several industries. Banking will likely be one of them because it's filled with repetitive, monotonous processes that could benefit from a productivity boost through automation. Bank of America (NYSE: BAC) is already proving that, and thankfully for Buffett, the stock represents 8.5% of Berkshire's portfolio.
In 2018, Bank of America launched an AI chatbot called Erica, and customers have interacted with it 1.5 billion times for a combined 10 million hours since then. It was designed to reduce traffic to the bank's physical branches and lower the number of incoming customer service phone calls. That ultimately saves Bank of America money on staff costs and boosts customer convenience.
In September, the bank integrated Erica's technology into its CashPro digital banking platform for its 40,000 business customers. It will allow those clients to call upon important information about their accounts quickly and access transaction records. And those capabilities will likely expand over time.
Bank of America plans to invest $3.8 billion in innovation next year, a wise decision, given AI's potential to substantially boost efficiency in the typically slow-moving banking industry.
5. Apple
Apple (NASDAQ: AAPL) could be described as Buffett's favorite stock. After all, it makes up 46.9% of Berkshire's $342 billion portfolio. The company produces some of the most popular consumer electronics in the world, led by its flagship iPhone smartphone. But now, it's ramping up its focus on AI in a couple of ways.
First, Apple launched its iPhone 15 Pro lineup in September with its new A17 Pro CPU processor, arguably the most powerful smartphone chip on the market. It's capable of handling AI workloads on-device at a faster rate than ever before. The neural engine in the A17 Pro is twice as fast as previous versions, meaning it can accelerate machine learning-driven features like predictive text and the Siri voice assistant.
Second, Apple is rumored to be investing heavily in developing large language models to power its own ChatGPT competitor, which could be capable of generating text, images, and video. Considering Apple's devices are rolling out with AI-enabled semiconductor hardware, the stage is set for the company to deliver waves of AI software in the future to enhance the user experience.
Apple is the world's largest company, with a valuation of $2.7 trillion, and if it wants to stay there, developing AI will be critical. Thankfully for Berkshire, the company appears to be doing exactly that.
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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. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Bank of America, Berkshire Hathaway, Nvidia, and Snowflake. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) could be described as Buffett's favorite stock. Anthropic will be required to train its future models on Amazon's Trainium and Inferentia data center chips, which could attract more AI developers who currently rely on Nvidia's hardware instead. Berkshire made its first purchase of Amazon stock in 2019, and while Buffett often expresses regret for not identifying the company's potential sooner, he might be very happy to catch this AI phase going forward.
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Apple Apple (NASDAQ: AAPL) could be described as Buffett's favorite stock. Warren Buffett has been at the helm of the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company since 1965. Technology stocks normally don't fit Buffett's strategy Most technology companies focus on growth over profitability, rarely having spare cash to return to shareholders.
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Apple Apple (NASDAQ: AAPL) could be described as Buffett's favorite stock. The company used AI to craft a recent marketing campaign called Masterpiece, which featured a short video created with generative AI content. Amazon hopes to accelerate its objectives in the AI industry with its latest $4 billion investment in generative AI start-up Anthropic.
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Apple Apple (NASDAQ: AAPL) could be described as Buffett's favorite stock. Technology stocks normally don't fit Buffett's strategy Most technology companies focus on growth over profitability, rarely having spare cash to return to shareholders. Second, Apple is rumored to be investing heavily in developing large language models to power its own ChatGPT competitor, which could be capable of generating text, images, and video.
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2023-11-07 00:00:00 UTC
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Apple CEO Tim Cook's 6 Words That Could Point to a Higher-Growth Future for the Tech Giant
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AAPL
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https://www.nasdaq.com/articles/apple-ceo-tim-cooks-6-words-that-could-point-to-a-higher-growth-future-for-the-tech-giant
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nan
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Based on its market cap, Apple (NASDAQ: AAPL) ranks as the biggest company in the world, valued at close to $2.8 trillion. It generated more than $383 billion in sales in its latest fiscal year and nearly $97 billion in profits. The company sits atop a cash stockpile of more than $162 billion.
All those big numbers would seem to imply Apple is doing great. There's just one glaring problem: Apple's overall sales aren't growing.
Don't assume this is a permanent problem, though. Actually, there's reason to believe it won't be. Apple CEO Tim Cook said six words in the company's recentearnings callthat could point to a higher-growth future for the tech giant.
An intriguing question and a cryptic answer
In the conference call last week, Arete Research analyst Richard Kramer posed the last question -- and it was an intriguing one. Kramer first noted that Apple's annual research and development spending has increased by $8 billion over the past two years. He then asked what the main drivers behind the higher R&D investment were.
Kramer mentioned some possible areas for Apple's significant R&D in his question. He asked: "Is it Apple silicon? Is it new products like Vision Pro, or is it content to support new services?"
Cook confirmed that some of Apple's R&D spending increase over the last couple of years was indeed related to Vision Pro, the company's mixed-reality headset scheduled to launch in 2024. He also stated that some of the higher R&D amount was due to Apple's investment in its own silicon chips that are powering its new Mac computers.
There was also an area of heavier R&D costs that Kramer didn't list. Cook acknowledged that Apple is ramping up its investment in artificial intelligence (AI) and machine learning (ML). However, perhaps the most important part of his response was a cryptic answer of just six words: "Some things I can't talk about."
What might Apple be developing?
What might Apple be developing that Cook can't (or, more accurately, won't) talk about? I can think of five products off the top of my head that Apple is rumored to be working on.
First, it's been widely reported that Apple is developing its own chatbot that's been referred to as "Apple GPT" built on its Ajax large language model. However, since Cook specifically mentioned AI and ML in his answer about what's behind the company's increased R&D spending, we could potentially scratch this one off the list.
Another possibility is that Apple is building its own search engine. Some think this could be a smart move for the company that would significantly boost its advertising revenue. An argument against this theory, though, is that Alphabet will pay Apple a whopping $19 billion this year for Google Search to be the default search engine on the company's Safari browser, based on one analyst's estimate.
Apple is also rumored to be working on a self-driving electric car. There are ample reasons to believe these rumors are true. Some predict that the "Apple car" will be unveiled in 2026 and that its price tag will be below $100,000.
I think that augmented reality (AR) glasses could be another top candidate. Apple has made AR a big focus with Vision Pro. It wouldn't be surprising if the company uses some of the technology incorporated in its forthcoming mixed-reality headset in a lower-cost device as well.
Finally, there's no question that Apple is continuing to invest in R&D related to the iPhone. I'd put money on the company rolling out a folding version of its smartphone in the near future. There could be other innovations on the way as well.
What we don't know will probably help us
It wouldn't surprise me if Apple is developing all the products mentioned, plus others not on the list. We can't know for sure. But what we can know for sure is that Apple's management isn't spending money on R&D that it doesn't think will eventually pay off.
Take a look at the chart. Over the long term, Apple's revenue growth has tracked pretty well with its R&D investment growth.
AAPL Research and Development Expense (TTM) data by YCharts
Now look at the more recent trend. Apple's revenue growth is much slower than its R&D growth.
AAPL Research and Development Expense (TTM) data by YCharts
Over a longer time period, the company's revenue growth climbed at a similar trajectory as its R&D spending growth. I suspect that we'll see Apple's R&D investments begin to pay off in a bigger way in the coming years as history repeats itself.
In a sense, I'm glad that Tim Cook can't talk about some of the things that Apple is doing. For all of us Apple shareholders, what we don't know in this case will probably help us over the long term.
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*Stock Advisor returns as of October 30, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Based on its market cap, Apple (NASDAQ: AAPL) ranks as the biggest company in the world, valued at close to $2.8 trillion. AAPL Research and Development Expense (TTM) data by YCharts Now look at the more recent trend. AAPL Research and Development Expense (TTM) data by YCharts Over a longer time period, the company's revenue growth climbed at a similar trajectory as its R&D spending growth.
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AAPL Research and Development Expense (TTM) data by YCharts Now look at the more recent trend. AAPL Research and Development Expense (TTM) data by YCharts Over a longer time period, the company's revenue growth climbed at a similar trajectory as its R&D spending growth. Based on its market cap, Apple (NASDAQ: AAPL) ranks as the biggest company in the world, valued at close to $2.8 trillion.
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Based on its market cap, Apple (NASDAQ: AAPL) ranks as the biggest company in the world, valued at close to $2.8 trillion. AAPL Research and Development Expense (TTM) data by YCharts Now look at the more recent trend. AAPL Research and Development Expense (TTM) data by YCharts Over a longer time period, the company's revenue growth climbed at a similar trajectory as its R&D spending growth.
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Based on its market cap, Apple (NASDAQ: AAPL) ranks as the biggest company in the world, valued at close to $2.8 trillion. AAPL Research and Development Expense (TTM) data by YCharts Now look at the more recent trend. AAPL Research and Development Expense (TTM) data by YCharts Over a longer time period, the company's revenue growth climbed at a similar trajectory as its R&D spending growth.
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12636.0
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2023-11-07 00:00:00 UTC
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Should Franklin U.S. Large Cap Multifactor Index ETF (FLQL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-franklin-u.s.-large-cap-multifactor-index-etf-flql-be-on-your-investing-radar-6
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nan
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nan
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Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) 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 Franklin Templeton Investments. It has amassed assets over $1.05 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.78%.
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 33.90% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.72% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 30.39% of total assets under management.
Performance and Risk
FLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses. The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
The ETF has gained about 13.58% so far this year and it's up approximately 14.60% in the last one year (as of 11/07/2023). In the past 52-week period, it has traded between $38.77 and $45.68.
The ETF has a beta of 0.92 and standard deviation of 15.84% for the trailing three-year period. With about 213 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Large Cap Multifactor Index 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, FLQL is a good 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 $355.56 billion in assets, SPDR S&P 500 ETF has $406.18 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Franklin U.S. Large Cap Multifactor Index ETF (FLQL): 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 7.72% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): 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 $1.05 billion, making it one of the larger 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 7.72% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): 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. Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) 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 Franklin U.S. Large Cap Multifactor Index ETF (FLQL): 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 7.72% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Alternatives Franklin U.S. Large Cap Multifactor Index 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 7.72% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): 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. Launched on 04/26/2017, the Franklin U.S. Large Cap Multifactor Index ETF (FLQL) 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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12637.0
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2023-11-07 00:00:00 UTC
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7 Blue-Chip Stocks With Share Buyback Programs
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AAPL
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https://www.nasdaq.com/articles/7-blue-chip-stocks-with-share-buyback-programs
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s no surprise that there are many blue-chip stocks with share buyback programs. Alongside the paying out of dividends, share buybacks are a great vehicle for mature businesses to maximize value for investors.
Mostly, because share buybacks, also known as share repurchases, decreases the number of outstanding shares. This helps to give an upward lift to earnings per share, in turn helping to increase returns for investors.
The usage of share repurchases varies from company-to-company. Some blue chips prefer to focus their return-of-capital efforts on just dividends, reinvesting the remainder of free cash flow back into efforts to grow their respective businesses, such as organic growth and/or strategic acquisitions.
Other companies, however, devote a big allocation of free cash to share repurchase programs. That’s the situation here, with the following seven blue-chip stocks with share buyback programs.
Each one is in the process of repurchasing at least $1 billion worth of its own stock.
Apple (AAPL)
Source: pio3 / Shutterstock.com
Apple (NASDAQ:AAPL), trillion dollar club member and “Magnificent Seven” component, may be best known as a growth stock, but in one regard, the tech powerhouse acts more like a mature, blue-chip sort of company: return of capital efforts.
When it comes to dividends, AAPL stock is far from a high-yielder. Shares currently have a forward dividend yield of 0.54%. However, in stock buybacks, the company has been quite active over the past decade. According to Yahoo! Finance, the iPhone maker has bought back more than $573 billion worth of stock since 2012.
Two years in a row, Apple’s board has given authorization to the company to repurchase $90 billion of its own shares. Alongside the growth of its underlying business, Apple’s aggressive repurchase program has undoubtedly played a big role in sending the stock up by more than ninefold over the past eleven years.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) may at first glance not seem like a blue-chip stock. To some extent, this makes sense. Although established and profitable, the customer relationship management software provider is a relatively young company, not a century-old business as are most blue-chips.
That said, CRM stock, much like AAPL stock, is a Dow Jones Industrial Average component. While a “new school” company, inclusion in this “old school” index gives credence to the argument that Salesforce is among the tech blue chips.
Yet while CRM’s blue-chip status is up for debate, there’s no denying that if it is, it’s one of the blue-chip stocks with share buyback programs.
In fact, Salesforce has become quite aggressive when it comes to repurchase efforts. In 2022, under pressure from activist investors, CRM’s board authorized a $10 billion buyback, and this year the company announced plans to repurchase $20 billion worth of shares.
Chevron (CVX)
Source: tishomir / Shutterstock.com
There’s no question about Chevron’s (NYSE:CVX) blue-chip status. The integrated oil and gas company, whose origins stem from the Standard Oil trust broken up more than 100 years ago, is as blue-chip as you can get.
The latest headlines with CVX stock have had to do with the big oil firm’s big acquisition announcement: its plans to acquire oil and gas exploration/production company Hess (NYSE:HES), in a $53 billion all-stock deal.
Yet while Chevron has a massive transaction on its plate, don’t assume that management is putting the brakes on share repurchases.
Instead, once the deal (expected to be accretive to cash flow per share) closes, Chevron intends to slightly increase its repurchase target, from $17.5 billion to $20 billion per year. In terms of dividends, the company is now proposing an 8% increase to its quarterly payout, effective this upcoming January.
HP (HPQ)
Source: Ken Wolter / Shutterstock.com
Admittedly, “former blue-chip” may be a more accurate descriptor for HP (NYSE:HPQ). Yet while removed from the Dow a decade ago, and continuing to struggle with growing its business during this time, the PC and printer company’s shares have gained by 132.8% since 2013.
A big reason for this is likely the fact HPQ stock has been one of the blue-chips with share buyback programs, aggressively buying back shares over the past few years. HPQ buybacks totaled $6.2 billion in FY2021 (ending October 2021), and $4.3 billion in FY2022.
While easing on buybacks during FY2023, HP plans to tap into this strategy again this fiscal year. The company intends to use all of its free cash flow for return of capital efforts. Based on the planned level of dividend payouts, this implies at least $2 billion in buybacks between now and next October.
Lowes (LOW)
Source: Helen89 / Shutterstock.com
In past coverage of Lowe’s (NYSE:LOW), I’ve argued why shares in this home improvement retailer are one of the best among the blue-chips. A big reason, of course, is the stock’s dividend aristocrat status.
Yet alongside this, another big reason to be bullish about LOW is the company’s share repurchase policy.
Late last year, management announced that the retailer intended to increase its existing buyback program (authorizing the repurchase of up to $6.4 billion in LOW stock) by another $15 billion. Lowes has bought back around $4.15 billion worth of shares during the first half of 2023, and could buy billions more in the coming quarters.
Even if the underlying business experiences a low level of growth over the next few years, these buybacks stand to boost Lowes’ earnings. The latest sell-side forecasts call for earnings to climb higher over the next few fiscal years.
United Parcel Service (UPS)
Source: Sundry Photography / Shutterstock.com
In August, I laid out the bear case for United Parcel Service (NYSE:UPS). In a nutshell, I argued that achieving labor peace with the Teamsters Union representing the transportation giant’s workers may have a negative impact on future earnings.
However, there may be a way for management to counter the impact of higher labor costs on the performance of UPS stock going forward: share repurchases.
Unions may bemoan buybacks, but being one of the blue-chip stocks with share buyback programs may be only way UPS’s shareholders can also “win,” following labor’s recent victory at the company.
For 2023, UPS is targeting around $3 billion in share repurchases. By repurchasing shares and reducing the share count, UPS could improve earnings performance and drive a recovery in its stock, which has been negatively affected by labor and recession worries.
Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
Just like Chevron, Exxon Mobil (NYSE:XOM) is another Standard Oil descendant with a penchant for share repurchases. Last December, the integrated oil and gas giant raised its share buyback program ceiling from $30 billion to $50 billion, and extended it through 2024.
Also similar to CVX, a big topic with XOM stock lately has the announcement of a mega-merger. As you likely heard, the company intends to acquire Pioneer Natural Resources (NYSE:PXD) in a $59.5 billion all-stock deal. Both of these things could bode well for Exxon shareholders.
Buybacks, coupled with cost-saving measures, are good news for future increases with earnings per share. The Pioneer transaction is expected to be immediately accretive to earnings, with additional cost and growth synergies expected to arise. Add in XOM’s 3.53% dividend, and the stock may be poised to deliver solid total returns in the years ahead.
On the date of publication, Thomas Niel 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.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.
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The post 7 Blue-Chip Stocks With Share Buyback Programs 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: pio3 / Shutterstock.com Apple (NASDAQ:AAPL), trillion dollar club member and “Magnificent Seven” component, may be best known as a growth stock, but in one regard, the tech powerhouse acts more like a mature, blue-chip sort of company: return of capital efforts. When it comes to dividends, AAPL stock is far from a high-yielder. That said, CRM stock, much like AAPL stock, is a Dow Jones Industrial Average component.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL), trillion dollar club member and “Magnificent Seven” component, may be best known as a growth stock, but in one regard, the tech powerhouse acts more like a mature, blue-chip sort of company: return of capital efforts. When it comes to dividends, AAPL stock is far from a high-yielder. That said, CRM stock, much like AAPL stock, is a Dow Jones Industrial Average component.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL), trillion dollar club member and “Magnificent Seven” component, may be best known as a growth stock, but in one regard, the tech powerhouse acts more like a mature, blue-chip sort of company: return of capital efforts. When it comes to dividends, AAPL stock is far from a high-yielder. That said, CRM stock, much like AAPL stock, is a Dow Jones Industrial Average component.
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Apple (AAPL) Source: pio3 / Shutterstock.com Apple (NASDAQ:AAPL), trillion dollar club member and “Magnificent Seven” component, may be best known as a growth stock, but in one regard, the tech powerhouse acts more like a mature, blue-chip sort of company: return of capital efforts. When it comes to dividends, AAPL stock is far from a high-yielder. That said, CRM stock, much like AAPL stock, is a Dow Jones Industrial Average component.
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12638.0
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2023-11-07 00:00:00 UTC
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3 Publicly Traded Companies That Are Ripe for a Spinoff
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AAPL
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https://www.nasdaq.com/articles/3-publicly-traded-companies-that-are-ripe-for-a-spinoff
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Announcements of company spinoffs boost the value of stock prices in the near term. Yet over the long term, the value of the spinoff’s shares must deliver growth on the top and bottom line for the good times to continue.
In Western Digital’s (NASDAQ:WDC) situation, activist investor Elliott Management pressured the company to split the business into two parts of Disk Drive and Flash Memory. The company tried to sell its flash-memory business to a Japanese company. But the deal fell through, so spinning off is the next best option.
It seems the best time to split a company into two or more parts is when those businesses are performing, not when they’re struggling. Let’s examine three businesses that currently are doing well that could master a split and then profit from the move.
Berkshire Hathaway (BRK-B)
Source: sdx15 / Shutterstock.com
Berkshire Hathaway (NYSE:BRK-B) reported Q3 2023 results on Nov. 4. They included a 40.6% increase in operating profits to $10.8 billion and a $157 billion cash hoard.
A big part of the improvement in its operating earnings was from its Geico Insurance business. It generated an underwriting profit of $1.05 billion, 233% higher than its loss a year ago.
Although Berkshire’s growth in operating earnings should be the story of the quarter, most people are focused on the $157 billion in cash. Warren Buffett invests that cash into short-term Treasuries. Then the company turns them over every 3-6 months, earning nearly 5% interest. That alone would generate almost $8 billion annually for the company.
The only bad news was $23.5 billion in losses from its investments, which included a 12% decline in the value of Apple (NASDAQ:AAPL) during the quarter. Apple accounts for 47% of its $345 billion equity portfolio.
Comcast (CMCSA)
Source: Todd A. Merport / Shutterstock.com
Comcast (NASDAQ:CMCSA) CEO Brian Roberts discussed the early years working for his dad’s business on an episode of the David Rubenstein Show. More than six years old, Roberts has been busy growing the company since then.
The episode talks a lot about its cable business. We all know that’s not where the real growth is. Investors thought it was direct-to-consumer (DTC) streaming. But as Walt Disney (NYSE:DIS) showed, it’s not easy to make money from DTC.
A quick look at its 2022 annual report gives me a general idea.
Its Cable Communications segment accounted for 52% of its revenue and 76% of its adjusted EBITDA in 2022. It is the engine that drives the bus.
However, that leaves 48% of $121.4 billion in annual revenue from its NBCUniversal business, Sky in the UK and Comcast Spectacor. The latter owns the Philadelphia Flyers and Wells Fargo Center in Philadelphia.
There aren’t many publicly traded sports teams in North America.
Why not spinoff NBC Universal and Sky into an independent business? Call it Spinco A. Then, in a second move, spinoff NBC Sports and Comcast Spectacor into a third independent public company, Spinco B.
Comcast would control Spinco A, which in turn would control Spinco B.
The former would improve its adjusted EBITDA margin. The latter would move to add other sports teams to its portfolio.
Investors would appreciate separating the businesses into three distinct opportunities, each with a specific risk profile.
NextEra Energy (NEE)
Source: ConceptCafe/Shutterstock
NextEra Energy (NYSE:NEE) is America’s largest utility. It also owns NextEra Resources, the world’s largest generator of renewable energy from wind, solar, and battery storage.
NextEra’s stock is down nearly 30% in 2023 and 24% over the past year. This is primarily because of its clean energy business. Higher interest rates have made large renewable energy projects more expensive.
However, interest rates aren’t likely to stay this high for more than 12-24 months. Ultimately, they’ll fall, and clean energy stocks will ride the next wave of investor enthusiasm.
At the end of 2020, Brookfield Renewable Partner LP (NYSE:BEP) had a price-to-sales ratio of 4.2. It’s currently down to 1.3. So, counterintuitively, now is the time to spin off NextEra Resources.
In 2022, NEER’s 53.8% investment in NextEra Energy Partners (NYSE:NEP) and its rate-regulated transmission business had $3.72 billion in revenue. At the same 2020 multiple as Brookfield, on a P/S basis, it would have a $16.6 billion market capitalization. Now, it’s not going to get that in the current environment, but it will in 24 months.
You go now because that ensures Florida Power and Light’s valuation is affected by the two businesses operating under one roof. Another possibility is to merge NEER with Brookfield to form an even larger global renewables business.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post 3 Publicly Traded Companies That Are Ripe for a Spinoff 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 only bad news was $23.5 billion in losses from its investments, which included a 12% decline in the value of Apple (NASDAQ:AAPL) during the quarter. In Western Digital’s (NASDAQ:WDC) situation, activist investor Elliott Management pressured the company to split the business into two parts of Disk Drive and Flash Memory. 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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The only bad news was $23.5 billion in losses from its investments, which included a 12% decline in the value of Apple (NASDAQ:AAPL) during the quarter. Berkshire Hathaway (BRK-B) Source: sdx15 / Shutterstock.com Berkshire Hathaway (NYSE:BRK-B) reported Q3 2023 results on Nov. 4. Then, in a second move, spinoff NBC Sports and Comcast Spectacor into a third independent public company, Spinco B. Comcast would control Spinco A, which in turn would control Spinco B.
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The only bad news was $23.5 billion in losses from its investments, which included a 12% decline in the value of Apple (NASDAQ:AAPL) during the quarter. In Western Digital’s (NASDAQ:WDC) situation, activist investor Elliott Management pressured the company to split the business into two parts of Disk Drive and Flash Memory. Then, in a second move, spinoff NBC Sports and Comcast Spectacor into a third independent public company, Spinco B. Comcast would control Spinco A, which in turn would control Spinco B.
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The only bad news was $23.5 billion in losses from its investments, which included a 12% decline in the value of Apple (NASDAQ:AAPL) during the quarter. Although Berkshire’s growth in operating earnings should be the story of the quarter, most people are focused on the $157 billion in cash. Then, in a second move, spinoff NBC Sports and Comcast Spectacor into a third independent public company, Spinco B. Comcast would control Spinco A, which in turn would control Spinco B.
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12639.0
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2023-11-07 00:00:00 UTC
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Solar Energy Stocks: Everything You Need to Know Today
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AAPL
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https://www.nasdaq.com/articles/solar-energy-stocks%3A-everything-you-need-to-know-today
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nan
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nan
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Solar energy stocks have been decimated in 2023 after investors got word that installations are down, costs are up, and profits are evaporating across the industry. Not every company was hurt evenly, but all companies are affected.
In this video, Travis Hoium covers the industry's current trends, where there's opportunity, and where a recovery may not happen for years.
*Stock prices used were end-of-day prices as of Nov. 3, 2023. The video was published on Nov. 5, 2023.
10 stocks we like better than SolarEdge Technologies
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They just revealed what they believe are the ten best stocks for investors to buy right now... and SolarEdge Technologies 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
Travis Hoium has positions in Apple and SunPower. The Motley Fool has positions in and recommends Apple and Enphase Energy. The Motley Fool recommends SolarEdge Technologies. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Solar energy stocks have been decimated in 2023 after investors got word that installations are down, costs are up, and profits are evaporating across the industry. In this video, Travis Hoium covers the industry's current trends, where there's opportunity, and where a recovery may not happen for years. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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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 Apple and Enphase Energy. The Motley Fool recommends SolarEdge Technologies.
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10 stocks we like better than SolarEdge Technologies When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of October 30, 2023 Travis Hoium has positions in Apple and SunPower.
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In this video, Travis Hoium covers the industry's current trends, where there's opportunity, and where a recovery may not happen for years. See the 10 stocks *Stock Advisor returns as of October 30, 2023 Travis Hoium has positions in Apple and SunPower. The Motley Fool recommends SolarEdge Technologies.
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12640.0
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2023-11-07 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-4
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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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12641.0
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2023-11-07 00:00:00 UTC
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Pre-Market Most Active for Nov 7, 2023 : UBER, BMY, SQQQ, VTYX, AAPL, DDOG, TQQQ, LIFW, PINS, KMI, SNOW, PLTR
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-7-2023-%3A-uber-bmy-sqqq-vtyx-aapl-ddog-tqqq-lifw-pins-kmi
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 8.91 to 15,163.84. The total Pre-Market volume is currently 45,317,522 shares traded.
The following are the most active stocks for the pre-market session:
Uber Technologies, Inc. (UBER) is -0.49 at $47.65, with 3,900,952 shares traded. Smarter Analyst Reports: Uber Launches Holiday Hub; Street Says Buy
Bristol-Myers Squibb Company (BMY) is +0.21 at $53.00, with 3,322,598 shares traded. BMY's current last sale is 88.33% of the target price of $60.
ProShares UltraPro Short QQQ (SQQQ) is +0.03 at $18.64, with 3,308,416 shares traded. This represents a 13.8% increase from its 52 Week Low.
Ventyx Biosciences, Inc. (VTYX) is -10.69 at $3.40, with 2,939,344 shares traded.VTYX is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.88 per share, which represents a -59 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.53 at $178.70, with 2,337,391 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 $1.58. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Datadog, Inc. (DDOG) is +17.65 at $97.20, with 1,457,799 shares traded. As reported by Zacks, the current mean recommendation for DDOG is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.03 at $37.98, with 1,427,921 shares traded. This represents a 135.9% increase from its 52 Week Low.
MSP Recovery, Inc. (LIFW) is -1.26 at $8.39, with 1,226,444 shares traded.
Pinterest, Inc. (PINS) is -0.12 at $30.80, with 1,207,219 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.25. As reported by Zacks, the current mean recommendation for PINS is in the "buy range".
Kinder Morgan, Inc. (KMI) is -0.12 at $16.55, with 832,329 shares traded. KMI's current last sale is 82.75% of the target price of $20.
Snowflake Inc. (SNOW) is +10.55 at $154.75, with 616,571 shares traded. As reported by Zacks, the current mean recommendation for SNOW is in the "buy range".
Palantir Technologies Inc. (PLTR) is +0.02 at $18.56, with 551,640 shares traded. PLTR's current last sale is 116% of the target price of $16.
The views and 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 -0.53 at $178.70, with 2,337,391 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Uber Launches Holiday Hub; Street Says Buy
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Apple Inc. (AAPL) is -0.53 at $178.70, with 2,337,391 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.88 per share, which represents a -59 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.53 at $178.70, with 2,337,391 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 45,317,522 shares traded.
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Apple Inc. (AAPL) is -0.53 at $178.70, with 2,337,391 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 8.91 to 15,163.84.
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12642.0
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2023-11-07 00:00:00 UTC
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TQQQ, DISO: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/tqqq-diso%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 25,100,000 units were destroyed, or a 5.2% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is up about 0.8%, and Microsoft is up by about 1.1%.
And on a percentage change basis, the ETF with the biggest outflow was the DISO ETF, which lost 75,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior.
VIDEO: TQQQ, DISO: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of TQQQ, in morning trading today Apple is up about 0.8%, and Microsoft is up by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the DISO ETF, which lost 75,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior. VIDEO: TQQQ, DISO: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 25,100,000 units were destroyed, or a 5.2% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the DISO ETF, which lost 75,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior. VIDEO: TQQQ, DISO: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 25,100,000 units were destroyed, or a 5.2% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the DISO ETF, which lost 75,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior. VIDEO: TQQQ, DISO: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 25,100,000 units were destroyed, or a 5.2% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is up about 0.8%, and Microsoft is up by about 1.1%. And on a percentage change basis, the ETF with the biggest outflow was the DISO ETF, which lost 75,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior.
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12643.0
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2023-11-07 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq poised for longest win streak in 2 years on rate hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-poised-for-longest-win-streak-in-2-years-on-rate-hopes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Fed speakers maintain focus on inflation
Uber gains after Q3 results
Datadog jumps on annual forecast raise
Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99%
Updated at 2:44 p.m. ET/1844 GMT
Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve.
The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes US3YT=RR with auctions of the 10-year note and 30-year bond US30YT=RR due later this week.
Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
Both Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts.
Fed Chair Jerome Powell is set to speak on Wednesday and Thursday.
"That is the story today, that the Fed is done, but yesterday it was maybe not. Powell is going to speak on Thursday so that is going to leave the door open," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"But what the market is telling you - the market, traders - are pushing for is we're all done, it's a rate cut, almost as if they are trying to force the hand."
The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq.
The Dow Jones Industrial Average .DJI rose 45.28 points, or 0.13%, to 34,141.14, the S&P 500 .SPX gained 13.11 points, or 0.31 %, at 4,379.94 and the Nasdaq Composite .IXIC gained 135.13 points, or 0.99 %, at 13,652.76.
Energy .SPNY, the worst performing sector, fell 2.4% as crude prices settled down more than 4% on demand concerns and a firmer dollar.
Also due to speak on Tuesday was New York Fed President John Williams.
The S&P 500 .SPX is on pace for its seventh straight day in the green, with the Nasdaq .IXIC on track to rise for the eighth day in a row, the longest such streak for each index in two years. The Dow is up for a seventh straight session, its longest since a 13-session run in July.
Uber TechnologiesUBER.N rose 3% as the ride-hailing firmprojected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged 28.2% after raising its forecast for annual adjusted profit and revenue.
Declining issues outnumbered advancers by a 1.3-to-1 ratio on the NYSE while on the Nasdaq, advancing issues outnumbered decliners by a 1-to-1 ratio on the Nasdaq.
The S&P 500 posted 13 new 52-week highs and three new lows while the Nasdaq recorded 43 new highs and 132 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel and Richard Chang)
((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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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99% Updated at 2:44 p.m. ET/1844 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99% Updated at 2:44 p.m. ET/1844 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99% Updated at 2:44 p.m. ET/1844 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle.
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12644.0
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2023-11-07 00:00:00 UTC
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Wall St regains ground on megacap boost; Fed speakers in focus
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AAPL
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https://www.nasdaq.com/articles/wall-st-regains-ground-on-megacap-boost-fed-speakers-in-focus
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path.
Treasury yields slipped on Tuesday ahead of large bond auctions this week, with the benchmark ten-year Treasury yield US10YT=RR last at 4.5892%.
While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
Federal Reserve Bank of Minneapolis President Neel Kashkari doused hopes of early rate cuts, saying the central bank may have to do more to bring inflation back down to its 2% target.
Chicago Fed chief Austan Goolsbee acknowledged the downward trend in inflation but maintained price pressures are not yet over.
Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers.
"Originally, higher rates placed concern on the multiples of these stocks (but) it's shifting now to the idea that they may be a defensive place to be in this market. They have fairly bulletproof balance sheets," said Rick Meckler, partner at Cherry Lane Investments, in New Vernon, New Jersey.
Five of the 11 major S&P 500 sectors traded higher, with information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL leading gains.
Energy stocks .SPNY were the top decliners, down 2.4% as crude prices fell on mixed economic data from China. O/R
Market participants will parse commentary from New York Fed President John Williams later on Tuesday for more clues on the central bank's interest rate path. Fed Chair Jerome Powell's remarks will grab the spotlight on Wednesday.
The S&P 500 .SPX is set for its seventh straight day in the green, while the Nasdaq .IXIC is on track to rise for the eighth day in a row.
Despite the recent gains, uncertainty about the timing of rate cuts and the prospects of a recession have cast a doubt on whether there could be a year-end rally.
"Investors are not yet ready to completely jump back in. We're more likely to have a mixed market where you see sector rotation than we are to see a very significant year-end rally," Meckler said.
At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 93.99 points, or 0.28%, at 34,189.85, the S&P 500 .SPX was up 16.50 points, or 0.38%, at 4,382.48, and the Nasdaq Composite .IXIC was up 131.18 points, or 0.97%, at 13,649.96.
Uber TechnologiesUBER.N rose 3.5% as the ride-hailing firmprojected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged 28.5% on raising its forecast for annual adjusted profit and revenue.
Declining issues outnumbered advancers for a 1.15-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and three new lows, while the Nasdaq recorded 29 new highs and 87 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
((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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Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. Five of the 11 major S&P 500 sectors traded higher, with information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL leading gains.
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Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
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Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
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Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
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12645.0
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2023-11-07 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq score longest win streak in 2 years on rates view
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-score-longest-win-streak-in-2-years-on-rates-view
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Fed speakers keep focus on inflation
Uber gains after Q3 results
Datadog jumps on annual forecast raise
Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90%
Updated at 4:10 p.m. ET/1910 GMT
Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve.
The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes US3YT=RR with auctions of the 10-year note and 30-year bond US30YT=RR due later this week.
Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
Markets are pricing in a 90.2% chance the Fed will once again hold rates steady at its December policy meeting, up from 68.9% a week ago, according to CME's FedWatch Tool.
Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts.
Fed Chair Jerome Powell is set to speak on Wednesday and Thursday.
"That is the story today, that the Fed is done, but yesterday it was maybe not. Powell is going to speak on Thursday so that is going to leave the door open," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"But what the market is telling you - the market, traders - are pushing for is we're all done, it's a rate cut, almost as if they are trying to force the hand."
The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.1%, Apple AAPL.O, up 1.5%, and Amazon, which gained 2.1% as the biggest boosts to both the S&P 500 and Nasdaq.
The Dow Jones Industrial Average .DJI rose 56.94 points, or 0.17%, to 34,152.8; the S&P 500 .SPX gained 12.40 points, or 0.28 %, at 4,378.38 and the Nasdaq Composite .IXICadded 121.08 points, or 0.90 %, at 13,639.86.
The S&P 500 .SPX scored its seventh straight day in the green, with the Nasdaq .IXIC recording its eighth straight advance, the longest such streak for each index in two years. The Dow gained for a seventh straight session, its longest since a 13-session run in July.
Energy .SPNY, the worst performing sector on the session, fell 2.2% as crude prices settled down more than 4% on demand concerns and a firmer dollar.
Dallas Federal Reserve Bank President Lorie Logan also chimed in, saying that while she supported leaving the Fed's policy rate on hold last week to assess if financial conditions are sufficiently tight to bring down inflation, it still remains too high.
Uber TechnologiesUBER.N rose 3.7% as the ride-hailing firm projected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged 28% after raising its forecast for annual adjusted profit and revenue.
Declining issues outnumbered advancers by a 1.2-to-1 ratio on the NYSE, while on the Nasdaq declining issues outnumbered advancers by a 1.1-to-1 ratio.
The S&P 500 posted 15 new 52-week highs and three new lows while the Nasdaq recorded 48 new highs and 145 new lows.
Volume on U.S. exchanges was 10.08 billion shares, compared with the 10.94 billion average for the full session over the last 20 trading days.
(Reporting by Chuck Mikolajczak; Editing by Richard Chang)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and 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 pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.1%, Apple AAPL.O, up 1.5%, and Amazon, which gained 2.1% as the biggest boosts to both the S&P 500 and Nasdaq. Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.1%, Apple AAPL.O, up 1.5%, and Amazon, which gained 2.1% as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers keep focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90% Updated at 4:10 p.m. ET/1910 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. The Dow gained for a seventh straight session, its longest since a 13-session run in July.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.1%, Apple AAPL.O, up 1.5%, and Amazon, which gained 2.1% as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers keep focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90% Updated at 4:10 p.m. ET/1910 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.1%, Apple AAPL.O, up 1.5%, and Amazon, which gained 2.1% as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers keep focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90% Updated at 4:10 p.m. ET/1910 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle.
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12646.0
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2023-11-07 00:00:00 UTC
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Indian journalist targeted with NSO spyware, anti-corruption group says
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AAPL
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https://www.nasdaq.com/articles/indian-journalist-targeted-with-nso-spyware-anti-corruption-group-says
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nan
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nan
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By Zeba Siddiqui and Raphael Satter
SAN FRANCISCO/WASHINGTON, Nov 7 (Reuters) - Government-backed hackers tried to plant spyware made by NSO Group on the iPhone of an Indian journalist working for the Organized Crime and Corruption Reporting Project (OCCRP) in August, the organization’s co-founder said on Monday.
Analysis of the journalist's phone showed an infiltration attempt on Aug. 23, OCCRP's co-founder Drew Sullivan told Reuters. The journalist, Anand Mangnale, was among a series of people in India who received alerts from Apple AAPL.O last week warning them that they had been targeted by "state-sponsored" hackers trying to remotely access their iPhones.
Apple's alerts did not identify the government behind the hacks or the spyware used.
Sullivan said an internal forensic investigation tied the intrusion effort against Mangnale's phone to Israeli firm NSO's Pegasus hacking tool. The spyware allows hackers sweeping access to the targets' smartphones, allowing them to record calls, intercept messages and transform the phones into portable listening devices.
Use of the tool on Mangnale's phone was "unacceptable and outrageous," Sullivan said.
"Whatever government is spying on the reporters, there's no plausible explanation for that other than political gain," Sullivan said.
OCCRP, a global network of investigative journalists, is known for its sweeping, document-based exposes of corruption and organized crime.
Mangnale, who reports on corporate fraud and government corruption, wasn't immediately available for comment.
A company that did forensic work for OCCRP on Magnale's device - an anti-phone-hacking firm called iVerify - said it found a pattern of suspicious crashes on it that matched previously known Pegasus intrusions.
iVerify cofounder Rocky Cole said he could say "with high confidence that this phone was attacked with Pegasus."
The NSO Group said in an email that it had seen a pattern of organizations "going to the media without conclusive findings," but didn't address OCCRP's specific allegation.
Forensics experts, reporters and human rights workers have alleged the use of Pegasus in other countries too, including on phones of politicians in Poland and journalists in Mexico.
Apple's recent round of alerts reached more than 20 people in India, most of them opposition politicians, igniting a fresh storm of allegations that New Delhi is using hacking tools against its own citizens just months before a national Indian election is slated to begin.
The Indian government has denied such allegations and last week Information Technology Minister Ashwini Vaishnaw said that the government was investigating the complaints of phone hacking. The Indian Embassy in Washington and Indian government officials in New Delhi didn't return messages seeking comment on OCCRP's allegation that its India-based reporter was hacked, or on the status of the government's investigation into the hacking alerts.
(Reporting by Zeba Siddiqui and Raphael Satter; Additional reporting by Munsif Vengattil in Bengaluru; Editing by Rod Nickel)
((zeba.siddiqui@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The journalist, Anand Mangnale, was among a series of people in India who received alerts from Apple AAPL.O last week warning them that they had been targeted by "state-sponsored" hackers trying to remotely access their iPhones. A company that did forensic work for OCCRP on Magnale's device - an anti-phone-hacking firm called iVerify - said it found a pattern of suspicious crashes on it that matched previously known Pegasus intrusions. Apple's recent round of alerts reached more than 20 people in India, most of them opposition politicians, igniting a fresh storm of allegations that New Delhi is using hacking tools against its own citizens just months before a national Indian election is slated to begin.
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The journalist, Anand Mangnale, was among a series of people in India who received alerts from Apple AAPL.O last week warning them that they had been targeted by "state-sponsored" hackers trying to remotely access their iPhones. By Zeba Siddiqui and Raphael Satter SAN FRANCISCO/WASHINGTON, Nov 7 (Reuters) - Government-backed hackers tried to plant spyware made by NSO Group on the iPhone of an Indian journalist working for the Organized Crime and Corruption Reporting Project (OCCRP) in August, the organization’s co-founder said on Monday. Sullivan said an internal forensic investigation tied the intrusion effort against Mangnale's phone to Israeli firm NSO's Pegasus hacking tool.
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The journalist, Anand Mangnale, was among a series of people in India who received alerts from Apple AAPL.O last week warning them that they had been targeted by "state-sponsored" hackers trying to remotely access their iPhones. By Zeba Siddiqui and Raphael Satter SAN FRANCISCO/WASHINGTON, Nov 7 (Reuters) - Government-backed hackers tried to plant spyware made by NSO Group on the iPhone of an Indian journalist working for the Organized Crime and Corruption Reporting Project (OCCRP) in August, the organization’s co-founder said on Monday. The Indian government has denied such allegations and last week Information Technology Minister Ashwini Vaishnaw said that the government was investigating the complaints of phone hacking.
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The journalist, Anand Mangnale, was among a series of people in India who received alerts from Apple AAPL.O last week warning them that they had been targeted by "state-sponsored" hackers trying to remotely access their iPhones. By Zeba Siddiqui and Raphael Satter SAN FRANCISCO/WASHINGTON, Nov 7 (Reuters) - Government-backed hackers tried to plant spyware made by NSO Group on the iPhone of an Indian journalist working for the Organized Crime and Corruption Reporting Project (OCCRP) in August, the organization’s co-founder said on Monday. Sullivan said an internal forensic investigation tied the intrusion effort against Mangnale's phone to Israeli firm NSO's Pegasus hacking tool.
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12647.0
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2023-11-07 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq score longest win streak in 2 years on rate view
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-score-longest-win-streak-in-2-years-on-rate-view
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Fed speakers maintain focus on inflation
Uber gains after Q3 results
Datadog jumps on annual forecast raise
Updated at 4:00 p.m. ET/1900 GMT
Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve.
The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes US3YT=RR with auctions of the 10-year note and 30-year bond US30YT=RR due later this week.
Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
Markets are pricing in a 90.2% chance the Fed will once again hold rates steady at its December policy meeting, up from 68.9% a week ago, according to CME's FedWatch Tool.
Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
Both Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts.
Fed Chair Jerome Powell is set to speak on Wednesday and Thursday.
"That is the story today, that the Fed is done, but yesterday it was maybe not. Powell is going to speak on Thursday so that is going to leave the door open," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"But what the market is telling you - the market, traders - are pushing for is we're all done, it's a rate cut, almost as if they are trying to force the hand."
The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq.
According to preliminary data, the S&P 500 .SPX gained 12.83 points, or 0.29%, to end at 4,378.81 points, while the Nasdaq Composite .IXIC gained 122.66 points, or 0.91%, to 13,641.44. The Dow Jones Industrial Average .DJI rose 62.14 points, or 0.18%, to 34,158.00.
The S&P 500 .SPX scored its seventh straight day in the green, with the Nasdaq .IXIC recording its eighth straight advance, the longest such streak for each index in two years. The Dow gained for a seventh straight session, its longest since a 13-session run in July.
Energy .SPNY, the worst performing sector on the session, fell more than 2% as crude prices settled down more than 4% on demand concerns and a firmer dollar.
Dallas Federal Reserve Bank President Lorie Logan also chimed in, saying that while she supported leaving the Fed's policy rate on hold last week to assess if financial conditions are sufficiently tight to bring down inflation, it still remains too high.
Uber TechnologiesUBER.N rose as the ride-hailing firm projected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged after raising its forecast for annual adjusted profit and revenue.
(Reporting by Chuck Mikolajczak)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and 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 pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Updated at 4:00 p.m. ET/1900 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Updated at 4:00 p.m. ET/1900 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
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The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Dallas Federal Reserve Bank President Lorie Logan also chimed in, saying that while she supported leaving the Fed's policy rate on hold last week to assess if financial conditions are sufficiently tight to bring down inflation, it still remains too high.
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12648.0
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2023-11-07 00:00:00 UTC
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After Hours Most Active for Nov 7, 2023 : NEM, RIVN, AAPL, VTRS, GRAB, GOOGL, WDC, BVN, PINS, IONQ, PLTR, AVTR
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-7-2023-%3A-nem-rivn-aapl-vtrs-grab-googl-wdc-bvn-pins-ionq
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -1.67 to 15,294.35. The total After hours volume is currently 121,660,242 shares traded.
The following are the most active stocks for the after hours session:
Newmont Corporation (NEM) is +0.0299 at $36.69, with 33,079,476 shares traded. As reported by Zacks, the current mean recommendation for NEM is in the "buy range".
Rivian Automotive, Inc. (RIVN) is +0.43 at $17.85, with 5,520,234 shares traded. Smarter Analyst Reports: Report: Rivian Raises Vehicle Prices by up to 20%; Shares Sink 8.4%
Apple Inc. (AAPL) is -0.02 at $181.80, with 5,490,855 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 $1.58. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Viatris Inc. (VTRS) is unchanged at $9.13, with 4,966,910 shares traded. VTRS's current last sale is 83% of the target price of $11.
Grab Holdings Limited (GRAB) is unchanged at $3.17, with 2,896,314 shares traded.GRAB is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023.
Alphabet Inc. (GOOGL) is -0.04 at $130.93, with 2,860,448 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.66. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Western Digital Corporation (WDC) is unchanged at $43.09, with 2,559,152 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $-1.33. WDC's current last sale is 91.68% of the target price of $47.
Buenaventura Mining Company Inc. (BVN) is -0.0499 at $8.49, with 2,396,080 shares traded. BVN's current last sale is 92.79% of the target price of $9.15.
Pinterest, Inc. (PINS) is -0.01 at $30.94, with 2,042,963 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.25. As reported by Zacks, the current mean recommendation for PINS is in the "buy range".
IonQ, Inc. (IONQ) is unchanged at $11.47, with 2,026,282 shares traded.IONQ is scheduled to provide an earnings report on 11/8/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.13 per share, which represents a -12 percent increase over the EPS one Year Ago
Palantir Technologies Inc. (PLTR) is -0.01 at $18.79, with 1,760,128 shares traded. PLTR's current last sale is 117.44% of the target price of $16.
Avantor, Inc. (AVTR) is unchanged at $18.39, with 1,673,719 shares traded. As reported by Zacks, the current mean recommendation for AVTR 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 -0.02 at $181.80, with 5,490,855 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024.
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Apple Inc. (AAPL) is -0.02 at $181.80, with 5,490,855 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Grab Holdings Limited (GRAB) is unchanged at $3.17, with 2,896,314 shares traded.GRAB is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.02 at $181.80, with 5,490,855 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Grab Holdings Limited (GRAB) is unchanged at $3.17, with 2,896,314 shares traded.GRAB is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.02 at $181.80, with 5,490,855 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -1.67 to 15,294.35.
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12649.0
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2023-11-07 00:00:00 UTC
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AAPL Stock Outlook: There Are Still Plenty of Reasons to Take a Bite of Apple
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AAPL
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https://www.nasdaq.com/articles/aapl-stock-outlook%3A-there-are-still-plenty-of-reasons-to-take-a-bite-of-apple
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Are Apple’s (NASDAQ:AAPL) best days behind it? That question is hotly debated by analysts, investors, and media commentators after the consumer electronics giant posted a fourth consecutive quarter of declining sales for its devices, including the iPhone and MacBook computer. Things are looking dicey for APPL stock.
However, reports of Apple’s demise are overblown. Look a little closer at the numbers, and there are still lots of reasons to be bullish on AAPL stock.
Reading Between The Lines
Apple’s recent third-quarter print wasn’t nearly as bad as the flash headlines made it seem. The worst thing about the Q3 earnings report was sales of the company’s MacBook computer segment, which missed analysts’ forecasts and were 34% lower than a year ago. iPad sales were also soft. However, sales of the company’s primary device, the iPhone, matched Wall Street expectations at $43.81 billion and were 2% higher than a year earlier. Plus, the Q3 iPhone sales were a record and included only one week of sales of the new iPhone 15.
While the hardware side of Apple’s business may have been soft in Q3, the company’s services segment more than made up for any shortfall. Apple TV, app sales, and the company’s finance business posted stronger-than-expected revenue of $22.31 billion compared to Q3 forecasts of $21.35 billion.
In all, Apple’s revenue from services increased 16% from a year earlier. And the company’s gross margin for the quarter came in at 45.2% versus 44.5% anticipated, showing that Apple remains exceptionally profitable.
Addressing Its Problems
Apple CEO Tim Cook is well aware of the slow sales of the company’s electronic devices. If anything, he has been aggressively developing the service offerings in anticipation of a slowdown on the hardware side of the business. However, even on the electronics side, Apple isn’t being complacent. Just before the Q3 earnings were announced, Apple unveiled new microchips for its personal computers (PCs) and introduced a cheaper MacBook Pro laptop.
The new computers, which include MacBook Pro and iMac models, are already on sale and have been upgraded with new microchips that provide faster speeds, longer battery life, and the power to develop artificial intelligence applications. Apple cut the price of its entry-level 14-inch MacBook Pro to $1,599 from $1,999. The company also unveiled an updated 24-inch iMac desktop computer with a starting price of $1,299. The previous model used an M1 chip, and the new version is upgraded to the latest M3 chip.
While the new line-up and pricing should reinvigorate sales, it’s also important to remember that Apple isn’t alone in seeing a slump in PC sales. After surging 25% in 2021 during the COVID-19 pandemic, worldwide PC sales have retrenched, declining for eight consecutive quarters, according to data from market research firm Gartner. Worldwide PC sales peaked in 2011, though there’s hope that AI will help to reinvigorate the industry.
The China Question
Beyond its products and sales, AAPL stock faces questions about its exposure to the Chinese market. The company’s main manufacturing plant for its iPhones is in Zhengzhou, and Asia remains Apple’s second-largest sales market after North America.
The company is heavily exposed to China and entrenched in the nation of 1.4 billion people. It, therefore, makes it difficult for Apple when China’s economy weakens as it has this year.
As one of America’s most successful companies and recognizable brands, Apple can get caught up in geopolitical tensions between the U.S. and China, as earlier this year when officials in Beijing threatened to ban civil servants from using iPhones at work. While China remains unpredictable, here, too, Apple has been working to improve the situation. Tim Cook has been traveling to China more often lately, even as Apple moves more of its iPhone production to other low-cost centers such as Vietnam and India.
Still A Stock To Buy And Hold
There’s no question that Apple is sailing through some choppy waters. But long-term, it’s essential for investors to remember that Apple remains one of the very best technology companies in the world. It’s also one of the most widely held stocks, with its market capitalization hitting $3 trillion this spring. Consider, too, that Apple is flush with cash, having $162 billion of cash on hand as of Sept. 30 this year.
The company also pays a quarterly dividend (one of the few mega-cap tech companies to do so) of 24 cents a share per quarter, and it bought back $25 billion of its stock during Q3. Apple buys back more of its stock than any other publicly traded company. While Apple’s business is in transition and may ultimately change, the company still makes for an excellent long-term investment. AAPL stock is a buy.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post AAPL Stock Outlook: There Are Still Plenty of Reasons to Take a Bite of Apple 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 Are Apple’s (NASDAQ:AAPL) best days behind it? Look a little closer at the numbers, and there are still lots of reasons to be bullish on AAPL stock. The China Question Beyond its products and sales, AAPL stock faces questions about its exposure to the Chinese market.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Are Apple’s (NASDAQ:AAPL) best days behind it? Look a little closer at the numbers, and there are still lots of reasons to be bullish on AAPL stock. The China Question Beyond its products and sales, AAPL stock faces questions about its exposure to the Chinese market.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Are Apple’s (NASDAQ:AAPL) best days behind it? Look a little closer at the numbers, and there are still lots of reasons to be bullish on AAPL stock. The China Question Beyond its products and sales, AAPL stock faces questions about its exposure to the Chinese market.
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AAPL stock is a buy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Are Apple’s (NASDAQ:AAPL) best days behind it? Look a little closer at the numbers, and there are still lots of reasons to be bullish on AAPL stock.
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12650.0
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2023-11-07 00:00:00 UTC
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Warren Buffett's Best-Performing Stock of 2023 Is a Screaming Buy
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-best-performing-stock-of-2023-is-a-screaming-buy
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nan
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nan
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Warren Buffett holds a lot of great stocks in his portfolio for Berkshire Hathaway.
He has some big winners in 2023, including a massive stake in Apple (up 41% year to date) and a small stake in Amazon (up 61%). But one company's stock has increased in value much faster than those tech giants. A small financial technology company. The shares have more than doubled so far this year.
It hasn't been an easy ride for Buffett. His company first acquired shares of the fast-growing fintech before its initial public offering (IPO). And while the shares quickly climbed in price after its market debut, they started falling along with the rest of the market in 2022. At one point, the stock was worth about a quarter of its all-time high. And while the share price has come roaring back in 2023, it still trades below the IPO price.
That means despite the stock's increase so far this year, there's still an opportunity to buy the shares. And it looks like a screaming buy.
Buffett's best performer
The stock in question is Nu Holdings (NYSE: NU).
Buffett put $500 million into the company before its IPO in 2021 and another $250 million when it made its public debut. That makes it a relatively small holding for Berkshire, which has a total portfolio value of about $343 billion. As such, it could very well be that one of Berkshire's other investment managers, Ted Weschler or Todd Combs, purchased the stock.
But the potential for Nu is huge.
The Brazilian company has quickly grown to be a leading financial institution in its home country. It focuses on bringing the unbanked into the financial ecosystem, providing digital bank accounts, credit cards, and other financial services (including cryptocurrency trading) to a vast underserved population. In fact, Nubank isn't just the leading digital bank in Brazil, it's raised more funding than any digital bank in the world. It's the fifth-largest financial institution in all of Latin America by total customers.
It now counts nearly 80 million Brazilians as customers, roughly half the adult population. And it's looking to repeat the process in Mexico and Colombia, where it launched in 2020.
Why Nu Holdings is a screaming buy
Nu Holdings is still in the early days of its business. Nearly all of its customers have been with the company for less than six years.
While the company produced an average revenue per active customer of $9.30 per month last quarter, customers who have been with Nubank longer produced around $24 per month. Newer customers are likely to get there even faster with the range of products Nubank offers.
Indeed, a big part of Nubank's strategy is to cross-sell customers. Not only does this give Nubank new streams of revenue, but it also increases engagement among customers with products they already use. The pipeline of new customers remains strong, abd Nubank is seeing rapid growth in its revenue per active customer. The metric increased 19% year over year in the second quarter.
And while Nubank is seeing its customers spend more on its services, its cost to serve customers hasn't budged. It still costs it an average of $0.80 per customer to serve, the same as this time last year. That operating leverage is finally showing up in its bottom line. Net income grew to $225 million in the second quarter, reversing a net loss of $30 million in the same period in 2022.
The profit potential is much higher as Nubank continues to build the customer base, cross-sell services, and increase revenue per active customer. Shares currently trade for around 26 times forward earnings estimates. Although it's not the cheapest stock Buffett owns, this is still a great price to pay for a company with the earnings growth potential of Nu Holdings.
10 stocks we like better than Nu
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 Nu 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. Adam Levy has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Warren Buffett holds a lot of great stocks in his portfolio for Berkshire Hathaway. As such, it could very well be that one of Berkshire's other investment managers, Ted Weschler or Todd Combs, purchased the stock. Although it's not the cheapest stock Buffett owns, this is still a great price to pay for a company with the earnings growth potential of Nu Holdings.
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While the company produced an average revenue per active customer of $9.30 per month last quarter, customers who have been with Nubank longer produced around $24 per month. The profit potential is much higher as Nubank continues to build the customer base, cross-sell services, and increase revenue per active customer. Although it's not the cheapest stock Buffett owns, this is still a great price to pay for a company with the earnings growth potential of Nu Holdings.
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While the company produced an average revenue per active customer of $9.30 per month last quarter, customers who have been with Nubank longer produced around $24 per month. The profit potential is much higher as Nubank continues to build the customer base, cross-sell services, and increase revenue per active customer. Although it's not the cheapest stock Buffett owns, this is still a great price to pay for a company with the earnings growth potential of Nu Holdings.
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Warren Buffett holds a lot of great stocks in his portfolio for Berkshire Hathaway. Nearly all of its customers have been with the company for less than six years. The metric increased 19% year over year in the second quarter.
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12651.0
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2023-11-07 00:00:00 UTC
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Predicting the 7 Top Performing Stocks for 2024 With AI Technology
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AAPL
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https://www.nasdaq.com/articles/predicting-the-7-top-performing-stocks-for-2024-with-ai-technology
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I asked Bard for its prediction of the top 7 performing stocks for 2024. The results were interesting, to say the least. The AI service predicts that 2024 will be a lot like 2023 has been. In other words, tech firms are going to lead the market, and Bard expects that investors will see the best returns by sticking with those firms.
There is one notable absence, though: Apple (NASDAQ:AAPL). Semiconductors are expected to remain strong overall. No doubt, Bard believes that AI demand and digitization trends will keep demand strong. Let’s take a look at those stocks with me, giving my opinion of whether I agree with each of Bard’s recommendations.
AI Stock Picks: Nvidia (NVDA)
Source: sdx15 / Shutterstock.com
Bard gave me a broad introduction to Nvidia (NASDAQ:NVDA) and its stock: “Nvidia is a leading semiconductor company that designs and manufactures graphics processing units (GPUs). GPUs are used in a wide range of applications, including gaming, artificial intelligence, and data center computing. Nvidia is well-positioned to benefit from the continued growth of these markets.” So, as you can see, 2024 is expected to be a continuation of 2023. That which led the markets higher this year is expected to continue in the new year.
The presumption, then, is that U.S. chip export restrictions to China will not negatively affect NVDA’s shares over the coming 15 months. I think that’s a fair assumption. Nvidia has to pivot into other markets due to the restrictions, but it appears that demand remains high enough that the mid-term won’t be negatively affected.
The other overarching question is that of valuation. My take is that Nvidia isn’t extremely expensive currently. Its price-to-earnings ratio is just under 100 but has been much higher in the past. 89% of chipmakers’ stocks are cheaper, but Nvidia, I would argue, is worth that price. It’s a 99.99th percentile firm.
Alphabet (GOOG, GOOGL)
Source: Koshiro K / Shutterstock.com
Google’s own AI believes Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) will be one of the most dominant stocks of 2024. Its reasoning was as follows: “Alphabet is the parent company of Google, which is the world’s leading search engine and advertising platform. Alphabet is also a leader in artificial intelligence, cloud computing, and self-driving cars. The firm is well-positioned to benefit from the continued growth of these markets.”
I strongly agree with Bard here. I think Google’s shares are an excellent buy following the haircut it received after releasing Q3 earnings. Thus, I believe the markets have overreacted in classic fashion in this instance. Shareholders are too dependent upon Wall Street opinions and too easily swayed by them.
Google’s revenues were $690 million ahead of expectations. However, the fact that cloud revenues only reached $8.4 billion instead of $8.6 billion prompted a selling frenzy. It’s an overreaction. Is Google a cloud-dependent firm, or is it a search-dependent firm? The answer is search. It was strong there and everywhere else, yet a slight issue with cloud sent it dropping by 10%. That discount won’t last for long.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Bard expects Amazon (NASDAQ:AMZN) to be a top performer in 2024 based on eCommerce and cloud computing: “Amazon is the world’s largest online retailer. Amazon is also a leader in cloud computing and artificial intelligence. Amazon is well-positioned to benefit from the continued growth of e-commerce and cloud computing.”
It’s impossible to argue that Amazon isn’t well-positioned to benefit from secular trends. I won’t do that. That’s the broad strength of the tech giants in a nutshell: They are exposed to massive, sustainable growth trends and have the resources to steer those markets. It applies to Amazon and all the other tech titans.
I just got done stating that Wall Street’s analysts are often wrong, so let me contradict myself. They believe AMZN shares have a 40% upside currently. Gurufocus, a metrics-heavy analytics firm, believes it’s closer to 50%. AWS is doing better than Google but lags behind Azure growth-wise of late. AI is the theme into 2024, and Amazon has a very strong horse in that race with AWS cloud.
AI Stock Picks: Microsoft (MSFT)
Source: The Art of Pics / Shutterstock.com
Microsoft (NASDAQ:MSFT) isn’t going anywhere in 2024. Its stock is expected to be among the best performers by just about everyone. Bard notes: “Microsoft is a leading software company that produces a wide range of products, including the Windows operating system, the Office suite of productivity applications, and the Azure cloud computing platform. Microsoft is well-positioned to benefit from the continued growth of cloud computing and the digital transformation of businesses.”
While I generally agree with that sentiment, I’m not so sure that Microsoft is going to be a ‘top’ performer in 2024. What I mean is that it simply doesn’t have as much upside at the moment. That’s true because Microsoft hasn’t faltered much at all. It has been the heaviest AI investor among the tech titans. That investment has paid off, keeping shares steadily strong.
Invest in Microsoft with the expectation of growth in 2024, but it’s leading, and that means others are playing catch up. MSFT shares have less upside because of that. When it does well, it’s expected, and shares don’t explode upward. If it doesn’t, it stands to lose more. It’s still a great stock, and it’s just that I don’t see why it should be a great performer for those reasons.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
I think Meta Platforms (NASDAQ:META) strategy is destined to create large gains for owners of its stock in 2024. Bard cites exactly what you’d expect: “Meta Platforms is the parent company of Facebook, Instagram, and WhatsApp. Meta is the world’s leading social media company. Meta is well-positioned to benefit from the continued growth of social media and the digital advertising market.”
Ad revenues have rebounded in 2023, and that’s the core driver of the company. The prevailing 9-month and 3-month periods continue to show strong improvement following a difficult 2022. Ad revenue over the last 9 months eclipsed $93 billion. It was only $82 billion a year ago during the same period.
AI promises to improve ad targeting, which should theoretically lead to further increases in ad revenues. What I also like is that Meta showed its strongest quarterly growth since its rebrand. It is dedicated to the metaverse, and that doesn’t look like such a terrible decision currently. The firm streamlined operations, cut costs, grew its top line rapidly, and continues to do all of that while funding the metaverse.
AI Stock Picks: Tesla (TSLA)
Source: Arina P Habich / Shutterstock.com
Tesla (NASDAQ:TSLA) stock is well-positioned to benefit from the continued growth of the electric vehicle market. Its position as the leader in that market is a positive factor leading into 2024.
I’m afraid I have to disagree with Bard’s recommendation here. Yes, Tesla is the dominant EV manufacturer. Yes, EVs are here to stay. However, Tesla is facing several issues that are going to hold its growth down. Trade tensions are one of the strongest factors in that regard. The tit-for-tat export restrictions between the U.S. and China directly affect Tesla. A day after the U.S. restricted chip exports to China, China curbed graphite exports to the U.S. Graphite is a key component in battery production, so Tesla’s costs just took a hit.
That’s an especially troublesome problem for Tesla as it grapples with increased market share by lowering prices. It serves to knock its margins down further and, in my opinion, will serve to throttle TSLA’s upside potential into 2024.
Taiwan Semiconductor Manufacturing Company (TSM)
Source: Sundry Photography / Shutterstock.com
Bard believes in Taiwan Semiconductor Manufacturing Company (NYSE:TSM) stock in 2024 because it “is the world’s largest semiconductor foundry. TSMC produces chips for a wide range of companies, including Apple, Nvidia, and Qualcomm. TSMC is well-positioned to benefit from the continued growth of the semiconductor market.”
While TSM is clearly among the most important firms globally, its shares don’t have the growth potential to justify Bard’s recommendation — at least not per Wall Street’s expectations.
I think Taiwan Semiconductor can produce much greater returns than those consensus projections for 2024. The firm’s revenues are expected to grow by $14 billion, rising above $80 billion in 2024.
Taiwan Semiconductor gave a weak outlook following slowing quarter-over-quarter growth earlier this summer. A lot can change over a year, so I personally don’t care about that news. I do care that TSMC is a major player in the efforts to bring chip manufacturing to the U.S. That alliance is huge for shareholders, and it’s the biggest foundry globally, providing Nvidia and all the other chip titans with the AI tech that fuels current trends. That can’t be overlooked at any point.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post Predicting the 7 Top Performing Stocks for 2024 With AI Technology 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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There is one notable absence, though: Apple (NASDAQ:AAPL). Nvidia has to pivot into other markets due to the restrictions, but it appears that demand remains high enough that the mid-term won’t be negatively affected. Meta is well-positioned to benefit from the continued growth of social media and the digital advertising market.” Ad revenues have rebounded in 2023, and that’s the core driver of the company.
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There is one notable absence, though: Apple (NASDAQ:AAPL). AI Stock Picks: Nvidia (NVDA) Source: sdx15 / Shutterstock.com Bard gave me a broad introduction to Nvidia (NASDAQ:NVDA) and its stock: “Nvidia is a leading semiconductor company that designs and manufactures graphics processing units (GPUs). AI Stock Picks: Tesla (TSLA) Source: Arina P Habich / Shutterstock.com Tesla (NASDAQ:TSLA) stock is well-positioned to benefit from the continued growth of the electric vehicle market.
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There is one notable absence, though: Apple (NASDAQ:AAPL). AI Stock Picks: Nvidia (NVDA) Source: sdx15 / Shutterstock.com Bard gave me a broad introduction to Nvidia (NASDAQ:NVDA) and its stock: “Nvidia is a leading semiconductor company that designs and manufactures graphics processing units (GPUs). AI Stock Picks: Tesla (TSLA) Source: Arina P Habich / Shutterstock.com Tesla (NASDAQ:TSLA) stock is well-positioned to benefit from the continued growth of the electric vehicle market.
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There is one notable absence, though: Apple (NASDAQ:AAPL). In other words, tech firms are going to lead the market, and Bard expects that investors will see the best returns by sticking with those firms. Its stock is expected to be among the best performers by just about everyone.
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12652.0
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2023-11-07 00:00:00 UTC
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Should Investors Buy Apple Stock on the Dip?
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AAPL
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https://www.nasdaq.com/articles/should-investors-buy-apple-stock-on-the-dip
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nan
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nan
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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) latest quarterly earnings update and answers if Apple stock is a buy on the dip.
*Stock prices used were the afternoon prices of Nov. 4, 2023. The video was published on Nov. 6, 2023.
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
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through 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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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) latest quarterly earnings update and answers if Apple stock is a buy on the dip. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services.
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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) latest quarterly earnings update and answers if Apple stock is a buy on the dip. 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 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) latest quarterly earnings update and answers if Apple stock is a buy on the dip. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 6, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian reviews Apple's (NASDAQ: AAPL) latest quarterly earnings update and answers if Apple stock is a buy on the dip. The Motley Fool has positions in and recommends Apple. His opinions remain his own and are unaffected by The Motley Fool.
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2023-11-07 00:00:00 UTC
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3 Top Gaming Stocks to Buy in November
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AAPL
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https://www.nasdaq.com/articles/3-top-gaming-stocks-to-buy-in-november-0
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Video games are one of the most reliable growth areas of tech, with companies enjoying consistent gains from steady demand for new content and hardware upgrades.
Data from Statista shows the video games market is projected to hit revenue of $250 billion this year and expand at a compound annual growth rate of 10% through 2027. As a result, it's not surprising that many of the biggest names in tech have varying stakes in the industry, presenting an exciting investment opportunity.
Investing in a games company can be an excellent way to add stability to your portfolio over the long term. The games market has hit a bit of a slump over the last year as macroeconomic headwinds have curbed consumer spending. However, economic hurdles won't last forever, with the industry likely to offer substantial growth to patient stockholders.
Here are three top gaming stocks to buy in November.
1. Nvidia
All eyes have been on Nvidia (NASDAQ: NVDA) in 2023 as it has climbed to the top of the artificial intelligence (AI) market. Its chips have become the preferred hardware for developers building AI models, sending the company's revenue soaring as its graphics processing units (GPUs) have flown off the shelves.
However, before it snapped up market share in AI, Nvidia spent years dominating the PC gaming industry. Its powerful chips are popular among gamers, able to run demanding titles at settings far higher than what is possible on consoles.
Nvidia's success in video games saw it attain an 87% market share in desktop GPUs, outperforming rivals Advanced Micro Devices and Intel. The tech giant's dominance paved the way for it to expand into AI and cloud computing, with its market cap soaring above $1 trillion this year.
In addition to a solid position in PC gaming, Nvidia is the exclusive chip supplier to the Nintendo Switch -- the third-best-selling console of all time. The partnership has put Nvidia's chips into mainstream use, with over 132 million units sold.
As a leading chipmaker, Nvidia allows investors to profit from the growth of multiple markets. It's a powerful company with a solid long-term outlook, making its stock an attractive buy this month.
2. Apple
Apple (NASDAQ: AAPL) has quietly claimed a spot in the top five most valuable game companies thanks to the success of its App Store. Mobile games account for over 60% of spending on the digital marketplace, with Candy Crush Saga earning $660 million in the U.S. alone in 2022.
The tech company has carved out a lucrative position as the middle-man between app developers and consumers. Apple charges a 30% fee for apps and in-app purchases across all its devices. So, as the iPhone has soared in popularity, achieving a 55% market share in smartphones in Q2 2023, so have earnings from the App Store.
Apple's services segment, which includes income from the App Store, has quickly become the second-highest-earning part of its business and has shown no signs of slowing. Services hit revenue growth of 16% in the fourth quarter of 2023 and 9% for the fiscal year. The company is massively profiting from the video games market, making its stock a great option for anyone looking to invest in the quickly growing sector.
3. Microsoft
With its popular Xbox brand, Microsoft (NASDAQ: MSFT) is easily among the world's top three most prominent game companies, alongside the likes of Sony and Nintendo. However, it has distinguished itself from the competition this year by becoming the most exciting investment option in the industry after acquiring game developer Activision Blizzard for $69 billion.
The purchase was first announced in January 2022 but only completed this October after being held up by antitrust concerns as regulators worldwide scrutinized the deal. However, now that the purchase is final, the real work can begin. Activision is home to an immensely valuable library of games that includes one of the most profitable franchises in history: Call of Duty. Alongside popular brands such as World of Warcraft, Overwatch, and Candy Crush, Microsoft could have the tools to eventually win the console wars.
Microsoft and Sony have been in steep competition in the console market for years. Microsoft's approach to attracting consumers has been to offer the most value, launching Xbox Game Pass in 2017. The subscription-based platform has often been described as a "Netflix for games" and gives access to an extensive library of games for a low monthly fee rather than making gamers pay for titles individually.
The platform's biggest selling point is that it makes new games available on release day at no extra cost to members. The addition of Activision's Call of Duty and other franchises could make it a no-brainer for shoppers to choose an Xbox over Sony's PlayStation in the coming years.
Microsoft has massive earnings potential in video games with its recent acquisition and potent Xbox brand. Alongside exciting ventures in AI and the cloud market, its stock is a no-brainer this November.
10 stocks we like better than Nvidia
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 Nvidia 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
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, Netflix, and Nvidia. The Motley Fool recommends Intel and Nintendo and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has quietly claimed a spot in the top five most valuable game companies thanks to the success of its App Store. Video games are one of the most reliable growth areas of tech, with companies enjoying consistent gains from steady demand for new content and hardware upgrades. Data from Statista shows the video games market is projected to hit revenue of $250 billion this year and expand at a compound annual growth rate of 10% through 2027.
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Apple Apple (NASDAQ: AAPL) has quietly claimed a spot in the top five most valuable game companies thanks to the success of its App Store. However, before it snapped up market share in AI, Nvidia spent years dominating the PC gaming industry. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, Netflix, and Nvidia.
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Apple Apple (NASDAQ: AAPL) has quietly claimed a spot in the top five most valuable game companies thanks to the success of its App Store. However, before it snapped up market share in AI, Nvidia spent years dominating the PC gaming industry. The company is massively profiting from the video games market, making its stock a great option for anyone looking to invest in the quickly growing sector.
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Apple Apple (NASDAQ: AAPL) has quietly claimed a spot in the top five most valuable game companies thanks to the success of its App Store. However, before it snapped up market share in AI, Nvidia spent years dominating the PC gaming industry. Microsoft's approach to attracting consumers has been to offer the most value, launching Xbox Game Pass in 2017.
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12654.0
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2023-11-07 00:00:00 UTC
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US consumer watchdog proposes rules for Big Tech payments, digital wallets
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AAPL
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https://www.nasdaq.com/articles/us-consumer-watchdog-proposes-rules-for-big-tech-payments-digital-wallets-0
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nan
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By Douglas Gillison and Hannah Lang
WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards.
The Consumer Financial Protection Bureau's (CFPB) proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O, PayPal PYPL.O and Block's CashApp SQ.N to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct and compliance with laws barring unfair and deceptive practices.
If finalized, the proposal would cover about 17 companies that together send more than 13 billion payments annually, according to a CFPB official. The agency declined to name the other platforms that would be covered beyond GooglePay, ApplePay, PayPal and CashApp.
Google, Apple, PayPal and CashApp did not immediately respond to a request for comment.
Since becoming director in 2021, Chopra has steadily increased CFPB scrutiny of the sector, seeking information in 2021 on how Big Tech companies use consumer data and last year launching an inquiry into their payments platforms.
In a statement on Tuesday, Chopra said the tech sector had expanded into financial services traditionally provided by the closely regulated banking sector.
In a speech last month, Chopra said CFPB research had found tech giants collected vast amounts of consumer payments data with few limits, scant transparency and confusing corporate policies, putting consumers at risk of Chinese-style surveillance by the companies.
Speaking about Tuesday's proposal, senior CFPB officials said it was imperative to look into privacy compliance at these larger firms with a wealth of consumer data, noting that many of their business models focus on monetizing that data.
Representatives of Big Tech companies have previously highlighted their efforts to protect consumer data.
Tuesday's proposal would apply to companies handling more than five million transactions a year. The agency said the rule would also foster competition by ensuring that both traditional financial players and the tech sector were equally subject to the same oversight.
The proposal is now subject to a notice-and-comment period expected to end in early 2024.
(Reporting by Douglas Gillison and Hannah Lang in Washington Additional reporting by Chris Prentice in New York Editing by Matthew Lewis and Mark Potter)
((douglas.gillison@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Consumer Financial Protection Bureau's (CFPB) proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O, PayPal PYPL.O and Block's CashApp SQ.N to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct and compliance with laws barring unfair and deceptive practices. By Douglas Gillison and Hannah Lang WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards. Since becoming director in 2021, Chopra has steadily increased CFPB scrutiny of the sector, seeking information in 2021 on how Big Tech companies use consumer data and last year launching an inquiry into their payments platforms.
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The Consumer Financial Protection Bureau's (CFPB) proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O, PayPal PYPL.O and Block's CashApp SQ.N to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct and compliance with laws barring unfair and deceptive practices. By Douglas Gillison and Hannah Lang WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards. (Reporting by Douglas Gillison and Hannah Lang in Washington Additional reporting by Chris Prentice in New York Editing by Matthew Lewis and Mark Potter) ((douglas.gillison@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Consumer Financial Protection Bureau's (CFPB) proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O, PayPal PYPL.O and Block's CashApp SQ.N to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct and compliance with laws barring unfair and deceptive practices. By Douglas Gillison and Hannah Lang WASHINGTON, Nov 7 (Reuters) - The top U.S. consumer financial watchdog on Tuesday proposed to regulate tech giants' digital payments and smartphone wallet services, saying they rival traditional payment methods in scale and scope but lack consumer safeguards. In a speech last month, Chopra said CFPB research had found tech giants collected vast amounts of consumer payments data with few limits, scant transparency and confusing corporate policies, putting consumers at risk of Chinese-style surveillance by the companies.
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The Consumer Financial Protection Bureau's (CFPB) proposal would subject companies like Alphabet GOOGL.O, Apple AAPL.O, PayPal PYPL.O and Block's CashApp SQ.N to bank-like supervision, with CFPB examiners inspecting their privacy protections, executives' conduct and compliance with laws barring unfair and deceptive practices. Since becoming director in 2021, Chopra has steadily increased CFPB scrutiny of the sector, seeking information in 2021 on how Big Tech companies use consumer data and last year launching an inquiry into their payments platforms. In a statement on Tuesday, Chopra said the tech sector had expanded into financial services traditionally provided by the closely regulated banking sector.
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2023-11-06 00:00:00 UTC
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Is Fidelity Quality Factor ETF (FQAL) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-fidelity-quality-factor-etf-fqal-a-strong-etf-right-now
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Making its debut on 09/12/2016, smart beta exchange traded fund Fidelity Quality Factor ETF (FQAL) provides investors broad exposure to the Style Box - Large Cap Blend 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $314.58 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. FQAL is managed by Fidelity. Before fees and expenses, this particular fund seeks to match the performance of the Fidelity U.S. Quality Factor Index.
The Fidelity U.S. Quality Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies with a higher quality profile than the broader market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.38%.
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.
Representing 27.20% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL).
The top 10 holdings account for about 31.41% of total assets under management.
Performance and Risk
So far this year, FQAL has added about 13.80%, and it's up approximately 17.68% in the last one year (as of 11/06/2023). During this past 52-week period, the fund has traded between $43.60 and $52.31.
The fund has a beta of 0.98 and standard deviation of 17.38% for the trailing three-year period. With about 129 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Quality Factor ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $351.45 billion in assets, SPDR S&P 500 ETF has $405.41 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
Fidelity Quality Factor ETF (FQAL): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 09/12/2016, smart beta exchange traded fund Fidelity Quality Factor ETF (FQAL) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Making its debut on 09/12/2016, smart beta exchange traded fund Fidelity Quality Factor ETF (FQAL) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Making its debut on 09/12/2016, smart beta exchange traded fund Fidelity Quality Factor ETF (FQAL) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 7.69% of the fund's total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 09/12/2016, smart beta exchange traded fund Fidelity Quality Factor ETF (FQAL) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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2023-11-06 00:00:00 UTC
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India's Redington posts 22% fall in quarterly profit on slow tech gadget demand
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AAPL
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https://www.nasdaq.com/articles/indias-redington-posts-22-fall-in-quarterly-profit-on-slow-tech-gadget-demand
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nan
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CHENNAI, Nov 6 (Reuters) - India's Redington REDI.NS reported a 22% decline in quarterly profit on Monday, as the technology gadgets distributor grappled with a global slowdown in demand and higher expenses.
Consolidated profit fell to 3.03 billion rupees ($36.42 million) in the second quarter from 3.87 billion rupees a year earlier.
Total expenses jumped nearly 18% for the quarter ended Sept. 30, Redington, which distributes products of several major brands including Apple AAPL.O and Samsung 005930.KS, said in an exchange filing.
Earnings dropped even as the Chennai, Tamil Nadu-based company tied up with more sales partners and expanded to more countries, which helped revenue from operations climb 16.6% to 222.20 billion rupees.
In the previous four quarters, Redington had reported revenue growth between 24.6% and 30.8%.
Revenue from its consumer and commercial personal computers, print and supplies business in Singapore, India and South Asia - markets that accounted for over 46% of its topline - declined 16% in the reported quarter.
A pandemic-led spurt in demand for consumer electronics including smartphones and laptops has slowed, squeezing the earnings of everyone from chipmaker Qualcomm QCOM.O and smartphone major Apple to distributors such as Redington.
However, Qualcomm and Apple recently indicated smartphone sales slump has finally started to ease, setting them up for better quarters ahead.
Redington has been investing heavily to beef up its cloud services business to expand beyond technology gadgets distribution, which brings in a bulk of its revenue and earnings.
The company's shares closed 2.3% higher ahead of the results. They are down nearly 19% for the year so far.
($1 = 83.1974 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Eileen Soreng)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Total expenses jumped nearly 18% for the quarter ended Sept. 30, Redington, which distributes products of several major brands including Apple AAPL.O and Samsung 005930.KS, said in an exchange filing. CHENNAI, Nov 6 (Reuters) - India's Redington REDI.NS reported a 22% decline in quarterly profit on Monday, as the technology gadgets distributor grappled with a global slowdown in demand and higher expenses. Earnings dropped even as the Chennai, Tamil Nadu-based company tied up with more sales partners and expanded to more countries, which helped revenue from operations climb 16.6% to 222.20 billion rupees.
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Total expenses jumped nearly 18% for the quarter ended Sept. 30, Redington, which distributes products of several major brands including Apple AAPL.O and Samsung 005930.KS, said in an exchange filing. CHENNAI, Nov 6 (Reuters) - India's Redington REDI.NS reported a 22% decline in quarterly profit on Monday, as the technology gadgets distributor grappled with a global slowdown in demand and higher expenses. A pandemic-led spurt in demand for consumer electronics including smartphones and laptops has slowed, squeezing the earnings of everyone from chipmaker Qualcomm QCOM.O and smartphone major Apple to distributors such as Redington.
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Total expenses jumped nearly 18% for the quarter ended Sept. 30, Redington, which distributes products of several major brands including Apple AAPL.O and Samsung 005930.KS, said in an exchange filing. CHENNAI, Nov 6 (Reuters) - India's Redington REDI.NS reported a 22% decline in quarterly profit on Monday, as the technology gadgets distributor grappled with a global slowdown in demand and higher expenses. Consolidated profit fell to 3.03 billion rupees ($36.42 million) in the second quarter from 3.87 billion rupees a year earlier.
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Total expenses jumped nearly 18% for the quarter ended Sept. 30, Redington, which distributes products of several major brands including Apple AAPL.O and Samsung 005930.KS, said in an exchange filing. CHENNAI, Nov 6 (Reuters) - India's Redington REDI.NS reported a 22% decline in quarterly profit on Monday, as the technology gadgets distributor grappled with a global slowdown in demand and higher expenses. Consolidated profit fell to 3.03 billion rupees ($36.42 million) in the second quarter from 3.87 billion rupees a year earlier.
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2023-11-06 00:00:00 UTC
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Analyzing the S&P 500 index, NASDAQ and the Russell 2000 charts
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https://www.nasdaq.com/articles/analyzing-the-sp-500-index-nasdaq-and-the-russell-2000-charts
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The U.S. stock market benchmark indexes have declined since peaking in the summer months of July and August 2023. Interest rate hikes are slowing down as inflation cools off. Consensus is growing regarding whether the economy may avert a recession as the potential for a soft landing rises.
Despite the inverted yield curve and a strong job market, bears argue we are edging closer to a 1987-like market crash. Sentiment changes daily. The breadth of the market continues to be weak on bounces. We'll take a technical analysis-based look at how the major indexes are faring in 2023. We will use exchange-traded funds (ETFs) for each index.
SPDR S&P 500 ETF Trust (NYSEARCA: SPY)
The S&P 500 index is the most widely followed benchmark index to gauge the overall market performance. Unfortunately, as a market cap-weighted index, most of its gains can be impacted by the highest market-cap companies. The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500.
At its high, the SPY was up 15% in July 2023. It has returned nearly half the gains with a 7.8% year-to-date (YTD) performance. The SPY fell 2.5% in the past week, causing it to fall into correction territory again as it pulled back more than 10% from its highs.
Daily Inverse Cup and Handle Breakdown
The daily candlestick chart on SPY illustrates an inverse cup and handle breakdown. The cup lip lines commenced on June 1, 2023, at $420.18. SPY rose to a peak of $457.82 on July 27, 2023, as it turned back down. The SPY fell to bounced off the inverse cup lip line on Oct. 3, 2023, to a high of $435.14. The handle formed as shares fell back down to retest and break the inverse cup lip line, which also overlaps with the daily 200-period moving average at $420.18. The daily market structure low (MSL) trigger support is $410.74. The daily relative strength index (RSI) has again slipped to the oversold 30-band. The key pullback support areas are $400.87, $390.85, $386.59 and $379.39, which is the cup and handle downside extended target.
Invesco QQQ (NASDAQ: QQQ)
The Nasdaq 100 index can be tracked with the QQQ ETF. The Nasdaq 100 is a modified market-cap weighted index that performed a rebalancing on July 24, 2023.
The QQQ is the strongest-performing U.S. benchmark index, reaching a performance high of 38.7% in July 2023. Its gains have been trimmed down to 30.6% YTD. The Magnificent Seven stocks accounted for just over 55% of the Nasdaq 100 before rebalancing on July 24, 2023. Due to the adjustments, the Magnificent Seven group has an adjusted weighting of nearly 43%, which is a higher weighting than the S&P 500 index.
Daily inverse cup
The daily candlestick chart on the QQQ is similar to the SPY, but it hasn't tested the daily 200-period moving average at $338.54 yet. The inverse cup lip line is at $340.05. The daily MSL trigger is up at $359.91. Completing the daily inverse cup may cause a breakdown or a rebound off the lip line to form a handle. If the handle forms on a bounce and plunges back down through the lip line, the inverse cup and handle would form with a target near $293.20. Key pullback support levels are $340.05, $328.63, $314.23, $303.92 and $293.20.
iShares Russell 2000 ETF (NYSEARCA: IWM)
The Russell 2000 is a small-cap benchmark index. Small-caps are riskier and more volatile than large-cap stocks. While the Russell 2000 is a market-cap-weighted index like the SPY, having 2,000 stocks helps to prevent a small handful of stocks from overly impacting the index. At the high, IWM was 11.4% in July 2023. Currently, the IWM is down 6.45% YTD. However, it was trading down 33.6% from its high of $244.46 in November 2021. The bear market trigger price is $195.56, which equates to a 20% pullback from its highs. IWM fell under there on Aug. 4, 2023. The two-month minimum under the 20% pullback period cuts off on Oct. 4, 2023. The IWM has been in a bear market since Oct. 4, 2023.
Daily head and shoulders breakdown
The daily candlestick chart on IWM illustrates the extensive collapse from the head and shoulders breakdown collapsing through the 200-period MA near $182. IWM has been in bear market territory since peaking and falling under $195.96 on Aug. 4, 2023, at the 20% pullback level from its highs. IWM is now down 33.6%, firmly in bear market territory, having fallen under the $166.21 November 2020 gap-fill support level. The daily RSI has slipped back down to test the 30-band again. Near-term pullback support levels are $153.27, $148.71 and $143.17.
The views and 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 club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. The SPY fell 2.5% in the past week, causing it to fall into correction territory again as it pulled back more than 10% from its highs. The handle formed as shares fell back down to retest and break the inverse cup lip line, which also overlaps with the daily 200-period moving average at $420.18.
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The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. Daily Inverse Cup and Handle Breakdown The daily candlestick chart on SPY illustrates an inverse cup and handle breakdown. iShares Russell 2000 ETF (NYSEARCA: IWM) The Russell 2000 is a small-cap benchmark index.
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The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. Daily Inverse Cup and Handle Breakdown The daily candlestick chart on SPY illustrates an inverse cup and handle breakdown. Daily inverse cup The daily candlestick chart on the QQQ is similar to the SPY, but it hasn't tested the daily 200-period moving average at $338.54 yet.
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The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. The Nasdaq 100 is a modified market-cap weighted index that performed a rebalancing on July 24, 2023. Daily inverse cup The daily candlestick chart on the QQQ is similar to the SPY, but it hasn't tested the daily 200-period moving average at $338.54 yet.
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12658.0
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2023-11-06 00:00:00 UTC
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Dow Movers: CAT, IBM
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-cat-ibm
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nan
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nan
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In early trading on Monday, shares of International Business Machines topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. Year to date, International Business Machines registers a 5.9% gain.
And the worst performing Dow component thus far on the day is Caterpillar, trading down 1.3%. Caterpillar is lower by about 0.8% looking at the year to date performance.
Two other components making moves today are Boeing, trading down 0.9%, and Apple, trading up 0.8% on the day.
VIDEO: Dow Movers: CAT, IBM
The views and 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 early trading on Monday, shares of International Business Machines topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. Year to date, International Business Machines registers a 5.9% gain. And the worst performing Dow component thus far on the day is Caterpillar, trading down 1.3%.
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In early trading on Monday, shares of International Business Machines topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. Year to date, International Business Machines registers a 5.9% gain. And the worst performing Dow component thus far on the day is Caterpillar, trading down 1.3%.
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In early trading on Monday, shares of International Business Machines topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. And the worst performing Dow component thus far on the day is Caterpillar, trading down 1.3%. Two other components making moves today are Boeing, trading down 0.9%, and Apple, trading up 0.8% on the day.
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In early trading on Monday, shares of International Business Machines topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.9%. And the worst performing Dow component thus far on the day is Caterpillar, trading down 1.3%. VIDEO: Dow Movers: CAT, IBM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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12659.0
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2023-11-06 00:00:00 UTC
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Option Volatility And Earnings Report For November 6 - 10
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AAPL
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https://www.nasdaq.com/articles/option-volatility-and-earnings-report-for-november-6-10
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nan
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nan
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Earnings excitement rolls on for another week, although it will be slightly quieter than the last two weeks. This week we have Disney (DIS), Gilead (GILD), Uber Technologies (UBER), Roblox (RBLX) and Trade Desk (TTD) all set to report.
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
After the earnings announcement, implied volatility usually drops back down to normal levels.
Let’s take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate.
Monday
O – 3.2%
Tuesday
RIVN – 11.8%
UBER – 7.6%
OXY – 4.0%
DVN – 5.7%
MOS – 6.6%
GILD – 3.6%
DHI – 5.5%
EBAY – 7.0%
Wednesday
DIS – 6.3%
RBLX – 14.4%
MGM – 6.2%
Thursday
TTD – 12.5%
Friday
Nothing of note
Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range.
Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance.
Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range.
When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
Stocks With High Implied Volatility
We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
Let’s run thestock screenerwith the following filters:
Total call volume: Greater than 2,000
Market Cap: Greater than 40 billion
IV Percentile: Greater than 70%
This screener produces the following results sorted by IV Percentile.
You can refer to this article for details of how to find option trades for this earnings season.
Last Week’s Earnings Moves
Last week’s we only had one company of interest report earnings:
MCD +1.7% vs 3.6% expected
WDC +7.3% vs 7.1% expected
ON -21.8% vs 8.3% expected
PINS +19.0% vs 11.5% expected
HSBC -1.9% vs 4.8% expected
ANET +14.0% vs 9.5% expected
AMD +9.7% vs 8.2% expected
PFE 0.0% vs 4.6% expected
FSLR +0.3% vs 10.1% expected
CAT -6.7% vs 5.7% expected
AMGN +2.0% vs 3.9% expected
MPC +3.0% vs 4.7% expected
PYPL +6.6% vs 10.1% expected
ET +3.5% vs 3.1% expected
QCOM +5.8% vs 7.4% expected
ABNB -0.5% vs 9.4% expected
KHC +2.4% vs 4.5% expected
AAPL -0.5% vs 4.5% expected
PLTR +17.2% vs 13.7% expected
SQ +10.7% vs 14.5% expected
COIN +1.4% vs 13.2% expected
SHOP +22.4% vs 11.0% expected
MRNA -6.5% vs 10.7% expected
GOLD +0.1% vs 4.9% expected
PBR -0.1% vs 6.5% expected
DKNG +16.4% vs 12.6% expected
LLY -2.1% vs 6.0% expected
SBUX +10.6% vs 6.1% expected
COP +1.1% vs 4.1% expected
FTNT -12.3% vs 9.5% expected
NET +13.9% vs 12.8% expected
IRM -0.5% vs 5.9% expected
TEAM -2.5% vs 11.9% expected
ENB +1.0% vs 5.4% expected
Overall, there were 21 out of 34 that stayed within the expected range.
Changes In Open Interest
AAPL, SCHW, DKNG, PLTR, MARA, C and COIN saw some of the largest changes in open interest last week.
Other stocks with large changes in open interest are shown below:
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
Powell Speaks, Earnings and Other Key Themes to Watch This Week
Apple Could Still Be Worth More Due to Its Strong Free Cash Flow
3 High-Yield Dividend Stocks to Avoid Right Now
1 Small-Cap Stock Set to Double, According to Analysts
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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Last Week’s Earnings Moves Last week’s we only had one company of interest report earnings: MCD +1.7% vs 3.6% expected WDC +7.3% vs 7.1% expected ON -21.8% vs 8.3% expected PINS +19.0% vs 11.5% expected HSBC -1.9% vs 4.8% expected ANET +14.0% vs 9.5% expected AMD +9.7% vs 8.2% expected PFE 0.0% vs 4.6% expected FSLR +0.3% vs 10.1% expected CAT -6.7% vs 5.7% expected AMGN +2.0% vs 3.9% expected MPC +3.0% vs 4.7% expected PYPL +6.6% vs 10.1% expected ET +3.5% vs 3.1% expected QCOM +5.8% vs 7.4% expected ABNB -0.5% vs 9.4% expected KHC +2.4% vs 4.5% expected AAPL -0.5% vs 4.5% expected PLTR +17.2% vs 13.7% expected SQ +10.7% vs 14.5% expected COIN +1.4% vs 13.2% expected SHOP +22.4% vs 11.0% expected MRNA -6.5% vs 10.7% expected GOLD +0.1% vs 4.9% expected PBR -0.1% vs 6.5% expected DKNG +16.4% vs 12.6% expected LLY -2.1% vs 6.0% expected SBUX +10.6% vs 6.1% expected COP +1.1% vs 4.1% expected FTNT -12.3% vs 9.5% expected NET +13.9% vs 12.8% expected IRM -0.5% vs 5.9% expected TEAM -2.5% vs 11.9% expected ENB +1.0% vs 5.4% expected Overall, there were 21 out of 34 that stayed within the expected range. Changes In Open Interest AAPL, SCHW, DKNG, PLTR, MARA, C and COIN saw some of the largest changes in open interest last week. When trading options over earnings, it is best to stick to risk defined strategies and keep position size small.
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Last Week’s Earnings Moves Last week’s we only had one company of interest report earnings: MCD +1.7% vs 3.6% expected WDC +7.3% vs 7.1% expected ON -21.8% vs 8.3% expected PINS +19.0% vs 11.5% expected HSBC -1.9% vs 4.8% expected ANET +14.0% vs 9.5% expected AMD +9.7% vs 8.2% expected PFE 0.0% vs 4.6% expected FSLR +0.3% vs 10.1% expected CAT -6.7% vs 5.7% expected AMGN +2.0% vs 3.9% expected MPC +3.0% vs 4.7% expected PYPL +6.6% vs 10.1% expected ET +3.5% vs 3.1% expected QCOM +5.8% vs 7.4% expected ABNB -0.5% vs 9.4% expected KHC +2.4% vs 4.5% expected AAPL -0.5% vs 4.5% expected PLTR +17.2% vs 13.7% expected SQ +10.7% vs 14.5% expected COIN +1.4% vs 13.2% expected SHOP +22.4% vs 11.0% expected MRNA -6.5% vs 10.7% expected GOLD +0.1% vs 4.9% expected PBR -0.1% vs 6.5% expected DKNG +16.4% vs 12.6% expected LLY -2.1% vs 6.0% expected SBUX +10.6% vs 6.1% expected COP +1.1% vs 4.1% expected FTNT -12.3% vs 9.5% expected NET +13.9% vs 12.8% expected IRM -0.5% vs 5.9% expected TEAM -2.5% vs 11.9% expected ENB +1.0% vs 5.4% expected Overall, there were 21 out of 34 that stayed within the expected range. Changes In Open Interest AAPL, SCHW, DKNG, PLTR, MARA, C and COIN saw some of the largest changes in open interest last week. This week we have Disney (DIS), Gilead (GILD), Uber Technologies (UBER), Roblox (RBLX) and Trade Desk (TTD) all set to report.
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Last Week’s Earnings Moves Last week’s we only had one company of interest report earnings: MCD +1.7% vs 3.6% expected WDC +7.3% vs 7.1% expected ON -21.8% vs 8.3% expected PINS +19.0% vs 11.5% expected HSBC -1.9% vs 4.8% expected ANET +14.0% vs 9.5% expected AMD +9.7% vs 8.2% expected PFE 0.0% vs 4.6% expected FSLR +0.3% vs 10.1% expected CAT -6.7% vs 5.7% expected AMGN +2.0% vs 3.9% expected MPC +3.0% vs 4.7% expected PYPL +6.6% vs 10.1% expected ET +3.5% vs 3.1% expected QCOM +5.8% vs 7.4% expected ABNB -0.5% vs 9.4% expected KHC +2.4% vs 4.5% expected AAPL -0.5% vs 4.5% expected PLTR +17.2% vs 13.7% expected SQ +10.7% vs 14.5% expected COIN +1.4% vs 13.2% expected SHOP +22.4% vs 11.0% expected MRNA -6.5% vs 10.7% expected GOLD +0.1% vs 4.9% expected PBR -0.1% vs 6.5% expected DKNG +16.4% vs 12.6% expected LLY -2.1% vs 6.0% expected SBUX +10.6% vs 6.1% expected COP +1.1% vs 4.1% expected FTNT -12.3% vs 9.5% expected NET +13.9% vs 12.8% expected IRM -0.5% vs 5.9% expected TEAM -2.5% vs 11.9% expected ENB +1.0% vs 5.4% expected Overall, there were 21 out of 34 that stayed within the expected range. Changes In Open Interest AAPL, SCHW, DKNG, PLTR, MARA, C and COIN saw some of the largest changes in open interest last week. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
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Last Week’s Earnings Moves Last week’s we only had one company of interest report earnings: MCD +1.7% vs 3.6% expected WDC +7.3% vs 7.1% expected ON -21.8% vs 8.3% expected PINS +19.0% vs 11.5% expected HSBC -1.9% vs 4.8% expected ANET +14.0% vs 9.5% expected AMD +9.7% vs 8.2% expected PFE 0.0% vs 4.6% expected FSLR +0.3% vs 10.1% expected CAT -6.7% vs 5.7% expected AMGN +2.0% vs 3.9% expected MPC +3.0% vs 4.7% expected PYPL +6.6% vs 10.1% expected ET +3.5% vs 3.1% expected QCOM +5.8% vs 7.4% expected ABNB -0.5% vs 9.4% expected KHC +2.4% vs 4.5% expected AAPL -0.5% vs 4.5% expected PLTR +17.2% vs 13.7% expected SQ +10.7% vs 14.5% expected COIN +1.4% vs 13.2% expected SHOP +22.4% vs 11.0% expected MRNA -6.5% vs 10.7% expected GOLD +0.1% vs 4.9% expected PBR -0.1% vs 6.5% expected DKNG +16.4% vs 12.6% expected LLY -2.1% vs 6.0% expected SBUX +10.6% vs 6.1% expected COP +1.1% vs 4.1% expected FTNT -12.3% vs 9.5% expected NET +13.9% vs 12.8% expected IRM -0.5% vs 5.9% expected TEAM -2.5% vs 11.9% expected ENB +1.0% vs 5.4% expected Overall, there were 21 out of 34 that stayed within the expected range. Changes In Open Interest AAPL, SCHW, DKNG, PLTR, MARA, C and COIN saw some of the largest changes in open interest last week. Let’s take a look at the expected range for these stocks.
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12660.0
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2023-11-06 00:00:00 UTC
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Is Trending Stock Apple Inc. (AAPL) a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-trending-stock-apple-inc.-aapl-a-buy-now-7
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nan
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nan
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this maker of iPhones, iPads and other products have returned -0.5% over the past month versus the Zacks S&P 500 composite's +3.1% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 2.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.39 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.9% over the last 30 days.
The consensus earnings estimate of $6.05 for the current fiscal year indicates a year-over-year change of -1%. This estimate has changed -1.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.49 indicates a change of +7.3% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -1.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $89.08 billion indicates a year-over-year change of -1.2%. For the current and next fiscal years, $382.82 billion and $400.5 billion estimates indicate -0.1% and +4.6% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $81.8 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $1.26 for the same period compares with $1.20 a year ago.
Compared to the Zacks Consensus Estimate of $81.36 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +5.88%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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12661.0
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2023-11-06 00:00:00 UTC
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Here's the Artificial Intelligence (AI) Stock Most Likely to Beat Tesla in Joining Apple, Microsoft, Alphabet, Amazon, and Nvidia in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/heres-the-artificial-intelligence-ai-stock-most-likely-to-beat-tesla-in-joining-apple
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nan
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nan
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Few clubs are as exclusive as the $1 trillion club. It contains only five members. They're all companies that trade on U.S. stock exchanges and have market caps with at least 12 zeros.
However, there are a handful of companies that just might break into their ranks. One artificial intelligence (AI) stock, in particular, appears to be most likely to beat Tesla (NASDAQ: TSLA) in joining Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) in the $1 trillion club.
An easy pick
It's not hard to identify which stock is in the best position to reach the $1 trillion threshold. Meta Platforms' (NASDAQ: META) market cap currently hovers around $800 million. That puts it well ahead of Tesla with its market cap of under $700 million.
Only a few weeks ago, Meta and Tesla were running neck-and-neck. What happened? Quarterly earnings updates -- one good and one bad.
Tesla went first, announcing its third-quarter results on Oct. 18, 2023. Profits and gross margin fell. CEO Elon Musk warned that the company's electric Cybertruck wouldn't generate significant positive cash flow until as long as 18 months after production begins. Tesla stock promptly tumbled.
One week later, Meta had its turn. The company's revenue jumped 23% year over year to $34.1 billion. Earnings skyrocketed 164% higher to nearly $11.6 billion, better than expected. Meta projected even stronger revenue for the fourth quarter of 2023.
How Meta's market cap could hit $1 trillion
A single positive quarter won't be enough for Meta to join the $1 trillion club. However, I think there's a clear path for how the company will be able to do so.
First, Meta will need to continue increasing the monetization of Reels. The video service has already helped boost time spent on Instagram by more than 40%, according to CEO Mark Zuckerberg. Reels also reached the milestone of being net neutral to overall ad revenue sooner than expected. Meta should be able to make Reels even more profitable by making its ads more interactive and giving businesses more opportunities to place ads.
Second, the company's AI initiatives will need to pay off. Zuckerberg said in Meta's Q3earnings callthat "AI will be our biggest investment area in 2024." He noted that AI-driven feed recommendations have increased time spent on Instagram and Facebook by 6% and 7%, respectively. AI tools for advertisers could also play a key role in fueling growth.
Third, Meta will have to capitalize on its big opportunity in business messaging. Zuckerberg referred to business messaging as the company's "next major pillar" in the Q3 call. There's a major tie-in with AI on this front. Meta hopes to deploy AI to help businesses correspond with customers on the company's messaging platforms.
I suspect that if Meta executes well in these three areas, its market cap will hit $1 trillion over the next one to three years. We can't leave out another potential long-term growth driver for the company, though. Meta remains committed to developing the metaverse despite some investors' concerns that it's a fool's errand.
The company's recently launched Quest 3 is the first mainstream mixed-reality headset on the market. Meta just rolled out the next generation of its Ray-Ban Meta smart glasses. It's also continuing to build new metaverse software applications. New worlds have been added to its Horizon metaverse. The company is planning to enable Horizon to be used on mobile devices as well. These and future metaverse efforts just might start paying off and help Meta get to that magic $1 trillion mark.
Don't discount Tesla or Buffett, though
However, it's possible that Meta could stumble. Also, don't discount the possibility that Tesla roars back or that Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) reaches a market cap of $1 trillion first.
Berkshire is nearly as close as Meta is to joining the $1 trillion club. Buffett has a massive cash stockpile that he could put to work if he finds the right opportunities. A surge by Apple would also push Berkshire stock higher since the tech giant ranks as Berkshire's largest equity investment by far.
As for Tesla, Musk tweeted last week that he thinks the company can achieve a valuation of $4 trillion if it can "knock the ball out of the park several times." One potential home run for Tesla could be to launch a successful robotaxi service.
Berkshire or Tesla could leap past Meta. For now, though, Zuckerberg's company appears to be in the driver's seat to become the next member of the $1 trillion club.
10 stocks we like better than Meta Platforms
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*Stock Advisor returns as of October 30, 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. Keith Speights has positions in Alphabet, Apple, Berkshire Hathaway, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, 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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One artificial intelligence (AI) stock, in particular, appears to be most likely to beat Tesla (NASDAQ: TSLA) in joining Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) in the $1 trillion club. CEO Elon Musk warned that the company's electric Cybertruck wouldn't generate significant positive cash flow until as long as 18 months after production begins. As for Tesla, Musk tweeted last week that he thinks the company can achieve a valuation of $4 trillion if it can "knock the ball out of the park several times."
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One artificial intelligence (AI) stock, in particular, appears to be most likely to beat Tesla (NASDAQ: TSLA) in joining Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) in the $1 trillion club. 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 Alphabet, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla.
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One artificial intelligence (AI) stock, in particular, appears to be most likely to beat Tesla (NASDAQ: TSLA) in joining Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) in the $1 trillion club. Meta Platforms' (NASDAQ: META) market cap currently hovers around $800 million. How Meta's market cap could hit $1 trillion A single positive quarter won't be enough for Meta to join the $1 trillion club.
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One artificial intelligence (AI) stock, in particular, appears to be most likely to beat Tesla (NASDAQ: TSLA) in joining Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Nvidia (NASDAQ: NVDA) in the $1 trillion club. How Meta's market cap could hit $1 trillion A single positive quarter won't be enough for Meta to join the $1 trillion club. 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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2023-11-06 00:00:00 UTC
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1 FAANG Stock That's a No-Brainer Buy in November and 1 to Avoid Like the Plague
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AAPL
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https://www.nasdaq.com/articles/1-faang-stock-thats-a-no-brainer-buy-in-november-and-1-to-avoid-like-the-plague
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Volatility has been the name of the game on Wall Street for more than three years. Investors enjoyed a period of euphoria in 2021 that was fueled by historically low interest rates and fiscal stimulus. They've also navigated two bear markets (2020 and 2022).
When uncertainty picks up, investors of all walks have a tendency to gravitate to profitable, time-tested, industry-leading businesses. Over the past decade, the FAANG stocks have answered investors' call.
Image source: Getty Images.
When I say "FAANG stocks," I'm referring to:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
What makes the FAANGs so special is their well-defined competitive advantages and/or seemingly impenetrable moats.
Meta Platforms is the company behind four of the most-downloaded social media apps in the world (Facebook, Instagram, WhatsApp, and Facebook Messenger).
Apple's iPhone commands more than half of U.S. smartphone market share.
Amazon accounts for close to 40% of U.S. online retail sales, and it's also the No. 1 cloud infrastructure service provider (via Amazon Web Services).
Netflix holds the highest market share for domestic and international streaming services, and is also tops for original content among streaming providers.
Alphabet's Google has held at least a 90% share of worldwide internet search since April 2015.
META data by YCharts.
In addition to well-defined competitive edges, the FAANG stocks are outperformers. Over the trailing 10-year period, the benchmark S&P 500 has advanced by a healthy 134%. Comparatively, the worst performer among the FAANGs is a 359% gain for Alphabet's Class A shares (GOOGL).
But just because these industry leaders are outperformers, it doesn't mean their outlooks are identical. As we push into November, one FAANG stock stands out as a no-brainer buy, while another is historically expensive and worth avoiding.
The FAANG stock that's a no-brainer buy in November: Amazon
While buying any of the FAANGs has been a winning proposition for years, e-commerce company Amazon offers a particularly intriguing value proposition in November (and beyond).
The primary reason shares of Amazon have been pressured over the past two years is the growing expectation of a recession in the United States. Most people are familiar with Amazon because of its world-leading online marketplace. If an economic downturn were to take shape, it's likely that consumers would pare back their discretionary spending. The result would be a decline in online retail sales.
But the interesting thing about Amazon is that its highest-revenue segment (its online marketplace) isn't all that important when it comes to cash flow generation. With Amazon's management team focused on reinvesting its cash flow into high-growth initiatives, it's three of the company's ancillary operating segments that are responsible for generating the bulk of its cash flow.
The most important of these ancillary segments is Amazon Web Services (AWS). Estimates from tech analysis firm Canalys suggest AWS accounts for 30% of global cloud infrastructure service spending. Although skeptics have pointed to a slowdown in growth for AWS in recent quarters, keep in mind that enterprise cloud spending is still in its early innings. Despite accounting for only a sixth of Amazon's net sales, AWS frequently generates 50% to 100% of the company's operating income.
Subscription services is another key cog for Amazon. The company surpassed 200 million global Prime subscribers in April 2021 and has likely built on this figure since gaining the exclusive rights for Thursday Night Football. In exchange for some minor perks, such as free two-day shipping, Amazon maintains exceptional pricing power over its Prime subscribers, and it keeps subscribers loyal to its ecosystem of products and services.
The third ancillary segment of importance is advertising services. Amazon regularly attracts more than 2 billion visitors to its site each month, which makes it a go-to for merchants and gives the company exceptional ad-pricing power.
Collectively, these three segments are expected to more than triple Amazon's cash flow per share from a reported $4.59 in 2022 to an estimated $15.26 by 2026. Amazon stock was regularly valued at 23 to 37 times year-end cash flow from 2010 through 2019, which means its current multiple of 12.4 times forward-year cash flow is historically cheap and makes the stock a no-brainer buy.
Image source: Apple.
The FAANG stock to avoid like the plague in November: Apple
However, there's another side to this coin. While Amazon has the tools and intangibles that make it a phenomenal buy in November, tech stock Apple is giving investors multiple reasons to keep their distance and avoid it like the plague.
Before digging into the details, I want to give Apple credit where credit is due. It didn't become the largest publicly traded company by accident. It's the largest company because it generates a boatload of operating cash flow, absolutely dominates the U.S. smartphone market, and has led with its innovation for more than a decade.
Over the long run, Apple's greatest growth opportunity looks to be its evolution as a platforms company. CEO Tim Cook is overseeing this ongoing transition, which should lead to improved customer loyalty, higher operating margin, and more consistent revenue recognition during key iPhone upgrade cycles.
But it's not all peaches and cream for the largest publicly traded company in the United States.
Three weeks ago, estimates from Counterpoint Research showed that sales of the all-new iPhone 15 were lagging in China. This important overseas market for Apple showed double-digit declines in unit sales of the high-margin Pro Max and Pro in the 17 days following their launch. A roughly $2 billion shortfall in China sales in Apple's fourth-quarter operating results adds further fuel to the fire that its core physical product isn't performing well in a key market.
Of course, it's not just China that's a problem for Apple. With the worst of the COVID-19 pandemic being put into the rearview mirror and uncertainties about U.S. economic growth taking shape, all of Apple's physical products -- iPhone, Mac, and iPad -- endured sales declines in fiscal 2023 (ended Sept. 30, 2023).
The investment thesis with Apple has long hinged on its innovation driving low-double-digit growth. However, Apple has reported four consecutive quarterly sales declines, to go along with virtually flat year-over-year earnings per share (EPS). If Apple were valued at, say, 15 times forward-year earnings with declining sales and flat year-over-year EPS, I doubt anyone would bat an eye. But with Apple trading at 27 times forward-year earnings, it's about as pricey as it's been over the past decade.
Furthermore, rapidly rising interest rates take away Apple's access to cheap capital. Aside from potentially reducing innovation, higher interest rates make it unlikely that Apple will borrow capital to facilitate buybacks. Fewer buybacks may provide less of a boost to Apple's EPS.
Apple is a solidly profitable company, but it makes for a terrible investment, in my view, at the moment.
10 stocks we like better than Amazon
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 30, 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. Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) What makes the FAANGs so special is their well-defined competitive advantages and/or seemingly impenetrable moats. CEO Tim Cook is overseeing this ongoing transition, which should lead to improved customer loyalty, higher operating margin, and more consistent revenue recognition during key iPhone upgrade cycles. A roughly $2 billion shortfall in China sales in Apple's fourth-quarter operating results adds further fuel to the fire that its core physical product isn't performing well in a key market.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) What makes the FAANGs so special is their well-defined competitive advantages and/or seemingly impenetrable moats. Amazon stock was regularly valued at 23 to 37 times year-end cash flow from 2010 through 2019, which means its current multiple of 12.4 times forward-year cash flow is historically cheap and makes the stock a no-brainer buy. While Amazon has the tools and intangibles that make it a phenomenal buy in November, tech stock Apple is giving investors multiple reasons to keep their distance and avoid it like the plague.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) What makes the FAANGs so special is their well-defined competitive advantages and/or seemingly impenetrable moats. The FAANG stock that's a no-brainer buy in November: Amazon While buying any of the FAANGs has been a winning proposition for years, e-commerce company Amazon offers a particularly intriguing value proposition in November (and beyond). Amazon stock was regularly valued at 23 to 37 times year-end cash flow from 2010 through 2019, which means its current multiple of 12.4 times forward-year cash flow is historically cheap and makes the stock a no-brainer buy.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) What makes the FAANGs so special is their well-defined competitive advantages and/or seemingly impenetrable moats. The result would be a decline in online retail sales. It's the largest company because it generates a boatload of operating cash flow, absolutely dominates the U.S. smartphone market, and has led with its innovation for more than a decade.
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2023-11-06 00:00:00 UTC
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Apple, Amazon, Alphabet, Microsoft and Nvidia are part of Zacks Earnings Preview
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AAPL
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https://www.nasdaq.com/articles/apple-amazon-alphabet-microsoft-and-nvidia-are-part-of-zacks-earnings-preview
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For Immediate Release
Chicago, IL – November 6, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Nvidia NVDA.
Q3 Results Reflect Positivity, but Outlook Uncertain
With Q3 results from more than 80% of S&P 500 members already out, we can confidently say that actual results have once again turned out to be better than expected. Keep in mind that Q3 earnings estimates had barely budged ahead of the start of the reporting cycle, which makes the outperformance all the more significant.
We continue to be of the view that while the overall earnings picture isn’t great, it isn’t falling off the cliff either. In fact, Q3 earnings growth is on track to turn positive, which follows three back-to-back quarters of declines.
On the negative side, the Q3 results show a notable loss of momentum on the revenues side, both in terms of the growth rate as well as the proportion of these companies beating top-line expectations.
An even more disconcerting development is on the revisions front, with estimates for the current (2023 Q4) and coming quarters starting to come down, which follows a relatively stable revisions trend over the preceding six months.
Here are the four notable features of the Q3 earnings season:
First, earnings growth is on track to turn positive. Q3 earnings for the 405 S&P 500 companies that have reported already are up +0.4% from the same period (up +5.6% excluding the Energy sector drag).
For the quarter as a whole, combining the actuals for these 405 companies with estimates for the still-to-come 95 index members, Q3 earnings are on track to increase by +1.5% on an equivalent growth in revenues.
The positive Q3 earnings growth follows three quarters of declines, with the growth pace expected to improve steadily in the coming quarters.
Second, fewer companies have been able to beat Q3 revenue estimates. For the 405 S&P 500 members that have reported Q3 results, 82.5% are beating EPS estimates, and 61.5% are beating revenue estimates.
As you can see above, the Q3 EPS beats percentage is tracking above the 5-year average (preceding 20 quarters), but the revenue beats percentage is notably weaker. In fact, the 61.5% beats percentage for these 405 S&P 500 members is the lowest since the first quarter of 2020 when Covid got underway.
In terms of revenue growth, the Q3 top-line growth rate of +1.6% for this group of 405 index members that have reported is modestly better than what we had seen in the preceding period, but otherwise representative of a steadily decelerating trend.
Third, the Tech sector has resumed its growth trajectory. We still have a number of Tech sector companies that have yet to report Q3 results. But Q3 earnings for the 73.3% of Tech companies in the S&P 500 index that have already reported results are up +15.8% on +2.7% higher revenues.
For the quarter as a whole, combining the actuals that have come out with estimates for the still-to-come Tech companies, Q3 earnings are on track to increase +20.8% on +4.2% higher revenues.
The Tech sector’s growth profile has been going through a post-COVID adjustment phase since the fourth quarter of 2021, with a low single-digit earnings growth rate in the preceding period (2023 Q2) appearing after four quarters of declines.
As you can see in the chart above, the sector is expected to resume its historical role as a growth driver going forward.
The Tech sector’s renewed growth trajectory is particularly notable when we look at the earnings picture for the mega-cap Tech players, what we refer to as the ‘Big 7 Tech players’ that includes Apple, Amazon, Alphabet, Microsoft, Nvidia and others.
The market wasn’t impressed with Apple’s results, whose Q3 earnings were up +10.8% on essentially flat revenues (down -0.7%). But more than Apple’s Q3 results, investors didn’t like the company’s underwhelming guidance for the December quarter.
Q3 earnings for the ‘Big 7 Tech Players’ increased +51% from the same period last year on +12.4% higher revenues, with the group’s growth picture expected to remain strong in the coming periods as well.
Fourth, estimates for the current and coming quarters have started coming down in a significant way over the last few weeks.
The expectation currently is for 2023 Q4 earnings to be up +1.9% from the same period last year on +2.7% higher revenues. This growth pace represents a notable decline from what was expected for the period in late September of +5.3% earnings growth on +3.6% higher revenues.
The cuts to Q4 earnings estimates are widespread, with estimates getting cut for 11 of the 16 Zacks sectors. The sectors suffering the biggest cuts include Autos, Medical, Transportation, and Consumer Discretionary.
On the positive side, estimates have increased for the Energy, Utilities, Industrials, and Retail sectors.
Estimates for the Tech sector have modestly gone up, a significant deceleration from the pace of positive estimate revisions that we saw in the last two quarters.
The Q3 Earnings Season Scorecard & This Week’s Docket
Including all the earnings reports through Friday, November 3rd, we now have Q3 results from 405 S&P 500 members, or 81% of the index’s total membership. Total Q3 earnings for these companies are up +0.4% from the same period last year on +1.6% higher revenues, with 92.5% beating EPS estimates and 61.5% beating revenue estimates.
We have another super busy reporting docket this week with more than 1200 companies reporting Q3 results, including 52 S&P 500 members. The notable companies reporting results this week include Disney, Uber, Lyft, Berkshire Hathaway, and others.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Earnings Growth Turns Positive
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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 Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Nvidia NVDA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the quarter as a whole, combining the actuals for these 405 companies with estimates for the still-to-come 95 index members, Q3 earnings are on track to increase by +1.5% on an equivalent growth in revenues.
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This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Nvidia NVDA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Tech sector’s renewed growth trajectory is particularly notable when we look at the earnings picture for the mega-cap Tech players, what we refer to as the ‘Big 7 Tech players’ that includes Apple, Amazon, Alphabet, Microsoft, Nvidia and others.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Nvidia NVDA. Total Q3 earnings for these companies are up +0.4% from the same period last year on +1.6% higher revenues, with 92.5% beating EPS estimates and 61.5% beating revenue estimates.
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This week’s list includes Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Nvidia NVDA. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Q3 Results Reflect Positivity, but Outlook Uncertain With Q3 results from more than 80% of S&P 500 members already out, we can confidently say that actual results have once again turned out to be better than expected.
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2023-11-06 00:00:00 UTC
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Best Leveraged ETFs of Wall Street's Best Week of 2023
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https://www.nasdaq.com/articles/best-leveraged-etfs-of-wall-streets-best-week-of-2023
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Wall Street logged the best weekly performance of 2023 last week. The S&P 500 advanced 5.9%, the Dow Jones added 5.1% and the Nasdaq surged 6.6% last week on hopes that the Federal Reserve is done with its rate-hiking campaign. U.S. benchmark treasury yields slumped to 4.57% on Nov 3 from 4.88% recorded at the start of the week.
As expected, the Fed announced on Nov 1, 2023, that it would keep its benchmark interest rate within the range of 5.25% to 5.50%. This marks the highest interest rate level in over two decades. However, the central bank has left the door open for potential future actions as it continues to grapple with the persistent challenge of reining in inflation and steering the economy toward its target of 2% inflation.
But then, the U.S. economy added 150,000 jobs in October, falling short of the 180,000-reading expected, with auto industry strikes acting as a catalyst, the Bureau of Labor Statistics said. The unemployment rate ticked higher to 3.9%. This somber jobs data strengthened bets that the Fed rates have peaked (read: Fed Stays Put: 5 Winning Tech ETFs).
Several technology and fintech earnings came in at upbeat last week with their shares surging massively. These include Shopify SHOP, Palantir PLTR, Block SQ, Roku ROKU and PayPal PYPL. Apple AAPL announced better-than-expected results for its fourth quarter, but an underwhelming outlook for Q1 sent shares falling more than 1% in afternoon trading on Nov 3, 2023.
Notably, third-quarter results from more than 80% of S&P 500 members are already out. Results have once again turned out to be better than expected. Investors should also note that Q3 earnings estimates had hardly budged ahead of the start of the reporting cycle, which makes the outperformance all the more significant. This was another reason for such stellar weekly performance of Wall Street.
We continue to be of the view that while the overall earnings picture isn’t great, it isn’t falling off the cliff either. In fact, Q3 earnings growth is on track to turn positive, which follows three back-to-back quarters of declines.
ETFs in Focus
Against this backdrop, below we highlight a few inverse/leveraged ETFs that soared last week.
Direxion Daily Homebuilders & Supplies Bull 3X Shares NAIL – Up 28.6%
The underlying Dow Jones U.S. Select Home Construction Index measures U.S companies in the home construction sector that provide a wide range of products and services related to homebuilding. The fund charges 98 bps in fees.
As the bond yields fell, homebuilding stocks surged as this sector’s strength is inversely proportional to the interest rates. Notably, US new home sales jumped to a 19-month high in September amid falling prices.
MicroSectors Solactive FANG & Innovation 3X Leveraged ETN BULZ – Up 27.1%
The underlying Solactive FANG Innovation Index tracks the stock prices of 15 large capitalization U.S. technology stocks. The fund charges 95 bps in fees.
As the Fed stayed put last week and yields fell, high growth sectors like technology that outperform in a low-rate environment, gained.
Direxion Daily MSCI Mexico Bull 3X Shares MEXX – Up 25.8%
The underlying MSCI Mexico IMI 25/50 Index is designed to measure the performance of the large, mid and small-capitalization segments of the Mexican equity market, covering approximately 99% of the free float-adjusted market capitalization in Mexico. The expense ratio of the fund is 1.23%.
The falling U.S. yields boosted emerging market investments. Probably this is why leveraged Mexico ETF surged last week.
Direxion Daily AMZN Bull 1.5X Shares ETF AMZU – Up 23.3%
The Direxion Daily AMZN Bull 1.5X Shares seek daily investment results, before fees and expenses, of 150% of the performance of the common shares of Amazon.com, Inc. The expense ratio of AMZU is 1.06%.
Amazon recently reported robust third-quarter results, wherein it beat both earnings and revenue estimates. Amazon's cloud computing platform, a record-high Prime Day and a rapidly growing ad sales business drove the results. Plus, Amazon shares surged on prospects of solid holiday season sales.
Direxion Daily Consumer Discretionary Bull 3X Shares WANT – Up 20.9%
The underlying Consumer Discretionary Select Sector Index includes domestic companies from the consumer discretionary sector. The expense ratio of the fund is 1.00% (read: Why You Should Tap Fintech ETFs & Stocks in the Holiday Season).
Consumer discretionary stocks became important ahead of all-important holiday season. Anticipations for the holiday retail sales season are positive, with Mastercard SpendingPulse estimating a 3.7% year-over-year increase between November 1 and December 24, excluding automotive sales. E-commerce and online sales are expected to grow by 6.7% and 2.9%, respectively.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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Shopify Inc. (SHOP) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL): ETF Research Reports
Roku, Inc. (ROKU) : Free Stock Analysis Report
Direxion Daily MSCI Mexico Bull 3X Shares (MEXX): ETF Research Reports
Direxion Daily Consumer Discretionary Bull 3X Shares (WANT): ETF Research Reports
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
MicroSectors FANG & Innovation 3X Leveraged ETN (BULZ): ETF Research Reports
Direxion Daily AMZN Bull 1.5X Shares (AMZU): 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 announced better-than-expected results for its fourth quarter, but an underwhelming outlook for Q1 sent shares falling more than 1% in afternoon trading on Nov 3, 2023. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL): ETF Research Reports Roku, Inc. (ROKU) : Free Stock Analysis Report Direxion Daily MSCI Mexico Bull 3X Shares (MEXX): ETF Research Reports Direxion Daily Consumer Discretionary Bull 3X Shares (WANT): ETF Research Reports Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report MicroSectors FANG & Innovation 3X Leveraged ETN (BULZ): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports To read this article on Zacks.com click here. But then, the U.S. economy added 150,000 jobs in October, falling short of the 180,000-reading expected, with auto industry strikes acting as a catalyst, the Bureau of Labor Statistics said.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL): ETF Research Reports Roku, Inc. (ROKU) : Free Stock Analysis Report Direxion Daily MSCI Mexico Bull 3X Shares (MEXX): ETF Research Reports Direxion Daily Consumer Discretionary Bull 3X Shares (WANT): ETF Research Reports Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report MicroSectors FANG & Innovation 3X Leveraged ETN (BULZ): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL announced better-than-expected results for its fourth quarter, but an underwhelming outlook for Q1 sent shares falling more than 1% in afternoon trading on Nov 3, 2023. MicroSectors Solactive FANG & Innovation 3X Leveraged ETN BULZ – Up 27.1% The underlying Solactive FANG Innovation Index tracks the stock prices of 15 large capitalization U.S. technology stocks.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL): ETF Research Reports Roku, Inc. (ROKU) : Free Stock Analysis Report Direxion Daily MSCI Mexico Bull 3X Shares (MEXX): ETF Research Reports Direxion Daily Consumer Discretionary Bull 3X Shares (WANT): ETF Research Reports Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report MicroSectors FANG & Innovation 3X Leveraged ETN (BULZ): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL announced better-than-expected results for its fourth quarter, but an underwhelming outlook for Q1 sent shares falling more than 1% in afternoon trading on Nov 3, 2023. Direxion Daily AMZN Bull 1.5X Shares ETF AMZU – Up 23.3% The Direxion Daily AMZN Bull 1.5X Shares seek daily investment results, before fees and expenses, of 150% of the performance of the common shares of Amazon.com, Inc.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL): ETF Research Reports Roku, Inc. (ROKU) : Free Stock Analysis Report Direxion Daily MSCI Mexico Bull 3X Shares (MEXX): ETF Research Reports Direxion Daily Consumer Discretionary Bull 3X Shares (WANT): ETF Research Reports Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report MicroSectors FANG & Innovation 3X Leveraged ETN (BULZ): ETF Research Reports Direxion Daily AMZN Bull 1.5X Shares (AMZU): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL announced better-than-expected results for its fourth quarter, but an underwhelming outlook for Q1 sent shares falling more than 1% in afternoon trading on Nov 3, 2023. As expected, the Fed announced on Nov 1, 2023, that it would keep its benchmark interest rate within the range of 5.25% to 5.50%.
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12665.0
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2023-11-06 00:00:00 UTC
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Pre-Market Most Active for Nov 6, 2023 : SQQQ, AAPL, TSLA, TQQQ, PLTR, HOWL, NIO, TSLL, SONY, F, IONQ, WRK
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AAPL
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-6-2023-%3A-sqqq-aapl-tsla-tqqq-pltr-howl-nio-tsll-sony-f-ionq
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The NASDAQ 100 Pre-Market Indicator is up 29.05 to 15,128.54. The total Pre-Market volume is currently 57,685,799 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $18.75, with 3,030,025 shares traded. This represents a 14.47% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.46 at $176.19, with 2,640,264 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 $1.36. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Tesla, Inc. (TSLA) is +3.49 at $223.45, with 2,141,488 shares traded. TSLA's current last sale is 89.38% of the target price of $250.
ProShares UltraPro QQQ (TQQQ) is +0.19 at $37.77, with 1,986,925 shares traded. This represents a 134.6% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is +0.08 at $18.97, with 1,338,330 shares traded. PLTR's current last sale is 126.47% of the target price of $15.
Werewolf Therapeutics, Inc. (HOWL) is -0.21 at $2.96, with 1,307,564 shares traded.HOWL is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.27 per share, which represents a -40 percent increase over the EPS one Year Ago
NIO Inc. (NIO) is +0.1699 at $8.40, with 1,185,290 shares traded.NIO is scheduled to provide an earnings report on 11/9/2023, 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
Direxion Daily TSLA Bull 1.5X Shares (TSLL) is +0.3088 at $12.82, with 1,118,674 shares traded. This represents a 176.27% increase from its 52 Week Low.
Sony Group Corporation (SONY) is +0.04 at $87.46, with 585,412 shares traded.SONY is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1.19 per share, which represents a 154 percent increase over the EPS one Year Ago
Ford Motor Company (F) is +0.04 at $10.60, with 506,001 shares traded. F's current last sale is 75.71% of the target price of $14.
IonQ, Inc. (IONQ) is +0.185 at $11.77, with 480,448 shares traded.IONQ is scheduled to provide an earnings report on 11/8/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.13 per share, which represents a -12 percent increase over the EPS one Year Ago
Westrock Company (WRK) is +0.15 at $38.00, with 416,283 shares traded.WRK is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.75 per share, which represents a 143 percent increase over the EPS one Year Ago
The views and 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 -0.46 at $176.19, with 2,640,264 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Werewolf Therapeutics, Inc. (HOWL) is -0.21 at $2.96, with 1,307,564 shares traded.HOWL is scheduled to provide an earnings report on 11/9/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.46 at $176.19, with 2,640,264 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.27 per share, which represents a -40 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.46 at $176.19, with 2,640,264 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.27 per share, which represents a -40 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.46 at $176.19, with 2,640,264 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024.
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12666.0
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2023-11-06 00:00:00 UTC
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2 Tech Stocks To Watch In November 2023
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AAPL
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https://www.nasdaq.com/articles/2-tech-stocks-to-watch-in-november-2023
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The technology sector stands as a cornerstone of modern innovation, encompassing an expansive array of companies. These organizations specialize in various fields, such as software development, semiconductor manufacturing, and cloud computing services. They are pivotal in shaping how we communicate, work, and entertain ourselves. The sector is not just about established titans like Netflix (NASDAQ: NFLX) and Microsoft (NASDAQ: MSFT) but also includes a plethora of startups pushing the boundaries of technology.
Tech stocks symbolize the equity of these cutting-edge firms. They range from blue-chip names with global recognition to high-growth prospects just emerging from their venture-backed origins. While the potential for significant returns is substantial, mirroring the success stories of companies that have reshaped our digital landscape, so is the risk. Market volatility is a hallmark of tech stocks, driven by product cycles, competitive pressures, and the continuous need for innovation.
When it comes to investing in the tech sector, one must navigate with insight and caution. Thorough research into each company’s prospects, competitive position, and financial health is crucial. Understanding broader industry trends can also offer investors an edge. For those with a high-risk tolerance and a focus on long-term horizons, the tech sector can offer compelling investment opportunities. What that being said, here are two blue-chip tech stocks to watch in the stock market today.
Tech Stocks To Buy [Or Avoid] Now
Apple Inc. (NASDAQ: AAPL)
Amazon.com, Inc. (NASDAQ: AMZN)
Apple (AAPL Stock)
Starting off, Apple Inc. (AAPL) is a global technology company. Apple focuses on a range of consumer electronics. This includes the iPhone, iPad, and MacBook, Apple has also made significant strides in software and services with offerings such as iOS, the App Store, and iCloud.
Earlier this month, Apple reported a beat on its Q4 2023 financial results. In detail, the tech giant notched in earnings of $1.46 per share, with revenue of $89.50 billion. For context, this is in comparison with analysts’ consensus estimates for the quarter which were an EPS of $1.39 on revenue of $84.69 billion.
Looking at the last five trading days, shares of Apple stock have advanced by 5.44%. While, during Monday’s mid-morning trading session, AAPL stock is trading green by 1.13% at $178.65 a share.
[Read More] Best Dow Jones Stocks To Buy Today? 2 In Focus
Amazon (AMZN Stock)
Next, Amazon.com, Inc. (AMZN) is one of the world’s largest e-commerce marketplaces. Alongside its vast retail operations, Amazon is a leader in cloud computing through its Amazon Web Services (AWS) division and has a growing presence in areas like artificial intelligence, streaming entertainment, and smart home products.
Late last month, Amazon announced better-than-expected third-quarter 2023 financial results. Diving right in, the company reported earnings of $0.85 per share, along with revenue of $143.08 billion for Q3 2023. This is compared to Wall Street’s consensus estimates, which were an EPS of $0.58 and revenue of $141.47 billion. Meanwhile, revenue advanced by 12.57% versus the same period, the previous year.
In the last five trading days, shares of AMZN stock have increased by 5.57%. While, during Monday’s mid-morning trading session, Amazon stock is trading higher by 1.19% on the day so far, at $140.25 a share.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech Stocks To Buy [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) Amazon.com, Inc. (NASDAQ: AMZN) Apple (AAPL Stock) Starting off, Apple Inc. (AAPL) is a global technology company. While, during Monday’s mid-morning trading session, AAPL stock is trading green by 1.13% at $178.65 a share. While the potential for significant returns is substantial, mirroring the success stories of companies that have reshaped our digital landscape, so is the risk.
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Tech Stocks To Buy [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) Amazon.com, Inc. (NASDAQ: AMZN) Apple (AAPL Stock) Starting off, Apple Inc. (AAPL) is a global technology company. While, during Monday’s mid-morning trading session, AAPL stock is trading green by 1.13% at $178.65 a share. While, during Monday’s mid-morning trading session, Amazon stock is trading higher by 1.19% on the day so far, at $140.25 a share.
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Tech Stocks To Buy [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) Amazon.com, Inc. (NASDAQ: AMZN) Apple (AAPL Stock) Starting off, Apple Inc. (AAPL) is a global technology company. While, during Monday’s mid-morning trading session, AAPL stock is trading green by 1.13% at $178.65 a share. Looking at the last five trading days, shares of Apple stock have advanced by 5.44%.
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Tech Stocks To Buy [Or Avoid] Now Apple Inc. (NASDAQ: AAPL) Amazon.com, Inc. (NASDAQ: AMZN) Apple (AAPL Stock) Starting off, Apple Inc. (AAPL) is a global technology company. While, during Monday’s mid-morning trading session, AAPL stock is trading green by 1.13% at $178.65 a share. What that being said, here are two blue-chip tech stocks to watch in the stock market today.
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12667.0
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2023-11-06 00:00:00 UTC
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3 Reasons I'm Not Too Worried About Apple's So-So Guidance
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AAPL
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https://www.nasdaq.com/articles/3-reasons-im-not-too-worried-about-apples-so-so-guidance
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All in all, the recently ended fiscal fourth quarter wasn't a terrible one for Apple (NASDAQ: AAPL). While year-over-year revenue fell (albeit slightly) for a fourth straight quarter, sales of $89.5 billion still topped estimates of $89.3 billion. Per-share earnings of $1.46 beat consensus estimates of $1.39, improving on the year-earlier comparison of $1.29.
It was the forecast for the quarter now underway that sent the stock lower. Although no specific numbers were offered, CFO Luca Maestri painted a clear enough picture by cautioning "We expect our December quarter total company revenue to be similar to last year." Wall Street was calling for sales growth of 5%. Apparently, headwinds in China further fanned the bearish flames.
Before presuming the worst about Apple for the foreseeable future, however, you might want to look past the narrative and dig into the data -- all of it. If not in the final calendar quarter of 2023, there are three reasons 2024 could be -- and should be -- a major turnaround year for the world's biggest company.
China's not the liability it's being made out to be
There's no denying China's dealing with the economic fallout of prolonged pandemic lockdowns. But this fallout is being shaken off more than most observers might realize. The country's retail sales grew 5.5% year over year in September, accelerating from August's pace of 4.6%. Industrial output was up 4.5%. China's GDP grew 4.9% in the third quarter of 2023.
Bear in mind these numbers are a bit inflated because they're compared to last year's suppressed spending and economic output; these figures will be lower next year. They'll still be pretty good though, setting the stage for more growth. The World Bank expects China's 2024 GDP growth to roll in at a respectable 4.4%. That's enough to continue spurring consumers' spending on goods like smartphones.
Besides, Apple is holding up better in this market than most investors may realize. Last quarter's Greater China sales were only down 2.5% year over year, more or less mirroring the full year's revenue contraction for the country. Moreover, market research outfit IDC estimates that while Apple sold slightly fewer iPhones in China during the calendar third quarter of this year, it technically gained market share as consumers steered clear of lower-cost brands like Oppo and Vivo. The country's consumers are still seemingly seeking out and paying for premium discretionary products, an idea seconded by analysts with Global X Funds.
The kicker: It's not that Apple can afford to simply dismiss any headwinds blowing in China, but it's not a giant piece of the company's business. Greater China accounts for less than one-fifth of Apple's total revenue, and its sales there are holding up reasonably well.
Apple's second-biggest profit center is resilient
Devices (iPads, iPhones, Macs, watches, etc.) are the company's single biggest source of revenue, accounting for more than three-fourths of Apple's sales; the iPhone makes up a little more than half of that amount. Digital services (apps, content, etc.), meanwhile, account for less than 25% of the company's top line.
But these proportions change dramatically in terms of gross profits. Thanks to their higher profit margins, services actually make up a consistent 40% of Apple's bottom line.
Data source: Apple Inc. Chart by author. Figures are in millions.
This matters. The services arm's profitability is consistent -- and consistently growing -- from one quarter and one year to the next, and this is income that can be counted on should the company want or need cash for a particular purpose.
This degree of engagement with Apple's digital ecosystem also makes it more likely a consumer will buy another Apple device when it's time for an upgrade or replacement. To this end, Consumer Intelligence Research Partners reports that 94% of current iOS users plan on sticking with an Apple device when that time comes. A great deal of future revenue is already lined up.
On that note...
An upgrade cycle is looming
Last but not least, a wave of iPhone upgrades awaits in 2024.
For the first several years of the iPhone's existence it was pretty clear when investors could expect to see a surge in sales -- the device's fans kept their phones for two to three years, and then upgraded. This upgrade cycle has lengthened since then, with owners willing and able to keep their increasingly expensive iPhones for longer periods of time. That's why we've only seen measurable swells in demand in 2012, 2016, and the surprisingly healthy bump in 2020.
Data source: IDC. Chart by author. Figures are in millions. (Note that iPhone sales typically surge in the fourth calendar quarter of the year due to holiday gift-giving spending.)
Connect the dots. It's been nearly four years since the last wave of upgrades, and Morgan Stanley's analysts estimate the iPhone's replacement cycle has been stretched to an all-time high of 4.4 years, pointing to "pent-up demand from consumers deferring their iPhone purchase from FY23." We're due, if not overdue.
And the stage is set for such a cyclical sales surge in 2024 after a lackluster response to this year's debut of the iPhone 15.
See, many hardcore iPhone fans made a point of not buying this year's release, holding out for the iPhone 16 that's apt to be unveiled next year. The next version of the smartphone is expected to boast more memory, a better camera, a bigger screen, and a more powerful processor. The technological leap between the most common iPhones in use right now and the iPhone 16 will be measurably greater than the distance between them and the iPhone 15.
Given that the iPhone is still the company's biggest revenue driver, Apple may end up dishing out some pleasant revenue surprises next year.
10 stocks we like better than Apple
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All in all, the recently ended fiscal fourth quarter wasn't a terrible one for Apple (NASDAQ: AAPL). Although no specific numbers were offered, CFO Luca Maestri painted a clear enough picture by cautioning "We expect our December quarter total company revenue to be similar to last year." are the company's single biggest source of revenue, accounting for more than three-fourths of Apple's sales; the iPhone makes up a little more than half of that amount.
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All in all, the recently ended fiscal fourth quarter wasn't a terrible one for Apple (NASDAQ: AAPL). While year-over-year revenue fell (albeit slightly) for a fourth straight quarter, sales of $89.5 billion still topped estimates of $89.3 billion. Moreover, market research outfit IDC estimates that while Apple sold slightly fewer iPhones in China during the calendar third quarter of this year, it technically gained market share as consumers steered clear of lower-cost brands like Oppo and Vivo.
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All in all, the recently ended fiscal fourth quarter wasn't a terrible one for Apple (NASDAQ: AAPL). Last quarter's Greater China sales were only down 2.5% year over year, more or less mirroring the full year's revenue contraction for the country. Moreover, market research outfit IDC estimates that while Apple sold slightly fewer iPhones in China during the calendar third quarter of this year, it technically gained market share as consumers steered clear of lower-cost brands like Oppo and Vivo.
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All in all, the recently ended fiscal fourth quarter wasn't a terrible one for Apple (NASDAQ: AAPL). This degree of engagement with Apple's digital ecosystem also makes it more likely a consumer will buy another Apple device when it's time for an upgrade or replacement. For the first several years of the iPhone's existence it was pretty clear when investors could expect to see a surge in sales -- the device's fans kept their phones for two to three years, and then upgraded.
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12668.0
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2023-11-06 00:00:00 UTC
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2 Reasons Apple Stock Is a Buy Today
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AAPL
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https://www.nasdaq.com/articles/2-reasons-apple-stock-is-a-buy-today
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nan
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Apple's (NASDAQ: AAPL) fiscal fourth-quarter financial results beat expectations but management's guidance for fiscal Q1 was worse than expected. Analysts have seemed to focus more on the latter instead of the former, even though the tech giant's earnings per share grew by a double-digit year-over-year growth rate and beat analyst estimates by 5%. Following the report, a number of analysts have lowered their price targets on the stock.
But I'd argue that there were actually two takeaways from the report that should make investors more bullish on the stock.
Here are two reasons I think shares are a buy today.
1. Apple's guidance is much better than it looks
Going into Apple's fiscal fourth-quarter update, analysts had expected the tech giant to guide for 5% year over year revenue growth for fiscal Q1. Instead, Apple guided for revenue to be similar to what it was in the year-ago period. This guidance, however, is significantly better than it seems on the surface, as the company's fiscal first quarter this time around will have one fewer week than it did in the comparable year-ago period. Apple noted in its fiscal fourth-quarterearnings callthat revenue from the extra week last year adds a staggering seven percentage points to the quarter's revenue. That makes for an incredibly difficult year-over-year comparison.
When excluding revenue from the extra week in the year-ago quarter, you could say that Apple is guiding 7% growth -- a huge acceleration from the 1% year-over-year decline it posted in fiscal Q4. This outlook is even more impressive considering the current uncertain macroeconomic environment the company is operating in -- one in which consumers are pressured by both inflation and high interest rates.
2. Apple is transforming into a high-margin services company
Next, there's the improving composition of Apple's business. Total revenue may have slid 1% year over year in fiscal Q4 but Apple's services revenue rose 16% year over year. It might be tempting to brush this business off since it's a small part of Apple's business, at just 25% of total sales. But here's where Apple's services business gets exciting: Thanks to its 71% gross profit margin, Apple's services business accounts for 39% of Apple's gross profit. So we're talking about a core Apple business that accounts for 39% of the tech giant's gross profit growing at 16% year over year.
Further, the momentum within Apple's services segment is broad-based. "We achieved all-time revenue records across App Store, advertising, AppleCare, iCloud, payment services and video as well as a September quarter revenue record in Apple Music," explained Apple CEO Tim Cook during the company's fiscal fourth-quarterearnings call
This robust and consistently growing business will likely deliver double-digit growth for Apple for the forseeable future, contributing to earnings growth in a big way. Indeed, with growth this strong, there will likely be a day when Apple's services business accounts for more than half of the company's profit.
These two underappreciated catalysts, combined with other well-known facts about Apple's business, like its loyal customer base and its large net cash position, easily justify the stock's current valuation, in my opinion. Of course, there are risks that Apple's services business doesn't do as well as expected or the company's sales growth never rebounds. Investors, of course, should do their own due diligence before diving in to buy shares.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of October 30, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. 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) fiscal fourth-quarter financial results beat expectations but management's guidance for fiscal Q1 was worse than expected. When excluding revenue from the extra week in the year-ago quarter, you could say that Apple is guiding 7% growth -- a huge acceleration from the 1% year-over-year decline it posted in fiscal Q4. This outlook is even more impressive considering the current uncertain macroeconomic environment the company is operating in -- one in which consumers are pressured by both inflation and high interest rates.
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Apple's (NASDAQ: AAPL) fiscal fourth-quarter financial results beat expectations but management's guidance for fiscal Q1 was worse than expected. Analysts have seemed to focus more on the latter instead of the former, even though the tech giant's earnings per share grew by a double-digit year-over-year growth rate and beat analyst estimates by 5%. Apple's guidance is much better than it looks Going into Apple's fiscal fourth-quarter update, analysts had expected the tech giant to guide for 5% year over year revenue growth for fiscal Q1.
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Apple's (NASDAQ: AAPL) fiscal fourth-quarter financial results beat expectations but management's guidance for fiscal Q1 was worse than expected. Apple's guidance is much better than it looks Going into Apple's fiscal fourth-quarter update, analysts had expected the tech giant to guide for 5% year over year revenue growth for fiscal Q1. But here's where Apple's services business gets exciting: Thanks to its 71% gross profit margin, Apple's services business accounts for 39% of Apple's gross profit.
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Apple's (NASDAQ: AAPL) fiscal fourth-quarter financial results beat expectations but management's guidance for fiscal Q1 was worse than expected. Apple's guidance is much better than it looks Going into Apple's fiscal fourth-quarter update, analysts had expected the tech giant to guide for 5% year over year revenue growth for fiscal Q1. But here's where Apple's services business gets exciting: Thanks to its 71% gross profit margin, Apple's services business accounts for 39% of Apple's gross profit.
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12669.0
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2023-11-06 00:00:00 UTC
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Which FAANG Stocks Should You Buy After Earnings?
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AAPL
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https://www.nasdaq.com/articles/which-faang-stocks-should-you-buy-after-earnings
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nan
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nan
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The earnings season for FAANG stocks is now over, after Apple (AAPL) released its fiscal Q4 earnings last Thursday. It was a mixed earnings season for the elite group. While it started with a bang after Netflix (NFLX) reported stellar subscriber numbers, it was a less-than-ideal end as Apple’s earnings left the markets disappointed.
In this article, we’ll look at the September quarter earnings of FAANG constituents and try to pick the winners and losers.
Netflix Shattered Subscriber Estimates in Q3
Netflix reported in-line revenues in Q3, but adjusted earnings per share of $3.73 came in ahead of the $3.49 analysts were expecting. The biggest takeaway from Netflix’s Q3 earnings report was the stellar rise in subscriber numbers.
www.barchart.com
The company added 8.76 million net subscribers in Q3, while analysts were expecting the number to be around 5.5 million. For context, that's the highest since Q2 2020, when the streaming industry’s growth was turbocharged due to the global lockdowns. Equally impressive was the guidance for Q4; Netflix said that the net subscriber adds in Q4 would be similar to Q3, “plus or minus a few million.”
Netflix headed into the Q3 earnings season as the worst-performing FAANG stock, but after its impressive earnings report, the shares surged by double digits – the only member of the mega-cap group to do so this earnings season.
Alphabet’s Cloud Business Disappointed in Q3
Alphabet’s (GOOG) revenues rose 11% YoY to $76.69 billion in Q3 - which was not only ahead of what markets expected, but also the first quarter since Q3 2022 when the Google parent posted a double-digit rise in revenues. Its per-share earnings of $1.55 were also 10 cents higher than consensus estimates.
However, Alphabet's cloud revenue of $8.41 billion fell short of the estimated $8.64 billion, which spooked investors. The stock’s post-earnings price action was the worst among its FAANG peers as it fell by almost double digits, marking its worst day since Mar. 16, 2020 - which investors will recall was around the same time broader markets crashed amid the initial COVID-19 scare.
Meta Platforms Stock Also Fell After Q3 Earnings
Meta Platforms (META) was the next FAANG member to report earnings, and its quarterly report failed to please markets. The Facebook parent reported revenues of $34.15 billion for the September quarter, which was ahead of the $33.56 billion that analysts expected and towards the upper end of the company’s guidance. Earnings per share came in at $4.39, which was also well ahead of the $3.63 that analysts expected.
However, what spooked markets was its guidance and commentary on the fourth-quarter outlook. Meta said that it expects to post revenues between $36.5 billion to $40 billion in Q4 - which, at the midpoint, was below the $38.9 billion that analysts expected. Also, the guidance range was wider than usual, which the company’s CFO Susan Li attributed to “more volatility” since the beginning of Q4, which coincides with the start of the Israel-Hamas war.
Meta is the best-performing FAANG stock of the year, and continues to hold on to the title despite the post-earnings sell-off – thanks to its massive lead over the other constituents.
www.barchart.com
Notably, Meta CEO Mark Zuckerberg touted 2023 as the “year of efficiency” for the company, and as part of the exercise, the Menlo Park-based company has embarked on an aggressive cost-cutting spree. The company sees artificial intelligence (AI) as a key short-term driver, and while Zuckerberg did not specifically term 2024 as the “year of AI,” the overall tone of the Q3 earnings call seems to suggest as much.
Amazon Stock Rose After Q3 Earnings
Amazon also reported a strong set of numbers in Q3, and generated revenues of $143.1 billion - which was 13% higher than the corresponding quarter last year, and ahead of the $141.4 billion that analysts expected. Revenues were also slightly higher than the top end of Amazon’s (AMZN) own guidance.
The company reported a net profit of $9.9 billion, which was a new record – thanks to mark-to-market gains in its investment in electric vehicle startup Rivian (RIVN). Amazon's operating margin – which is a much better indicator of performance – also rose to 7.8% in Q3, which is the highest since early 2021.
www.barchart.com
However, the company provided Q4 revenue guidance of $160 billion to $167 billion, with the midpoint of this range arriving below what the Street expected. Nonetheless, continued stabilization in the enterprise-focused Amazon Web Services (AWS) segment and a strong rebound in margins more than offset the tepid guidance, and AMZN shares rose after the company’s Q3 earnings report - the only FAANG stock apart from Netflix to see upward price action after releasing September quarter earnings.
Apple’s Guidance Also Spooked Investors
One common thread among the majority of FAANG companies, with the notable exception of Netflix, was the dismal forward guidance. Keeping with the trend of this earnings season, Apple also posted better-than-expected revenues and profits, but gave disappointing guidance and said that its revenues in the December quarter would be “similar” to the corresponding quarter in 2022.
Wall Street analysts expected the iPhone maker to report a mid-single-digit revenue increase for the period, after four consecutive quarters of decline. To be sure, Apple faces a tougher YoY comparison this year, as the December quarter will have 13 weeks compared to 14 weeks last year. CFO Luca Maestri stressed that “revenue from the extra week last year added approximately 7 percentage points to the quarter’s total revenue.”
However, the clarity failed to reassure markets. While Apple shares managed to recoup most of their intraday losses, they still closed in the red - even as the S&P 500 Index ($SPX) gained almost 1% on Friday to log its best week of the year. Apple shares also fell after the fiscal Q3 earnings report as sagging growth and rich valuations are making investors apprehensive.
Which FAANG Stocks Look Like a Good Buy After Q3 Earnings?
I believe Meta and Amazon look like good buys after the Q3 earnings season. Meta still trades at reasonable valuations, and the company looks like it's back on the growth track after reporting its first yearly decline in revenues last year.
Amazon also looks like a decent buy, despite having popped after the Q3 report. The e-commerce and cloud giant might continue to impress with strong growth in profits and cash flows in 2024, even as sales growth might not rise to the levels we saw a couple of years back.
On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , META , GOOG , RIVN . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The earnings season for FAANG stocks is now over, after Apple (AAPL) released its fiscal Q4 earnings last Thursday. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , META , GOOG , RIVN . While it started with a bang after Netflix (NFLX) reported stellar subscriber numbers, it was a less-than-ideal end as Apple’s earnings left the markets disappointed.
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The earnings season for FAANG stocks is now over, after Apple (AAPL) released its fiscal Q4 earnings last Thursday. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , META , GOOG , RIVN . Meta Platforms Stock Also Fell After Q3 Earnings Meta Platforms (META) was the next FAANG member to report earnings, and its quarterly report failed to please markets.
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The earnings season for FAANG stocks is now over, after Apple (AAPL) released its fiscal Q4 earnings last Thursday. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , META , GOOG , RIVN . Equally impressive was the guidance for Q4; Netflix said that the net subscriber adds in Q4 would be similar to Q3, “plus or minus a few million.” Netflix headed into the Q3 earnings season as the worst-performing FAANG stock, but after its impressive earnings report, the shares surged by double digits – the only member of the mega-cap group to do so this earnings season.
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The earnings season for FAANG stocks is now over, after Apple (AAPL) released its fiscal Q4 earnings last Thursday. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , META , GOOG , RIVN . The Facebook parent reported revenues of $34.15 billion for the September quarter, which was ahead of the $33.56 billion that analysts expected and towards the upper end of the company’s guidance.
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12670.0
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2023-11-06 00:00:00 UTC
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Monday's ETF with Unusual Volume: SPYX
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AAPL
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https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-spyx
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nan
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nan
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The SPDR S&P 500 Fossil Fuel Reserves Free ETF is seeing unusually high volume in afternoon trading Monday, with over 955,000 shares traded versus three month average volume of about 83,000. Shares of SPYX were down about 0.1% on the day.
Components of that ETF with the highest volume on Monday were Tesla, trading off about 1.2% with over 95.4 million shares changing hands so far this session, and Apple, up about 1.2% on volume of over 42.5 million shares. Constellation Energy is the component faring the best Monday, higher by about 6.2% on the day, while Paramount Global is lagging other components of the SPDR S&P 500 Fossil Fuel Reserves Free ETF, trading lower by about 8.7%.
VIDEO: Monday's ETF with Unusual Volume: SPYX
The views and 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 SPDR S&P 500 Fossil Fuel Reserves Free ETF is seeing unusually high volume in afternoon trading Monday, with over 955,000 shares traded versus three month average volume of about 83,000. Components of that ETF with the highest volume on Monday were Tesla, trading off about 1.2% with over 95.4 million shares changing hands so far this session, and Apple, up about 1.2% on volume of over 42.5 million shares. Constellation Energy is the component faring the best Monday, higher by about 6.2% on the day, while Paramount Global is lagging other components of the SPDR S&P 500 Fossil Fuel Reserves Free ETF, trading lower by about 8.7%.
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The SPDR S&P 500 Fossil Fuel Reserves Free ETF is seeing unusually high volume in afternoon trading Monday, with over 955,000 shares traded versus three month average volume of about 83,000. Constellation Energy is the component faring the best Monday, higher by about 6.2% on the day, while Paramount Global is lagging other components of the SPDR S&P 500 Fossil Fuel Reserves Free ETF, trading lower by about 8.7%. VIDEO: Monday's ETF with Unusual Volume: SPYX The views and 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 SPDR S&P 500 Fossil Fuel Reserves Free ETF is seeing unusually high volume in afternoon trading Monday, with over 955,000 shares traded versus three month average volume of about 83,000. Components of that ETF with the highest volume on Monday were Tesla, trading off about 1.2% with over 95.4 million shares changing hands so far this session, and Apple, up about 1.2% on volume of over 42.5 million shares. Constellation Energy is the component faring the best Monday, higher by about 6.2% on the day, while Paramount Global is lagging other components of the SPDR S&P 500 Fossil Fuel Reserves Free ETF, trading lower by about 8.7%.
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Components of that ETF with the highest volume on Monday were Tesla, trading off about 1.2% with over 95.4 million shares changing hands so far this session, and Apple, up about 1.2% on volume of over 42.5 million shares. Constellation Energy is the component faring the best Monday, higher by about 6.2% on the day, while Paramount Global is lagging other components of the SPDR S&P 500 Fossil Fuel Reserves Free ETF, trading lower by about 8.7%. VIDEO: Monday's ETF with Unusual Volume: SPYX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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12671.0
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2023-11-06 00:00:00 UTC
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After Hours Most Active for Nov 6, 2023 : SHV, BAC, ENV, AAPL, BURL, IXUS, IONQ, ADMA, AMZN, WFC, TVTX, OUT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-6-2023-%3A-shv-bac-env-aapl-burl-ixus-ionq-adma-amzn-wfc
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -12.1 to 15,142.83. The total After hours volume is currently 118,057,631 shares traded.
The following are the most active stocks for the after hours session:
iShares Short Treasury Bond ETF (SHV) is +0.0001 at $110.14, with 9,470,011 shares traded. This represents a .37% increase from its 52 Week Low.
Bank of America Corporation (BAC) is -0.02 at $28.31, with 5,280,922 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.8. BAC's current last sale is 83.26% of the target price of $34.
Envestnet, Inc (ENV) is unchanged at $39.49, with 4,981,874 shares traded.ENV is scheduled to provide an earnings report on 11/8/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.32 per share, which represents a 24 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is -0.1915 at $179.04, with 4,893,034 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 $1.36. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Burlington Stores, Inc. (BURL) is unchanged at $132.27, with 3,203,769 shares traded. As reported by Zacks, the current mean recommendation for BURL is in the "buy range".
iShares Core MSCI Total International Stock ETF (IXUS) is +0.0717 at $60.55, with 3,077,871 shares traded. This represents a 12.78% increase from its 52 Week Low.
IonQ, Inc. (IONQ) is -0.03 at $11.18, with 3,028,980 shares traded.IONQ is scheduled to provide an earnings report on 11/8/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.13 per share, which represents a -12 percent increase over the EPS one Year Ago
ADMA Biologics Inc (ADMA) is -0.0003 at $3.63, with 2,945,139 shares traded.ADMA is scheduled to provide an earnings report on 11/8/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.01 per share, which represents a -8 percent increase over the EPS one Year Ago
Amazon.com, Inc. (AMZN) is -0.14 at $139.60, with 2,605,358 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".
Wells Fargo & Company (WFC) is unchanged at $41.34, with 2,104,843 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $1.2. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Travere Therapeutics, Inc. (TVTX) is unchanged at $6.64, with 2,050,266 shares traded.TVTX is scheduled to provide an earnings report on 11/7/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -1.09 per share, which represents a -109 percent increase over the EPS one Year Ago
OUTFRONT Media Inc. (OUT) is unchanged at $11.88, with 1,295,378 shares traded. OUT's current last sale is 84.86% of the target price of $14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.1915 at $179.04, with 4,893,034 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Envestnet, Inc (ENV) is unchanged at $39.49, with 4,981,874 shares traded.ENV is scheduled to provide an earnings report on 11/8/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.1915 at $179.04, with 4,893,034 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.32 per share, which represents a 24 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.1915 at $179.04, with 4,893,034 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.32 per share, which represents a 24 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.1915 at $179.04, with 4,893,034 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is -0.14 at $139.60, with 2,605,358 shares traded.
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12672.0
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2023-11-06 00:00:00 UTC
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Google and Epic Games face off at trial over Play Store rules
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AAPL
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https://www.nasdaq.com/articles/google-and-epic-games-face-off-at-trial-over-play-store-rules
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nan
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nan
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By Mike Scarcella
Nov 6 (Reuters) - A jury trial that threatens to upend Google's Play Store began on Monday in U.S. court in San Francisco, where "Fortnite" maker Epic Games accused the Alphabet GOOGL.O unit of abusing its power over app distribution and payments in violation of federal antitrust law.
Epic hopes to convince jurors that Google's app store policies have hurt quality and innovation among app developers and distributors and caused consumers to pay artificially higher prices.
Google planned to present counterclaims that Epic has violated its contract with Google. The trial is expected to last at least four weeks.
The companies declined to comment. Epic largely lost a non-jury trial against Apple AAPL.O over its App Store in 2021, but both sides have asked the U.S. Supreme Court to take up the court's ruling.
Google is separately fighting U.S. government antitrust claims over its search dominance at a trial in Washington, D.C., and it is preparing as early as next year to defend its digital ads policies at yet another trial.
Cary, North Carolina-founded Epic introduced its hugely popular multiplayer shooter game "Fortnite" in 2017. It is seeking an injunction that could force Google to open up the distribution of apps to Android users beyond the Play Store and also provide consumers greater options for processing payments within Android apps.
"As a result of its anticompetitive acts, Google faces no meaningful competition or threat of competition," Epic's lawyers said in a court filing. The lawsuit does not seek monetary damages.
Google has denied Epic's claims and argued that the lawsuit is "based on the fiction that Google does not compete against Apple."
The same federal jury will hear counterclaims from Google accusing Epic of breaching contractual obligations by introducing additional payment methods in Fortnite on Android and Apple devices.
"Epic's deceitful conduct unjustly enriched Epic at Google's expense," Google said in a filing.
In the lead-up to trial, Google settled similar claims from dating app maker Match Group MTCH.O, which sought monetary damages in addition to an injunction.
Google also settled antitrust claims over its Play Store from U.S. states and U.S. consumers, but the terms of that deal have not been disclosed publicly.
The case is Epic Games v. Google, U.S. District Court for the Northern District of California, No. 3:20-cv-05671.
For Epic: Christine Varney and Gary Bornstein of Cravath, Swaine & Moore; Paul Riehle of Faegre Drinker Biddle & Reath; and Douglas Dixon of Hueston Hennigan
For Google: Glenn Pomerantz and Kuruvilla Olasa of Munger, Tolles & Olson; Brian Rocca of Morgan, Lewis & Bockius; and Neal Katyal of Hogan Lovells
Read more:
Alphabet, Match settle Google Play antitrust claims before US trial
Apple asks US Supreme Court to strike down Epic Games order
Google reaches tentative settlement in US Play Store lawsuit
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Epic largely lost a non-jury trial against Apple AAPL.O over its App Store in 2021, but both sides have asked the U.S. Supreme Court to take up the court's ruling. By Mike Scarcella Nov 6 (Reuters) - A jury trial that threatens to upend Google's Play Store began on Monday in U.S. court in San Francisco, where "Fortnite" maker Epic Games accused the Alphabet GOOGL.O unit of abusing its power over app distribution and payments in violation of federal antitrust law. The same federal jury will hear counterclaims from Google accusing Epic of breaching contractual obligations by introducing additional payment methods in Fortnite on Android and Apple devices.
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Epic largely lost a non-jury trial against Apple AAPL.O over its App Store in 2021, but both sides have asked the U.S. Supreme Court to take up the court's ruling. By Mike Scarcella Nov 6 (Reuters) - A jury trial that threatens to upend Google's Play Store began on Monday in U.S. court in San Francisco, where "Fortnite" maker Epic Games accused the Alphabet GOOGL.O unit of abusing its power over app distribution and payments in violation of federal antitrust law. In the lead-up to trial, Google settled similar claims from dating app maker Match Group MTCH.O, which sought monetary damages in addition to an injunction.
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Epic largely lost a non-jury trial against Apple AAPL.O over its App Store in 2021, but both sides have asked the U.S. Supreme Court to take up the court's ruling. By Mike Scarcella Nov 6 (Reuters) - A jury trial that threatens to upend Google's Play Store began on Monday in U.S. court in San Francisco, where "Fortnite" maker Epic Games accused the Alphabet GOOGL.O unit of abusing its power over app distribution and payments in violation of federal antitrust law. "Epic's deceitful conduct unjustly enriched Epic at Google's expense," Google said in a filing.
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Epic largely lost a non-jury trial against Apple AAPL.O over its App Store in 2021, but both sides have asked the U.S. Supreme Court to take up the court's ruling. It is seeking an injunction that could force Google to open up the distribution of apps to Android users beyond the Play Store and also provide consumers greater options for processing payments within Android apps. The lawsuit does not seek monetary damages.
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12673.0
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2023-11-06 00:00:00 UTC
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AAPL, LI, or ET: Which Large Cap Stock is the Most Attractive Pick?
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AAPL
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https://www.nasdaq.com/articles/aapl-li-or-et%3A-which-large-cap-stock-is-the-most-attractive-pick
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nan
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nan
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Macro uncertainty and geopolitical tensions continue to weigh on investor sentiment, making stock selection a challenging task. Focusing on well-established, large-cap stocks (stocks having a market capitalization of more than $10 billion) with attractive long-term growth potential could enhance investors’ returns. Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Li Auto (NASDAQ:LI), and Energy Transfer (NYSE:ET) against each other to find the most attractive large-cap stock as per Wall Street analysts.
Apple (NASDAQ:AAPL)
Tech giant Apple has been under pressure in recent quarters due to the impact of macro headwinds on consumers’ discretionary spending, especially on big-ticket goods. While Apple exceeded analysts’ expectations for the fourth quarter of Fiscal 2023, investors were disappointed with the decline in the company’s revenue for the fourth consecutive quarter.
In particular, the company’s Q4 FY23 revenue declined 0.7% to $89.5 billion, as higher revenue from iPhone sales and Services was more than offset by lower Mac and iPad sales. Further, analysts expect muted revenue growth in the crucial holiday quarter. During theearnings call management said that they expect the company’s December quarter revenue to be similar to last year despite one less week in the fiscal period.
Despite near-term challenges, there is optimism about Apple's long-term prospects due to its Services business and growth opportunities in markets like India.
Is Apple a Buy or Sell?
On November 3, D.A. Davidson analyst Tom Forte lowered his price target for Apple to $166 from $180 and reiterated a Hold rating on the stock, citing the company's flat revenue guidance for the December quarter, which lagged analysts’ consensus estimate of 4.6%.
Management projected year-over-year growth in iPhone sales for the December quarter but still guided for flat overall revenue, which the analyst believes is proof that the company cannot depend on iPhones alone to drive shares higher as it has in the past.
Including Forte, eight analysts have a Hold rating on AAPL stock, while 23 have a Buy recommendation for a Moderate Buy consensus rating. The average price target of $202.12 implies 14.3% upside potential. Shares have risen 38% year-to-date.
Li Auto (NASDAQ:LI)
Chinese electric vehicle (EV) maker Li Auto is impressing investors by growing its deliveries faster than rivals like Nio (NYSE:NIO) and XPeng (NYSE:XPEV). The company’s October deliveries increased 302% year-over-year and 12% from September to 40,422 vehicles. The company is confident about continued momentum, driven by the demand for its hybrid offerings and new models.
Li Auto is scheduled to announce its third-quarter results on November 9. Analysts expect solid growth in the company’s revenue and profitability, driven by an impressive 296.3% rise in Q3 2023 deliveries. They expect the company to swing to a profit of $0.37 per share from a loss per share of $0.63 in the prior-year quarter.
What is the Target Price for Li Auto?
Last month, Morgan Stanley analyst Tim Hsiao reaffirmed a Buy rating on Li Auto stock with a price target of $53. The analyst stated that the latest checks indicate that overall foot traffic in the company’s flagship stores in Tier 1 cities increased 4% sequentially in September.
Hsiao added that there was an uptick in retail conversion rate (ratio of order intake to foot traffic), which reflected the improving efficiency of sales personnel in closing deals with the support of more flexible marketing and promotional campaigns.
With seven unanimous Buys, Li Auto scores a Strong Buy consensus rating. The average price target of $53.61 implies 36% upside potential. Shares have rallied 93.2% so far this year.
Energy Transfer (NYSE:ET)
Energy Transfer is a midstream energy company with about 125,000 miles of pipeline and associated energy infrastructure. The master limited partnership (MLP) announced mixed third-quarter results earlier this month, with revenue surpassing estimates but earnings lagging expectations. Solid volume growth in the quarter was more than offset by a notable decline in lower natural gas and natural gas liquids (NGL) prices.
Meanwhile, the company continues to attract investors with its lucrative dividends. Last month, it announced a quarterly cash distribution of $0.3125 per common unit, reflecting a dividend yield of 9.25%. With the recently completed acquisition of Crestwood Equity Partners LP, the company is well-positioned to grow over the long term.
Is Energy Transfer a Safe Stock to Buy?
Following Energy Transfer’s Q3 results, UBS analyst Shneur Gershuni marginally increased the price target for ET stock to $23 from $22 and reiterated a Buy rating on November 2.
ET stock earns Wall Street’s Strong Buy consensus rating based on nine Buys and one Hold. The average price target of $17.40 implies 29% upside potential. Shares have risen 14% upside potential.
Conclusion
Analysts are highly bullish on Li Auto and Energy Transfer, while they are cautiously optimistic about Apple. Li Auto has proved its might through robust deliveries in recent months despite macro challenges in China and intense competition. If we include Energy Transfer’s dividends, then the upside in total returns offered by both Li Auto and Energy Transfer stocks is comparable. Investors can choose either or both of these stocks based on their sector preference and investment goals over the long term.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Li Auto (NASDAQ:LI), and Energy Transfer (NYSE:ET) against each other to find the most attractive large-cap stock as per Wall Street analysts. Apple (NASDAQ:AAPL) Tech giant Apple has been under pressure in recent quarters due to the impact of macro headwinds on consumers’ discretionary spending, especially on big-ticket goods. Including Forte, eight analysts have a Hold rating on AAPL stock, while 23 have a Buy recommendation for a Moderate Buy consensus rating.
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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Li Auto (NASDAQ:LI), and Energy Transfer (NYSE:ET) against each other to find the most attractive large-cap stock as per Wall Street analysts. Apple (NASDAQ:AAPL) Tech giant Apple has been under pressure in recent quarters due to the impact of macro headwinds on consumers’ discretionary spending, especially on big-ticket goods. Including Forte, eight analysts have a Hold rating on AAPL stock, while 23 have a Buy recommendation for a Moderate Buy consensus rating.
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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Li Auto (NASDAQ:LI), and Energy Transfer (NYSE:ET) against each other to find the most attractive large-cap stock as per Wall Street analysts. Apple (NASDAQ:AAPL) Tech giant Apple has been under pressure in recent quarters due to the impact of macro headwinds on consumers’ discretionary spending, especially on big-ticket goods. Including Forte, eight analysts have a Hold rating on AAPL stock, while 23 have a Buy recommendation for a Moderate Buy consensus rating.
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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Li Auto (NASDAQ:LI), and Energy Transfer (NYSE:ET) against each other to find the most attractive large-cap stock as per Wall Street analysts. Apple (NASDAQ:AAPL) Tech giant Apple has been under pressure in recent quarters due to the impact of macro headwinds on consumers’ discretionary spending, especially on big-ticket goods. Including Forte, eight analysts have a Hold rating on AAPL stock, while 23 have a Buy recommendation for a Moderate Buy consensus rating.
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12674.0
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2023-11-06 00:00:00 UTC
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Is ALPS (OUSA) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-alps-ousa-a-strong-etf-right-now-1
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nan
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nan
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Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Alps, and has been able to amass over $633.25 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index before fees and expenses.
The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.48% for OUSA, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 20.50% of the portfolio. Healthcare and Financials round out the top three.
Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL).
The top 10 holdings account for about 40.17% of total assets under management.
Performance and Risk
So far this year, OUSA has added roughly 2.13%, and was up about 14.35% in the last one year (as of 11/06/2023). During this past 52-week period, the fund has traded between $40.56 and $45.06.
The ETF has a beta of 0.87 and standard deviation of 14.38% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $47.79 billion in assets, Vanguard Value ETF has $97.84 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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
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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Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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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. Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise.
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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. Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The top 10 holdings account for about 40.17% of total assets under management.
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2023-11-06 00:00:00 UTC
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Charlie Munger Calls It Overhyped, but Buffett Owns Billions: Warren’s 3 Big AI Stock Bets
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AAPL
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https://www.nasdaq.com/articles/charlie-munger-calls-it-overhyped-but-buffett-owns-billions%3A-warrens-3-big-ai-stock-bets
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is the greatest living investor. He steered investors to roughly 3.7 million percent returns since becoming chairman of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) in 1965. That’s a 20% compound annual growth rate or twice the returns of the S&P 500.
Yet Buffett’s secret to success is his partner Charlie Munger. He joined Berkshire in the mid-1970s and became vice chairman in 1978. Together they have been an investment powerhouse. Buffett wrote shareholders earlier this year stating, “Charlie and I think pretty much alike,” so his advice was, “Find a very smart high-grade partner — preferably slightly older than you — and then listen very carefully to what he says.”
So you might expect Berkshire Hathaway to avoid artificial intelligence (AI) stocks. Munger is suspicious of the technology. He told the Zoomtopia conference last month, “I think it’s getting a huge amount of hype. And I think it’s probably getting more than it deserves.” And he told Berkshire shareholders, “I am personally skeptical of some of the hype that has gone into artificial intelligence. I think old-fashioned intelligence works pretty well.”
Yet Berkshire Hathaway’s portfolio is chock full of AI stocks. Many companies utilize AI in some fashion. For example, American Express (NYSE:AXP) uses machine learning and AI to weed out credit card fraud and automate fraud risk decisions. Coca-Cola (NYSE:KO) uses AI to develop marketing campaigns. Looking at that way, almost any company can be seen as an “AI stock.”
Rather, the following three stocks are deep into AI development. They account for $164 billion of value in Berkshire Hathaway’s $343 billion total portfolio. Likely, they weren’t bought because they were AI stocks, but you may want to invest alongside Buffett and Munger in them anyway.
Snowflake (SNOW)
Source: Sundry Photography / Shutterstock
One of Buffett’s biggest direct investments in AI is Snowflake (NYSE:SNOW). The cloud-based analytics software firm is on a spending spree to bring advanced AI and deep learning to the data cloud. Recently, it acquired search company Neeva and open-source app platform Streamlit. It also announced plans to acquire data sorting software maker Applica.
Snowflake also developed Cortex for users to access and use generative AI to quickly analyze data and build their own AI applications. Through specialized machine learning and large language models, users can now access serverless functions to accelerate their everyday analytics in one location. It’s in private preview mode at the moment but is expected to be made widely available later.
The data analytics company is hot. Revenue grew 37% in the second quarter to $640 million. Snowflake guided for full-year product revenue to finish at $2.6 billion, up 34% from 2022. Yet it also had some $3.5 billion in remaining performance obligations, which represent the amount of contracted future revenue Snowflake hasn’t recognized yet.
Snowflake’s stock is down 22% from recent highs and is up 11% so far this year. The S&P 500 is up 13.5%. The growth trajectory it is on makes getting into this stock now a good opportunity. Buffett has almost $1 billion invested in this data cloud stock or some 0.3% of Berkshire’s total.
Amazon (AMZN)
Source: Daniel Fung / Shutterstock
Buffett and Munger probably bought Amazon (NASDAQ:AMZN) because of its enormous e-commerce footprint and Amazon Web Services (AWS), but AI is now part of the company’s very fabric and is being used across all of its services.
Consumers on the website see shopping recommendations powered by Amazon’s AI suggestion tool. Amazon also uses it to spot trends for future product development. Its warehouses are filled with robots picking, sorting and collating orders. The robotics leverage computer vision and AI to recognize and handle millions of items annually.
AWS also widely deploys a comprehensive set of AI services, tools and resources for client use. CEO Andy Jassy told analysts that diverse multinational corporations like Adidas (OTCMKTS:ADDYY) and United Airlines (NASDAQ:UAL) were using AWS to power their generative AI apps. Amazon also just launched an AI-image generator tool for advertisers. Its Bedrock platform lets customers create conversational agents to deliver personalized experiences based on proprietary data. It can then execute actions resulting from its knowledge base.
The Buffett-Munger dynamic duo owns $1.4 billion worth of Amazon stock, representing 0.4% of Berkshire’s total. The stock previously fell due to Amazon’s data abuse concerns, but the earnings report boosted shares, sending them soaring. The stock is up 9% over the past month, but may still be a bargain.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Buffett’s love affair with Apple (NASDAQ:AAPL) doesn’t require an introduction. He owns so much of Apple stock it comprises 48% of the total, some $177.6 billion worth. Apple is very much an AI stock even if Buffett bought shares because of its dominating consumer-facing tech gadgets.
Siri may be one of Apple’s most visible AI components. Yet CEO Tim Cook told analysts he views “AI and machine learning as fundamental technologies, and [SIC] integral to virtually every product that we ship.”
Cook pointed to Personal Voice, designed to create an automated voice that sounds like you, and Live Voicemail, which displays a live transcription of a voicemail as it’s being recorded in real-time. He also noted the Apple Watch incorporates fall detection, crash detection and electrocardiograms. “These would not be possible without AI,” he said.
Generative AI is becoming deeply enmeshed in Apple’s consumer technology. The Information reported that Apple was spending “millions of dollars a day” to develop new features.
Apple’s A17 Pro chip for the iPhone is one of the biggest developments. Apple says it’s the “fastest mobile CPU.” The chip has six CPU cores that can handle the taxing power required by AI. It can handle up to 35 trillion operations per second. It can process machine learning and AI tasks without connecting to the cloud via an external data center. That provides users with an incredibly fast and positive experience.
Apple is still a tech titan to be reckoned with. Despite China sales slowing and a warning of flat holiday sales, any weakness in the stock gives investors the chance to get into the company Buffett loves so much.
On the date of publication, Rich Duprey held a long position in KO stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Charlie Munger Calls It Overhyped, but Buffett Owns Billions: Warren’s 3 Big AI Stock Bets 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 Buffett’s love affair with Apple (NASDAQ:AAPL) doesn’t require an introduction. Buffett wrote shareholders earlier this year stating, “Charlie and I think pretty much alike,” so his advice was, “Find a very smart high-grade partner — preferably slightly older than you — and then listen very carefully to what he says.” So you might expect Berkshire Hathaway to avoid artificial intelligence (AI) stocks. CEO Andy Jassy told analysts that diverse multinational corporations like Adidas (OTCMKTS:ADDYY) and United Airlines (NASDAQ:UAL) were using AWS to power their generative AI apps.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Buffett’s love affair with Apple (NASDAQ:AAPL) doesn’t require an introduction. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Warren Buffett is the greatest living investor. Snowflake (SNOW) Source: Sundry Photography / Shutterstock One of Buffett’s biggest direct investments in AI is Snowflake (NYSE:SNOW).
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Buffett’s love affair with Apple (NASDAQ:AAPL) doesn’t require an introduction. Looking at that way, almost any company can be seen as an “AI stock.” Rather, the following three stocks are deep into AI development. Amazon (AMZN) Source: Daniel Fung / Shutterstock Buffett and Munger probably bought Amazon (NASDAQ:AMZN) because of its enormous e-commerce footprint and Amazon Web Services (AWS), but AI is now part of the company’s very fabric and is being used across all of its services.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Buffett’s love affair with Apple (NASDAQ:AAPL) doesn’t require an introduction. Looking at that way, almost any company can be seen as an “AI stock.” Rather, the following three stocks are deep into AI development. Buffett has almost $1 billion invested in this data cloud stock or some 0.3% of Berkshire’s total.
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2023-11-06 00:00:00 UTC
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NVIDIA, Meta & 2023's Best-Performing ETFs
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AAPL
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https://www.nasdaq.com/articles/nvidia-meta-2023s-best-performing-etfs
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nan
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nan
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(1:15) - Understanding How Single Stock ETFs Work: NVDL, FBL & TSLL
(10:00) - How Should Investors Use These Kind of Products In Their Portfolios?
(18:35) - GraniteShares Gold Trust: BAR
(22:25) - Breaking Down Bitcoin and Oil: Where Is The Price Heading In The Coming Months?
(28:10) - GraniteShares Bloomberg Commodity Broad Strategy No K-1 ETF: COMB
(32:50) - Episode Roundup: IAUM, GLDM, PDBC
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with William Rhind, CEO at GraniteShares, about single stock ETFs, gold, oil and other commodities.
Single stock ETFs, which made their debut in the US last year, can be used to make supercharged bets on or against popular stocks. However, investors should remember that these products are not meant for buy-and-hold investing. They should be used only as short-term trading vehicles by investors who closely monitor their portfolios daily.
The GraniteShares 1.5X Long NVDA Daily ETF NVDL has gained about 355% so far this year, while NVIDIA NVDA has seen a 215% gain amid the artificial intelligence frenzy. It is the top-performing ETF so far this year.
The GraniteShares 1.5x Long Meta Daily ETF FBL, which provides leveraged exposure to Meta Platforms (META), has rallied 250% year-to-date.
The Direxion Daily TSLA Bull 1.5X Shares TSLL, which focuses on Tesla TSLA, became the first single-stock ETF to top $1 billion in AUM earlier this year, although it has seen some outflows in recent weeks.
Other products in the space including those tied to the most popular stocks like Apple AAPL and Microsoft (MSFT) haven’t seen much interest from investors.
We discuss how these products should be used.
In October, gold jumped 8%, marking its strongest monthly performance since March when it benefited from the banking crisis. More recently, the precious metal has risen due to heightened concerns about a broader conflict in the Middle East.
The war has raised questions about crude supply from the oil-rich Middle East. Oil prices spiked after the war but fell last week on hopes that the conflict can be contained. They are rebounding today after Saudi Arabia and Russia announced extension of their production cuts.
We discuss the role of gold and other commodities in a portfolio.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports
GraniteShares 1.5x Long META Daily ETF (FBL): ETF Research Reports
GraniteShares 1.5x Long NVDA Daily ETF (NVDL): 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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Other products in the space including those tied to the most popular stocks like Apple AAPL and Microsoft (MSFT) haven’t seen much interest from investors. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports GraniteShares 1.5x Long META Daily ETF (FBL): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. (1:15) - Understanding How Single Stock ETFs Work: NVDL, FBL & TSLL (10:00) - How Should Investors Use These Kind of Products In Their Portfolios?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports GraniteShares 1.5x Long META Daily ETF (FBL): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. Other products in the space including those tied to the most popular stocks like Apple AAPL and Microsoft (MSFT) haven’t seen much interest from investors. The GraniteShares 1.5X Long NVDA Daily ETF NVDL has gained about 355% so far this year, while NVIDIA NVDA has seen a 215% gain amid the artificial intelligence frenzy.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports GraniteShares 1.5x Long META Daily ETF (FBL): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. Other products in the space including those tied to the most popular stocks like Apple AAPL and Microsoft (MSFT) haven’t seen much interest from investors. (1:15) - Understanding How Single Stock ETFs Work: NVDL, FBL & TSLL (10:00) - How Should Investors Use These Kind of Products In Their Portfolios?
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Direxion Daily TSLA Bull 1.5X Shares (TSLL): ETF Research Reports GraniteShares 1.5x Long META Daily ETF (FBL): ETF Research Reports GraniteShares 1.5x Long NVDA Daily ETF (NVDL): ETF Research Reports To read this article on Zacks.com click here. Other products in the space including those tied to the most popular stocks like Apple AAPL and Microsoft (MSFT) haven’t seen much interest from investors. (1:15) - Understanding How Single Stock ETFs Work: NVDL, FBL & TSLL (10:00) - How Should Investors Use These Kind of Products In Their Portfolios?
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12677.0
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2023-11-06 00:00:00 UTC
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Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-john-hancock-multifactor-large-cap-etf-jhml-be-on-your-investing-radar-10
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nan
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nan
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The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by John Hancock. It has amassed assets over $711.66 million, making it one of the larger 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. 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
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 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.47%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 23.30% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 19.11% of total assets under management.
Performance and Risk
JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses. The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
The ETF has added roughly 9.59% so far this year and was up about 13.85% in the last one year (as of 11/06/2023). In the past 52-week period, it has traded between $48.23 and $56.65.
The ETF has a beta of 1.01 and standard deviation of 17.22% for the trailing three-year period, making it a medium risk choice in the space. With about 781 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor 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, JHML is a good 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 $351.45 billion in assets, SPDR S&P 500 ETF has $405.41 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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
John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
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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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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $711.66 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives John Hancock Multifactor 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, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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2023-11-06 00:00:00 UTC
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Company News for Nov 6, 2023
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https://www.nasdaq.com/articles/company-news-for-nov-6-2023
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Shares of Apple, Inc. (AAPL) declined 0.5% after the iPhone maker issued a weak revenue forecast for the December quarter.
Cardinal Health, Inc.’s (CAH) shares jumped 6.9% after the company reported first-quarter fiscal 2024 earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.40 per share.
Shares of Sempra (SRE) rose 0.4% after the company reported third-quarter 2023 adjusted earnings of $1.08 per share, surpassing the Zacks Consensus Estimate of $1.01 per share.
Restaurant Brands International Inc.’s (QSR) shares fell 1.9% after the company reported third-quarter 2023 revenues of $1.84 billion, missing the Zacks Consensus Estimate of $1.86 billion.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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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
Sempra Energy (SRE) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Restaurant Brands International Inc. (QSR) : 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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Shares of Apple, Inc. (AAPL) declined 0.5% after the iPhone maker issued a weak revenue forecast for the December quarter. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Sempra Energy (SRE) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Reveals ChatGPT "Sleeper" Stock One little-known company is at the heart of an especially brilliant Artificial Intelligence sector.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Sempra Energy (SRE) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. (AAPL) declined 0.5% after the iPhone maker issued a weak revenue forecast for the December quarter. Shares of Sempra (SRE) rose 0.4% after the company reported third-quarter 2023 adjusted earnings of $1.08 per share, surpassing the Zacks Consensus Estimate of $1.01 per share.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Sempra Energy (SRE) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. (AAPL) declined 0.5% after the iPhone maker issued a weak revenue forecast for the December quarter. Cardinal Health, Inc.’s (CAH) shares jumped 6.9% after the company reported first-quarter fiscal 2024 earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.40 per share.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Sempra Energy (SRE) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple, Inc. (AAPL) declined 0.5% after the iPhone maker issued a weak revenue forecast for the December quarter. Cardinal Health, Inc.’s (CAH) shares jumped 6.9% after the company reported first-quarter fiscal 2024 earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.40 per share.
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2023-11-05 00:00:00 UTC
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7 Tech Stocks to Buy and Hold for the Next 25 Years
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https://www.nasdaq.com/articles/7-tech-stocks-to-buy-and-hold-for-the-next-25-years
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Twenty-five years may seem like a long time to some investors. But those of us of a certain age can think back to the turn of the century. What stocks would have been on a list of tech stocks to buy and hold back then? Apple (NASDAQ:AAPL)? Sure. Amazon (NASDAQ:AMZN). Check. And what about Netflix (NASDAQ:NFLX), the company we used to get DVDs from…in the mail?
These are names that look obvious today and have rewarded investors who had the foresight to invest in them before they were what they are today. But each of those stocks – and many like it – were not seen as slam dunk choices at that time.
So what are those stocks for the next 25 years? To make my choices, I looked at what Forbes had to say about some of the tech trends for the next decade and beyond. From there, I created this list of tech stocks to buy and hold for the next twenty-five years.
Palantir (PLTR)
Source: Poetra.RH / Shutterstock.com
From the time Palantir (NYSE:PLTR) went public via a direct listing in 2020, the company has been tagged with the “yeah but” label. No matter what the company did, investors responded with a series of objections.
First it was too reliant on government contracts. Then it wasn’t profitable. Lately, it’s been concerns about its ability to monetize its artificial intelligence (AI) platform, AIP. In each case, Palantir has shown that the concerns are largely unfounded.
That doesn’t mean the price of PLTR stock equates with a fair valuation. But as the saying goes, price is what shareholders are willing to pay. So far, Palantir is doing a good job of silencing its naysayers.
Nevertheless, it’s likely too late for investors to get in on the stock at a price below $10. However, with it becoming increasingly likely that Palantir will be included in the S&P 500 index sooner rather than later, there will be much more institutional interest in the stock. And that means if you’re looking at tech stocks to buy and hold for 25 years, PLTR stock looks like a solid choice.
Tesla (TSLA)
Source: Zigres / Shutterstock.com
Tesla (NASDAQ:TSLA) is another tech stock that is likely to be a good choice for buy-and-hold investors. But it’s not (just) because of the company’s leadership in the electric vehicle (EV) space.
That doesn’t hurt, mind you. Tesla has been aggressively cutting prices on its EVs in an effort to capture market share. It’s too early to tell, but when the economy does become more favorable for consumers to buy cars, we may see that Tesla already has a significant chunk of the available market covered. And the company still expects to make a splash when its Cybertruck launches later this year.
But Tesla bulls have always viewed the company as a tech company more than a car company. For example, Tesla’s Gigafactory 2 in New York builds solar cells and components for energy storage as well as the company’s superchargers.
Current TSLA stock shareholders see the company’s position in solar power, battery technology, and EV charging as confirmation that, in short order, Tesla will be a sum-of-its-parts stock that will provide investors with long-term value for the next 25 years.
Coinbase Global (COIN)
Source: Primakov / Shutterstock.com
Blockchain technology continues to be adopted. That means cryptocurrency, and in particular bitcoin, will continue to be relevant. Coinbase Global (NASDAQ:COIN) is one of the largest cryptocurrency exchanges and therefore should be on your list of tech stocks to buy and hold.
Twenty-five years ago, cryptocurrency was just an idea. Today, this is a $1.28 trillion market and that’s down from being a nearly $3 trillion market just a couple of years ago. Those who buy and sell crypto know all too well that this is an asset class that, though still in its infancy, has gone through many boom and bust cycles.
But the best may be yet to come. According to Forbes, Bitcoin’s recent push past $35,000 may be just the beginning of a larger move to $150,000 by 2025. One of the catalysts for this will be the arrival of multiple bitcoin spot exchange-traded funds (ETFs).
However, many investors may want exposure to Bitcoin without owning the currency. For those investors, owning shares of COIN stock makes a ton of sense.
CRISPR Therapeutics (CRSP)
Source: rafapress / Shutterstock.com
Twenty-five years ago, scientists were making breakthroughs at mapping the human genome. Today, companies like CRISPR Therapeutics (NASDAQ:CRSP) is working in the emerging field of gene editing. This promising technology seeks to edit human DNA to treat genetic diseases that have resisted treatment.
In the short-term, the company’s lead candidate, Exa-cel, which is being developed in partnership with Vertex Pharmaceuticals (NASDAQ:VRTX), is designed to treat two rare blood diseases: sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). What Exa-cel may lack in addressable audience, it will more than make up for in the expected cost of the treatment.
However, the buy-and-hold case for CRSP stock has to do with the company’s potential to expand gene editing into areas like some forms of cancer and type 1 diabetes.
Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.com
Cybersecurity is already one of the hottest trends in technology. And the reality is that, even with the expansion of blockchain technology, the need for cybersecurity is only going to grow. Palo Alto Networks (NASDAQ:PANW) is a leader in this space today, but it’s one that you’ll surely want to keep on a list of tech stocks to buy and hold for the long haul.
Many investors will hear words like “cyber resiliency” and “trust architecture” as part of the future cybersecurity landscape. To address these threats there are cybersecurity firms popping up nearly as fast as the emerging cyber threats. If you’re a casual investor in this space, it can be difficult to know which company’s stock to own.
With PANW stock, you keep it simple. You’re buying a company that’s one of the recognized leaders in the sector today, and one that is addressing current and future threats. As a long-term investment you can simply look for sell-offs to add to your position.
IonQ (IONQ)
Source: Amin Van / Shutterstock.com
IonQ (NYSE:IONQ) is a pure-play company in the area of quantum computing. The idea is that quantum computers use elements of quantum physics to solve the world’s most complex problems. These computers are being enhanced by artificial intelligence. That’s why many investors believe quantum computing stock may be getting ready to take off.
If that’s the case IonQ is a solid choice. The company is not profitable yet (none are). However, it is steadily growing its revenue, and since it has partnerships with the top three cloud computing companies that revenue trajectory is likely to continue.
IONQ went public as part of a special purpose acquisition company (SPAC) that went public as part of the SPAC frenzy in 2020 and 2021. That may not sit well with some investors, but if you have an appropriate risk tolerance, taking a small position now may pay off in a big way.
CVD Equipment (CVV)
Source: Shutterstock
CVD Equipment (NASDAQ:CVV) is a picks-and-shovel investment in the next generation materials that will be part of the tech and energy landscape for the next 25 years. Specifically, the company is one of the world’s leading graphene producers.
Graphene is considered a wonder material that is around 200 times stronger than steel. This is despite being comprised of a single, ultra thin layer of carbon atoms. One of the key applications for graphene will be the semiconductor market. It’s also used in solar panels and batteries.
Grand View Research forecasts that the global graphene market will be valued at $3.75 billion by 2030, a compound annual growth rate (CAGR) of 45.9%.
On the date of publication, Chris Markoch had a long position in PLTR The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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The post 7 Tech Stocks to Buy and Hold for the Next 25 Years 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)? CRISPR Therapeutics (CRSP) Source: rafapress / Shutterstock.com Twenty-five years ago, scientists were making breakthroughs at mapping the human genome. Palo Alto Networks (NASDAQ:PANW) is a leader in this space today, but it’s one that you’ll surely want to keep on a list of tech stocks to buy and hold for the long haul.
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Apple (NASDAQ:AAPL)? Current TSLA stock shareholders see the company’s position in solar power, battery technology, and EV charging as confirmation that, in short order, Tesla will be a sum-of-its-parts stock that will provide investors with long-term value for the next 25 years. Coinbase Global (COIN) Source: Primakov / Shutterstock.com Blockchain technology continues to be adopted.
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Apple (NASDAQ:AAPL)? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Twenty-five years may seem like a long time to some investors. Current TSLA stock shareholders see the company’s position in solar power, battery technology, and EV charging as confirmation that, in short order, Tesla will be a sum-of-its-parts stock that will provide investors with long-term value for the next 25 years.
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Apple (NASDAQ:AAPL)? So what are those stocks for the next 25 years? And that means if you’re looking at tech stocks to buy and hold for 25 years, PLTR stock looks like a solid choice.
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2023-11-05 00:00:00 UTC
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Powell Speaks, Earnings and Other Key Themes to Watch This Week
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https://www.nasdaq.com/articles/powell-speaks-earnings-and-other-key-themes-to-watch-this-week
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Dip buyers were back with a vengeance this week with S&P 500 ($SPX) (SPY) closing the week up almost 6%. Tesla (TSLA) and Nvidia (NVDA) also had fantastic weeks closing up 6% and 11% respectively. Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. While they reported a top and bottom line beat, shares traded lower on Friday on another slowdown in sales. Apple being one of the largest component pieces of the S&P led to a lot of speculation about what it could mean in the long term.
This week looks to be a little less eventful than last week, but there are still plenty of things to go and watch out for. We have more earnings on deck, Powell talking again, Rising tensions in the Middle East, and plenty of other news. Here are five things to watch in the market this week.
Earnings
Tuesday morning we have Uber Technologies (UBER) out before the market opens. The ride-share giant could give us an insight into how the economy is truly working by looking at some of the metrics inside their report and by watching their forward guidance. Wednesday Disney (DIS) reports after the close and after a tough quarter with streaming and park attendance this report could be very telling.
Powell Speaking
Powell is due to speak both Wednesday and Thursday this week at different events around Washington DC. Anytime Powell speaks there is a risk for higher volatility in the market, especially recently as rate decisions become more and more important.
Rising Tensions
Tensions continue to rise not just in the Middle East, but also around the world as the conflict between Israel and Gaza continues to amplify. As each side continues to call on their potential allies, the possibility of a larger conflict could be rising. If that were to happen, we may start to see markets sell-off and oil rally. Any conflict between OPEC and the West could be bad not just for the markets but for consumers in general as they could use oil production as a key bargaining chip.
10 Year Auction
Rates never really left the public discourse, but now several cuts are being priced into the 2024 market. To look for potential confirmation of this, it would make sense to start to watch the Bond Auction results, specifically the 5 Year and longer for clues of potential cuts. Looking for how the Bid to Cover compares to previous auctions is a simple way to look for bond auction health. What you want to see is an increase or stability over time.
Unemployment Change
Finally, keep an eye out on the Unemployment Change this week that is due out Thursday morning. This has been steadily revised higher, which is in line with things like Non-Farm Payrolls and labor participation being revised lower. With data coming out so mixed lately, the Fed stating that current economic conditions are a reason to continue to pause, keeping an eye on unemployment could help provide some insight into where the overall economy is heading.
Best of luck this week and don’t forget to check out my daily options article.
More Stock Market News from Barchart
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Stocks Rally as Treasury Yields Plunge on U.S. Unemployment Report
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. The ride-share giant could give us an insight into how the economy is truly working by looking at some of the metrics inside their report and by watching their forward guidance. Any conflict between OPEC and the West could be bad not just for the markets but for consumers in general as they could use oil production as a key bargaining chip.
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Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. Powell Speaking Powell is due to speak both Wednesday and Thursday this week at different events around Washington DC. Rising Tensions Tensions continue to rise not just in the Middle East, but also around the world as the conflict between Israel and Gaza continues to amplify.
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Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. This week looks to be a little less eventful than last week, but there are still plenty of things to go and watch out for. More Stock Market News from Barchart 1 Small-Cap Stock Set to Double, According to Analysts Should You Buy These Breakout Cathie Wood Stocks After Earnings?
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Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. Here are five things to watch in the market this week. For more information please view the Barchart Disclosure Policy here.
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2023-11-05 00:00:00 UTC
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Wall St Week Ahead-Stock investors see green light in falling Treasury yields
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https://www.nasdaq.com/articles/wall-st-week-ahead-stock-investors-see-green-light-in-falling-treasury-yields-1
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By David Randall
NEW YORK, Nov 3 (Reuters) - Hopes that a rout in Treasuries has run its course are tempting some investors back into the U.S. stock market after a months-long selloff.
The relationship between stocks and bonds has been a tight one in recent months, with equities falling as Treasury yields climbed to 16-year highs. Higher yields offer investment competition to stocks while also raising the cost of capital for companies and households.
Over much of the last week, however, that dynamic has reversed, following news of smaller than expected U.S. government borrowing and signs that the Federal Reserve is nearing the end of its rate hiking cycle.
Yields on the benchmark 10-year US Treasury, which move inversely to bond prices, are down about 35 basis points from 16-year highs hit in October. Meanwhile, the S&P 500 surged 5.9% in the past week, its biggest gain since November 2022. The index is off around 5% from its July peak, though up nearly 14% year-to-date.
"The stability in rates is helping other asset classes find a footing," said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management. "If equities move higher you may find investors starting to feel as if they need to chase performance through the end of the year."
Draho expects the S&P 500 to trade between 4,200 and 4,600 until investors determine whether the economy will be able to avoid a recession. The index was recently around 4,365.
Other factors may also be working in stocks’ favor. Exposure to equities among active money managers stands near its lowest level since October 2022, according to an index compiled by the National Association of Active Investment Managers - a compelling sign for contrarian investors who seek to buy when pessimism rises.
Aggregate equity positioning tracked by Deutsche Bank fell to a five-month low earlier in the week, the firm's strategists said in a Friday note, helping fuel a powerful bounce when investors rushed back into the market.
At the same time, the last two months of the year have tended to be a strong stretch for stocks, with the S&P 500 rising an average of 3%, according to data from CFRA Research. The best two weeks of the year for the index, during which it has risen an average of 2.2% - kicked off on Oct. 22, according to data from Carson Investment Research.
"We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
Bullish sentiment received another boost on Friday from U.S. employment data, which showed a slight gain in the unemployment rate and smallest wage increase in 2-1/2 years, suggesting that the labor market is cooling, bolstering the case for the Fed to stay its hand. The S&P 500 closed up 0.9% on the day.
Of course, plenty of investors remain hesitant to return to stocks just yet. Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. The iPhone maker gave a holiday sales forecast that was below Wall Street estimates. At least 14 analysts cut their price targets for the stock, according to LSEG data.
Still, analysts expect earnings growth of 5.7% for S&P 500 companies in the third quarter, with over 81% of the 403 companies in the benchmark index that have reported profits so far having beaten estimates, per LSEG data.
At the same time, betting on reversals in Treasuries has been a losing proposition for most of the year, during which rebounds in the U.S. government bond market have been followed by deeper selloffs. The 10-year Treasury yield is up around 125 basis points from its low for the year.
Some investors also worry that the so-called Goldilocks economy suggested by Friday's jobs report may not last. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, believes that while signs of softer than expected growth are boosting stocks and bonds for now, they may eventually stir recession worries.
"Eventually 'good' moderation may turn into a debate of whether the economy and labor markets are weakening too much," he said.
(Reporting by David Randall; Editing by Ira Iosebashvili, Louise Heavens and Cynthia Osterman)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. Aggregate equity positioning tracked by Deutsche Bank fell to a five-month low earlier in the week, the firm's strategists said in a Friday note, helping fuel a powerful bounce when investors rushed back into the market. Bullish sentiment received another boost on Friday from U.S. employment data, which showed a slight gain in the unemployment rate and smallest wage increase in 2-1/2 years, suggesting that the labor market is cooling, bolstering the case for the Fed to stay its hand.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. Yields on the benchmark 10-year US Treasury, which move inversely to bond prices, are down about 35 basis points from 16-year highs hit in October. "We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. By David Randall NEW YORK, Nov 3 (Reuters) - Hopes that a rout in Treasuries has run its course are tempting some investors back into the U.S. stock market after a months-long selloff. "We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
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Technology bellwether Apple Inc AAPL.O on Thursday was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook. The index was recently around 4,365. At the same time, the last two months of the year have tended to be a strong stretch for stocks, with the S&P 500 rising an average of 3%, according to data from CFRA Research.
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2023-11-05 00:00:00 UTC
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Wall Street Is Hating on Apple Right Now. Here Are 5 Reasons I'm Not.
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https://www.nasdaq.com/articles/wall-street-is-hating-on-apple-right-now.-here-are-5-reasons-im-not.
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Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. The tech giant beat analysts' estimates on both the top and bottom lines. So were those analysts happy? Nope.
There were two main complaints. First, Apple's total revenue declined for the fourth quarter in a row. Second, CFO Luca Maestri hinted that the company might not return to growth in the next quarter as analysts expected.
Wall Street appears to be hating on Apple to some extent after its latest quarterly update. Here are five reasons I'm not.
1. Strongest September quarter for iPhone ever
The general rule of thumb is that as the iPhone goes, so goes Apple. After all, iPhones generate more than half of the company's total net sales.
You probably wouldn't know it from Apple stock's drop on Friday, but the September quarter was the strongest ever for iPhone sales. Apple recorded $43.8 billion in iPhone sales in its fiscal Q4, up nearly 3% year over year.
2. Services business is booming
It wasn't just iPhone sales hitting a record high. The company's services business also set an all-time revenue record in the September quarter. Even more impressive, Apple CEO Tim Cook stated in the quarterly conference call, "Every main service hit a record." Those main services include the App Store, iCloud, Apple Music, and Apple Pay.
Total services revenue jumped more than 16% year over year to $22.3 billion. The consensus among analysts surveyed by LSEG (formerly Refinitiv) was that Apple would record services revenue of just under $21.3 billion.
3. Installed base at an all-time high
There's a good reason to be optimistic that Apple's services growth will continue its strong momentum. Why? The company's active installed base of devices reached an all-time high as well.
Maestri said in the press release announcing the latest results that this achievement is "thanks to the strength of our ecosystem and unparalleled customer loyalty." I think he's exactly right. And the more Apple devices being used, the more that customers will spend on services.
4. Improving margins
One thing that I like more than an attractive margin is an attractive margin that's growing. That's exactly what Apple delivered in its fiscal Q4.
The company's gross margin in its latest quarter was 45.2%. This result was better than the 44.5% expected by analysts and reflected an increase from a gross margin of 42.3% in the prior-year period.
What about net profit margin? It looked great, too. Apple reported a net profit margin in fiscal Q4 of 25.6%, up from 22.9% in the same quarter of fiscal 2023.
5. Next quarter could be better than analysts think
I also suspect that next quarter could be better than analysts think. Sure, Maestri commented that Apple looks for its revenue in the December quarter to "be similar to" the level from last year. But there are a few things to note.
Importantly, the coming quarter will have one fewer week than last year's fiscal Q1 did. Cook said in an interview with CNBC that in the September quarter, the new iPhone 15 outperformed sales for the iPhone 14 in the prior-year period. That's encouraging for the upcoming quarter.
Cook also expressed his opinion that the Mac "is going to have a significantly better quarter in the December quarter." The new M3 chips powering Macs are likely to provide a nice boost in sales despite what Cook referred to as a "challenging" PC market.
162 billion other reasons
There are roughly 162 billion other reasons why I still like Apple. I'm referring to the company's cash stockpile of a little over $162 billion at the end of September. That's a staggering amount of cash, cash equivalents, and marketable securities, especially considering that Apple returned nearly $25 billion to shareholders in its latest quarter through dividends and stock buybacks.
Maybe the negative reactions to Apple's latest update will push the stock even lower. That would give the company a great opportunity to use some of its cash for additional share repurchases. If you believe in Apple's long-term prospects as I do, that would be money well spent. In my opinion, Wall Street hating on Apple right now could be great news for long-term investors.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of October 30, 2023
Keith Speights has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. Even more impressive, Apple CEO Tim Cook stated in the quarterly conference call, "Every main service hit a record." Installed base at an all-time high There's a good reason to be optimistic that Apple's services growth will continue its strong momentum.
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Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. Apple recorded $43.8 billion in iPhone sales in its fiscal Q4, up nearly 3% year over year. Services business is booming It wasn't just iPhone sales hitting a record high.
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Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. You probably wouldn't know it from Apple stock's drop on Friday, but the September quarter was the strongest ever for iPhone sales. Apple reported a net profit margin in fiscal Q4 of 25.6%, up from 22.9% in the same quarter of fiscal 2023.
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Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. The company's services business also set an all-time revenue record in the September quarter. Next quarter could be better than analysts think I also suspect that next quarter could be better than analysts think.
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12683.0
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2023-11-05 00:00:00 UTC
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Foxconn sticks to strong end-of-year sales outlook
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AAPL
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https://www.nasdaq.com/articles/foxconn-sticks-to-strong-end-of-year-sales-outlook
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nan
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nan
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Recasts; updates throughout with details from statement
TAIPEI, Nov 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple supplier, on Sunday stuck to its previous outlook of strong year-end holiday sales, and said customers were buying well in China and the United States.
The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets.
Foxconn said in a statement that with the second half of the year a "traditional peak season" for consumer tech products, operations "will ramp up sequentially", sticking to its outlook given last month.
"Significant growth outlook in the fourth quarter compared to the third quarter remains unchanged," it added, without elaborating.
Foxconn, formally called Hon Hai Precision Industry Co Ltd, said revenue last month reached T$741.2 billion ($23.09 billion), the second highest ever for October, down 4.56% year-on-year, coming off a high base, and up 12.2% from September.
Revenue in its smart consumer electronics products, including smartphones, saw "significant" growth month-on-month as new products drove demand and ahead of China's Singles Day shopping event this month and Thanksgiving holidays in the United States, Foxconn said.
The company is the Apple's biggest iPhone assembler.
Apple, which in September launched a new series of iPhones, on Thursday gave a sales forecast for the holiday quarter that missed Wall Street expectations, hurt by weak demand for iPads and wearables.
Foxconn releases third-quarter earnings on Nov. 14, when it will give more details on its outlook.
Foxconn's Taipei-listed shares closed down 1.2% on Friday ahead of the release of its October sales, compared with a 0.7% gain for the broader market .TWII. Foxconn shares have dropped 4% this year, giving it a market value of $41.5 billion.
($1 = 32.0980 Taiwan dollars)
(Writing by Ben Blanchard; Editing by David Goodman and Christopher Cushing)
((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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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. Recasts; updates throughout with details from statement TAIPEI, Nov 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple supplier, on Sunday stuck to its previous outlook of strong year-end holiday sales, and said customers were buying well in China and the United States. Apple, which in September launched a new series of iPhones, on Thursday gave a sales forecast for the holiday quarter that missed Wall Street expectations, hurt by weak demand for iPads and wearables.
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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. "Significant growth outlook in the fourth quarter compared to the third quarter remains unchanged," it added, without elaborating. Revenue in its smart consumer electronics products, including smartphones, saw "significant" growth month-on-month as new products drove demand and ahead of China's Singles Day shopping event this month and Thanksgiving holidays in the United States, Foxconn said.
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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. Recasts; updates throughout with details from statement TAIPEI, Nov 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple supplier, on Sunday stuck to its previous outlook of strong year-end holiday sales, and said customers were buying well in China and the United States. Revenue in its smart consumer electronics products, including smartphones, saw "significant" growth month-on-month as new products drove demand and ahead of China's Singles Day shopping event this month and Thanksgiving holidays in the United States, Foxconn said.
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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. The company is the Apple's biggest iPhone assembler. Foxconn shares have dropped 4% this year, giving it a market value of $41.5 billion.
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12684.0
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2023-11-05 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-16
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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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12685.0
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2023-11-04 00:00:00 UTC
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AAPL and GOOGL’s Post-Earnings Slump: Time to Buy?
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AAPL
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https://www.nasdaq.com/articles/aapl-and-googls-post-earnings-slump%3A-time-to-buy
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nan
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nan
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Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. And though the results weren't as impressive as the likes of other "Magnificent Seven" members, I view the weak post-earnings action as more of a chance for contrarians to buy rather than a red flag that should spark a rush to the exits.
Undoubtedly, if you're looking for a reason to sell after recent earnings, the quarters of Apple and Alphabet gave you some reasons. However, if you were looking for positives, each quarter had that, too. Both companies delivered some pretty decent earnings.
That said, the market has set a high bar this time of year, with macro and rate risks atop everyone's radar. Though Apple and Alphabet didn't deliver spectacular results, I don't think they were bad enough to spark a dip.
Therefore, let's stack up the two tech titans using TipRanks' Comparison Tool.
Apple: A Good Quarter Showcased to a Tough Crowd
After clocking in its fourth straight quarter of sagging sales while setting a low bar for the December quarter — CFO Luca Maestri is looking for revenue to be similar to last year — shares of Apple dipped over 3% in the after-hours session of trade, only to recover most of the lost ground the very next day.
Ultimately, though, Apple ended down just 0.5% following a quarter that I thought had quite a few positives (like record Services revenue). A flat-ish move post-earnings may not seem terrible until you consider the fact that it didn't participate in what was a strong rally for broader markets on Friday that saw the S&P 500 rise almost a full percentage point.
Indeed, four straight quarters of sales in the red may be a horrific headline for some Apple skeptics. However, such stagnation is likely in the rear-view mirror as the consumer looks to heal and Apple looks to put the finishing touches on its Apple Vision Pro headset before it formally launches in a few months.
Neuburger Berman analyst Daniel Flax is just one of the bulls that sees Apple's growth re-accelerating from here. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout.
And while Greater China numbers were also flat, thanks in part to competitive pressures from domestic smartphone maker Huawei, I think China concerns are overblown.
Competition is nothing new for Apple. And to think Apple will fail to stay up to speed against Huawei would be to heavily discount the Apple brand. There's still a great deal of brand affinity for Apple and other American brands in China. As such, I view flat Chinese sales as a mere hiccup than the start of a troubling trend. China is still Apple's third-largest market, and it's one in which Apple has room to run.
Apart from the strong brand, I believe Apple's hardware prowess will help it catch up to the likes of Huawei in China over the coming years. Apple Silicon is already building chips on the 3nm process with an intense focus on per-watt performance. My bet is that Apple will widen the per-watt performance gap from here.
Given the stock is trading at where it was two years ago, I don't view Apple as ripe for a continuation of its correction; It already had one.
What is the Price Target for AAPL Stock?
Apple's a Moderate Buy, according to analysts, with 22 Buys and nine Holds assigned in the past three months. The average AAPL stock price target of $201.47 implies 14.1% upside potential.
Alphabet: Weak Cloud Growth Clouding the AI Story
Alphabet stock was slapped with a brutal two-day plunge of around 12%, even as the firm clocked in better-than-expected earnings results. For the quarter, Alphabet reported third-quarter earnings per share of $1.55, comfortably ahead of the $1.46 estimate. Weakness in its Cloud division cast a dark shadow over the quarter, though, with cloud sales rising just 22%, down from 28% in the last two quarters.
Indeed, Microsoft's (NASDAQ:MSFT) Azure may very well take share away from Google Cloud as it continues sprinkling in generative AI across its broad suite of products. AI plus Azure may be the perfect combo to take Microsoft's cloud business to the next level. That said, don't forget that Alphabet is an AI-savvy titan itself. Though Alphabet may be slower to effectively monetize AI versus Microsoft, I think Alphabet will make up ground once it's ready to flex its own AI muscles.
For now, Google is hard at work pushing out new AI products, like Bard and Duet AI, which seems to mirror what Microsoft is doing with Bing and Copilot. The AI wars are not over yet -- not by a long shot.
GOOGL trades at just 24.8 times trailing price-to-earnings (P/E), making it the cheapest of the Magnificent Seven stocks. I view Alphabet stock as a relative bargain while the distraction of the antitrust trial plays out in the background. Who says you need to pay a fat premium for top-of-the-line AI exposure?
What is the Price Target for GOOGL Stock?
Alphabet is a Strong Buy, according to analysts, with 26 Buys and seven Holds assigned in the past three months. The average GOOGL stock price target of $152.67 implies 18.3% upside potential.
Conclusion
The so-called Santa Claus rally may be arriving earlier this year, but the real gift, I believe, is the recent weakness in Apple and Alphabet. I'm bullish on both companies, as most other investors overweigh the near-term negatives over the long-term positives.
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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If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout. Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. What is the Price Target for AAPL Stock?
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The average AAPL stock price target of $201.47 implies 14.1% upside potential. Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout.
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Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout. What is the Price Target for AAPL Stock?
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Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout. What is the Price Target for AAPL Stock?
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12686.0
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2023-11-04 00:00:00 UTC
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Buffett's Berkshire has bigger loss as stocks fall; operating profit sets record
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AAPL
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https://www.nasdaq.com/articles/buffetts-berkshire-has-bigger-loss-as-stocks-fall-operating-profit-sets-record
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nan
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nan
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Adds details from results
Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record.
Though its businesses fared better overall, Berkshire signaled caution about valuations, as its cash stake swelled to a record $157.2 billion in the third quarter, when it sold $5.3 billion more stocks than it bought.
Berkshire also slowed repurchases of its own stock, buying back $1.1 billion in the third quarter.
Investors watch Berkshire closely because its results often reflect broader economic trends, and because of Buffett's reputation as an investor.
The third-quarter net loss more than quadrupled to $12.77 billion, or $8,824 per Class A share, from $2.8 billion a year earlier.
Results included $23.5 billion of losses from investments, primarily reflecting a 12% decline in the stock price of Apple, in which Berkshire had owned a $177.6 billion stake.
Berkshire's net results swing widely from quarter to quarter because accounting rules require the company to report investment gains and losses even if it buys and sells nothing. Buffett says the resulting volatility is usually meaningless.
Operating profit rose 41% to $10.76 billion, or $7,444 per Class A share, from $7.65 billion a year earlier.
Insurance operations generated $4.89 billion of profit, as the Geico car insurer and reinsurance businesses made money after posting losses in 2022, while rising interest rates boosted income generated from U.S. Treasuries.
Berkshire also benefited from a relatively quiet Atlantic hurricane season, which reduced catastrophe losses, unlike in 2022 when it lost $2.7 billion from Hurricane Ian.
The conglomerate also owns dozens of other businesses including the BNSF railroad, several energy companies, Dairy Queen ice cream, Duracell batteries, Fruit of the Loom underwear and See's candies.
Buffett, 93, has run Berkshire since 1965. His $117.5 billion net worth ranks fifth worldwide according to Forbes magazine.
Berkshire shares are up 14% this year, matching the Standard & Poor's 500 .SPX.
(Reporting by Jonathan Stempel in New York; editing by Jason Neely)
((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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Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. Berkshire also slowed repurchases of its own stock, buying back $1.1 billion in the third quarter. The conglomerate also owns dozens of other businesses including the BNSF railroad, several energy companies, Dairy Queen ice cream, Duracell batteries, Fruit of the Loom underwear and See's candies.
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Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. Operating profit rose 41% to $10.76 billion, or $7,444 per Class A share, from $7.65 billion a year earlier. Insurance operations generated $4.89 billion of profit, as the Geico car insurer and reinsurance businesses made money after posting losses in 2022, while rising interest rates boosted income generated from U.S. Treasuries.
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Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. Though its businesses fared better overall, Berkshire signaled caution about valuations, as its cash stake swelled to a record $157.2 billion in the third quarter, when it sold $5.3 billion more stocks than it bought. Results included $23.5 billion of losses from investments, primarily reflecting a 12% decline in the stock price of Apple, in which Berkshire had owned a $177.6 billion stake.
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Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. The third-quarter net loss more than quadrupled to $12.77 billion, or $8,824 per Class A share, from $2.8 billion a year earlier. Buffett says the resulting volatility is usually meaningless.
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12687.0
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2023-11-04 00:00:00 UTC
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What's the Best FAANG Stock Right Now? There's a Clear Winner Based on 1 Key Metric
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AAPL
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https://www.nasdaq.com/articles/whats-the-best-faang-stock-right-now-theres-a-clear-winner-based-on-1-key-metric
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nan
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nan
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In some ways, the term FAANG stocks has lost its oomph. After all, Facebook's corporate name is now Meta Platforms (NASDAQ: META), and Google rolls up to its parent company Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). However, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) haven't changed, leaving three of the original letters in FAANG intact.
Whatever you want to call these five stocks, they've been hot so far in 2023. The worst performer in the group (Apple) has soared nearly 40%. Of course, those past gains are all water under the bridge. What's the best FAANG stock right now? There's a clear winner based on one key metric.
Pegging the leader
Meta Platforms ranks as the best FAANG stock of the year -- and it isn't a close contest. Its shares have skyrocketed more than 155%, with the impressive move fueled largely by strong quarterly updates.
Sometimes, the hottest stocks are the ones most likely to run out of steam. However, one metric indicates Meta could be the best-performing FAANG stock in the coming years, too.
The price/earnings-to-growth (PEG) ratio was popularized by legendary investor Peter Lynch (although he didn't come up with it). It's different from most valuation metrics in that it includes projected growth. The lower the PEG ratio, the more attractively valued a stock is relative to how much growth it's expected to generate.
One nice thing about the PEG ratio is that it can be used to compare stocks with different business models. Here's how the five FAANG stocks stack up against each other based on this metric (ranked from lowest to highest PEG ratio):
STOCK PEG RATIO
Meta Platforms 0.72
Alphabet 1.19
Netflix 1.68
Apple 2.24
Amazon 2.47
Data source: Yahoo! Finance. PEG Ratio = price/earnings-to-growth ratio.
Meta's PEG ratio is significantly lower than the other FAANG stocks. For investors looking for growth at a reasonable price, Meta stock looks like the best alternative in the group by far.
Two potential problems with the PEG ratio
So, can we conclude beyond any shadow of a doubt that Meta is the best FAANG stock right now? Not really. The reason is that there are two potential problems with the PEG ratio.
For one thing, the E in PEG ratio (earnings) can be misleading. Companies' earnings can sometimes be distorted by unusual revenue and/or expenses.
The bigger issue, though, is that the PEG ratio relies on estimates of future growth that can be way off. The PEG ratio values used to compare the FAANG stocks use growth projections for five years into the future. It's fair to say that those projections required a lot of guesswork that could turn out to be completely wrong.
That said, Meta does appear to be in good shape to deliver strong earnings growth in the coming years. The company is focusing heavily on increasing the monetization of high-growth areas of its social media platforms, such as Reels. Meta CEO Mark Zuckerberg recently stated that the company's "next major pillar" will be business messaging powered by artificial intelligence (AI). He predicted that Meta should be able to "grow the business messaging business in a big way."
Still plenty of bite left in all the FAANG stocks
Of course, it's easy to make the case that the other FAANG stocks will generate strong growth as well. AI seems likely to provide a massive tailwind for most of them.
Amazon and Alphabet should be clear beneficiaries of increased AI adoption as more organizations move to the companies' cloud platforms. Apple is investing heavily in generative AI (as are Amazon, Alphabet, and Meta). Amazon, Alphabet, and Apple could also profit if the self-driving car market really takes off.
Netflix expects operating margins to improve significantly in the coming years. The company's ad-supported streaming model should be a key growth driver. Gaming presents another big opportunity for Netflix.
The bottom line is that there's plenty of bite left in all the FAANG stocks. Meta could very well be the biggest winner over the next decade, but it's quite possible that another could separate from the pack.
10 stocks we like better than Meta Platforms
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 30, 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. Keith Speights has positions in Alphabet, Amazon, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) haven't changed, leaving three of the original letters in FAANG intact. Meta CEO Mark Zuckerberg recently stated that the company's "next major pillar" will be business messaging powered by artificial intelligence (AI). Amazon and Alphabet should be clear beneficiaries of increased AI adoption as more organizations move to the companies' cloud platforms.
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However, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) haven't changed, leaving three of the original letters in FAANG intact. Meta Platforms 0.72 Alphabet 1.19 Netflix 1.68 Apple 2.24 Amazon 2.47 Data source: Yahoo! 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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However, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) haven't changed, leaving three of the original letters in FAANG intact. Pegging the leader Meta Platforms ranks as the best FAANG stock of the year -- and it isn't a close contest. Meta's PEG ratio is significantly lower than the other FAANG stocks.
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However, Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) haven't changed, leaving three of the original letters in FAANG intact. What's the best FAANG stock right now? The PEG ratio values used to compare the FAANG stocks use growth projections for five years into the future.
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12688.0
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2023-11-03 00:00:00 UTC
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Why Did Apple (AAPL) Drop on an Earnings Beat?
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AAPL
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https://www.nasdaq.com/articles/why-did-apple-aapl-drop-on-an-earnings-beat
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nan
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nan
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Y
esterday, after the market closed, Apple (AAPL) released their calendar Q3 earnings. They beat estimates on the top and bottom lines, with iPhone sales matching expectations and the high-margin services recording higher-than-expected revenue. You would think that is all good news, but the stock responded by dropping around 4.5% in the aftermarket. It has since bounced slightly but as I write, it will open this morning roughly a couple of bucks below yesterday’s close. How can that be? How can the market interpret good news as bad?
Other than “Do you have a stock tip for me?” and “Where is the stock market going?” the most common thing I get asked when people find out that I write about the markets is, “Why do stocks that beat earnings estimates drop so often?”
It is one of those things that, on the surface, makes absolutely no sense. The most fundamental factor on a company’s valuation is how much money it makes, and we know that expectations are baked into market pricing. So how is it that a company can beat those expectations and then see their stock react by trading lower?
Some of the time it is because traders are looking at something other than earnings, usually revenue. If a company beats on the bottom line but sales are dipping, then the belief is often that the beat came from cost cutting, price hikes or a one-off boost to profits, and is therefore probably not sustainable. Apple, however, also posted a small beat on revenue, so that isn’t the problem here.
The most common reason for a counterintuitive post-earnings move, though, is a company’s forward guidance. It may sound obscure, but a stock’s price is impacted by expectations for expectations. Companies are not obliged to tell us in their earnings statement what they expect for the upcoming quarter or full year, but most do, and when their forecast falls short of what Wall Street analysts have forecast, the stock will drop regardless of what happened in the most recent quarter.
This is what seems to be pushing AAPL lower this morning. Analysts were anticipating a forecast from Apple for some growth next quarter, but that didn’t materialize.
Obviously, fourth quarter sales are a big deal for a company like Apple that, despite being labeled as a tech company, essentially designs, makes, and sells consumer goods. As every parent of a child older than twelve can tell you, these days the most wanted “toy” this time of year is usually the latest iPhone, Apple Watch, iPad, or MacBook, not a doll or action figure or whatever, so holiday sales make up a big percentage of Apple’s annual total revenue. This quarter, AAPL is expecting Q4 revenue that will basically match last year’s, a disappointment for the Street.
Then there is what I regard as one of the most often overlooked drivers of a stock’s reaction to earnings: the positioning and sentiment of the market going in. Apple has been bouncing along with most tech stocks this week as rate hikes seem to be ending, so many traders will have been long going into yesterday’s numbers. They would have been looking to take a profit on a positive reaction, but then would have been squeezed out by the start of a post-earnings drop, adding to sellers in what is always a thin market immediately after a release.
With Apple, though, while the reason for the drop is clear the logic of it is questionable, and the bounce back off the lows this morning is probably more representative of what is to come than the drop itself. In an environment of rate hikes and where until just a week or so ago there seemed to be almost unanimous agreement among economists and analysts that we were heading for a recession, the forecast for flat fourth quarter sales is actually not that bad. Then there is the makeup of the company’s revenue. The growth in the services sector is more important than anything. It is high margin, repeatable, and sticky revenue, and the more of Apple’s total sales that come from services, the better the prospects for the company.
All of the above things, revenue rather than EPS, the makeup of the revenue, forward guidance, and market positioning are parts of the answer that I give when I am asked why stocks so often drop on good earnings. They all factor in, but probably the most important thing to say about such moves is that they often represent an opportunity for long-term investors to benefit from short-term market dynamics. That is the case here. Apple may have disappointed in some ways, but growth in services revenue and maintaining sales levels in a difficult Q4 are both good reasons to believe that the company can continue to thrive, and that AAPL will be significantly above current levels next year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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esterday, after the market closed, Apple (AAPL) released their calendar Q3 earnings. This is what seems to be pushing AAPL lower this morning. This quarter, AAPL is expecting Q4 revenue that will basically match last year’s, a disappointment for the Street.
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esterday, after the market closed, Apple (AAPL) released their calendar Q3 earnings. This is what seems to be pushing AAPL lower this morning. This quarter, AAPL is expecting Q4 revenue that will basically match last year’s, a disappointment for the Street.
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esterday, after the market closed, Apple (AAPL) released their calendar Q3 earnings. This is what seems to be pushing AAPL lower this morning. This quarter, AAPL is expecting Q4 revenue that will basically match last year’s, a disappointment for the Street.
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esterday, after the market closed, Apple (AAPL) released their calendar Q3 earnings. This is what seems to be pushing AAPL lower this morning. This quarter, AAPL is expecting Q4 revenue that will basically match last year’s, a disappointment for the Street.
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12689.0
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2023-11-03 00:00:00 UTC
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Apple Q4 Earnings Beat, Outlook Upsets: ETFs in Focus
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AAPL
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https://www.nasdaq.com/articles/apple-q4-earnings-beat-outlook-upsets%3A-etfs-in-focus
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nan
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nan
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Apple Inc. AAPL reported solid fourth-quarter fiscal 2023 results, wherein it beat estimates on both earnings and revenues. The company’s iPhone sales hit a new record in the fiscal fourth quarter. However, it is overshadowed by a cautious outlook for the holiday quarter.
Apple shares dropped as much as 3% in after-market hours on elevated volume following the cautious outlook. This has put ETFs having the largest allocation to the tech titan in focus. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Vanguard Mega Cap Growth ETF MGK have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Apple Earnings in Focus
Earnings per share came in at $1.46, beating the Zacks Consensus Estimate of $1.39 and improving 13% year over year. Revenues fell 1% year over year to $89.5 billion but edged past the estimated $89 billion. This marks the fourth consecutive quarter of revenue decline and the company’s longest revenue decline in more than two decades (see: all the Technology ETFs here).
iPhone sales grew 3% to a $43.8 billion, marking a September-quarter record. Services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, soared 16% year over year to an all-time high of $22.3 billion. Revenues from Wearables, Home and Accessories, which include Apple Watch, AirPods, HomePod, Apple TV and Beats headphones, declined 3% to $9.3 billion. Mac sales fell 34% to $7.6 billion, while iPad sales declined 10% to $6.4 billion.
The tech giant offered a cautious outlook for the holiday quarter. Apple CFO Luca Maestri indicated that revenues in the upcoming quarter are expected to be "similar" to last year, with revenues for Mac, iPad, and Wearables categories expected to "decelerate significantly" from the fourth quarter.
Apple has the strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and the first carbon-neutral Apple Watch models, a major milestone in the efforts to make all Apple products carbon neutral by 2030.
ETFs in Focus
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 64 securities in its basket, with Apple making up for a 23.2% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage & peripherals, and semiconductors & semiconductor equipment (read: Can Q4 Earnings Give a New Lease of Life to Apple ETFs?).
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $57.3 billion and an average daily volume of 6.5 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages about $48.5 billion in its asset base and provides exposure to 319 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 21.2% share. Systems software, technology hardware storage & peripheral, semiconductors and application software are the top four sectors.
Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 489,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 316 technology stocks with AUM of $6.8 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.3% share in the basket.
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 204,000 shares a day.
iShares US Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 134 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 18.1% of the assets.
iShares Dow Jones US Technology ETF has AUM of $11.5 billion and charges 40 bps in fees and expenses. Volume is good as it exchanges 667,000 shares a day.
Vanguard Mega Cap Growth ETF (MGK)
Vanguard Mega Cap Growth ETF offers diversified exposure to the largest growth stocks in the U.S. market. It tracks the CRSP US Mega Cap Growth Index and holds 88 securities in its basket, with Apple accounting for 14.9% of the total assets (read: Growth ETFs to Shine as Fed Hints at End of Rate Hike Era).
Vanguard Mega Cap Growth ETF charges 7 bps in annual fees and trades in a good volume of around 306,000 shares a day on average. The fund has AUM of $13.7 billion.
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
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
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. AAPL reported solid fourth-quarter fiscal 2023 results, wherein it beat estimates on both earnings and revenues. 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 Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $57.3 billion and an average daily volume of 6.5 million shares.
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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 Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL reported solid fourth-quarter fiscal 2023 results, wherein it beat estimates on both earnings and revenues. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Vanguard Mega Cap Growth ETF MGK have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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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 Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL reported solid fourth-quarter fiscal 2023 results, wherein it beat estimates on both earnings and revenues. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Vanguard Mega Cap Growth ETF MGK have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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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 Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL reported solid fourth-quarter fiscal 2023 results, wherein it beat estimates on both earnings and revenues. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Vanguard Mega Cap Growth ETF MGK have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
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12690.0
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2023-11-03 00:00:00 UTC
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Wall St Week Ahead-Stock investors see green light in falling Treasury yields
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-stock-investors-see-green-light-in-falling-treasury-yields
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nan
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nan
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By David Randall
NEW YORK, Nov 3 (Reuters) - Hopes that a rout in Treasuries has run its course are tempting some investors back into the U.S. stock market after a months-long selloff.
The relationship between stocks and bonds has been a tight one in recent months, with equities falling as Treasury yields climbed to 16-year highs. Higher yields offer investment competition to stocks while also raising the cost of capital for companies and households.
Over much of the last week, however, that dynamic has reversed, following news of smaller than expected U.S. government borrowing and signs that the Federal Reserve is nearing the end of its rate hiking cycle.
Yields on the benchmark 10-year US Treasury, which move inversely to bond prices, are down about 35 basis points from 16-year highs hit in October. Meanwhile, the S&P 500 has surged nearly 6% from its October lows. The index is off 5% from its July peak, though still up nearly 14% year-to-date.
"The stability in rates is helping other asset classes find a footing," said Jason Draho, head of asset allocation Americas as UBS Global Wealth Management. "If equities move higher you may find investors starting to feel as if they need to chase performance through the end of the year."
Draho expects the S&P 500 to trade between 4,200 and 4,600 until investors determine whether the economy will be able to avoid a recession. The index was recently around 4,365.
Other factors may also be working in stocks’ favor. Exposure to equities among active money managers stands near its lowest level since October 2022, according to an index compiled by the National Association of Active Investment Managers - a compelling sign for contrarian investors who seek to buy when pessimism rises.
At the same time, the last two months of the year have tended to be a strong stretch for stocks, with the S&P 500 rising an average of 3%, according to data from CFRA Research. The best two weeks of the year for the index, during which it has risen an average of 2.2% - kicked off on Oct. 22, according to data from Carson Investment Research.
"We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
Bullish sentiment received another boost on Friday from U.S. employment data, which showed a slight gain in the unemployment rate and smallest wage increase in 2 and a half years, suggesting that the labor market is cooling, bolstering the case for the Fed to stay its hand. The S&P 500 was recently up more than 1% on the day.
Of course, plenty of investors remain hesitant to return to stocks just yet. Technology bellwether Apple Inc AAPL.O was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook on Thursday, after the iPhone maker gave a holiday sales forecast that was below Wall Street estimates. At least 14 analysts cut their price targets for the company, according to LSEG data.
At the same time, betting on reversals in Treasuries has been a losing proposition for most of the year, during which rebounds in the U.S. government bond market have been followed by deeper selloffs. The 10-year Treasury yield is up around 125 basis points from its low for the year.
Some investors also worry that the so-called Goldilocks economy suggested by Friday's jobs report may not last. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, believes that while signs of softer than expected growth are boosting stocks and bonds for now, they may eventually stir recession worries.
"Eventually 'good' moderation may turn into a debate of whether the economy and labor markets are weakening too much," he said.
(Reporting by David Randall; Editing by Ira Iosebashvili and Louise Heavens)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Technology bellwether Apple Inc AAPL.O was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook on Thursday, after the iPhone maker gave a holiday sales forecast that was below Wall Street estimates. By David Randall NEW YORK, Nov 3 (Reuters) - Hopes that a rout in Treasuries has run its course are tempting some investors back into the U.S. stock market after a months-long selloff. Bullish sentiment received another boost on Friday from U.S. employment data, which showed a slight gain in the unemployment rate and smallest wage increase in 2 and a half years, suggesting that the labor market is cooling, bolstering the case for the Fed to stay its hand.
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Technology bellwether Apple Inc AAPL.O was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook on Thursday, after the iPhone maker gave a holiday sales forecast that was below Wall Street estimates. Yields on the benchmark 10-year US Treasury, which move inversely to bond prices, are down about 35 basis points from 16-year highs hit in October. "We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
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Technology bellwether Apple Inc AAPL.O was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook on Thursday, after the iPhone maker gave a holiday sales forecast that was below Wall Street estimates. Exposure to equities among active money managers stands near its lowest level since October 2022, according to an index compiled by the National Association of Active Investment Managers - a compelling sign for contrarian investors who seek to buy when pessimism rises. "We had an extremely oversold market in the midst of a strong economy, and the Fed coming out a little more dovish was the kindling we needed for a rally," said Ryan Detrick, chief market strategist at Carson Investment Research, who believes the current rebound in stocks will take them past their July high.
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Technology bellwether Apple Inc AAPL.O was the latest of the market's massive technology and growth stocks to offer an underwhelming outlook on Thursday, after the iPhone maker gave a holiday sales forecast that was below Wall Street estimates. The relationship between stocks and bonds has been a tight one in recent months, with equities falling as Treasury yields climbed to 16-year highs. The index was recently around 4,365.
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12691.0
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2023-11-03 00:00:00 UTC
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US STOCKS-Wall St rallies as Treasury yields fall after weak jobs data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-treasury-yields-fall-after-weak-jobs-data
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nan
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nan
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By Sinéad Carew and Amruta Khandekar
Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday as bond yields fell sharply as data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign.
The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
The reading bolstered the view that the Fed had reached the end of its rate hikes. U.S. Treasury yields fell for the fourth consecutive session, with the benchmark 10-year Treasury yield US10YT=RR hitting its lowest level in more than five weeks before trading last at 4.5538%.
"Falling interest rates is probably the top catalyst this week," said Tony Welch, CIO of SignatureFD, Atlanta Georgia, adding the jobs report supported this trend.
"The Fed has had a difficult time getting their monetary policy to actually loosen the labor market," he said, noting that Friday's data suggests the market is looser, leading to investors' "interpretation that the Fed may be done with a tightening cycle."
Welch also noted that solid earnings reports were helping stocks as companies have expanded profit margins.
All three major Wall Street indexes were on course for their biggest weekly percentage gain in about a year. The Russell 2000 index .RUT of small cap companies was on track for its biggest weekly gain since February 2021.
The Dow Jones Industrial Average .DJI rose 269.53 points, or 0.8%, to 34,108.61, the S&P 500 .SPX gained 47.62 points, or 1.10%, to 4,365.4 and the Nasdaq Composite .IXIC added 191.77 points, or 1.44%, to 13,485.96.
The tech-heavy Nasdaq .IXIC was on track for its sixth straight day in the green while the S&P 500 and the Dow looked set for their fifth consecutive session of gains.
Most major S&P 500 sectors traded in the green, led by real estate .SPLRCR, up 3%, after hitting its highest since late September. Only the energy sector .SPNY was losing ground, last down more than 1%.
The small-cap Russell 2000 index .RUT was up 2.8%, touching its highest level since Oct. 17.
Megacap stocks were gaining with Nvidia NVDA.O up 3.5% and Alphabet GOOGL.O up 1.2% while Microsoft MSFT.O rose 1.6%.
AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations.
Still analysts expect earnings growth of 5.7% for S&P 500 companies in the third quarter, with over 81% of the 403 companies in the benchmark index that have reported profits so far having beaten estimates, per LSEG data.
Meanwhile, the CBOE volatility index .VIX touched a fresh six-week low, reflecting easing investor anxiety.
Among major movers, FortinetFTNT.O dropped 16.5% on a downbeat fourth-quarter revenue forecast.
BlockSQ.N jumped 10.3% after raising its annual adjusted profit forecast.
Advancing issues outnumbered declining ones on the NYSE by a 5.97-to-1 ratio; on Nasdaq, a 3.80-to-1 ratio favored advancers.
The S&P 500 posted 19 new 52-week highs and no new lows; the Nasdaq Composite recorded 46 new highs and 62 new lows.
(Reporting by Sinéad Carew in New York, Amruta Khandekar and Shristi Achar A; Editing by Sriraj Kalluvila, Maju Samuel and David Gregorio)
((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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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday as bond yields fell sharply as data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. "Falling interest rates is probably the top catalyst this week," said Tony Welch, CIO of SignatureFD, Atlanta Georgia, adding the jobs report supported this trend.
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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday as bond yields fell sharply as data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. U.S. Treasury yields fell for the fourth consecutive session, with the benchmark 10-year Treasury yield US10YT=RR hitting its lowest level in more than five weeks before trading last at 4.5538%.
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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday as bond yields fell sharply as data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. Still analysts expect earnings growth of 5.7% for S&P 500 companies in the third quarter, with over 81% of the 403 companies in the benchmark index that have reported profits so far having beaten estimates, per LSEG data.
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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Sinéad Carew and Amruta Khandekar Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday as bond yields fell sharply as data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign. The Russell 2000 index .RUT of small cap companies was on track for its biggest weekly gain since February 2021.
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12692.0
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2023-11-03 00:00:00 UTC
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Technology Sector Update for 11/03/2023: AAPL, IAS, FTNT
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-11-03-2023%3A-aapl-ias-ftnt
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nan
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nan
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Tech stocks rose Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1% and the Philadelphia Semiconductor index adding 2.5%.
In corporate news, Apple (AAPL) shares fell 1.1% after the company reported late Thursday a decline in fiscal Q4 sales and warned holiday sales may be negatively impacted by the sluggish Chinese economy.
Integral Ad Science (IAS) shares jumped nearly 18% after the company reported a revenue increase in Q3 and raised its full-year 2023 revenue outlook.
Fortinet (FTNT) stock slumped past 13% after saying it expects 2023 revenue of $5.27 billion to $5.33 billion, down from the previous estimate of $5.35 billion to $5.45 billion. Analysts surveyed by Capital IQ expect $5.4 billion.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In corporate news, Apple (AAPL) shares fell 1.1% after the company reported late Thursday a decline in fiscal Q4 sales and warned holiday sales may be negatively impacted by the sluggish Chinese economy. Tech stocks rose Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1% and the Philadelphia Semiconductor index adding 2.5%. Analysts surveyed by Capital IQ expect $5.4 billion.
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In corporate news, Apple (AAPL) shares fell 1.1% after the company reported late Thursday a decline in fiscal Q4 sales and warned holiday sales may be negatively impacted by the sluggish Chinese economy. Integral Ad Science (IAS) shares jumped nearly 18% after the company reported a revenue increase in Q3 and raised its full-year 2023 revenue outlook. Fortinet (FTNT) stock slumped past 13% after saying it expects 2023 revenue of $5.27 billion to $5.33 billion, down from the previous estimate of $5.35 billion to $5.45 billion.
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In corporate news, Apple (AAPL) shares fell 1.1% after the company reported late Thursday a decline in fiscal Q4 sales and warned holiday sales may be negatively impacted by the sluggish Chinese economy. Fortinet (FTNT) stock slumped past 13% after saying it expects 2023 revenue of $5.27 billion to $5.33 billion, down from the previous estimate of $5.35 billion to $5.45 billion. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In corporate news, Apple (AAPL) shares fell 1.1% after the company reported late Thursday a decline in fiscal Q4 sales and warned holiday sales may be negatively impacted by the sluggish Chinese economy. Tech stocks rose Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 1% and the Philadelphia Semiconductor index adding 2.5%. Integral Ad Science (IAS) shares jumped nearly 18% after the company reported a revenue increase in Q3 and raised its full-year 2023 revenue outlook.
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12693.0
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2023-11-03 00:00:00 UTC
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US STOCKS-Wall St rises as weak jobs data cements rate-pause bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-weak-jobs-data-cements-rate-pause-bets
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Nov 3 (Reuters) - Wall Street's three main indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign.
The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, against expectations of a 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
The reading, which came on the heels of a mixed set of labor data this week, bolstered the view that the Fed had reached the end of its rate hikes.
"It (the report) is consistent with the views of the market that the job market and the economy is decelerating and that's going to keep the Fed on hold and will cause central banks next year to cut rates," said Jay Hatfield, chief executive officer at Infrastructure Capital Management.
Traders' bets that the Federal Reserve would hold interest rates steady in December rose to 90% from around 83% before the data, while pricing in a rate cut possibility in May, against expectations in June earlier.
A slide in Treasury yields boosted most megacap growth stocks, with Tesla TSLA.O, Nvidia NVDA.O and Alphabet GOOGL.O up between 0.8% and 2.2%.
The benchmark 10-year Treasury yield US10YT=RR fell to its lowest in five weeks after the payrolls data and was last at 4.4921%.
AppleAAPL.O pared losses and was last down 1.9% after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates.
Wall Street's main indexes rallied on Thursday, with the S&P 500 .SPX logging its biggest one-day percentage gain since April.
The recent inflow of strong corporate updates have also kept the major indexes on track for their biggest weekly gain in about a year. Of the 376 firms in the S&P 500 that have reported so far, nearly 81% have beaten earnings estimates, as per LSEG data.
Most major S&P 500 sectors traded in the green, with real estate .SPLRCR leading gains, up 2.7%.
Meanwhile, the CBOE volatility index .VIX touched a fresh six-week low, last down 0.55 at 15.09 points.
At 9:41 a.m. ET, the Dow Jones Industrial Average .DJI was up 149.26 points, or 0.44%, at 33,988.34, the S&P 500 .SPX was up 29.28 points, or 0.68%, at 4,347.06, and the Nasdaq Composite .IXIC was up 83.85 points, or 0.63%, at 13,378.04.
Among major movers, FortinetFTNT.O dropped 17.3% as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
CoinbaseCOIN.O shares fell 1.3% after the cryptocurrency exchange's trading volumes declined for the second quarter in a row.
BlockSQ.N jumped 14.1% after the payments firm raised its annual adjusted profit forecast.
Advancing issues outnumbered decliners by a 7.76-to-1 ratio on the NYSE and by a 4.81-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and no new low, while the Nasdaq recorded 31 new highs and 30 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Sriraj Kalluvila and Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O pared losses and was last down 1.9% after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's three main indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. The reading, which came on the heels of a mixed set of labor data this week, bolstered the view that the Fed had reached the end of its rate hikes.
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AppleAAPL.O pared losses and was last down 1.9% after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's three main indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. Among major movers, FortinetFTNT.O dropped 17.3% as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
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AppleAAPL.O pared losses and was last down 1.9% after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's three main indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. "It (the report) is consistent with the views of the market that the job market and the economy is decelerating and that's going to keep the Fed on hold and will cause central banks next year to cut rates," said Jay Hatfield, chief executive officer at Infrastructure Capital Management.
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AppleAAPL.O pared losses and was last down 1.9% after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's three main indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. The recent inflow of strong corporate updates have also kept the major indexes on track for their biggest weekly gain in about a year.
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12694.0
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2023-11-03 00:00:00 UTC
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Daily Dividend Report: AAPL,COF,PXD,AME,EOG
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AAPL
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https://www.nasdaq.com/articles/daily-dividend-report%3A-aaplcofpxdameeog
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nan
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nan
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Apple— today announced financial results for its fiscal 2023 fourth quarter ended September 30, 2023. The Company posted quarterly revenue of $89.5 billion, down 1 percent year over year, and quarterly earnings per diluted share of $1.46, up 13 percent year over year. Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock. The dividend is payable on November 16, 2023 to shareholders of record as of the close of business on November 13, 2023.
Capital One Financial today announced a quarterly dividend of $0.60 per common share payable November 24, 2023, to stockholders of record at the close of business on November 13, 2023. The company has announced dividends on its common stock every quarter since it became an independent company on February 28, 1995.
Pioneer Natural Resources announced today that its Board of Directors declared a quarterly base-plus-variable cash dividend of $3.20 per common share. The dividend is payable December 22, 2023, to stockholders of record at the close of business on November 30, 2023.
The Board of Directors of AMETEK declared a regular quarterly dividend of $0.25 per share for the fourth quarter ending December 31, 2023. This fourth quarter dividend is payable December 22, 2023 to shareholders of record as of December 8, 2023.
The EOG Resources Board of Directors today declared a dividend of $0.91 per share on EOG's common stock. The dividend will be payable January 31, 2024, to stockholders of record as of January 17, 2024. The new dividend represents an indicated annual rate of $3.64 per share, a 10% increase from the previous level. EOG has never suspended or reduced its regular dividend.
VIDEO: Daily Dividend Report: AAPL,COF,PXD,AME,EOG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Daily Dividend Report: AAPL,COF,PXD,AME,EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple— today announced financial results for its fiscal 2023 fourth quarter ended September 30, 2023. Apple's board of directors has declared a cash dividend of $0.24 per share of the Company's common stock.
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VIDEO: Daily Dividend Report: AAPL,COF,PXD,AME,EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Capital One Financial today announced a quarterly dividend of $0.60 per common share payable November 24, 2023, to stockholders of record at the close of business on November 13, 2023. Pioneer Natural Resources announced today that its Board of Directors declared a quarterly base-plus-variable cash dividend of $3.20 per common share.
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VIDEO: Daily Dividend Report: AAPL,COF,PXD,AME,EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Capital One Financial today announced a quarterly dividend of $0.60 per common share payable November 24, 2023, to stockholders of record at the close of business on November 13, 2023. Pioneer Natural Resources announced today that its Board of Directors declared a quarterly base-plus-variable cash dividend of $3.20 per common share.
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VIDEO: Daily Dividend Report: AAPL,COF,PXD,AME,EOG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Capital One Financial today announced a quarterly dividend of $0.60 per common share payable November 24, 2023, to stockholders of record at the close of business on November 13, 2023. The Board of Directors of AMETEK declared a regular quarterly dividend of $0.25 per share for the fourth quarter ending December 31, 2023.
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12695.0
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2023-11-03 00:00:00 UTC
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US STOCKS-Wall St climbs as weak jobs data cements rate-pause bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-climbs-as-weak-jobs-data-cements-rate-pause-bets
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign.
The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, against expectations of a 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
The reading bolstered the view that the Fed had reached the end of its rate hikes.
Such hopes, coupled with upbeat earnings reports, have put all three major Wall Street indexes on course for their biggest weekly percentage gain in about a year.
"The next discussion is, when do they (the Fed) cut rates? That got taken out of 2024 and it looks now like it's being priced back in," said Paul Nolte, senior wealth adviser and market strategist for Murphy & Sylvest Wealth Management.
"The Fed's focus right now is strictly on inflation. The economy is weakening and their hope is that weakening will filter through to inflation."
Traders' bets that the Federal Reserve would hold interest rates steady in December rose to 95.4% from around 83% before the data, while pricing in a rate cut possibility in May against expectations in June earlier.
Treasury yields continued to slide after the report, with the benchmark 10-year Treasury yield US10YT=RR falling to its lowest in five weeks, last at 4.547%.
That boosted megacap growth stocks Tesla TSLA.O, Nvidia NVDA.O and Alphabet GOOGL.O, up between 0.4% and 2.6%. The tech-heavy Nasdaq .IXIC was on track for its sixth straight day in the green.
AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations.
Analysts expect earnings growth of 5.7% for S&P 500 companies in the third quarter, with over 81% of the 403 companies in the benchmark index that have reported profits so far having beaten estimates, per LSEG data.
Most major S&P 500 sectors traded in the green, led by real estate .SPLRCR, which jumped 3.3% to an over one-month high.
The small-cap Russell 2000 index .RUTadvanced 2.8%, touching its highest level in two weeks.
Meanwhile, the CBOE volatility index .VIX touched a fresh six-week low, reflecting easing investor anxiety.
At 11:50 a.m. ET, the Dow Jones Industrial Average .DJI was up 234.26 points, or 0.69%, at 34,073.34, the S&P 500 .SPX was up 42.50 points, or 0.98%, at 4,360.28, and the Nasdaq Composite .IXIC was up 157.17 points, or 1.18%, at 13,451.36.
Among major movers, FortinetFTNT.O dropped 16.5% on a downbeat fourth-quarter revenue forecast.
BlockSQ.N jumped 12.3% on raising its annual adjusted profit forecast.
Advancing issues outnumbered decliners by a 6.10-to-1 ratio on the NYSE and by a 4.24-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and no new low, while the Nasdaq recorded 42 new highs and 51 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Sriraj Kalluvila and Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. Such hopes, coupled with upbeat earnings reports, have put all three major Wall Street indexes on course for their biggest weekly percentage gain in about a year.
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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. Such hopes, coupled with upbeat earnings reports, have put all three major Wall Street indexes on course for their biggest weekly percentage gain in about a year.
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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. Such hopes, coupled with upbeat earnings reports, have put all three major Wall Street indexes on course for their biggest weekly percentage gain in about a year.
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AppleAAPL.O was an outlier, down 1.3% after its sales forecast for the holiday quarter fell short of Wall Street expectations. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street's main stock indexes gained on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. "The Fed's focus right now is strictly on inflation.
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12696.0
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2023-11-03 00:00:00 UTC
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US STOCKS-Wall St eyes higher open as slowing job growth boosts rate-hike pause bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-as-slowing-job-growth-boosts-rate-hike-pause-bets
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nan
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nan
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By Amruta Khandekar and Shristi Achar A
Nov 3 (Reuters) - Wall Street was set for a higher open on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign.
The Labor Department's report showed nonfarm payrolls increased by 150,000 jobs in October, against expectations of a 180,000 increase, partly due to strikes at Detroit's Big Three automakers.
Data for the last month was revised lower to show an increase of 297,000 instead of the 336,000 reported previously, while the unemployment rate edged up to 3.9% against expectations it would stay steady 3.8%.
The reading, which came on the heels of a mixed set of labor data this week, bolstered the view that the Fed had reached the end of its rate hikes.
"It (the report) is consistent with the views of the market that the job market and the economy is decelerating and that's going to keep the Fed on hold and will cause central banks next year to cut rates," said Jay Hatfield, chief executive officer at Infrastructure Capital Management.
Traders' bets that the Federal Reserve would hold interest rates steady in December rose to 90% from 83% before the data, while the chance of a rate hike by January fell to around 20% after the report, versus about 30% before the report.
A slide in Treasury yields boosted most megacap growth stocks, with Tesla TSLA.O, Nvidia NVDA.O and Alphabet GOOGL.O, up between 0.4% and 1.3%.
The benchmark 10-year Treasury yield US10YT=RR fell to its lowest since Oct. 12 after the payrolls data and was last at 4.578%.
AppleAAPL.O pared losses and was last down 1.4% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates.
Wall Street's main indexes rallied on Thursday, with the S&P 500 .SPX logging its biggest one-day percentage gain since April on growing optimism that the Federal Reserve had reached the end of its monetary tightening campaign.
The recent inflow of strong corporate updates have also kept the three major indexes on track for their biggest weekly gain in about a year. Of the 376 firms in the S&P 500 that have reported so far, nearly 81% have beaten earnings estimates, as per LSEG data.
At 8:45 a.m. ET, Dow e-minis 1YMcv1 were up 141 points, or 0.42%, S&P 500 e-minis EScv1 were up 20.25 points, or 0.47%, and Nasdaq 100 e-minis NQcv1 were up 55.75 points, or 0.37%.
Among major movers, FortinetFTNT.O dropped 22.2% premarket as the cybersecurity firm forecast fourth-quarter revenue below Wall Street estimates.
CoinbaseCOIN.O shares fell 2.5%after the cryptocurrency exchange's trading volumes declined for the second quarter in a row.
BlockSQ.N jumped 18.5% after the payments firm raised its annual adjusted profit forecast.
(Reporting by Amruta Khandekar; Editing by Sriraj Kalluvila and 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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AppleAAPL.O pared losses and was last down 1.4% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street was set for a higher open on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. Data for the last month was revised lower to show an increase of 297,000 instead of the 336,000 reported previously, while the unemployment rate edged up to 3.9% against expectations it would stay steady 3.8%.
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AppleAAPL.O pared losses and was last down 1.4% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street was set for a higher open on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. The reading, which came on the heels of a mixed set of labor data this week, bolstered the view that the Fed had reached the end of its rate hikes.
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AppleAAPL.O pared losses and was last down 1.4% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street was set for a higher open on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. Traders' bets that the Federal Reserve would hold interest rates steady in December rose to 90% from 83% before the data, while the chance of a rate hike by January fell to around 20% after the report, versus about 30% before the report.
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AppleAAPL.O pared losses and was last down 1.4% in premarket trading after its sales forecast for the current quarter fell short of Wall Street expectations, even as an uptick in iPhone sales lifted fourth-quarter results above estimates. By Amruta Khandekar and Shristi Achar A Nov 3 (Reuters) - Wall Street was set for a higher open on Friday after data pointing to slowing job growth and an uptick in the unemployment rate boosted investor expectations that the Federal Reserve was done with its monetary policy tightening campaign. Data for the last month was revised lower to show an increase of 297,000 instead of the 336,000 reported previously, while the unemployment rate edged up to 3.9% against expectations it would stay steady 3.8%.
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12697.0
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2023-11-03 00:00:00 UTC
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1 Magnificent Vanguard ETF to Buy Hand Over Fist in 2024
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AAPL
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https://www.nasdaq.com/articles/1-magnificent-vanguard-etf-to-buy-hand-over-fist-in-2024
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nan
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nan
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Investing in the stock market is a fantastic way to generate life-changing wealth, but the investments you choose will make or break your portfolio.
Exchange-traded funds (ETFs) can be a smart option for anyone looking for a simple, no-fuss investment that can help you earn a lot over time with little effort on your part. Each ETF contains dozens or even hundreds of different stocks, taking the guesswork out of where to buy.
Not all ETFs are created equal, and risky funds could potentially put your portfolio at risk. However, there's one Vanguard ETF that I'm continuing to buy hand over fist, and it could be a smart investment in 2024. Here's everything you need to know.
A growth ETF that packs a punch
One ETF in my personal portfolio that I will continue buying into next year is the Vanguard Growth ETF (NYSEMKT: VUG). This ETF contains 222 stocks, around half of which are from the tech sector. All the stocks in the fund, though, have the potential to see above-average growth.
Growth ETFs, in general, tend to earn higher returns over time than broad-market funds, such as S&P 500 ETFs. While they do carry more risk than their broad-market counterparts, they're also designed to beat the market over the long haul.
One advantage of the Vanguard Growth ETF, specifically, is its balance of established companies and up-and-coming growth stocks.
The fund's top 10 holdings make up around half of the ETF's total composition, and these 10 stocks are from behemoth corporations like Apple, Amazon, Nvidia, and Visa. While these stocks may not experience explosive growth, they're relatively stable companies that are very likely to survive periods of market volatility.
The rest of the fund is made up of smaller stocks with more potential for significant returns. These stocks are riskier, but if any one of them takes off, you could see substantial earnings.
This balance of risk and reward essentially makes this ETF the best of both worlds. It's still designed to earn above-average returns over time, and with dozens of up-and-coming stocks in its mix, there's plenty of room for growth. But because it also contains stocks from some of the largest and strongest companies in the world, it's also more stable and safer than many other growth ETFs.
How much could you earn?
It's impossible to say how this ETF will perform over time, so your returns will depend largely on how the market fares. Over the past 10 years, however, the Vanguard Growth ETF has earned an average rate of return of 12.88% per year.
Historically, the market itself has earned an average return of around 10% per year. If you were to invest, say, $200 per month, here's approximately how much you could earn over time, depending on whether you're earning 10% or 12% average annual returns:
NUMBER OF YEARS TOTAL PORTFOLIO VALUE: 10% AVG. ANNUAL RETURN TOTAL PORTFOLIO VALUE: 12% AVG. ANNUAL RETURN
20 $137,000 $173,000
25 $236,000 $320,000
30 $395,000 $579,000
35 $650,000 $1,036,000
40 $1,062,000 $1,841,000
Data source: Author's calculations via investor.gov.
While growth ETFs are designed to outperform the market, there are never any guarantees that you'll see these types of returns. Before you buy this type of investment, consider your risk tolerance. If you're willing to take on slightly more risk to potentially earn above-average returns, this ETF could be a good fit.
The right investment for you will depend on your tolerance for risk and your investing goals. The Vanguard Growth ETF is a smart choice if you're looking to balance risk and reward while also increasing your chances of beating the market over time.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
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 Vanguard Index Funds-Vanguard Growth ETF 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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa. 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 fund's top 10 holdings make up around half of the ETF's total composition, and these 10 stocks are from behemoth corporations like Apple, Amazon, Nvidia, and Visa. The Vanguard Growth ETF is a smart choice if you're looking to balance risk and reward while also increasing your chances of beating the market over time. The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF When our analyst team has a stock tip, it can pay to listen. Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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A growth ETF that packs a punch One ETF in my personal portfolio that I will continue buying into next year is the Vanguard Growth ETF (NYSEMKT: VUG). Growth ETFs, in general, tend to earn higher returns over time than broad-market funds, such as S&P 500 ETFs. 10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF When our analyst team has a stock tip, it can pay to listen.
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Growth ETFs, in general, tend to earn higher returns over time than broad-market funds, such as S&P 500 ETFs. One advantage of the Vanguard Growth ETF, specifically, is its balance of established companies and up-and-coming growth stocks. The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa.
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12698.0
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2023-11-03 00:00:00 UTC
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Apple tumbles after warning of dull holiday quarter
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AAPL
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https://www.nasdaq.com/articles/apple-tumbles-after-warning-of-dull-holiday-quarter
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nan
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nan
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Nov 3 (Reuters) - Apple fell 3% on Friday after it disappointed Wall Street with a forecast that indicated growth will stay subdued in the quarter where the holiday season usually drives its strongest sales.
The world's most valuable firm AAPL.O was set to lose more than $80 billion in market value, based on its premarket share price of $172. Its shares have rallied nearly 40% this year.
The iPhone maker on Thursday predicted quarterly sales that were below market estimates, blaming weak demand for iPads and wearables, especially in key market China.
The projection fanned fears about broader holiday demand, with estimates including those from the U.S. National Retail Federation and Deloitte predicting the slowest rise in sales in the crucial shopping period in years due to sticky inflation.
"Apple's revenue growth has stalled over the past few quarters - and appears likely to continue to stagnate over the next year," said brokerage Bernstein, noting the holiday quarter usually sets the tone for Apple's fiscal year that runs until September.
At least 11 analysts cut their price targets on the stock, pushing down the median price target to $196.5, according to LSEG data. Apple currently trades at nearly 26 times its 12-month forward earnings estimates, among the lowest in the so-called "Magnificent Seven" stocks.
"We view management's flat sales guidance as proof the company cannot rely on iPhone sales to drive shares higher, as it has in the past," D.A. Davidson analyst Tom Forte said.
The iPhone, Apple's main revenue generator, saw its sales rise in the September quarter and is also forecast to post an increase in the last three months of 2023.
CEO Tim Cook also insisted the iPhone 15 models were doing well in China, as he sought to allay Wall Street fears that Apple was losing market share to a resurgent Huawei and other local smartphone sellers. "In mainland China, we set a quarterly record for the September quarter for iPhone," Cook told Reuters.
Several analysts cheered the remarks. "The Street will breathe a sigh of relief on this front," Wedbush Securities analyst Dan Ives said.
He was also positive on the outlook for the services business, whose strong growth in the September quarter had helped the company top quarterly revenue expectations.
(Reporting by Aditya Soni; Editing by Shounak Dasgupta)
((Aditya.Soni@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The world's most valuable firm AAPL.O was set to lose more than $80 billion in market value, based on its premarket share price of $172. Nov 3 (Reuters) - Apple fell 3% on Friday after it disappointed Wall Street with a forecast that indicated growth will stay subdued in the quarter where the holiday season usually drives its strongest sales. The projection fanned fears about broader holiday demand, with estimates including those from the U.S. National Retail Federation and Deloitte predicting the slowest rise in sales in the crucial shopping period in years due to sticky inflation.
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The world's most valuable firm AAPL.O was set to lose more than $80 billion in market value, based on its premarket share price of $172. The iPhone, Apple's main revenue generator, saw its sales rise in the September quarter and is also forecast to post an increase in the last three months of 2023. CEO Tim Cook also insisted the iPhone 15 models were doing well in China, as he sought to allay Wall Street fears that Apple was losing market share to a resurgent Huawei and other local smartphone sellers.
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The world's most valuable firm AAPL.O was set to lose more than $80 billion in market value, based on its premarket share price of $172. Nov 3 (Reuters) - Apple fell 3% on Friday after it disappointed Wall Street with a forecast that indicated growth will stay subdued in the quarter where the holiday season usually drives its strongest sales. The iPhone maker on Thursday predicted quarterly sales that were below market estimates, blaming weak demand for iPads and wearables, especially in key market China.
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The world's most valuable firm AAPL.O was set to lose more than $80 billion in market value, based on its premarket share price of $172. The iPhone maker on Thursday predicted quarterly sales that were below market estimates, blaming weak demand for iPads and wearables, especially in key market China. "Apple's revenue growth has stalled over the past few quarters - and appears likely to continue to stagnate over the next year," said brokerage Bernstein, noting the holiday quarter usually sets the tone for Apple's fiscal year that runs until September.
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12699.0
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2023-11-03 00:00:00 UTC
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GLOBAL MARKETS-Stocks gain, Treasury yields fall after U.S. jobs market softens
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-gain-treasury-yields-fall-after-u.s.-jobs-market-softens
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nan
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nan
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*
U.S. stocks higher in late morning trading
*
U.S. job growth slower than expected in Oct
*
Oil prices lower
(Updates with late morning U.S. markets activity, adds NEW YORK dateline)
By Caroline Valetkevitch and Harry Robertson
NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates.
Two-year yields also were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls.
The data also showed the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labor market conditions.
"The good news here is that the slowdown will likely keep the Fed on the sidelines going forward," said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.
"One of their key concerns has been an overheated economy, especially after last quarter's GDP growth, and this suggests that problem is going away."
Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates. The Bank of England on Thursday also left rates unchanged.
Central bank officials however stressed that more may need to be done to tackle inflation.
Benchmark 10-year yields fell as low as 4.527%, the lowest since Sept. 29. Two-year note yields reached 4.847%, the lowest since Sept. 1.
A decision on Wednesday by the U.S. Treasury to issue less long-term debt than expected also fuelled the rally in bonds, as did data on Thursday suggesting the U.S. economy might finally be cooling.
The Dow Jones Industrial Average rose 171.28 points, or 0.51%, to 34,010.36, the S&P 500 gained 35.58 points, or 0.82%, to 4,353.36 and the Nasdaq Composite added 129.78 points, or 0.98%, to 13,423.97.
Apple shares were down 1.4%, a day after the company reported quarterly results and warned of a dull holiday quarter.
The pan-European STOXX 600 index rose 0.23% and MSCI's gauge of stocks across the globe gained 1.07%.
The dollar index fell 0.942%, with the euro up 0.93% to $1.0719.
The Japanese yen strengthened 0.65% versus the greenback at 149.45 per dollar, while Sterling was last trading at $1.2345, up 1.18% on the day.
In commodities, U.S. crude recently fell 1.55% to $81.18 per barrel and Brent was at $85.53, down 1.52% on the day.
Spot gold added 0.4% to $1,993.82 an ounce.
http://tmsnrt.rs/2egbfVh Global asset performance
http://tmsnrt.rs/2yaDPgn Asian stock markets
https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year
https://tmsnrt.rs/3SsLId4
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) ((caroline.valetkevitch@thomsonreuters.com)) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. Two-year yields also were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls. http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year https://tmsnrt.rs/3SsLId4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) ((caroline.valetkevitch@thomsonreuters.com)) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. Two-year yields also were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls. http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year https://tmsnrt.rs/3SsLId4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) ((caroline.valetkevitch@thomsonreuters.com)) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates. http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year https://tmsnrt.rs/3SsLId4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) ((caroline.valetkevitch@thomsonreuters.com)) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. "One of their key concerns has been an overheated economy, especially after last quarter's GDP growth, and this suggests that problem is going away." The dollar index fell 0.942%, with the euro up 0.93% to $1.0719.
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