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12800.0
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2023-10-31 00:00:00 UTC
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3 Undervalued Stocks With Potential to Hit Trillion-Dollar Milestone
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AAPL
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https://www.nasdaq.com/articles/3-undervalued-stocks-with-potential-to-hit-trillion-dollar-milestone
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
At the beginning of October, Bankrate.com published a list of the five most valuable tech giants. They were all trillion-dollar companies.
Apple (NASDAQ:AAPL) led the list with a market capitalization of $2.7 trillion. As the month progressed, Apple’s market cap dropped by about $70 billion, while the Nasdaq-100 Technology Sector Index lost more than 4.5%.
There’s no question that the markets are struggling here in the final quarter of the year. The S&P 500 traded very close to 4,600 in late July. Its gain for the year is down to single digits (7.7% as of Oct. 27).
Things have deteriorated to the point where Nvidia (NASDAQ:NVDA) is teetering on the line between a trillion-dollar company and a large market cap.
It would be easy for me to pick Nvidia as the company most likely to hit the trillion-dollar mark. Too easy. So, for the purposes of this article, Nvidia is excluded from the selection process.
Here are three future trillion-dollar companies that appear reasonably priced to undervalued.
Tesla (TSLA)
Source: Roschetzky Photography / Shutterstock.com
Tesla (NASDAQ:TSLA) is the only one of the three that has the possibility of hitting a trillion-dollar market cap in 2024. Its volatility works for and against its share price movement.
With a current market cap of $650 billion, it traded for nearly double in November 2021. In fact, it officially joined the trillion-dollar club on October 25th, 2021, only to fall out in the following spring.
The biggest issue holding back Tesla from reentering the trillion-dollar companies club are the worries that the adoption of electric vehicles (EVs) will take much longer than initially anticipated, making Tesla’s EV price reductions a permanent thing, and a drag on revenues and profits.
“But the EV market is wobbling as high interest rates dampen customer demand for electric and other vehicles. That’s ‘preventing a lot of people from even getting into the market,’ Jessica Caldwell, head of insights at Edmunds, told Fortune.”
As Fortune reported, Tesla’s latest quarterly earnings per share were 10% lower than analyst expectations, and the lowest in the past eight quarterly reports. The poor results shaved nearly $140 billion off its market cap, making the move to a trillion that much more difficult.
Something positive has to happen to change the trajectory of its stock. However, of all the S&P 500 stocks with a market cap greater than $100 billion, it’s the only one that has a shot in 2024.
Berkshire Hathaway (BRK-A, BRK-B)
Source: IgorGolovniov / Shutterstock.com
As much as I love Warren Buffett and Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), it is not a high growth company. With a current market cap of $724 billion, its share price would have to increase by 38% to push its market cap over $1 trillion.
Can this happen in 2024? Sure, it’s possible, but not probable. According to Berkshire’s 2022 shareholder letter, its share price has increased by 30% annually on 20 occasions since 1965. The most recent occurrence in 2013, up 32.7%. Before that, it was 1998 (52.2%).
Now, if its share price increases by 17.5% annually over the next two years, it can get to $1 trillion. Since 2013, its share price has met this level 50% of the time. That’s very doable.
The big thing that will prevent it from getting there in the next two years would be the death of Warren Buffett. That would most certainly send shares lower. How long they would remain low would depend on the transition plan and how well it is executed.
Knowing Buffett, that won’t be a problem. Berkshire’s already revealed that Greg Abel, the person in charge of its non-insurance operating businesses, will be the next CEO after Buffett dies or steps down.
In March, Abel added to his Berkshire stock, bringing his total stake to $105 million, more than enough incentive to keep growing the business after the Buffett/Munger era officially ends.
Visa (V)
Source: Kikinunchi / Shutterstock.com
I picked Visa (NYSE:V) because I thought its consistency would help its share price continue higher despite a possible recession in 2024. Sure, its overall business is driven by transactions processed for bank credit cards, etc., which would likely drop in such an event, but it remains an excellent business that trades at a reasonable value.
Visa’s current market cap is $464 billion, meaning it would have to double and then some for it to enter the trillion-dollar club. That’s unlikely to happen in the next 2-3 years.
However, if the company continues to invest in technology to keep pace with the fintech industry, I don’t see why it can’t happen within the next five years.
Visa recently announced a $100 million generative AI venture fund that will invest in up-and-coming businesses that are the “next generation of companies focused on developing generative AI technologies and applications that will impact the future of commerce and payments.”
Visa has utilized artificial intelligence (AI) since 1993, so it knows a thing or two about machine learning and the part it will play in the financial services industry.
You’ll notice that Meta Platforms (NASDAQ:META), the company in the S&P 500 closest to $1 trillion, is not on my trillion-dollar companies list. I feel there are too many uncertainties with social media at the moment to warrant inclusion.
Maybe next year.
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 Undervalued Stocks With Potential to Hit Trillion-Dollar Milestone 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) led the list with a market capitalization of $2.7 trillion. In March, Abel added to his Berkshire stock, bringing his total stake to $105 million, more than enough incentive to keep growing the business after the Buffett/Munger era officially ends. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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Apple (NASDAQ:AAPL) led the list with a market capitalization of $2.7 trillion. Tesla (TSLA) Source: Roschetzky Photography / Shutterstock.com Tesla (NASDAQ:TSLA) is the only one of the three that has the possibility of hitting a trillion-dollar market cap in 2024. Berkshire Hathaway (BRK-A, BRK-B) Source: IgorGolovniov / Shutterstock.com As much as I love Warren Buffett and Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), it is not a high growth company.
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Apple (NASDAQ:AAPL) led the list with a market capitalization of $2.7 trillion. Things have deteriorated to the point where Nvidia (NASDAQ:NVDA) is teetering on the line between a trillion-dollar company and a large market cap. With a current market cap of $724 billion, its share price would have to increase by 38% to push its market cap over $1 trillion.
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Apple (NASDAQ:AAPL) led the list with a market capitalization of $2.7 trillion. It would be easy for me to pick Nvidia as the company most likely to hit the trillion-dollar mark. With a current market cap of $724 billion, its share price would have to increase by 38% to push its market cap over $1 trillion.
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12801.0
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2023-10-31 00:00:00 UTC
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Can Q4 Earnings Give a New Lease of Life to Apple ETFs?
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AAPL
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https://www.nasdaq.com/articles/can-q4-earnings-give-a-new-lease-of-life-to-apple-etfs
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nan
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nan
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All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Since Apple accounts for nearly 7% of the total market capitalization of the entire technology sector on the S&P 500 Index, it is worth taking a look at its fundamentals ahead of its quarterly results.
Apple has shed about 13% over the past three months, underperforming the industry’s decline of 12.1%. The trend might reverse if the company’s earnings beat estimates in the soon-to-be-reported quarter (see: all the Technology ETFs here).
This has put investors’ focus on ETFs having the largest allocation to the tech titan. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy).
Inside Our Methodology
Apple has an Earnings ESP of -1.13% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Apple saw no earnings estimate revision over the past 30 days for the fiscal fourth quarter. The company has a strong track record of positive earnings surprises. It delivered an average earnings surprise of 2.81% in the trailing four quarters. The tech titan is expected to report the fourth consecutive decline in revenues that could spread fears of pessimism. The Zacks Consensus Estimate indicates modest year-over-year growth of 7.75% for earnings and a decline of 1.5% for revenues.
The stock belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of B. Apple currently has an average brokerage recommendation (ABR) of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 29 brokerage firms. The current ABR compares to an ABR of 1.64 a month ago based on 29 recommendations.
Of the 29 recommendations deriving the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 58.62% and 10.34% of all recommendations. A month ago, Strong Buy made up 62.07%, while Buy represented 10.34% (read: 5 Inverse Tech ETFs That Rose on Nasdaq Entry Into Correction).
Based on short-term price targets offered by 26 analysts, the average price target for Apple comes to $205.46. The forecasts range from a low of $140.00 to a high of $240.00.
What to Watch
On the lastearnings call the tech giant expected fiscal fourth-quarter year-over-year revenues to be “down,” similar to the third quarter. An additional drop in revenues would mark the longest streak of declines in two decades — a surprising slowdown for the world’s most valuable company.
What’s New?
The iPhone maker unveiled its most powerful chips ever in the M3 range during its “Scary Fast” event on Oct 30. It also announced an updated line of its Macs and MacBooks, powered by the next-generation family of custom-made processors — the M3, M3 Pro and M3 Pro Max — just ahead of the fourth-quarter earnings. Prices for the new models will range from $649 for the new Mac mini to $1,599 for the 14" and 16" MacBook Pro, likely to be available a month from now.
The release of the new Mac line comes a month after its new iPhone 15 went on sale (read: Apple ETFs in Focus Post iPhone 15 Launch).
ETFs in Focus
Technology Select Sector SPDR Fund (XLK): The fund has AUM of $46.6 billion and has declined 8.3% over the past three months. Apple makes up 23.3% of the assets.
Vanguard Information Technology ETF (VGT): It has AUM of $48.1 billion and has lost 1.3% over the past three months. Here, AAPL has a 21.2% share.
MSCI Information Technology Index ETF (FTEC): With AUM of $6.7 billion, the ETF allocates a 22.3% share in Apple stock. It has plunged 9.7% over the past three months.
iShares US Technology ETF (IYW): The fund has amassed $11.2 billion in its asset base and shed 8.9% in the past three months. Apple accounts for 18.2% of the assets.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
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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All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share. 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 To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report 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 To read this article on Zacks.com click here. All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share.
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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 To read this article on Zacks.com click here. All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share.
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All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share. 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 To read this article on Zacks.com click here.
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12802.0
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2023-10-31 00:00:00 UTC
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AAPL Quantitative Stock Analysis - Peter Lynch
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-peter-lynch
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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 P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 87% 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.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Peter Lynch
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Of the 22 guru strategies we follow, AAPL rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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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 P/E/Growth Investor model based on the published strategy of Peter Lynch. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12803.0
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2023-10-31 00:00:00 UTC
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Is Microsoft About to Overtake Apple as the World's Most Valuable Company?
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AAPL
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https://www.nasdaq.com/articles/is-microsoft-about-to-overtake-apple-as-the-worlds-most-valuable-company
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nan
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nan
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have been rivals and partners at different points throughout history dating back to the 1970s when both companies were founded. But today, their businesses are probably more different than ever before.
Apple is still focused on developing the computers and devices consumers have always loved, with the iPhone now leading its product portfolio. While Microsoft still develops software like its Windows operating system, its business is now driven by cloud computing services for businesses.
Apple became the first company ever to amass a $1 trillion market capitalization in 2018, and it was worth as much as $3 trillion just three months ago. It has consistently been the world's largest company over the last few years, though Microsoft has briefly taken that title on a few occasions.
Today, the valuations of these two companies are separated by just $180 billion, and I think there's a case for Microsoft surging ahead of Apple in the near future -- permanently!
Data source: YCharts.
Apple stock is trading 14% below its all-time high
Apple stock has fallen 14% since recording an all-time high at the end of July. A broader market sell-off is weighing on the stock, but the company is also suffering from internal issues. Its revenue has declined for the last three consecutive quarters as consumers pull back on spending amid elevated inflation and rising interest rates.
Apple just released the new iPhone 15 lineup of smartphone devices. The Pro models come with some of the company's best innovations yet, including one of the world's most powerful chips capable of rapidly processing artificial intelligence (AI) workloads on-device. Early indications suggest the new model will lift Apple's sales in the current quarter, but the smartphone market has matured, meaning the industry is driven mostly by upgrade cycles as opposed to new customers coming in.
That will likely create a long-term headwind for the company, especially as new versions of the iPhone are so powerful that consumers no longer feel the need to upgrade every one or two years.
Investors often point to Apple's services segment as a growth driver. It features popular subscription-based products like Apple Music, Apple News, and Apple TV in addition to innovations like Apple Pay. But the services business only accounts for 25% of Apple's total revenue, so it isn't big enough to offset a long-term stagnation in the hardware business (should that occur).
Microsoft stock, on the other hand, is down by just 8% from its all-time high. The company is positioning itself as a key distributor of exciting new technologies like artificial intelligence through its Azure cloud platform, which is delivering accelerated growth right now.
Investors are pricing Microsoft stock at a premium to Apple
The price-to-earnings (P/E) ratio is an important metric to consider when valuing a stock. It's calculated by taking a company's share price and dividing it by its earnings per share (profit).
Microsoft has generated $10.33 in earnings per share over the last four quarters (12 months), so based on its current stock price of $329.81, its P/E ratio is 31.9. Apple has generated $5.95 in earnings per share over the last four quarters, so based on its current stock price of $168.02, its P/E ratio is 28.2.
As you can see, Microsoft is trading at a premium to Apple of 13%. The decline in Apple's stock price has caused its P/E ratio to shrink. This is a phenomenon called "multiple contraction" where investors decide a company is worth a lesser premium than before. Since Apple's sales have failed to grow over the last few quarters, as I touched on earlier, investors have adjusted the company's valuation.
On the flipside, Microsoft has delivered continuous growth, which has earned it a higher P/E ratio. Plus, thanks to its focus on the cloud and AI, investors feel confident about the company's ability to deliver more growth in the future, which means they're willing to pay a higher price for its stock.
Microsoft could soon become the world's most valuable company
AI is going to be critical for Microsoft going forward, because it already has the infrastructure in place to deliver the technology to businesses all over the world thanks to its Azure cloud platform. In fact, Microsoft is one of the only companies in the world -- alongside Nvidia -- successfully monetizing AI at the moment.
Earlier this year, Microsoft invested $10 billion in ChatGPT developer OpenAI. It has integrated OpenAI's technology into most of its product portfolio, including Windows, the 365 document suite, the Edge internet browser, the Bing search engine, and, of course, Azure.
In the recent fiscal 2024 first quarter (ended Sept. 30), Microsoft's Azure OpenAI Service segment had 18,000 business customers, an increase of 63% from just three months earlier. Azure overall generated 29% year-over-year revenue growth, and Microsoft said three percentage points of that was attributable specifically to AI. That's triple the contribution AI made in the prior quarter.
Microsoft is set to scale its AI monetization in several other ways, too. In Q1, it said 40% of the Fortune 100 companies and tens of thousands of their employees were using its new Copilot tool, which injects AI into popular software applications like Word, Excel, PowerPoint, and Outlook. Copilot was still in beta mode during the quarter, but it's now undergoing a broad release which could be incredibly lucrative for Microsoft considering it's priced at $30 per user, per month.
If Microsoft continues to focus on AI, its long-term financial opportunities will be substantial. Goldman Sachs predicts the technology will add $7 trillion to the global economy by 2030. Cathie Wood's Ark Investment Management places that figure at $200 trillion!
In any case, I expect the valuation gap between Microsoft and Apple to continue to narrow thanks mostly to AI until Microsoft eventually becomes the largest company in the world and holds that title for the long run.
10 stocks we like better than Microsoft
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft 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 23, 2023
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have been rivals and partners at different points throughout history dating back to the 1970s when both companies were founded. The Pro models come with some of the company's best innovations yet, including one of the world's most powerful chips capable of rapidly processing artificial intelligence (AI) workloads on-device. Early indications suggest the new model will lift Apple's sales in the current quarter, but the smartphone market has matured, meaning the industry is driven mostly by upgrade cycles as opposed to new customers coming in.
|
Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have been rivals and partners at different points throughout history dating back to the 1970s when both companies were founded. While Microsoft still develops software like its Windows operating system, its business is now driven by cloud computing services for businesses. Plus, thanks to its focus on the cloud and AI, investors feel confident about the company's ability to deliver more growth in the future, which means they're willing to pay a higher price for its stock.
|
Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have been rivals and partners at different points throughout history dating back to the 1970s when both companies were founded. Investors are pricing Microsoft stock at a premium to Apple The price-to-earnings (P/E) ratio is an important metric to consider when valuing a stock. Microsoft could soon become the world's most valuable company AI is going to be critical for Microsoft going forward, because it already has the infrastructure in place to deliver the technology to businesses all over the world thanks to its Azure cloud platform.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have been rivals and partners at different points throughout history dating back to the 1970s when both companies were founded. Investors are pricing Microsoft stock at a premium to Apple The price-to-earnings (P/E) ratio is an important metric to consider when valuing a stock. Microsoft has generated $10.33 in earnings per share over the last four quarters (12 months), so based on its current stock price of $329.81, its P/E ratio is 31.9.
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12804.0
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2023-10-31 00:00:00 UTC
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New Chips May Not Lift AAPL Stock, But Apple’s Services Biz Is Booming
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AAPL
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https://www.nasdaq.com/articles/new-chips-may-not-lift-aapl-stock-but-apples-services-biz-is-booming
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) hosted a pre-Halloween event Monday night to debut its new M3 line of processing chips, its latest MacBook Pro laptops and even an updated iMac desktop. But so far, investors are viewing the news as more trick than treat.
Shares of Apple fell slightly Tuesday morning. Investors might be underwhelmed by the new product releases. Or they may be just waiting for the bigger iNews coming from the company later this week. Apple reports its fiscal fourth quarter earnings on Thursday, Nov. 2 after the closing bell.
Wall Street is predicting only a slight increase in earnings per share from a year ago and a decline in revenue. That’s not incredibly exciting for a supposedly hot growth stock that also happens to be the most valuable company on the planet, with a market capitalization near $2.7 trillion.
Apple Earnings Set to Show Slower Growth
Although expectations for Apple’s earnings report are muted, the stock is still up more than 30% year to date. And if you dig deeper, there actually is a good reason for that. It seems that investors are betting on a continued boom from Apple’s services business, even as demand for computers, iPhones (despite the new iPhone 15 lineup) and iPads wanes.
Just look at the company’s third quarter results. Yes, sales of Apple’s products fell more than 4%. The only product category to report an increase in sales was the Wearables, Home and Accessories unit.
But revenue from services, subscriptions for things like iCloud, Apple TV+, Apple Music and numerous other App Store purchases, rose more than 8% to a record level of $21.2 billion. Services now account for more than a quarter of Apple’s overall revenue. By way of comparison, the once mighty Mac now makes up just 7% of Apple’s total sales. (iPhone is still the dominant money maker, generating nearly half of Apple’s total sales).
Given the recurring revenue from services, which many Apple users rely on, the stock still looks attractive.
Laura Martin, an analyst with Needham, who has a “buy” rating on Apple stock, said in a report after the Oct. 30 Mac event that “the best way to think about AAPL’s valuation, pricing power, competitive advantage period and barriers to entry is through the lens of more than 1B of the wealthiest consumers in the world, using >2B active AAPL devices an average of 5 hours per day.” She added that Apple’s goal is to boost its average revenue per user and lower churn by bundling add-on services.
Yes, Apple may be a slower growth company than it used to be. Analysts now expect average annual earnings gains of about 7% over the next few years compared to a more than 22% annual increase over the past five years. But Apple is still dependable. The company pays a dividend that yields 0.6%. Not as high as a Treasury bond obviously, but that dividend offers some stability in uncertain times. There is another level of safety with Apple as well, thanks to its fortress balance sheet. Apple had $166.5 billion in cash and marketable securities as of July 1.
The Bottom Line on AAPL Stock
Wall Street analysts are, for the most part, optimistic about Apple. According to TipRanks, 22 of the 31 sell-siders at top research firms have a “buy” rating on the stock. The consensus price target is about $203… 20% upside from current levels.
So, don’t be too concerned if tech fans aren’t gushing about Apple’s new chips, notebooks, and other hardware.
Let’s be honest. The company may never be as innovative under CEO Tim Cook as it was during the era of the late Steve Jobs. But as long as the services business continues to become a bigger and more important part of Apple’s revenue stream, the stock looks like a good buy that offers up the best of both worlds for growth and value investors.
As of this writing, Paul R. La Monica 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.
Paul R. La Monica is a veteran financial journalist with nearly 30 years experience (including more than 20 at CNN) covering the stock market and other asset classes, the economy and other corporate and business news.
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The post New Chips May Not Lift AAPL Stock, But Apple’s Services Biz Is Booming 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 #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post New Chips May Not Lift AAPL Stock, But Apple’s Services Biz Is Booming appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hosted a pre-Halloween event Monday night to debut its new M3 line of processing chips, its latest MacBook Pro laptops and even an updated iMac desktop. Laura Martin, an analyst with Needham, who has a “buy” rating on Apple stock, said in a report after the Oct. 30 Mac event that “the best way to think about AAPL’s valuation, pricing power, competitive advantage period and barriers to entry is through the lens of more than 1B of the wealthiest consumers in the world, using >2B active AAPL devices an average of 5 hours per day.” She added that Apple’s goal is to boost its average revenue per user and lower churn by bundling add-on services.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hosted a pre-Halloween event Monday night to debut its new M3 line of processing chips, its latest MacBook Pro laptops and even an updated iMac desktop. The Bottom Line on AAPL Stock Wall Street analysts are, for the most part, optimistic about Apple. Laura Martin, an analyst with Needham, who has a “buy” rating on Apple stock, said in a report after the Oct. 30 Mac event that “the best way to think about AAPL’s valuation, pricing power, competitive advantage period and barriers to entry is through the lens of more than 1B of the wealthiest consumers in the world, using >2B active AAPL devices an average of 5 hours per day.” She added that Apple’s goal is to boost its average revenue per user and lower churn by bundling add-on services.
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Laura Martin, an analyst with Needham, who has a “buy” rating on Apple stock, said in a report after the Oct. 30 Mac event that “the best way to think about AAPL’s valuation, pricing power, competitive advantage period and barriers to entry is through the lens of more than 1B of the wealthiest consumers in the world, using >2B active AAPL devices an average of 5 hours per day.” She added that Apple’s goal is to boost its average revenue per user and lower churn by bundling add-on services. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post New Chips May Not Lift AAPL Stock, But Apple’s Services Biz Is Booming appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hosted a pre-Halloween event Monday night to debut its new M3 line of processing chips, its latest MacBook Pro laptops and even an updated iMac desktop.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) hosted a pre-Halloween event Monday night to debut its new M3 line of processing chips, its latest MacBook Pro laptops and even an updated iMac desktop. Laura Martin, an analyst with Needham, who has a “buy” rating on Apple stock, said in a report after the Oct. 30 Mac event that “the best way to think about AAPL’s valuation, pricing power, competitive advantage period and barriers to entry is through the lens of more than 1B of the wealthiest consumers in the world, using >2B active AAPL devices an average of 5 hours per day.” She added that Apple’s goal is to boost its average revenue per user and lower churn by bundling add-on services. The Bottom Line on AAPL Stock Wall Street analysts are, for the most part, optimistic about Apple.
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12805.0
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2023-10-31 00:00:00 UTC
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Porsche to integrate Google Maps, Assistance into future cars
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AAPL
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https://www.nasdaq.com/articles/porsche-to-integrate-google-maps-assistance-into-future-cars
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nan
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nan
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Adds statement from Volkswagen unit Cariad, background
BERLIN, Oct 30 (Reuters) - Porsche P911_p.DE will integrate Google Maps, Google Assistance and other apps from Google Play GOOGL.O into its future cars, it said on Monday.
The move marks a shift from Porsche's previous reluctance to use Google software, reported by Manager Magazin, because Google asked for too much data to be shared.
However, CFO Lutz Meschke said in October that Porsche was in talks with both Google and Apple AAPL.O, as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China for automated driving and infotainment technology.
Volkswagen's software unit Cariad will remain the technological backbone of the information and entertainment system, Cariad added in a separate statement, providing the ability to integrate systems from different partners depending on the region.
Carmakers including General Motors, Renault, Nissan and Ford use embedded Google technology in their vehicles via a Google Automotive Services (GAS) package, offering features like Google Maps, Google Assistant and other applications.
(Reporting by Victoria Waldersee; editing by Matthias Williams and Rachel More)
((Victoria.Waldersee@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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However, CFO Lutz Meschke said in October that Porsche was in talks with both Google and Apple AAPL.O, as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China for automated driving and infotainment technology. Volkswagen's software unit Cariad will remain the technological backbone of the information and entertainment system, Cariad added in a separate statement, providing the ability to integrate systems from different partners depending on the region. (Reporting by Victoria Waldersee; editing by Matthias Williams and Rachel More) ((Victoria.Waldersee@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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However, CFO Lutz Meschke said in October that Porsche was in talks with both Google and Apple AAPL.O, as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China for automated driving and infotainment technology. Adds statement from Volkswagen unit Cariad, background BERLIN, Oct 30 (Reuters) - Porsche P911_p.DE will integrate Google Maps, Google Assistance and other apps from Google Play GOOGL.O into its future cars, it said on Monday. Volkswagen's software unit Cariad will remain the technological backbone of the information and entertainment system, Cariad added in a separate statement, providing the ability to integrate systems from different partners depending on the region.
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However, CFO Lutz Meschke said in October that Porsche was in talks with both Google and Apple AAPL.O, as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China for automated driving and infotainment technology. Adds statement from Volkswagen unit Cariad, background BERLIN, Oct 30 (Reuters) - Porsche P911_p.DE will integrate Google Maps, Google Assistance and other apps from Google Play GOOGL.O into its future cars, it said on Monday. The move marks a shift from Porsche's previous reluctance to use Google software, reported by Manager Magazin, because Google asked for too much data to be shared.
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However, CFO Lutz Meschke said in October that Porsche was in talks with both Google and Apple AAPL.O, as well as Baidu 9888.HK, Tencent 0700.HK and Alibaba 9988.HK in China for automated driving and infotainment technology. Adds statement from Volkswagen unit Cariad, background BERLIN, Oct 30 (Reuters) - Porsche P911_p.DE will integrate Google Maps, Google Assistance and other apps from Google Play GOOGL.O into its future cars, it said on Monday. The move marks a shift from Porsche's previous reluctance to use Google software, reported by Manager Magazin, because Google asked for too much data to be shared.
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12806.0
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2023-10-31 00:00:00 UTC
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Should Invesco Dividend Achievers ETF (PFM) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-invesco-dividend-achievers-etf-pfm-be-on-your-investing-radar-10
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nan
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nan
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Launched on 09/15/2005, the Invesco Dividend Achievers ETF (PFM) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $577.79 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
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 0.52%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.02%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 20.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of total assets, followed by Apple Inc (AAPL) and Unitedhealth Group Inc (UNH).
The top 10 holdings account for about 27.68% of total assets under management.
Performance and Risk
PFM seeks to match the performance of the NASDAQ US Broad Dividend Achievers Index before fees and expenses. The NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years.
The ETF has lost about -0.91% so far this year and is up about 1.31% in the last one year (as of 10/31/2023). In the past 52-week period, it has traded between $34.78 and $39.21.
The ETF has a beta of 0.83 and standard deviation of 14.41% for the trailing three-year period, making it a medium risk choice in the space. With about 407 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PFM is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard High Dividend Yield ETF (VYM) and the Vanguard Value ETF (VTV) track a similar index. While Vanguard High Dividend Yield ETF has $46.32 billion in assets, Vanguard Value ETF has $94.92 billion. VYM has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco Dividend Achievers ETF (PFM): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
Vanguard High Dividend Yield ETF (VYM): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of total assets, followed by Apple Inc (AAPL) and Unitedhealth Group Inc (UNH). Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/15/2005, the Invesco Dividend Achievers ETF (PFM) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of total assets, followed by Apple Inc (AAPL) and Unitedhealth Group Inc (UNH). Launched on 09/15/2005, the Invesco Dividend Achievers ETF (PFM) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of total assets, followed by Apple Inc (AAPL) and Unitedhealth Group Inc (UNH). Alternatives Invesco Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.20% of total assets, followed by Apple Inc (AAPL) and Unitedhealth Group Inc (UNH). Click to get this free report Invesco Dividend Achievers ETF (PFM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/15/2005, the Invesco Dividend Achievers ETF (PFM) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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12807.0
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2023-10-31 00:00:00 UTC
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Could 7 tech giants drag down the broader market?
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AAPL
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https://www.nasdaq.com/articles/could-7-tech-giants-drag-down-the-broader-market
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nan
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nan
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You don't hear so much about the Magnificent Seven tech stocks anymore as the S&P 500 has been selling off since August.
That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META).
Together, those seven growth stocks are responsible for the bulk of the S&P 500's 9.23% year-to-gain. As you can imagine, they're all heavily weighted in the S&P 500.
Now that earnings season is upon us, the market will get more insight into whether these stocks will continue driving a rally.
However, because of their heavy influence over the broader S&P 500, the maybe-not-so-magnificent-after-all Seven have the potential to drag down the broader index.
The market has been down this exact same road, and not that long ago. A look at the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) chart shows the index rolling over just at the beginning of 2022, following a huge pandemic-era uptrend.
Techs led the market lower in 2022
As tech stocks sold off in 2022, they led the broader market.
Is history about to repeat?
As of now, the divergence between their performance is showing up. Alphabet earnings beat views, but the stock is still down nearly 10% in the past week as revenue at its cloud business came in below estimates.
Meanwhile, Microsoft's earnings report indicated that AI is contributing to its cloud-business growth, as the company is seeing rising demand for AI tools.
Microsoft stock is up less than 1% for the week.
Fading EV boom drives Tesla lower
Tesla earnings and revenue missed views as the EV boom is fading. The stock fell 15.58% the week ending October 20 and another 2.58% the following week.
Meta earnings and revenue also exceed Wall Street views, although it also issued conservative guidance, causing the slide to slide 4.25% for the week.
Apple reports on November 2, and AI chip titan Nvidia is due to report on November 21.
There's no question about the profitability of any of those companies, but guidance could make an impact, as we've seen.
Meta and Alphabet are the top two most heavily weighted stocks in the Communication Services Select Sector SPDR Fund (NYSEARCA: XLC), which was down 5.13% the week ending October 27. Those two stocks drove communications stocks as a group lower.
Microsoft, Apple and Nvidia are among the top-weighted stocks in the Technology Select Sector SPDR Fund (NYSEARCA: XLK), which was down 1.17% the week ended October 27.
Higher yields could hurt techs
The tech sector is down 1.10% in the past month.
One factor that could result in a continued downturn is higher interest rates and Treasury yields, a result of Federal Reserve actions and concerns over the broader economy.
Technology and growth stocks are vulnerable to higher bond yields due to those stocks' long-term earnings potential.
When bond yields rise, fixed-income investments become more attractive, causing investors to sell high-valuation tech stocks in favor of bonds, where they can make more money.
Higher yields also increase borrowing costs for growth companies, impacting their profitability, which in turn causes stock prices to drop.
Are investors selling techs in favor of bonds?
In addition, growth and tech companies are more vulnerable to higher yields, as their typically robust projected future cash flows are valued less highly when investors can earn more from risk-free government bonds.
In other words, can a musty old asset class like bonds put growth and tech returns at risk? In this particular environment, it's a possibility.
The yield on the benchmark 10-year Treasury was 4.86% on October 27, the highest level since 2007.
Higher rates, while not yet demonstrably affecting consumer spending, may yet have that effect. Recently, Tesla CEO Elon Musk Tesla said he believed higher interest rates could put a damper on car buying.
Higher rates can hurt the broader economy by increasing the cost of borrowing for businesses and consumers, which can lead to reduced investments, spending, and economic growth. It's possible the pain could spread well beyond the Magnificent Stocks.
The article "Could 7 tech giants drag down the broader market?" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Meta and Alphabet are the top two most heavily weighted stocks in the Communication Services Select Sector SPDR Fund (NYSEARCA: XLC), which was down 5.13% the week ending October 27. In addition, growth and tech companies are more vulnerable to higher yields, as their typically robust projected future cash flows are valued less highly when investors can earn more from risk-free government bonds.
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That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Fading EV boom drives Tesla lower Tesla earnings and revenue missed views as the EV boom is fading. Technology and growth stocks are vulnerable to higher bond yields due to those stocks' long-term earnings potential.
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That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Techs led the market lower in 2022 As tech stocks sold off in 2022, they led the broader market. Technology and growth stocks are vulnerable to higher bond yields due to those stocks' long-term earnings potential.
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That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Alphabet earnings beat views, but the stock is still down nearly 10% in the past week as revenue at its cloud business came in below estimates. Meta and Alphabet are the top two most heavily weighted stocks in the Communication Services Select Sector SPDR Fund (NYSEARCA: XLC), which was down 5.13% the week ending October 27.
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12808.0
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2023-10-31 00:00:00 UTC
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Taiwan economic growth surprises in Q3 on strong domestic demand
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AAPL
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https://www.nasdaq.com/articles/taiwan-economic-growth-surprises-in-q3-on-strong-domestic-demand
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nan
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nan
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Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%)
GDP Q3 growth at seasonally adjusted annual rate of +10.47%
Exports still struggling but may have bottomed out
TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products.
Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
Quarter-on-quarter, the economy expanded at a seasonally adjusted annualised rate of 10.47%.
Second-quarter GDP rose 1.36% year-on-year, returning to growth after two quarters in a row of contraction.
Taiwan's exports emerged from a year-long decline in September, rising for the first time in 13 months on increased demand from the United States ahead of the year-end holiday shopping season.
Third-quarter exports dropped 5.1% compared with the same period in 2022, a marked improvement on the second quarter's annual contraction of 16.9%.
The statistics agency said in August it expects full-year 2023 growth of 1.61%, the slowest pace in eight years and lower than 2.45% growth in 2022.
The economy in China, Taiwan's largest export market, grew at a faster-than-expected clip in the third quarter, expanding 4.9% from the year earlier, but its recovery has been patchy.
Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N.
The statistics agency will provide revised figures a few weeks later, with more details and forward-looking forecasts.
(Reporting by Jeanny Kao and Yimou Lee; Editing by Kim Coghill)
((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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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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12809.0
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2023-10-31 00:00:00 UTC
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Needham Reiterates Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/needham-reiterates-apple-aapl-buy-recommendation-2
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Fintel reports that on October 31, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 18.28% Upside
As of October 31, 2023, the average one-year price target for Apple is 201.42. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 18.28% from its latest reported closing price of 170.29.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 436,698MM, an increase of 13.74%. The projected annual non-GAAP EPS is 6.93.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6457 funds or institutions reporting positions in Apple. This is an increase of 94 owner(s) or 1.48% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 2.64%. Total shares owned by institutions increased in the last three months by 0.35% to 9,935,713K shares.
The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 6.04% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on October 31, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 2.64%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on October 31, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 2.64%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on October 31, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 2.64%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on October 31, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.04%, an increase of 2.64%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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12810.0
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2023-10-31 00:00:00 UTC
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Taiwan's economic growth surprises in Q3 on strong domestic demand
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AAPL
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https://www.nasdaq.com/articles/taiwans-economic-growth-surprises-in-q3-on-strong-domestic-demand
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nan
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nan
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Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%)
GDP Q3 growth at seasonally adjusted annual rate of +10.47%
Exports still struggling but may have bottomed out
Adds comment from official, economist, details
TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products.
Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N.
Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
Quarter-on-quarter, the economy expanded at a seasonally adjusted annualised rate of 10.47%.
Second-quarter GDP rose 1.36% year-on-year, returning to growth after two quarters in a row of contraction.
"We can call that an economic recovery," said statistics official Wang Tsui-hua, adding that both consumption and exports were on the rise.
The growth was mainly driven by consumption, the statistics agency said, with sectors from retail, food and beverages to automobiles recording strong sales.
Taiwan's exports emerged from a year-long decline in September, rising for the first time in 13 months on increased demand from the United States ahead of the year-end holiday shopping season.
Third-quarter exports dropped 5.1% compared with the same period in 2022, but it was still a marked improvement on the second quarter's annual contraction of 16.9%.
The statistics agency said in August it expects full-year 2023 growth of 1.61%, the slowest pace in eight years and lower than 2.45% growth in 2022.
"We expect a continued recovery for exports while consumption would remain stable and healthy. These would keep GDP growth momentum until the second quarter of next year," said SinoPac Securities economist Mickey Liao.
The economy in China, Taiwan's largest export market, grew at a faster-than-expected clip in the third quarter, expanding 4.9% from the year earlier, but its recovery has been patchy.
The statistics agency will provide revised figures for the third quarter on Nov. 28, with more details and forward-looking forecasts.
(Reporting by Jeanny Kao, Yimou Lee and Roger Tung; Editing by Kim Coghill)
((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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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out Adds comment from official, economist, details TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out Adds comment from official, economist, details TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out Adds comment from official, economist, details TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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Taiwan is a key hub in the global technology supply chain for companies such as Apple Inc AAPL.O, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N. Preliminary Q3 GDP +2.32% y/y vs Q2 +1.36% (Reuters poll +2.1%) GDP Q3 growth at seasonally adjusted annual rate of +10.47% Exports still struggling but may have bottomed out Adds comment from official, economist, details TAIPEI, Oct 31 (Reuters) - 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 hits sales of the island's hi-tech products. Gross domestic product (GDP) expanded by a preliminary 2.32% in the July-September period versus a year earlier, the statistics agency said on Tuesday, beating the 2.1% growth forecast by analysts in a Reuters poll.
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12811.0
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2023-10-31 00:00:00 UTC
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Should iShares Russell 1000 ETF (IWB) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-1000-etf-iwb-be-on-your-investing-radar-9
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
The fund is sponsored by Blackrock. It has amassed assets over $28.32 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that 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.
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 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.49%.
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 27.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 28.55% of total assets under management.
Performance and Risk
IWB seeks to match the performance of the Russell 1000 Index before fees and expenses. The Russell 1000 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Index is a float-adjusted capitalization-weighted index of equity securities issued by the approximately 1,000 largest issuers in the Russell 3000 Index.
The ETF has gained about 9.40% so far this year and was up about 7.82% in the last one year (as of 10/31/2023). In the past 52-week period, it has traded between $204.58 and $252.17.
The ETF has a beta of 1.01 and standard deviation of 17.95% for the trailing three-year period, making it a medium risk choice in the space. With about 1017 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWB 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 $338.84 billion in assets, SPDR S&P 500 ETF has $385.34 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Russell 1000 ETF (IWB): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): 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. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the iShares Russell 1000 ETF (IWB), a passively managed exchange traded fund launched on 05/15/2000.
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Click to get this free report iShares Russell 1000 ETF (IWB): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Russell 1000 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.67% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell 1000 ETF (IWB): 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 Companies that find themselves in the large cap category typically have a market capitalization above $10 billion.
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12812.0
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2023-10-31 00:00:00 UTC
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Apple (AAPL) to Report Q4 Earnings: What's in the Offing?
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-to-report-q4-earnings%3A-whats-in-the-offing-0
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nan
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Apple AAPL is set to report its fourth-quarter fiscal 2023 results on Nov 2.
The company expects the to-be-reported quarter’s year-over-year revenue growth to be similar to that of the June quarter due to unfavorable forex of roughly 2%.
In fiscal third-quarter, net sales declined 1.4% year over year to $81.8 billion
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $88.82 billion, indicating a decline of 1.47% year over year.
Apple Inc. Price and EPS Surprise
Apple Inc. price-eps-surprise | Apple Inc. Quote
The consensus mark for earnings is currently pegged at $1.39 per share, unchanged over the past 30 days, indicating a 7.75% increase from the figure reported in the year-ago quarter.
Apple’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the earnings surprise being 2.81% on average.
Let’s see how things have shaped up for the upcoming announcement.
iPhone Revenues to Grow From Higher Shipments
Apple’s fortunes are heavily reliant on the iPhone, which is by far its biggest revenue contributor. The device accounted for 48.5% of net sales in the last reported quarter, wherein sales decreased 2.4% year over year to $39.67 billion.
Apple expects iPhone’s year-over-year performance to accelerate from the June quarter. Our model estimates for fiscal fourth-quarter iPhone net sales are pegged at $45.997 billion, up 7.9% year over year.
Apple is expected to have shipped roughly 49 million iPhones in the fourth quarter of fiscal 2023, per our model.
Per the latest Canalys report on worldwide smartphone shipments, Apple’s market share was 17% in third-quarter 2023, lagging Samsung’s 20%.
Services Growth to Accelerate in Q4
For the fiscal fourth quarter, Services revenues are expected to have accelerated on a year-over-year basis compared with the June quarter.
In the fiscal third quarter, Services revenues grew 8.2% from the year-ago quarter to $21.21 billion and accounted for 25.9% of sales.
An expanding paid subscriber base has been a key catalyst for the Services business, which is riding on the increasing popularity of the App Store and an expanding installed base of devices.
Apple has more than 1 billion paid subscribers across its Services portfolio. App Store continues to grab the attention of prominent developers from around the world, helping the company to offer exciting new apps that drive traffic.
Services like Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle are expected to have contributed to overall growth.
Apple TV+ has been gaining recognition due to award-winning shows like Ted Lasso. Apple’s impressive run at the award shows has been instrumental in driving recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN Prime Video, Netflix NFLX and Disney’s DIS Disney+.
However, that has not essentially turned into a market share gain for Apple TV+. According to 9TO5Mac, which cited a JustWatch report, Amazon Prime Video was #1 in terms of market share (22%) in the United States, trailed by Netflix (21%). Max, Disney+ and Hulu had 15%,12% and 11% market share, respectively. Apple TV+’s market share increased from 6% to 7%.
Our estimate for fiscal fourth-quarter Services net sales is pegged at $20.39 billion, indicating 6.3% year-over-year growth.
Currently, Apple has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is set to report its fourth-quarter fiscal 2023 results on Nov 2. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Per the latest Canalys report on worldwide smartphone shipments, Apple’s market share was 17% in third-quarter 2023, lagging Samsung’s 20%.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its fourth-quarter fiscal 2023 results on Nov 2. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is currently pegged at $88.82 billion, indicating a decline of 1.47% year over year.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is set to report its fourth-quarter fiscal 2023 results on Nov 2. Apple Inc. Price and EPS Surprise Apple Inc. price-eps-surprise | Apple Inc. Quote The consensus mark for earnings is currently pegged at $1.39 per share, unchanged over the past 30 days, indicating a 7.75% increase from the figure reported in the year-ago quarter.
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Apple AAPL is set to report its fourth-quarter fiscal 2023 results on Nov 2. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fiscal third quarter, Services revenues grew 8.2% from the year-ago quarter to $21.21 billion and accounted for 25.9% of sales.
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12813.0
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2023-10-31 00:00:00 UTC
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Is Taiwan Semiconductor Stock is Ripe For Your Portfolio?
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AAPL
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https://www.nasdaq.com/articles/is-taiwan-semiconductor-stock-is-ripe-for-your-portfolio
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nan
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nan
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The world's largest dedicated semiconductor foundry, Taiwan Semiconductor Manufacturing Co. Limited (NYSE: TSM), is critical to the global chip supply chain. The company produces 80% of the world's semiconductors and is the barometer of the chip industry. Some of its largest customers include Advanced Micro Devices Inc. (NYSE: AMD), Broadcom Inc. (NASDAQ: AVGO), Apple Inc. (NASDAQ: AAPL), Qualcomm Inc. (NASDAQ: QCOM) and NVIDIA Co. (NASDAQ: NVDA). Its chips are used to power data centers, smartphones, artificial intelligence (AI) applications, consumer electronics and high-performance computing (HPC) systems. Despite falling revenues, the company reported strong Q3 2023 results but raised its Q4 revenue guidance above forecasts.
The profit machine
On October 19, 2023, Taiwan Semiconductor released its fiscal third-quarter 2023 results for the quarter ending September 2023. They reported an earnings-per-share (EPS) profit of $1.29 versus consensus analyst estimates for a profit of $1.15, a 14-cent beat. Revenues fell 14.6% YoY but rose 10.1% from the previous quarter to $17.28 billion, beating analyst estimates for $16.9 billion. Gross margin was 54.3%. Operating margin was 41.7%. The net profit margin was 38.6%. Smartphone and Internet of Things (IoT) platforms grew by 33% and 24% quarter over quarter. This was driven by the Apple 3-nanometer iPhone 15 launch in September 2023. PCs and smartphones are two of the biggest segments.
Revenue split
Its shipments were split between 3-nanometer comprising 6%, 5-nanometer comprising 37%, and 7-nanometer accounting for 16% of total wafer revenue. Advanced technologies comprised 59% of total wafer revenues. Advanced technologies are defined as 7-nanometer or more advanced technologies.
Raising the bar
Taiwan Semiconductor raised its Q4 2023 revenue guidance to $18.8 billion to $19.6 billion versus $18.54 billion. Gross profit margin is expected between 51.5% to 53.5%. Operating profit margin is expected between 39.5% to 41.5%.
CEO insights on inventory reduction and demand stabilization
Taiwan Semiconductor CEO Dr. C.C. Wei acknowledged that AI-related demand remains robust. However, he noted that it was "not enough to offset the overall cyclicality" of its business. They expect the ramp of its 3-nanometer technology to support its Q4 2023 business.
The company expected inventory to continue to reduce in the quarter. However, the "persistent weak overall macroeconomic conditions" and slow demand recovery in China caused customers to remain cautious with inventory control. Inventory "digestion" is still expected in Q4 2023. He commented, "Having said that, we are observing some early signs of demand stabilization in the PC and smartphone end market. With such inventory control, we forecast the fabless semiconductor inventory to further reduce and exit 4Q '23 at a healthier level."
Global fab expansion
Taiwan Semiconductor will build a specialty technology fab in Dresden, Germany. This plant will focus on semiconductors for automotive and industrial applications. It will utilize 22- and 28-nanometer and 12- and 16-nanometer technologies for wafer fabrication. Construction is scheduled to commence in the second half of 2024, with production starting in late 2027. The company continues to receive strong support in Phoenix, Arizona, for its Arizona fab operations and has hired 1,100 employees to date.
Many new employees have been flown to Taiwan for extensive hands-on training. The company is targeting early 2025 to begin volume production of its N4 process technology. Overseas fabs cost more than those made in Taiwan due to smaller fab scale, higher supply chain costs and new ecosystems compared to the matured ecosystem in Taiwan.
N2 technology will accommodate AI and HPC demand.
The surge in AI is driving the demand for energy-efficient computing. It requires earlier engagement. The company will release its 2-nanometer technology in 2025. It will be the most advanced semiconductor technology in the industry for density and energy efficiency. Volume production is expected to start in 2025. Its N2 technology platform is the best suited for AI and HPC applications.
Analyst actions
Bank of America maintained its Buy rating but raised its earnings estimates after Taiwan Semi's earnings were 8% higher than expected. Analyst Brad Lin stated, "Management looks optimistic on 2024 recovery as inventory digestion approaches the end, rush order increases, and PC/smartphone demand stabilizes." Barclays started coverage with an Overweight rating and a $105 price target. Goldman Sachs upgraded TSM to a Conviction Buy from Buy with a $115 price target.
Taiwan Semiconductor analyst ratings and price targets are at MarketBeat. Taiwan Semiconductor peers and competitor stocks can be found with the MarketBeat stock screener.
Daily head and shoulder pattern
The daily candlestick chart on TSM indicates a head and shoulders pattern. The left shoulder peaked at $97.08 and fell to a neckline trendline at $80.62. The head peaked at $109.88 and fell to the neckline trendline at $84.02 before bouncing to the peak of the right shoulder on October 19, 2023. Shares have fallen under the daily market structure low (MSL) buy trigger at $90.02. The rising neckline is the last line of defense at $84.75 to prevent a breakdown. The daily relative strength index (RSI) has fallen to the 40-band. Pullback support levels are at $82.31, $77.45, $74.14 and $69.75.
The article "Is Taiwan Semiconductor Stock is Ripe For Your Portfolio?" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some of its largest customers include Advanced Micro Devices Inc. (NYSE: AMD), Broadcom Inc. (NASDAQ: AVGO), Apple Inc. (NASDAQ: AAPL), Qualcomm Inc. (NASDAQ: QCOM) and NVIDIA Co. (NASDAQ: NVDA). Its chips are used to power data centers, smartphones, artificial intelligence (AI) applications, consumer electronics and high-performance computing (HPC) systems. However, the "persistent weak overall macroeconomic conditions" and slow demand recovery in China caused customers to remain cautious with inventory control.
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Some of its largest customers include Advanced Micro Devices Inc. (NYSE: AMD), Broadcom Inc. (NASDAQ: AVGO), Apple Inc. (NASDAQ: AAPL), Qualcomm Inc. (NASDAQ: QCOM) and NVIDIA Co. (NASDAQ: NVDA). Despite falling revenues, the company reported strong Q3 2023 results but raised its Q4 revenue guidance above forecasts. Raising the bar Taiwan Semiconductor raised its Q4 2023 revenue guidance to $18.8 billion to $19.6 billion versus $18.54 billion.
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Some of its largest customers include Advanced Micro Devices Inc. (NYSE: AMD), Broadcom Inc. (NASDAQ: AVGO), Apple Inc. (NASDAQ: AAPL), Qualcomm Inc. (NASDAQ: QCOM) and NVIDIA Co. (NASDAQ: NVDA). The world's largest dedicated semiconductor foundry, Taiwan Semiconductor Manufacturing Co. Limited (NYSE: TSM), is critical to the global chip supply chain. The profit machine On October 19, 2023, Taiwan Semiconductor released its fiscal third-quarter 2023 results for the quarter ending September 2023.
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Some of its largest customers include Advanced Micro Devices Inc. (NYSE: AMD), Broadcom Inc. (NASDAQ: AVGO), Apple Inc. (NASDAQ: AAPL), Qualcomm Inc. (NASDAQ: QCOM) and NVIDIA Co. (NASDAQ: NVDA). Advanced technologies are defined as 7-nanometer or more advanced technologies. They expect the ramp of its 3-nanometer technology to support its Q4 2023 business.
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12814.0
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2023-10-31 00:00:00 UTC
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Nvidia Forecast: Why NVDA Is Must-Have Stock for Long-Term Investors
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AAPL
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https://www.nasdaq.com/articles/nvidia-forecast%3A-why-nvda-is-must-have-stock-for-long-term-investors
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nvidia (NASDAQ:NVDA) is a leading producer of powerful GPU chips that are crucial for the development of advanced technologies. The recent surge in artificial intelligence interest has caused an increased need for incredible computing power, causing NVDA stock to skyrocket. The 187% YTD growth is nothing to scoff at, particularly for a company of Nvidia’s size.
This has proven that Nvidia is a stock worth owning, rather than trading. Given its rather long, momentum-driven moves, this stock has likely made a few traders plenty of money. However, it’s also a stock that’s proven to be worth buying on pullbacks. Long-term investors who simply bought NVDA stock on every 10%+ pullback have likely done better than the vast majority of traders in this name.
Thus, while I do think some near-term downside could be on the horizon for Nvidia (its valuation is enough to make most investors dizzy), I also think this is a stock that’s likely to retain its status as one worth holding for the long-term.
Investors may want to be patient with NVDA stock, but consider buying on future pullbacks, even if the stock appears to be expensive in its current state. Let’s discuss why.
U.S Chip Ban Isn’t That Scary for Investors
Headline-driven selling is something that happens with any stock. Nvidia was obviously hit by the news that the U.S. would be restricting the export of AI chips to China. After all, China remains a massive market for Nvidia, and the ongoing geopolitical tension between the U.S. and China is one of the only major overhangs for this stock.
That said, I think investors may want to wait for the dust to settle before panic selling.
These trade restrictions between the U.S. and China are typically temporary. Nvidia remains a dominant AI chip provider in China with over 90% market share. Thus, so long as AI demand continues to grow globally, Nvidia should have plenty of runway to grow while these geopolitical issues get hammered out. Nvidia can’t currently meet existing demand, so I’m not worried about this ban at the moment.
Nvidia Is Strong in Generative AI
Over nearly a decade, the Nvidia Jetson platform gained broad adoption in various industries. Generative AI’s impact extends beyond text and language to computer vision. This benefits autonomous machines and robotics, offering faster development and greater accuracy than traditional methods.
Nvidia has harnessed the capabilities of generative AI for recognizing and interacting with untrained elements. This extends to video search, asset tracking and edge computing, advancing, advancing computer vision. The company’s Jetson Generative AI Lab empowers developers to use open-source generative AI models for edge computing. This new software enables edge-based generative AI, making an easy start for Jetson developers.
Thus, for those bullish on Nvidia’s position in the AI race, this is a key catalyst to watch.
Arm-Based PC Chips by Nvidia
Nvidia is partnering with Arm Holdings (NASDAQ:ARM) to expand into CPU design for Microsoft (NASDAQ:MSFT) Windows. This move is seen as a challenge to Apple (NASDAQ:AAPL), which gained market share with its in-house Arm-based chips for Macs.
Nvidia also intends to manufacture PC-chips with Advanced Micro Devices (NASDAQ:AMD) potentially releasing them as early as 2025. Arm-based laptop chip maker Qualcomm (NASDAQ:QCOM) will also unveil more information about its flagship chip designed by former Apple engineers.
Where Is NVDA Stock Headed from Here?
AI technology offers significant potential for productivity and efficiency gains. As new AI applications continue to emerge, demand for AI chips, like Nvidia’s, remains high. While competitors like AMD and Intel (NASDAQ:INTC) enter the AI chip market, Nvidia’s strong position should mitigate their impact.
Beyond AI, Nvidia has non-AI catalysts, including a rebound in gaming chip demand and the potential to challenge Intel in the PC chip space. Given these factors, NVDA stock presents an appealing long-term investment opportunity, despite its currently pricey valuation.
On the date of publication, Chris MacDonald has a LONG position in AAPL The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post Nvidia Forecast: Why NVDA Is Must-Have Stock for Long-Term Investors appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This move is seen as a challenge to Apple (NASDAQ:AAPL), which gained market share with its in-house Arm-based chips for Macs. On the date of publication, Chris MacDonald has a LONG position in AAPL The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Thus, while I do think some near-term downside could be on the horizon for Nvidia (its valuation is enough to make most investors dizzy), I also think this is a stock that’s likely to retain its status as one worth holding for the long-term.
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This move is seen as a challenge to Apple (NASDAQ:AAPL), which gained market share with its in-house Arm-based chips for Macs. On the date of publication, Chris MacDonald has a LONG position in AAPL The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia (NASDAQ:NVDA) is a leading producer of powerful GPU chips that are crucial for the development of advanced technologies.
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This move is seen as a challenge to Apple (NASDAQ:AAPL), which gained market share with its in-house Arm-based chips for Macs. On the date of publication, Chris MacDonald has a LONG position in AAPL The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia (NASDAQ:NVDA) is a leading producer of powerful GPU chips that are crucial for the development of advanced technologies.
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This move is seen as a challenge to Apple (NASDAQ:AAPL), which gained market share with its in-house Arm-based chips for Macs. On the date of publication, Chris MacDonald has a LONG position in AAPL The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Long-term investors who simply bought NVDA stock on every 10%+ pullback have likely done better than the vast majority of traders in this name.
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12815.0
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2023-10-30 00:00:00 UTC
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Google CEO Sundar Pichai testifies in US antitrust trial
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AAPL
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https://www.nasdaq.com/articles/google-ceo-sundar-pichai-testifies-in-us-antitrust-trial
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nan
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nan
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Updates with hearing beginning
WASHINGTON, Oct 30 (Reuters) - Sundar Pichai, CEO of Alphabet Inc GOOGL.O and its subsidiary Google, testified Monday in a once-in-a generation antitrust fight with the U.S. government that the company sought to make browser use and internet search easy and secure.
Pichai testified under oath in a trial to determine whether Google acted illegally to maintain its dominance of search and parts of search advertising. If the government wins, the company may be forced to scrap some business practices that have helped it stay on top.
In testimony Monday morning, Pichai took a couple of swipes at Microsoft's MSFT.O browser, Internet Explorer.
Before Google launched its Chrome browser, which competes with the Microsoft product, Pichai said, "The browser market at the time had kind of stagnated.
"They (Microsoft) were not that incented to improve the browser," he added, calling Chrome a "pretty dramatic improvement" when it was launched in 2008.
He also said that Google made it easy to change the Chrome browser if a user wanted to use a search engine that was not Google.
Pichai, who was called as a witness for Google, will likely be asked about the company's investments aimed at keeping its online search engine dominant, especially as smartphones took over, and innovation in search advertising.
The government, in cross-examination, will likely also ask about the billions of dollars paid annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N to be the default in search on their devices in order to stay on top.
The clout in search makes Google a heavy hitter in the lucrative advertising market, its biggest revenue source.
Google has argued the revenue share agreements are legal and that it has invested heavily to keep its search and advertising businesses competitive. It has also argued that if people are dissatisfied with default search engines, they can, and do, switch to another search provider.
Why is the US suing Google for antitrust violations? https://www.reuters.com/legal/why-is-us-suing-google-antitrust-violations-2023-09-11/
(Reporting by Diane Bartz and Chris Sanders; Editing by Marguerita Choy and Jonathan Oatis)
((Chris.Sanders@thomsonreuters.com; +1 202-558-8254; Reuters Messaging: chris.sanders.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The government, in cross-examination, will likely also ask about the billions of dollars paid annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N to be the default in search on their devices in order to stay on top. Updates with hearing beginning WASHINGTON, Oct 30 (Reuters) - Sundar Pichai, CEO of Alphabet Inc GOOGL.O and its subsidiary Google, testified Monday in a once-in-a generation antitrust fight with the U.S. government that the company sought to make browser use and internet search easy and secure. Google has argued the revenue share agreements are legal and that it has invested heavily to keep its search and advertising businesses competitive.
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The government, in cross-examination, will likely also ask about the billions of dollars paid annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N to be the default in search on their devices in order to stay on top. Updates with hearing beginning WASHINGTON, Oct 30 (Reuters) - Sundar Pichai, CEO of Alphabet Inc GOOGL.O and its subsidiary Google, testified Monday in a once-in-a generation antitrust fight with the U.S. government that the company sought to make browser use and internet search easy and secure. In testimony Monday morning, Pichai took a couple of swipes at Microsoft's MSFT.O browser, Internet Explorer.
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The government, in cross-examination, will likely also ask about the billions of dollars paid annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N to be the default in search on their devices in order to stay on top. Updates with hearing beginning WASHINGTON, Oct 30 (Reuters) - Sundar Pichai, CEO of Alphabet Inc GOOGL.O and its subsidiary Google, testified Monday in a once-in-a generation antitrust fight with the U.S. government that the company sought to make browser use and internet search easy and secure. He also said that Google made it easy to change the Chrome browser if a user wanted to use a search engine that was not Google.
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The government, in cross-examination, will likely also ask about the billions of dollars paid annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N to be the default in search on their devices in order to stay on top. In testimony Monday morning, Pichai took a couple of swipes at Microsoft's MSFT.O browser, Internet Explorer. Before Google launched its Chrome browser, which competes with the Microsoft product, Pichai said, "The browser market at the time had kind of stagnated.
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12816.0
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2023-10-30 00:00:00 UTC
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Keybanc Reiterates Apple (AAPL) Sector Weight Recommendation
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AAPL
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https://www.nasdaq.com/articles/keybanc-reiterates-apple-aapl-sector-weight-recommendation
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Fintel reports that on October 30, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Sector Weight recommendation.
Analyst Price Forecast Suggests 21.01% Upside
As of October 5, 2023, the average one-year price target for Apple is 203.55. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 21.01% from its latest reported closing price of 168.22.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 436,698MM, an increase of 13.74%. The projected annual non-GAAP EPS is 6.93.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6451 funds or institutions reporting positions in Apple. This is an increase of 60 owner(s) or 0.94% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. Total shares owned by institutions increased in the last three months by 0.33% to 9,938,356K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 6.04% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on October 30, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Sector Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Sector Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Sector Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Keybanc reiterated coverage of Apple (NASDAQ:AAPL) with a Sector Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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12817.0
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2023-10-30 00:00:00 UTC
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Is Apple a buy ahead of earnings?
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AAPL
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https://www.nasdaq.com/articles/is-apple-a-buy-ahead-of-earnings
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nan
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nan
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Despite having been one of the top-performing stocks in the first half of the year, shares of Apple Inc (NASDAQ: AAPL) have found themselves under considerable pressure since hitting an all-time high in July. They’re down about 15% since then, and what’s worse is that it’s been a measured decline.
It would have been different if perhaps they’d simply traded sideways into August and then suffered a couple of steep drops in the weeks since then. However, the uptrend that started in January and that sent shares up 60% has been well and truly broken for now at least.
In its place is what could easily be the start of a nasty-looking downtrend, with a series of lower highs and lower lows surely causing Apple’s investors some sleepless nights. But all is not lost, however, and with the tech giant slated to release its fiscal Q4 earnings after the market closes this Thursday, it’s an interesting time to be weighing up the opportunity.
Geopolitical tensions
One of the key headwinds that has been weighing on shares is the rise in geopolitical tensions between the U.S. and China. China is Apple’s second biggest market, so any sign of fresh future weakness in the country’s demand for Apple’s products is going to be a major cause of concern.
The bad news is that tensions between the world’s two biggest economies are at best, “fragile” right now. So said the team at Blackrock last week when they named the strategic competition between the U.S. and China as the biggest geopolitical risk facing markets right now.
Recent headlines from the two governments haven’t made for pretty reading either. The Biden administration tightened controls on the sale of AI chips to China earlier this month, which led to a counter-move from the Chinese that curbed their graphite exports. Graphite is a key requirement for electric vehicle manufacturing, and China has been responsible for up to 80% of global production in recent years. In this context, it’s no wonder that Apple’s shares have been trading softly and could continue to do so if tensions increase.
Attractive risk/reward
But at the same time, there are reasons to think the risk/reward setup here is becoming quite attractive. First and foremost, Apple’s Relative Strength Index (RSI), a measure of how overbought or oversold a stock is, is indicating extremely oversold conditions right now. It feels like the market has been pricing in the worst-case scenario, but being on the short side of Apple when they’re reporting earnings is a dangerous place to be.
The company has beaten analyst expectations on the headline numbers for seven of the past eight quarters, and an upside surprise on Thursday would go a long way to getting the stock trending upwards again. If you’re an optimist and feel that the worst outcomes of any continued geopolitical tensions will not come to pass, then you have to be bullish on Apple in the long run.
The company is going big on artificial intelligence, with reports last week pointing to a planned $1 billion investment into generative AI development. September’s new product launch was also well received by analysts. The team at Monness, Crespi, Hardt reiterated their Buy rating on Apple shares last week, alongside their price target of $208.
From where shares closed on Friday, this points to an upside of more than 20%. Furthermore, were Apple shares to hit this in the coming weeks, they’d be back at fresh all-time highs. It’s a strong stance to be taking the week before a major earnings update, but their history supports the likelihood of an upside surprise.
On that basis, with the technical factors also underpinning a long position, the risk/reward profile is quite attractive right now. Investors must, of course, watch for any disappointment or miss on the headline numbers as this could quickly reenergize the bears and send the stock down to fresh lows.
To offset that, it would be prudent to work some stops below last week’s low of $165. On the upside, however, if shares can get up towards $180, then there’s every reason to think the longer-term uptrend is reinstated.
The article "Is Apple a buy ahead of earnings?" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite having been one of the top-performing stocks in the first half of the year, shares of Apple Inc (NASDAQ: AAPL) have found themselves under considerable pressure since hitting an all-time high in July. The Biden administration tightened controls on the sale of AI chips to China earlier this month, which led to a counter-move from the Chinese that curbed their graphite exports. The company has beaten analyst expectations on the headline numbers for seven of the past eight quarters, and an upside surprise on Thursday would go a long way to getting the stock trending upwards again.
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Despite having been one of the top-performing stocks in the first half of the year, shares of Apple Inc (NASDAQ: AAPL) have found themselves under considerable pressure since hitting an all-time high in July. In its place is what could easily be the start of a nasty-looking downtrend, with a series of lower highs and lower lows surely causing Apple’s investors some sleepless nights. If you’re an optimist and feel that the worst outcomes of any continued geopolitical tensions will not come to pass, then you have to be bullish on Apple in the long run.
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Despite having been one of the top-performing stocks in the first half of the year, shares of Apple Inc (NASDAQ: AAPL) have found themselves under considerable pressure since hitting an all-time high in July. Geopolitical tensions One of the key headwinds that has been weighing on shares is the rise in geopolitical tensions between the U.S. and China. China is Apple’s second biggest market, so any sign of fresh future weakness in the country’s demand for Apple’s products is going to be a major cause of concern.
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Despite having been one of the top-performing stocks in the first half of the year, shares of Apple Inc (NASDAQ: AAPL) have found themselves under considerable pressure since hitting an all-time high in July. Geopolitical tensions One of the key headwinds that has been weighing on shares is the rise in geopolitical tensions between the U.S. and China. The company has beaten analyst expectations on the headline numbers for seven of the past eight quarters, and an upside surprise on Thursday would go a long way to getting the stock trending upwards again.
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12818.0
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2023-10-30 00:00:00 UTC
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Pre-Markets in Green to Start a Crucial Week of Events
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AAPL
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https://www.nasdaq.com/articles/pre-markets-in-green-to-start-a-crucial-week-of-events
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nan
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nan
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It’s the start of the busiest week of Q3 earnings season, and pre-market futures are up. Perhaps this is a sign of optimism for expected earnings, or perhaps it’s looking favorably on a parade of economic reports out this week. Perhaps it’s the widely held expectation that the Fed, on Wednesday, when it reports an update on interest rates following the second day of the Federal Open Market Committee (FOMC), will decide not to raise another 25 basis points (bps) and increases the chances hikes overall are finished.
At first blush, this would appear to be the case. While we may see pleasant data from Case-Shiller home prices tomorrow, private-sector jobs numbers Wednesday, U.S. Productivity and Unit Labor Costs Thursday or nonfarm payrolls Friday, more than likely the coming hold from Fed Chair Jerome Powell & Co. mid-week is the reason we currently see the Dow +177 points, the Nasdaq +83, the S&P 500 +21 and the small-cap Russell 2000 +10.
Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Perhaps, though cooler results may provide a glimpse into a less-ravenous global marketplace for iPhone updates — we’ll see. Among other industry leaders reporting the reminder of this week are AMD AMD, Caterpillar CAT, ConocoPhillips COP, Eli Lilly LLY, Pfizer PFE and Starbucks SBUX, to get alphabetical about it.
We also see some value on the major indices this morning, after mid-October near-term highs have given way to lower trading levels for the most part in the past couple weeks. We’re down, month to date, between -2.8% on the Dow and -6.5% on the Russell. Both of these indices are back in the red year-to-date, while the Nasdaq is still up +31% and the S&P +8.2% from the start of the year.
Ahead of today’s open, McDonald’s MCD reported Q3 results that outperformed expectations: earnings of $3.19 per share posted a +6.3% positive earnings surprise over the $3.00 per share in the Zacks consensus. Revenues in the quarter of $6.69 billion topped estimates by +1.79%. Shares are up +2.3% on the beat, bringing the stock back near breakeven year-to-date.
ON Semiconductor ON beat expectations on both top and bottom lines in its Q3 report out this morning, with earnings of $1.39 per share beating the Zacks consensus by 4 cents (slightly below the $1.45 per share reported in the year-ago quarter) on $2.18 billion in revenues, slightly ahead of the $2.15 billion projected. However, softer guidance for Q4 has led to a pre-market sell-off of about -10% at this hour; the shares are still up +25% year-to-date.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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To read this article on Zacks.com click here.
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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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Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Perhaps it’s the widely held expectation that the Fed, on Wednesday, when it reports an update on interest rates following the second day of the Federal Open Market Committee (FOMC), will decide not to raise another 25 basis points (bps) and increases the chances hikes overall are finished.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Among other industry leaders reporting the reminder of this week are AMD AMD, Caterpillar CAT, ConocoPhillips COP, Eli Lilly LLY, Pfizer PFE and Starbucks SBUX, to get alphabetical about it.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Ahead of today’s open, McDonald’s MCD reported Q3 results that outperformed expectations: earnings of $3.19 per share posted a +6.3% positive earnings surprise over the $3.00 per share in the Zacks consensus.
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Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Ahead of today’s open, McDonald’s MCD reported Q3 results that outperformed expectations: earnings of $3.19 per share posted a +6.3% positive earnings surprise over the $3.00 per share in the Zacks consensus.
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12819.0
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2023-10-30 00:00:00 UTC
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These 3 Stocks Might Be Getting a Little Too Expensive
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AAPL
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https://www.nasdaq.com/articles/these-3-stocks-might-be-getting-a-little-too-expensive-10
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nan
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nan
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Anytime a stock is already trading at an inflated valuation, the potential for significant price appreciation shrinks. Worse yet, overpaying for a stock increases the risk of losses if a company's valuation falls back to its historical average or more in line with its peers.
With that in mind, here are three stocks that are starting to look a little too expensive.
1. Apple
With a market capitalization of $2.7 trillion, Apple (NASDAQ: AAPL) is the world's largest publicly-traded company and a particularly notable example of an expensive stock. Its shares have generated a total return of 31% so far in 2023, handily outpacing the S&P 500's total return of 9%.
The company is a favorite of famous investor Warren Buffett and his company, Berkshire Hathaway, representing roughly 51% of its $350 billion stock portfolio. At Berkshire's 2023 annual shareholder meeting, Buffett called Apple a "better business than any other we own [outright]."
Despite its strong market performance year to date, Apple's revenue and net income through the first nine months of its fiscal 2023 are on the decline. It generated $293.8 billion in revenue and $74.0 billion in net income during that period, down 3.4% and 6.4% year over year, respectively. Management has pointed to a declining smartphone market, particularly in the U.S., as the primary reason for the top- and bottom-line weakness.
The stock appears relatively pricey based on the widely-used price-to-earnings (P/E) ratio. Hovering at 28.5 times earnings, Apple stock is trading above its five-year average of 25.7 and the broad market's 18.9.
2. Meta Platforms
The next stock on this list, Meta Platforms (NASDAQ: META), might be better known to consumers through its social media platforms such as Facebook, Instagram, and WhatsApp. Meta stock has performed exceptionally well in 2023, producing a 152% gain year to date.
The turnaround in 2023 might be attributed to CEO Mark Zuckerberg's commitment to making it a so-called "year of efficiency." The stock shed roughly 64% in 2022, partly because of management's decision to pour billions into its highly unprofitable Reality Labs division, which produces hardware and software for augmented reality and virtual reality.
As a part of the improved efficiency goal, Meta has slashed 24% of its workforce over the past year and authorized a $40 billion increase to its existing $10 billion share repurchase program. The result is $11.6 billion of net income in Q3 2023, a 164% increase from the year-ago quarter.
And earnings per share jumped 168% from $1.64 to $4.39 as the company repurchased nearly 2% of its shares outstanding over the past year.
Despite the turnaround, Reality Labs has reported $11.5 billion in operating losses so far in fiscal 2023, which was 22% worse year over year. And CFO Susan Li expects the division's operating losses to increase meaningfully in 2024.
Meta trades at a P/E ratio of 26.9, also higher than its five-year average of 25.2. Combine the premium valuation with the ballooning losses for Reality Labs, and the stock seems overpriced, despite the improved efficiency.
3. Wingstop
Generally, restaurant stocks don't tend to trade at high valuation metrics like tech stocks do, but one exception is Wingstop (NASDAQ: WING). Shares of the restaurant chain are trading at an astounding 85.6 times earnings, far exceeding the price tag for its industry peers.
For example, Domino's and McDonald's trade at multiples of just 25.6 and 24.1, respectively.
The stock is up 31% year to date and has generated a return of over 800% since its initial public offering in 2015. Digging into the company's financials and management's goals for expansion explains that performance.
First, the company says it has a 19-year streak of growing its same-store sales (comps), a key metric for restaurant stocks that indicates how established stores are performing. During its fiscal 2023 second quarter, Wingstop generated 16.8% domestic comps growth. Domino's and McDonald's reported a 0.6% decline and 10.3% growth, respectively, for comps in their most recently reported quarters.
That superior comparable-sales growth helped Wingstop grow revenue 27.9% year over year to $107.2 million in its fiscal second quarter. Net income of $16.2 million was up 21.6%.
Management's lofty long-term goal of expanding from 2,046 restaurants as of July 1 to 7,000 global locations also brings tremendous upside for patient investors. I'll underscore the word "patient" because over the past year, Wingstop expanded its network by 188 franchises.
Will these stocks continue to beat the market?
There is a fine line between market timing and waiting for a better price to purchase shares in a great company. Investors trying to time the market by buying and selling in and out of positions for potential short-term gains have historically been burned. On the other hand, investors also take on more risk buying stocks at inflated valuations.
These three companies may be leaders in their respective industries, but investors are better off adding them to a watch list and waiting for a better entry point.
10 stocks we like better than Apple
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of October 23, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Collin Brantmeyer has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Domino's Pizza, Meta Platforms, and Wingstop. 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 With a market capitalization of $2.7 trillion, Apple (NASDAQ: AAPL) is the world's largest publicly-traded company and a particularly notable example of an expensive stock. Worse yet, overpaying for a stock increases the risk of losses if a company's valuation falls back to its historical average or more in line with its peers. First, the company says it has a 19-year streak of growing its same-store sales (comps), a key metric for restaurant stocks that indicates how established stores are performing.
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Apple With a market capitalization of $2.7 trillion, Apple (NASDAQ: AAPL) is the world's largest publicly-traded company and a particularly notable example of an expensive stock. Despite its strong market performance year to date, Apple's revenue and net income through the first nine months of its fiscal 2023 are on the decline. Despite the turnaround, Reality Labs has reported $11.5 billion in operating losses so far in fiscal 2023, which was 22% worse year over year.
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Apple With a market capitalization of $2.7 trillion, Apple (NASDAQ: AAPL) is the world's largest publicly-traded company and a particularly notable example of an expensive stock. Wingstop Generally, restaurant stocks don't tend to trade at high valuation metrics like tech stocks do, but one exception is Wingstop (NASDAQ: WING). See the 10 stocks *Stock Advisor returns as of October 23, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple With a market capitalization of $2.7 trillion, Apple (NASDAQ: AAPL) is the world's largest publicly-traded company and a particularly notable example of an expensive stock. Despite its strong market performance year to date, Apple's revenue and net income through the first nine months of its fiscal 2023 are on the decline. Despite the turnaround, Reality Labs has reported $11.5 billion in operating losses so far in fiscal 2023, which was 22% worse year over year.
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12820.0
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2023-10-30 00:00:00 UTC
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This "Magnificent Seven" Stock Is, Surprisingly, the Cheapest of the Bunch
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AAPL
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https://www.nasdaq.com/articles/this-magnificent-seven-stock-is-surprisingly-the-cheapest-of-the-bunch
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nan
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nan
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During periods of heightened volatility and uncertainty, it's not uncommon for investors to seek the safety of profitable, time-tested, industry-leading businesses. While the FAANG stocks have fit the mold for the past decade, it's the "Magnificent Seven" that have found their spot on the pedestal in 2023.
When I say Magnificent Seven, I'm referring to (in order of largest to smallest market cap):
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Meta Platforms (NASDAQ: META)
Tesla (NASDAQ: TSLA)
Image source: Getty Images.
What makes these seven stocks so special is their sustained competitive advantages and/or seemingly impenetrable moats.
Apple controls more than half of U.S. smartphone market share and has the most robust capital-return program among publicly traded companies.
Microsoft's Windows is still the world's dominant desktop operating system, while Azure is the global No. 2 in cloud infrastructure service spending.
Alphabet's Google has accounted for at least 90% of global internet search share since March 2013, while streaming platform YouTube is the world's second most-visited site.
Amazon brings in roughly 40% of all U.S. online retail sales, and is the parent of leading cloud infrastructure service platform, Amazon Web Services (AWS).
Nvidia's graphics processing units have a virtual monopoly, for the moment, in artificial intelligence (AI)-accelerated data centers.
Meta Platforms owns the top social media "real estate" and attracted nearly 4 billion unique monthly active users during the third quarter.
Tesla is North America's leading electric-vehicle (EV) maker and the only EV pure-play generating a profit.
Additionally, the Magnificent Seven are outperformers. As you can see, they've left the benchmark S&P 500 in the dust this year.
AAPL data by YCharts.
The traditional P/E ratio isn't the best way to value the Magnificent Seven stocks
But just because these seven stocks are outperformers, it doesn't mean their outlooks are equal. There are some wide valuation variances among the Magnificent Seven, with one company standing out as the clear best value.
While most investors lean on the price-to-earnings (P/E) ratio as the traditional valuation determinant, it has its drawbacks for high-growth companies. Namely, the Magnificent Seven tend to reinvest a lot of their operating cash flow back into high-growth initiatives. Therefore, it's a much smarter approach to compare the Magnificent Seven relative to their future cash flow instead of their future earnings.
Here's how the Magnificent Seven stocks compare when examined relative to their forward-year cash flow:
Meta Platforms: 9.54 times estimated forward-year cash flow
Amazon: 10.83
Alphabet (Class A shares, GOOGL): 12.65
Microsoft: 18.78
Apple: 20.91
Nvidia: 22.95
Tesla: 37.96
As you can see, Tesla is far and away the priciest stock of the bunch. With its operating margin declining, Tesla is going to have a hard time winning over fundamentally focused investors.
Nvidia and Apple aren't inexpensive, either. Nvidia could struggle to meet investors' lofty AI expectations, while Apple is contending with a modest decline in sales and profits in fiscal 2023 (Apple's fiscal year ends in late September).
While Alphabet and Amazon are both historically inexpensive relative to their cash flow, it's social media stock Meta Platforms, which has tripled off of its 2022 bear market low, that's the cheapest Magnificent Seven stock.
Image source: Getty Images.
Meta Platforms is the unquestioned best deal among the Magnificent Seven
The primary reason Meta Platforms is cheap is because of uncertainty surrounding the health of the U.S. economy. Meta has generated a whopping 98.4% of its revenue from advertising since this year began, and businesses aren't shy about reducing their ad spending when the first hint of economic weakness arises.
The other concern that's kept Meta's valuation at bay is the company's ongoing losses from Reality Labs -- the segment focused on metaverse ambitions and virtual/augmented reality devices. CEO Mark Zuckerberg envisions Meta being an on-ramp to the metaverse in the years to come, and he's not afraid to deploy the company's treasure chest of cash to make it happen. Reality Labs has produced a nearly $11.5 billion operating loss through the first nine months of 2023.
However, neither of these headwinds is particularly worrisome. A wider-lens look at Meta's operating model shows that it's as strong as it's ever been -- even with steep losses from Reality Labs.
As I alluded earlier, Meta's social media assets are second to none. Facebook is the most-visited social site globally, while WhatsApp, Instagram, and Facebook Messenger are, collectively, some of the most-downloaded social apps globally. There's also Threads, which took just five days to top 100 million users following its early July launch.
Meta attracted 3.96 billion unique monthly active users during the third quarter, which represents more than half of the world's adult population. There isn't a social media platform that offers more eyeballs to advertisers, which is what affords Meta such exceptional ad pricing power in most economic climates.
Something else to consider is that the U.S. economy spends a disproportionate amount of time expanding, relative to contracting. Whereas no recession following World War II has lasted longer than 18 months, a majority of expansions over the past seven-plus decades have lasted for multiple years. The key point here being that ad spending tends to grow in lockstep with the U.S. economy over long periods, which is great news for an ad-driven company like Meta.
Meta's balance sheet and cash flow also afford risk-taking that most social media companies can't match. It closed out September with $61.1 billion in cash, cash equivalents, and investments, and has generated $51.7 billion in net cash from operating activities in just nine months. This is more than enough capital to absorb losses from Reality Labs and potentially set the Meta up for a bright future as an on-ramp to the metaverse.
Despite tripling since the bear market low last year, Meta remains a phenomenal value for investors with a long-term mindset.
10 stocks we like better than Meta Platforms
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*Stock Advisor returns as of October 23, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say Magnificent Seven, I'm referring to (in order of largest to smallest market cap): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. AAPL data by YCharts. Meta has generated a whopping 98.4% of its revenue from advertising since this year began, and businesses aren't shy about reducing their ad spending when the first hint of economic weakness arises.
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When I say Magnificent Seven, I'm referring to (in order of largest to smallest market cap): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. AAPL data by YCharts. Here's how the Magnificent Seven stocks compare when examined relative to their forward-year cash flow: Meta Platforms: 9.54 times estimated forward-year cash flow Amazon: 10.83 Alphabet (Class A shares, GOOGL): 12.65 Microsoft: 18.78 Apple: 20.91 Nvidia: 22.95 Tesla: 37.96 As you can see, Tesla is far and away the priciest stock of the bunch.
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When I say Magnificent Seven, I'm referring to (in order of largest to smallest market cap): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. AAPL data by YCharts. Here's how the Magnificent Seven stocks compare when examined relative to their forward-year cash flow: Meta Platforms: 9.54 times estimated forward-year cash flow Amazon: 10.83 Alphabet (Class A shares, GOOGL): 12.65 Microsoft: 18.78 Apple: 20.91 Nvidia: 22.95 Tesla: 37.96 As you can see, Tesla is far and away the priciest stock of the bunch.
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When I say Magnificent Seven, I'm referring to (in order of largest to smallest market cap): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. AAPL data by YCharts. Here's how the Magnificent Seven stocks compare when examined relative to their forward-year cash flow: Meta Platforms: 9.54 times estimated forward-year cash flow Amazon: 10.83 Alphabet (Class A shares, GOOGL): 12.65 Microsoft: 18.78 Apple: 20.91 Nvidia: 22.95 Tesla: 37.96 As you can see, Tesla is far and away the priciest stock of the bunch.
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12821.0
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2023-10-30 00:00:00 UTC
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2 Vanguard ETFs I'm Buying and Holding Forever
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AAPL
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https://www.nasdaq.com/articles/2-vanguard-etfs-im-buying-and-holding-forever
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nan
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nan
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Choosing the right investments is key to building wealth in the stock market, but that's often easier said than done -- especially when there are countless stocks and funds to choose from.
Exchange-traded funds (ETFs) can be a smart option for those looking for a low-maintenance investment that requires less research and upkeep. Each ETF contains dozens or even hundreds of stocks, all bundled together into a single investment.
While there's no single right way to invest, there are two Vanguard ETFs that I personally own and will continue to buy forever. Here's why they make such great investments.
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the S&P 500 index, and it contains roughly 500 stocks from some of the world's largest companies -- from tech giants like Apple and Amazon to century-old brands like Procter & Gamble and Coca-Cola.
When you invest in just one share of this ETF, you'll instantly own a stake in all 500 of these companies. Not only does this provide immediate diversification, but because the companies within the S&P 500 are among the best of the best, it's also far more likely your investment will recover from market downturns.
Historically, there's also never been a bad time to invest in an S&P 500 ETF. Analysts at Crestmont Research examined the index's rolling 20-year total returns throughout history, and they found that every single period ended in positive total returns.
This means that if you had invested in an S&P 500-tracking fund at any point in history and simply held it for 20 years, you'd have made money -- regardless of how volatile the market was during that time.
Also, the Vanguard S&P 500 ETF specifically has the advantage of a rock-bottom expense ratio of just 0.03% per year. This is far lower than many similar ETFs, and it could potentially save you tens of thousands of dollars in fees over decades.
2. Vanguard Growth ETF
The Vanguard Growth ETF (NYSEMKT: VUG) contains 222 stocks with the potential for above-average growth. This type of fund is designed to earn higher returns than a broad-market fund like an S&P 500 ETF, but it comes with its risks, too.
Growth ETFs, in general, tend to be more volatile than broad-market funds. High-growth stocks often see more extreme ups and downs in the near term, and with around half of the stocks in this ETF from the tech sector, the periods of volatility can be brutal.
However, this ETF also has a history of earning higher average returns than the S&P 500 over the long haul. Over the past 10 years alone, the Vanguard Growth ETF has earned an average annual return of 13.55% (compared to the Vanguard S&P 500 ETF's 11.86% average annual return in that time).
While that may not seem like a major difference, it can add up over time. Say, for example, you're investing $200 per month. Let's also say that with an S&P 500 ETF, you're earning a 10% average annual return (which is in line with the market's historic average). With a growth ETF, say you're earning a 12% average annual return.
Over time, here's approximately how much you could accumulate in both scenarios:
NUMBER OF YEARS TOTAL PORTFOLIO VALUE: S&P 500 ETF TOTAL PORTFOLIO VALUE: GROWTH ETF
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.
To determine which ETF is the best fit for you, consider your risk tolerance and investing goals. S&P 500 ETFs tend to be safer and less volatile, but because they're designed to follow the market, they can only earn average returns.
If you're looking to earn higher returns, a growth ETF is more likely to help you achieve that goal. These ETFs can be more volatile in the short term, however, and there are no guarantees they'll actually beat the market. Before you buy, be sure you're OK with higher levels of risk in exchange for those potentially higher returns.
Everyone's investing preferences will differ, so there's no one-size-fits-all investment that will work for every investor. But the Vanguard S&P 500 ETF and Vanguard Growth ETF are two powerhouse funds with loads of advantages, and I'm planning on keeping them both in my portfolio for as long as possible.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
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*Stock Advisor returns as of October 23, 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 and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Vanguard Index Funds-Vanguard Growth ETF, 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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This means that if you had invested in an S&P 500-tracking fund at any point in history and simply held it for 20 years, you'd have made money -- regardless of how volatile the market was during that time. S&P 500 ETFs tend to be safer and less volatile, but because they're designed to follow the market, they can only earn average returns. * 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!
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Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 222 stocks with the potential for above-average growth. * 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! The Motley Fool has positions in and recommends Amazon, Apple, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF.
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Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 222 stocks with the potential for above-average growth. Over the past 10 years alone, the Vanguard Growth ETF has earned an average annual return of 13.55% (compared to the Vanguard S&P 500 ETF's 11.86% average annual return in that time). The Motley Fool has positions in and recommends Amazon, Apple, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF.
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This type of fund is designed to earn higher returns than a broad-market fund like an S&P 500 ETF, but it comes with its risks, too. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon, Apple, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF.
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12822.0
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2023-10-30 00:00:00 UTC
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MIDEAST STOCKS-Most Gulf markets end higher ahead of US Fed rate meeting
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AAPL
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https://www.nasdaq.com/articles/mideast-stocks-most-gulf-markets-end-higher-ahead-of-us-fed-rate-meeting
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nan
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nan
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Oct 30 (Reuters) - Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war.
The Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc AAPL.O on its calendar.
The Fed is widely expected to keep interest rates unchanged, possibly setting the course for stocks and bonds the rest for the year.
The Bank of England and the Bank of Japan will also announce policy decisions in the coming days.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index .TASI gained 0.5%, with digital solutions provider Elm Company 7203.SE advancing 2.3%, a day after reporting a sharp rise in quarterly profit.
The Saudi stock market extended its rebound, thanks to company earnings, said Hani Abuagla, senior market analyst at XTB MENA.
"However, it could come under pressure as caution could dominate ahead of the Federal Reserve meeting."
The Qatari benchmark .QSI finished 1.7% higher, rebounding from its lowest in over three years, with all but one stock closing in positive territory, including Commercial Bank COMB.QA, which jumped 4.5%. Telecoms firm Ooredoo ORDS.QA leapt 4.7%.
Dubai's main share index .DFMGI climbed 1.4%, with toll operator Salik SALIK.DU surging 5.6%.
In Abu Dhabi, the index .FTFADGI added 0.5%.
Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave that have increased international pressure for civilians to be protected.
Outside the Gulf, Egypt's blue-chip index .EGX30 closed 1.5% higher, led by an 11.6% surge in tobacco monopoly Eastern Company EAST.CA.
SAUDI ARABIA
.TASI rose 0.5% to 10,536
ABU DHABI
.FTFADGI up 0.5% to 9,285
DUBAI
.DFMGI gained 1.4% to 3,839
QATAR
.QSI climbed 1.7% to 9,519
EGYPT
.EGX30 up 1.5% to 23,436
BAHRAIN
.BAXeased 0.4% to 1,931
OMAN
.MSX30 lost 0.2% to 4,543
KUWAIT
.BKP advanced 2.1% to 7,047
(Reporting by Ateeq Shariff in Bengaluru; Editing by Shweta Agarwal)
((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))
The views and 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 Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc AAPL.O on its calendar. Oct 30 (Reuters) - Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war. Saudi Arabia's benchmark index .TASI gained 0.5%, with digital solutions provider Elm Company 7203.SE advancing 2.3%, a day after reporting a sharp rise in quarterly profit.
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The Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc AAPL.O on its calendar. Oct 30 (Reuters) - Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war. Saudi Arabia's benchmark index .TASI gained 0.5%, with digital solutions provider Elm Company 7203.SE advancing 2.3%, a day after reporting a sharp rise in quarterly profit.
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The Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc AAPL.O on its calendar. Oct 30 (Reuters) - Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war. Saudi Arabia's benchmark index .TASI gained 0.5%, with digital solutions provider Elm Company 7203.SE advancing 2.3%, a day after reporting a sharp rise in quarterly profit.
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The Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc AAPL.O on its calendar. Oct 30 (Reuters) - Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war. The Bank of England and the Bank of Japan will also announce policy decisions in the coming days.
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12823.0
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2023-10-30 00:00:00 UTC
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Should TCW Transform 500 ETF (VOTE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-tcw-transform-500-etf-vote-be-on-your-investing-radar
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nan
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nan
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Launched on 06/22/2021, the TCW Transform 500 ETF (VOTE) 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 Engine No. 1. It has amassed assets over $519.98 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 1.54%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.01% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 29.68% of total assets under management.
Performance and Risk
VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses. The Morningstar US Large Cap Select Index is market cap-weighted and tracks the 500 largest companies in the US.
The ETF has added roughly 9.45% so far this year and it's up approximately 10.47% in the last one year (as of 10/30/2023). In the past 52-week period, it has traded between $43.02 and $53.26.
The ETF has a beta of 1 and standard deviation of 18.78% for the trailing three-year period. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
TCW Transform 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, VOTE 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 $334.45 billion in assets, SPDR S&P 500 ETF has $379.34 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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TCW Transform 500 ETF (VOTE): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.01% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report TCW Transform 500 ETF (VOTE): 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 06/22/2021, the TCW Transform 500 ETF (VOTE) 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 TCW Transform 500 ETF (VOTE): 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 7.01% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Launched on 06/22/2021, the TCW Transform 500 ETF (VOTE) 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 TCW Transform 500 ETF (VOTE): 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 7.01% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives TCW Transform 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 7.01% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report TCW Transform 500 ETF (VOTE): 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 06/22/2021, the TCW Transform 500 ETF (VOTE) 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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12824.0
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2023-10-30 00:00:00 UTC
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Option Volatility And Earnings Report For October 30 – November 3
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AAPL
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https://www.nasdaq.com/articles/option-volatility-and-earnings-report-for-october-30-november-3
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nan
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nan
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It was a huge week last week on the earnings front and that theme continues again this week with lots of big names set to report. This week we have Apple (AAPL), Eli Lilly (LLY), McDonald’s (MCD), Pfizer (PFE), Advanced Micro Devices (AMD), Amgen (AMGN), Caterpillar (CAT), Starbucks (SBUX), Palantir (PLTR), PayPal (PYPL), Coinbase (COIN) and Shopify (SHOP) 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
MCD – 3.6%
WDC – 7.1%
ON – 8.3%
PINS – 11.5%
HSBC – 4.8%
ANET – 9.5%
Tuesday
AMD – 8.2%
PFE – 4.6%
FSLR – 10.1%
CAT – 5.7%
AMGN – 3.9%
MPC – 4.7%
Wednesday
PYPL – 10.1%
ET – 3.1%
QCOM – 7.4%
ABNB – 9.4%
KHC – 4.5%
Thursday
AAPL – 4.5%
PLTR – 13.7%
SQ – 14.5%
COIN – 13.2%
SHOP – 11.0%
MRNA – 10.7%
GOLD – 4.9%
PBR – 6.5%
DKNG – 12.6%
LLY – 6.0%
SBUX – 6.1%
COP – 4.1%
FTNT – 9.5%
NET – 12.8%
IRM – 5.9%
TEAM – 11.9%
Friday
ENB – 5.4%
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:
ADM -4.1% vs 4.4% expected
DHR -3.5% vs 5.0% expected
DOW +2.1% vs 4.5% expected
GE +6.5% vs 6.4% expected
GM -2.3% vs 6.3% expected
GOOGL -9.5% vs 5.7% expected
HAL -3.4% vs 5.2% expected
KMB -1.1% vs 4.1% expected
KO +2.9% vs 2.8% expected
MMM +5.3% vs 5.1% expected
MSFT +3.1% vs 5.0% expected
TXN -3.5% vs 5.1% expected
V +0.9% vs 4.3% expected
VZ +9.3% vs 4.4% expected
BA -2.5% vs 5.8% expected
IBM +4.9% vs 4.9% expected
META -3.7% vs 9.5% expected
NOW +3.9% vs 7.2% expected
TMUS -0.1% vs 4.8% expected
AMZN +6.8% vs 7.4% expected
BMY -6.4% vs 3.8% expected
BSX -0.4% vs 4.3% expected
CAT +8.9% vs 6.8% expected
CMG +4.5% vs 7.6% expected
F -12.3% vs 5.8% expected
INTC +9.3% vs 7.6% expected
MA -5.6% vs 4.3% expected
MRK +1.9% vs 3.9% expected
RCL +0.8% vs 8.2% expected
UPS -5.9% vs 5.7% expected
ABBV +4.9% vs 4.7% expected
CL -1.8% vs 5.2% expected
CVX -6.7% vs 3.5% expected
XOM -1.9% vs 3.8% expected
Overall, there were 21 out of 34 that stayed within the expected range.
Changes In Open Interest
SOFI, BAC, TSLA, KO, PLTR, GOOGL and AMZN 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
What Could Help the Stock Market Find a Bounce?
The Fed, Earnings and Other Can't Miss Items This Week
Meta's Massive Free Cash Flow Could Push the Stock Well Over $400
1 Standout Gold Dividend Stock to Buy on the Dip
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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This week we have Apple (AAPL), Eli Lilly (LLY), McDonald’s (MCD), Pfizer (PFE), Advanced Micro Devices (AMD), Amgen (AMGN), Caterpillar (CAT), Starbucks (SBUX), Palantir (PLTR), PayPal (PYPL), Coinbase (COIN) and Shopify (SHOP) all set to report. 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. The Fed, Earnings and Other Can't Miss Items This Week Meta's Massive Free Cash Flow Could Push the Stock Well Over $400 1 Standout Gold Dividend Stock to Buy on the Dip On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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This week we have Apple (AAPL), Eli Lilly (LLY), McDonald’s (MCD), Pfizer (PFE), Advanced Micro Devices (AMD), Amgen (AMGN), Caterpillar (CAT), Starbucks (SBUX), Palantir (PLTR), PayPal (PYPL), Coinbase (COIN) and Shopify (SHOP) all set to report. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility. Last Week’s Earnings Moves Last week’s we only had one company of interest report earnings: ADM -4.1% vs 4.4% expected DHR -3.5% vs 5.0% expected DOW +2.1% vs 4.5% expected GE +6.5% vs 6.4% expected GM -2.3% vs 6.3% expected GOOGL -9.5% vs 5.7% expected HAL -3.4% vs 5.2% expected KMB -1.1% vs 4.1% expected KO +2.9% vs 2.8% expected MMM +5.3% vs 5.1% expected MSFT +3.1% vs 5.0% expected TXN -3.5% vs 5.1% expected V +0.9% vs 4.3% expected VZ +9.3% vs 4.4% expected BA -2.5% vs 5.8% expected IBM +4.9% vs 4.9% expected META -3.7% vs 9.5% expected NOW +3.9% vs 7.2% expected TMUS -0.1% vs 4.8% expected AMZN +6.8% vs 7.4% expected BMY -6.4% vs 3.8% expected BSX -0.4% vs 4.3% expected CAT +8.9% vs 6.8% expected CMG +4.5% vs 7.6% expected F -12.3% vs 5.8% expected INTC +9.3% vs 7.6% expected MA -5.6% vs 4.3% expected MRK +1.9% vs 3.9% expected RCL +0.8% vs 8.2% expected UPS -5.9% vs 5.7% expected ABBV +4.9% vs 4.7% expected CL -1.8% vs 5.2% expected CVX -6.7% vs 3.5% expected XOM -1.9% vs 3.8% expected Overall, there were 21 out of 34 that stayed within the expected range.
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This week we have Apple (AAPL), Eli Lilly (LLY), McDonald’s (MCD), Pfizer (PFE), Advanced Micro Devices (AMD), Amgen (AMGN), Caterpillar (CAT), Starbucks (SBUX), Palantir (PLTR), PayPal (PYPL), Coinbase (COIN) and Shopify (SHOP) all set to report. 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. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
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This week we have Apple (AAPL), Eli Lilly (LLY), McDonald’s (MCD), Pfizer (PFE), Advanced Micro Devices (AMD), Amgen (AMGN), Caterpillar (CAT), Starbucks (SBUX), Palantir (PLTR), PayPal (PYPL), Coinbase (COIN) and Shopify (SHOP) all set to report. Let’s take a look at the expected range for these stocks. Option traders can use these expected moves to structure trades.
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12825.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Futures jump as investors await Fed rate verdict; Middle East tensions eyed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-jump-as-investors-await-fed-rate-verdict-middle-east-tensions-eyed
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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.
Futures up: Dow 0.55%, S&P 0.70%, Nasdaq 0.87%
Oct 30 (Reuters) - U.S. stock index futures climbed on Monday as tensions in the Middle East failed to dampen investor sentiment ahead of a busy week full of earnings reports and an interest rate decision from the Federal Reserve.
Israeli troops stepped up ground operations in Gaza early on Monday, with Palestinians in the enclave reporting fierce air and artillery strikes as the conflict entered its fourth week.
However, the clashes had little impact on U.S. stock markets, with megacap growth names such as Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O up between 0.9% and 1.6% in premarket trading.
"The ground offensive in Gaza will still be causing some concern, but it has been largely expected and that's why I don't think you've seen any kind of particularly adverse reaction on the markets today," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"In the United States, the emphasis has returned to the resilience within the U.S. economy and that being a good thing rather than as an indicator that there could be a rate hike."
Geopolitical concerns as well as a surge in Treasury yields have weighed on U.S. equities this month, dragging the benchmark S&P 500 .SPX down over 10% from its intraday high in July.
On Monday, the yield on the ten-year note US10YT=RR was at 4.86%, after having breached the 5% level earlier this month.
Adding to bond market worries, the U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit. A subsequent rise in yields may further pressure stocks.
With inflation gradually easing in the United States, the Federal Reserve is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's Fedwatch tool.
However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
A fresh batch of data on the U.S. economy this week, ending with the October's non-farm payrolls report on Friday, will be on the watchlist for further cues on the Fed's monetary policy path.
Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point.
At 5:22 a.m. ET, Dow e-minis 1YMcv1 were up 178 points, or 0.55%, S&P 500 e-minis EScv1 were up 29 points, or 0.7%, and Nasdaq 100 e-minis NQcv1 were up 123.5 points, or 0.87%.
Among individual stocks, Coherus Biosciences CHRS.O jumped 15.2% in premarket trade as the U.S. health regulator approved the company's treatment for nasopharyngeal cancer.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((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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Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. Israeli troops stepped up ground operations in Gaza early on Monday, with Palestinians in the enclave reporting fierce air and artillery strikes as the conflict entered its fourth week. With inflation gradually easing in the United States, the Federal Reserve is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's Fedwatch tool.
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Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. Futures up: Dow 0.55%, S&P 0.70%, Nasdaq 0.87% Oct 30 (Reuters) - U.S. stock index futures climbed on Monday as tensions in the Middle East failed to dampen investor sentiment ahead of a busy week full of earnings reports and an interest rate decision from the Federal Reserve. With inflation gradually easing in the United States, the Federal Reserve is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's Fedwatch tool.
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Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. Futures up: Dow 0.55%, S&P 0.70%, Nasdaq 0.87% Oct 30 (Reuters) - U.S. stock index futures climbed on Monday as tensions in the Middle East failed to dampen investor sentiment ahead of a busy week full of earnings reports and an interest rate decision from the Federal Reserve. "The ground offensive in Gaza will still be causing some concern, but it has been largely expected and that's why I don't think you've seen any kind of particularly adverse reaction on the markets today," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
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Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. "In the United States, the emphasis has returned to the resilience within the U.S. economy and that being a good thing rather than as an indicator that there could be a rate hike."
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12826.0
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2023-10-30 00:00:00 UTC
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Is iShares Paris-Aligned Climate MSCI USA ETF (PABU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-paris-aligned-climate-msci-usa-etf-pabu-a-strong-etf-right-now-3
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nan
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nan
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The iShares Paris-Aligned Climate MSCI USA ETF (PABU) was launched on 04/08/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
PABU is managed by Blackrock, and this fund has amassed over $1.33 billion, which makes it one of the larger ETFs in the Style Box - All Cap Blend. PABU seeks to match the performance of the MSCI USA CLMT PARIS ALGN BNC EXT SLCT ID before fees and expenses.
The MSCI USA Climate Paris Aligned Benchmark Extended Select Index composed of U.S. large & mid-capitalization stocks designed to be compatible with the objectives of the Paris Agreement by following a decarbonization trajectory, reducing exposure to climate-related transition & physical risks & increasing exposure to companies favourably positioned for the transition to a low-carbon economy.
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 0.10% for PABU, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.21%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Information Technology sector - about 33% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.68% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
PABU's top 10 holdings account for about 36.03% of its total assets under management.
Performance and Risk
So far this year, PABU has added about 9.57%, and was up about 9.87% in the last one year (as of 10/30/2023). During this past 52-week period, the fund has traded between $39.83 and $50.65.
The fund has a beta of 1.02 and standard deviation of 21.46% for the trailing three-year period. With about 273 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Paris-Aligned Climate MSCI USA ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.67 billion in assets, iShares ESG Aware MSCI USA ETF has $11.58 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend.
Bottom Line
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.68% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. The iShares Paris-Aligned Climate MSCI USA ETF (PABU) was launched on 04/08/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Blend category of the market.
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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.68% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.68% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index.
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Click to get this free report iShares Paris-Aligned Climate MSCI USA ETF (PABU): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.68% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). The iShares Paris-Aligned Climate MSCI USA ETF (PABU) was launched on 04/08/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Blend category of the market.
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12827.0
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2023-10-30 00:00:00 UTC
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Is Berkshire Hathaway Still a Great Long-Term Investment?
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https://www.nasdaq.com/articles/is-berkshire-hathaway-still-a-great-long-term-investment
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has one of the most impressive track records of any stock in history. However, with Berkshire's market cap exceeding $800 billion, is it still a good long-term investment for your portfolio?
*Stock prices used were the afternoon prices of Oct. 26, 2023. The video was published on Oct. 26, 2023.
10 stocks we like better than Berkshire Hathaway
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Matthew Frankel, CFP® has positions in Berkshire Hathaway. Tyler Crowe has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, and Snowflake. The Motley Fool has a disclosure policy.
Matthew Frankel 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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However, with Berkshire's market cap exceeding $800 billion, is it still a good long-term investment for your portfolio? After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, and Snowflake.
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has one of the most impressive track records of any stock in history. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Matthew Frankel, CFP® has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, and Snowflake.
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10 stocks we like better than Berkshire Hathaway When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Matthew Frankel, CFP® has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, and Snowflake.
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That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Matthew Frankel, CFP® has positions in Berkshire Hathaway. Their opinions remain their own and are unaffected by The Motley Fool.
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12828.0
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2023-10-30 00:00:00 UTC
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Graphic pro-Israel ads make their way into children’s video games
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AAPL
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https://www.nasdaq.com/articles/graphic-pro-israel-ads-make-their-way-into-childrens-video-games
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By Raphael Satter, Katie Paul and Sheila Dang
Oct 30 (Reuters) - Maria Julia Cassis was sitting down to a meal in her terraced home in north London when her 6-year-old son ran into the dining room, his face pale.
The puzzle game on his Android phone had been interrupted by a video showing Hamas militants, terrified Israeli families and blurred graphic footage. Over a black screen, a message from the Israeli Ministry of Foreign Affairs told the first grader: "WE WILL MAKE SURE THAT THOSE WHO HARM US PAY A HEAVY PRICE."
Cassis, a 28-year-old barista from Brazil, said that the ad left her son shaken and she quickly deleted the game.
"He was shocked," she said in a telephone interview last week. "He literally said, 'What is this bloody ad doing in my game?'"
Reuters has not been able to establish how the ad came to Saranga's son's video game, but her family isn't alone. The news agency has documented at least five other cases across Europe where the same pro-Israel video, which carried footage of rocket attacks, a fiery explosion, and masked gunmen, was shown to gamers, including several children.
In at least one case, the ads were played inside the popular "Angry Birds" game made by SEGA-owned developer Rovio ROVIO.HE.
Rovio confirmed that "somehow these ads with disturbing content have in error made it through to our game" and were now being blocked manually. Spokesperson Lotta Backlund did not provide details on which of its "dozen or so ad partners" had supplied it with the ad.
Israeli Ministry of Foreign Affairs' head of digital, David Saranga, confirmed that the video was a government-promoted ad but said he had "no idea" how it ended up inside various games.
He said the footage was part of a larger advocacy drive by the Israeli Foreign Ministry, which has spent $1.5 million on internet ads since Hamas' Oct. 7 attack on civilians in southern Israel ignited war in Gaza. He said officials had specifically instructed advertisers "to block it for people under 18".
Saranga defended the graphic nature of the ad campaign.
"We want the world to understand that what happened here in Israel," he said. "It's a massacre."
Reuters contacted 43 advertising firms that Rovio listed on its website as "third-party data partners" to try to ascertain who placed the ad in the games.
Of those partners, 12 responded, including Amazon AMZN.O, Index Exchange and Pinterest PINS.N, and said they were not responsible for the ad appearing on Angry Birds.
Saranga said the ministry had spent money with ad companies including Taboola TBLA.O, Outbrain OB.O, Alphabet's GOOGL.O Google and X, formerly known as Twitter. Taboola and Outbrain said they had nothing to do with the gaming ads.
Google ran more than 90 ads for the foreign ministry but declined to comment on where it displayed those ads. X, formerly known as Twitter, didn't respond to requests for comment.
Reuters found no evidence of an analogous Palestinian digital advertising effort, save for a few Arabic-language videos promoted by West Bank-based Palestine TV, a news agency affiliated with the Palestinian Authority.
A representative from the Palestinian Authority's foreign ministry shared a statement saying the ministry was working to sway public opinion by sharing evidence of suffering in Gaza under the Israeli bombardment that followed the Oct. 7 attack, but did not say whether it was using advertising as a tool.
Representatives from Hamas, the Islamist movement that governs Gaza, did not respond to Reuters requests for comment about its media campaigns.
Reuters documented six cases – in Britain, France, Austria, Germany and Holland – where people had seen the same or similar ads as Cassis' son or said their children had seen them. In the Cassis family's case, the ads appeared in a game called "Alice's Mergeland" made by a developer called LazyDog Game. Other ads appeared on family-friendly digital pastimes such as the block-building game "Stack," puzzle game "Balls'n Ropes," "Solitaire: Card Game 2023," and run-and-jump adventure "Subway Surfers."
Alexandra Marginean, a 24-year-old intern living in Munich said she was surprised to see the pro-Israel video pop up in the middle of her game of Solitaire.
"I had a very aggressive reaction to it," Marginean said.
LazyDog Game did not respond to requests for comment. Stack's Ubisoft-owned UBIP.PA developer Ketchapp, Solitaire's Austrian developer nerByte, Balls'n Ropes' Turkish developer Rollic and Subway Surfers' Danish developer SYBO Games also did not return messages seeking comment on the ads.
Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers.
Rules on advertisements vary by country, but in Britain - where Cassis and her son live - it's the Advertising Standards Authority that monitors publicity campaigns. The authority said that while it was not currently investigating any ads from the Israeli government, in general any publicity with graphic imagery should be "carefully targeted away from under-18s."
(Reporting by Raphael Satter in Washington, Sheila Dang and Katie Paul in New York; Editing by Ken Li and Lisa Shumaker)
((Raphael.Satter@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. By Raphael Satter, Katie Paul and Sheila Dang Oct 30 (Reuters) - Maria Julia Cassis was sitting down to a meal in her terraced home in north London when her 6-year-old son ran into the dining room, his face pale. The news agency has documented at least five other cases across Europe where the same pro-Israel video, which carried footage of rocket attacks, a fiery explosion, and masked gunmen, was shown to gamers, including several children.
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. In the Cassis family's case, the ads appeared in a game called "Alice's Mergeland" made by a developer called LazyDog Game. Other ads appeared on family-friendly digital pastimes such as the block-building game "Stack," puzzle game "Balls'n Ropes," "Solitaire: Card Game 2023," and run-and-jump adventure "Subway Surfers."
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. In the Cassis family's case, the ads appeared in a game called "Alice's Mergeland" made by a developer called LazyDog Game. Other ads appeared on family-friendly digital pastimes such as the block-building game "Stack," puzzle game "Balls'n Ropes," "Solitaire: Card Game 2023," and run-and-jump adventure "Subway Surfers."
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. Israeli Ministry of Foreign Affairs' head of digital, David Saranga, confirmed that the video was a government-promoted ad but said he had "no idea" how it ended up inside various games. A representative from the Palestinian Authority's foreign ministry shared a statement saying the ministry was working to sway public opinion by sharing evidence of suffering in Gaza under the Israeli bombardment that followed the Oct. 7 attack, but did not say whether it was using advertising as a tool.
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12829.0
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2023-10-30 00:00:00 UTC
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Google CEO Sundar Pichai to testify in US antitrust trial
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AAPL
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https://www.nasdaq.com/articles/google-ceo-sundar-pichai-to-testify-in-us-antitrust-trial
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WASHINGTON, Oct 30 (Reuters) - Sundar Pichai, CEO of Alphabet Inc GOOGL.O and its subsidiary Google, will testify on Monday in the once-in-a generation antitrust fight with the U.S. government over Google's dominance of search and some parts of search advertising.
Pichai, who is being called as a witness for Google, will likely be asked about the company's investments aimed at keeping its online search engine dominant, especially as smartphones took over, and innovation in search advertising.
The government, in cross examination, will likely also ask why the company pays billions of dollars annually to ensure that Google search is the default in smartphones.
The government has argued that Google, which has some 90% of the search market, illegally paid an estimated $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default in search on their devices in order to stay on top. The clout in search makes Google a heavy hitter in the lucrative advertising market, its biggest revenue source.
Google has argued the revenue share agreements are legal and that it has invested heavily to keep its search and advertising businesses competitive. It has also argued that if people are dissatisfied with default search engines that they can, and do, switch to another search provider.
Why is the US suing Google for antitrust violations? https://www.reuters.com/legal/why-is-us-suing-google-antitrust-violations-2023-09-11/
(Reporting by Diane Bartz and Chris Sanders Editing by Marguerita Choy)
((Chris.Sanders@thomsonreuters.com; +1 202-558-8254; Reuters Messaging: chris.sanders.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The government has argued that Google, which has some 90% of the search market, illegally paid an estimated $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default in search on their devices in order to stay on top. The government, in cross examination, will likely also ask why the company pays billions of dollars annually to ensure that Google search is the default in smartphones. The clout in search makes Google a heavy hitter in the lucrative advertising market, its biggest revenue source.
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The government has argued that Google, which has some 90% of the search market, illegally paid an estimated $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default in search on their devices in order to stay on top. Pichai, who is being called as a witness for Google, will likely be asked about the company's investments aimed at keeping its online search engine dominant, especially as smartphones took over, and innovation in search advertising. The government, in cross examination, will likely also ask why the company pays billions of dollars annually to ensure that Google search is the default in smartphones.
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The government has argued that Google, which has some 90% of the search market, illegally paid an estimated $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default in search on their devices in order to stay on top. WASHINGTON, Oct 30 (Reuters) - Sundar Pichai, CEO of Alphabet Inc GOOGL.O and its subsidiary Google, will testify on Monday in the once-in-a generation antitrust fight with the U.S. government over Google's dominance of search and some parts of search advertising. Pichai, who is being called as a witness for Google, will likely be asked about the company's investments aimed at keeping its online search engine dominant, especially as smartphones took over, and innovation in search advertising.
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The government has argued that Google, which has some 90% of the search market, illegally paid an estimated $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default in search on their devices in order to stay on top. WASHINGTON, Oct 30 (Reuters) - Sundar Pichai, CEO of Alphabet Inc GOOGL.O and its subsidiary Google, will testify on Monday in the once-in-a generation antitrust fight with the U.S. government over Google's dominance of search and some parts of search advertising. Pichai, who is being called as a witness for Google, will likely be asked about the company's investments aimed at keeping its online search engine dominant, especially as smartphones took over, and innovation in search advertising.
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12830.0
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2023-10-30 00:00:00 UTC
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Nearly 70% of Warren Buffett's $326 Billion Portfolio Is Invested in These 9 Megacap Stocks
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https://www.nasdaq.com/articles/nearly-70-of-warren-buffetts-%24326-billion-portfolio-is-invested-in-these-9-megacap-stocks
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Warren Buffett thinks big. You don't amass a net worth of well over $100 billion without doing so.
It's not surprising that he has led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to put a lot of money into some of the biggest companies on the planet. Nearly 70% of Buffett's $326 billion Berkshire portfolio is invested in these nine megacap stocks.
1. Apple
Apple (NASDAQ: AAPL) ranks as Berkshire's biggest holding, by far, making up 47% of the conglomerate's total portfolio. It's also the biggest company in the world with a market cap of more than $2.6 trillion. Buffett loves the "stickiness" of the company's products, stating in a CNBC interview earlier this year that many customers wouldn't give up their iPhones forever even if offered $10,000.
2. Bank of America
Although Buffett isn't as big of a fan of bank stocks as he used to be, he still likes Bank of America (NYSE: BAC). BofA is his second-largest position, comprising roughly 8% of Berkshire's portfolio. Buffett bought even more shares of the big bank earlier this year. However, Bank of America is only a borderline megacap stock right now with its market cap hovering around the $200 billion threshold.
3. The Coca-Cola Company
Buffett has owned shares of The Coca-Cola Company (NYSE: KO) longer than any stock other than Berkshire itself. Coca-Cola still accounts for nearly 7% of Berkshire's portfolio. Its market cap of close to $240 billion is much larger than it was when Buffett first initiated a position in the stock way back in 1988.
4. Chevron
Buffett trimmed his stake in Chevron (NYSE: CVX) somewhat in the second quarter of 2023. However, the oil and gas giant still makes up 5.5% of Berkshire's portfolio. Chevron's market cap stands at $274 billion, its lowest level so far in 2023.
5. Visa
Economic moats rank among Buffett's favorite things to see in a stock. Visa's (NYSE: V) moat includes network effects (the more merchants and cardholders use its payment network, the more valuable it becomes). Berkshire owns nearly $2 billion worth of Visa stock, although that doesn't add up to even 1% of its overall portfolio. It's also only a fraction of a percentage of Visa's total market cap of more than $460 billion.
6. Mastercard
Take pretty much everything just said about Visa and apply it to Mastercard (NYSE: MA), too. The only differences are that Berkshire's stake in Mastercard is around $1.5 billion, and the payment processing company's market cap is around $340 billion.
7. Amazon
Buffett doesn't own a huge stake in Amazon (NASDAQ: AMZN) (only 0.4% of Berkshire's total portfolio), but the stock has been one of his biggest winners this year. The e-commerce and cloud services leader is also one of the biggest megacap stocks among his holdings with a market cap of more than $1.3 trillion.
8. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) used to be a much larger position for Berkshire. It's now one of the smallest holdings after Buffett exited much of his stake in the healthcare company several years ago. Still, Buffett hasn't completely thrown in the towel on J&J. Even after spinning off its consumer health unit, the company's market cap remains around $350 billion.
9. Procter & Gamble
Berkshire owns around $46 million worth of Procter & Gamble (NYSE: PG) shares, making it a tiny holding in the conglomerate's portfolio. However, P&G continues to be a monster in the consumer staples sector with a market cap of a little under $350 billion.
Buffett's best megacap stocks
What are Buffett's best megacap stocks? My answer varies based on your investing style.
For income investors, I'd go with Chevron. The energy company offers a dividend yield of nearly 4.2%. Chevron has also increased its dividend for 36 consecutive years.
Value investors' best pick of the group, in my view, is Bank of America. The big bank's shares trade at a forward earnings multiple of only 7.9. It also could appeal to income investors with a dividend yield of 3.8%.
I like Amazon for growth investors. Artificial intelligence (AI) should provide a massive tailwind for the company's AWS cloud services business. Amazon's profitability is also increasing nicely. This big stock could get much bigger over the next decade and beyond.
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 23, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Apple, Bank of America, Berkshire Hathaway, and Mastercard. The Motley Fool has positions in and recommends Amazon, Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends Chevron and Johnson & Johnson 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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Apple Apple (NASDAQ: AAPL) ranks as Berkshire's biggest holding, by far, making up 47% of the conglomerate's total portfolio. Buffett loves the "stickiness" of the company's products, stating in a CNBC interview earlier this year that many customers wouldn't give up their iPhones forever even if offered $10,000. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Apple Apple (NASDAQ: AAPL) ranks as Berkshire's biggest holding, by far, making up 47% of the conglomerate's total portfolio. Procter & Gamble Berkshire owns around $46 million worth of Procter & Gamble (NYSE: PG) shares, making it a tiny holding in the conglomerate's portfolio. The Motley Fool has positions in and recommends Amazon, Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa.
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Apple Apple (NASDAQ: AAPL) ranks as Berkshire's biggest holding, by far, making up 47% of the conglomerate's total portfolio. Bank of America Although Buffett isn't as big of a fan of bank stocks as he used to be, he still likes Bank of America (NYSE: BAC). The Coca-Cola Company Buffett has owned shares of The Coca-Cola Company (NYSE: KO) longer than any stock other than Berkshire itself.
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Apple Apple (NASDAQ: AAPL) ranks as Berkshire's biggest holding, by far, making up 47% of the conglomerate's total portfolio. Amazon Buffett doesn't own a huge stake in Amazon (NASDAQ: AMZN) (only 0.4% of Berkshire's total portfolio), but the stock has been one of his biggest winners this year. Buffett's best megacap stocks What are Buffett's best megacap stocks?
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12831.0
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2023-10-30 00:00:00 UTC
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Up 34% This Year, Will Apple Stock Rally Further Following Q4 Results?
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https://www.nasdaq.com/articles/up-34-this-year-will-apple-stock-rally-further-following-q4-results
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Apple (NASDAQ:AAPL) is expected to publish its Q4 FY’23 results in early November, reporting on a quarter that is likely to see Apple’s key computing products continue to see sluggish demand. We expect earnings to stand at about $1.32 per share, slightly ahead of consensus estimates. On the other hand, we expect revenues to come in at about $84.1 billion, marking a decline of about 6.5% versus last year and marginally below consensus estimates. So what are some of the trends that are likely to drive Apple’s results for the quarter?
Amidst the current financial backdrop, AAPL stock has shown strong gains of 35% from levels of $130 in early January 2021 to around $175 now, vs. an increase of about 10% for the S&P 500 over this roughly 3-year period. However, the increase in AAPL stock has been far from consistent. Returns for the stock were 35% in 2021, -26% in 2022, and 34% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 10% in 2023 (YTD) – indicating that AAPL underperformed the S&P in 2022. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for other heavyweights in the Information Technology sector including MSFT, NVDA, and AVGO, and even for the megacap stars GOOG, TSLA, and AMZN. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could AAPL face a similar situation as it did in 2022 and underperform the S&P over the next 12 months – or will it see a strong jump?
Overall, we expect sales of products such as the Mac and iPad to also decline year-over-year, as the remote working trend eases and the broader PC and tablet markets cool. For example, Gartner indicated that global PC shipments fell by 9% in Q3, while Apple’s Mac shipments fell by an estimated 24%. However, sales of the iPhone could prove a bit more resilient, given the traction that Apple is seeing in markets such as India, Indonesia, and Turkey where installment plans and trade-in programs are helping drive demand. While Apple released its latest iPhone 15 smartphones toward the end of the quarter, we do not expect to see a meaningful impact from the new devices, which remained on sale for just a little over a week during the quarter. Apple’s digital services business should partly help Apple ride out the lull in its hardware business driven by higher sales at the AppStore and improving the uptake of other subscription services. However, growth rates are likely to remain below the levels seen last year. For example, over the first 9 months of this fiscal year, services sales expanded by about 9%. We also expect that Apple’s gross margins will hold up, driven by a higher mix of service sales, a more favorable sales mix skewed toward premium products, and also due to some cost savings. Over Q3 2023, gross margins stood at 44.5%, up from 43% in the year-ago quarter.
While Apple stock could move higher if it beats earnings, we believe that the stock is slightly overvalued at current levels of about $173 per share. Apple stock currently trades at over 30x 2023 earnings, which is high relative to historical levels. Moreover, Apple’s earnings are poised to contract this year per consensus estimates, with revenue growth projected to remain slow over the next year as well. We value Apple at about $168 per share, about 3% below the market price. See our analysis of Apple Valuation for more details on what’s driving our price estimate for Apple and how it compares with peers.
Returns Oct 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return 1% 34% 541%
S&P 500 Return -2% 10% 88%
Trefis Reinforced Value Portfolio -3% 19% 514%
[1] Month-to-date and year-to-date as of 10/24/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could AAPL face a similar situation as it did in 2022 and underperform the S&P over the next 12 months – or will it see a strong jump? Apple (NASDAQ:AAPL) is expected to publish its Q4 FY’23 results in early November, reporting on a quarter that is likely to see Apple’s key computing products continue to see sluggish demand. Amidst the current financial backdrop, AAPL stock has shown strong gains of 35% from levels of $130 in early January 2021 to around $175 now, vs. an increase of about 10% for the S&P 500 over this roughly 3-year period.
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Total [2] AAPL Return 1% 34% 541% S&P 500 Return -2% 10% 88% Trefis Reinforced Value Portfolio -3% 19% 514% [1] Month-to-date and year-to-date as of 10/24/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) is expected to publish its Q4 FY’23 results in early November, reporting on a quarter that is likely to see Apple’s key computing products continue to see sluggish demand. Amidst the current financial backdrop, AAPL stock has shown strong gains of 35% from levels of $130 in early January 2021 to around $175 now, vs. an increase of about 10% for the S&P 500 over this roughly 3-year period.
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Apple (NASDAQ:AAPL) is expected to publish its Q4 FY’23 results in early November, reporting on a quarter that is likely to see Apple’s key computing products continue to see sluggish demand. Total [2] AAPL Return 1% 34% 541% S&P 500 Return -2% 10% 88% Trefis Reinforced Value Portfolio -3% 19% 514% [1] Month-to-date and year-to-date as of 10/24/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Amidst the current financial backdrop, AAPL stock has shown strong gains of 35% from levels of $130 in early January 2021 to around $175 now, vs. an increase of about 10% for the S&P 500 over this roughly 3-year period.
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Total [2] AAPL Return 1% 34% 541% S&P 500 Return -2% 10% 88% Trefis Reinforced Value Portfolio -3% 19% 514% [1] Month-to-date and year-to-date as of 10/24/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Apple (NASDAQ:AAPL) is expected to publish its Q4 FY’23 results in early November, reporting on a quarter that is likely to see Apple’s key computing products continue to see sluggish demand. Amidst the current financial backdrop, AAPL stock has shown strong gains of 35% from levels of $130 in early January 2021 to around $175 now, vs. an increase of about 10% for the S&P 500 over this roughly 3-year period.
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12832.0
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2023-10-30 00:00:00 UTC
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Oil down 1% ahead of U.S., China data
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AAPL
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https://www.nasdaq.com/articles/oil-down-1-ahead-of-u.s.-china-data
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nan
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nan
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By Mohi Narayan and Florence Tan
SINGAPORE, Oct 30 (Reuters) - Oil prices slipped more than 1% on Monday as investors adopted caution ahead of a U.S. Federal Reserve policy meeting and China's manufacturing data due this week, offsetting support from tension in the Middle East.
Brent crude futures LCOc1 dropped 1.6%, or $1.11, to $89.37 a barrel by 0350 GMT, while U.S. West Texas Intermediate crude CLc1 was down 1.2%, or $1.34, at $84.20 a barrel.
"Despite an escalation in the Hamas-Israel war, the ground invasion was widely expected," said CMC Markets analyst Tina Teng.
"The weekend playout signals no further expansion into a wider regional war, which caused a retreat in oil prices."
Both Brent and WTI had ended Friday up 3% after Israel stepped up ground incursions into Gaza, stoking worries that the conflict could widen in a region that accounts for a third of global oil production.
Investors are watching for the outcome of Wednesday's U.S. Fed meeting, U.S. jobs data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could affect fuel demand in the world's top oil consumer.
The Fed is widely expected to keep interest rates unchanged, however, while the central banks of Britain and Japan are also set to review their policies.
China will report its October manufacturing and services PMIs this week, with investors looking out for more signs that the economy of the world's top crude importer is stabilising and fuel demand is improving after supportive measures by Beijing.
As developments in the Middle East keep investors on edge and prices volatile, Brent and WTI fell on the week last week, for the first time in three.
"But the weekend showed the armed conflict remains limited to Israel and Gaza," said Vandana Hari, founder of oil market analysis provider Vanda Insights. "In that light, crude looks overbought. I expect it to continue sliding."
On Monday, Palestinians in northern Gaza reported fierce air and artillery strikes as Israeli troops backed by tanks pressed into the enclave with a ground assault that spurred more international calls to protect civilians.
(Reporting by Florence Tan; Editing by Clarence Fernandez)
((Florence.Tan@thomsonreuters.com; Reuters Messaging: florence.tan.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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Investors are watching for the outcome of Wednesday's U.S. Fed meeting, U.S. jobs data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could affect fuel demand in the world's top oil consumer. By Mohi Narayan and Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped more than 1% on Monday as investors adopted caution ahead of a U.S. Federal Reserve policy meeting and China's manufacturing data due this week, offsetting support from tension in the Middle East. On Monday, Palestinians in northern Gaza reported fierce air and artillery strikes as Israeli troops backed by tanks pressed into the enclave with a ground assault that spurred more international calls to protect civilians.
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Investors are watching for the outcome of Wednesday's U.S. Fed meeting, U.S. jobs data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could affect fuel demand in the world's top oil consumer. By Mohi Narayan and Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped more than 1% on Monday as investors adopted caution ahead of a U.S. Federal Reserve policy meeting and China's manufacturing data due this week, offsetting support from tension in the Middle East. As developments in the Middle East keep investors on edge and prices volatile, Brent and WTI fell on the week last week, for the first time in three.
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Investors are watching for the outcome of Wednesday's U.S. Fed meeting, U.S. jobs data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could affect fuel demand in the world's top oil consumer. By Mohi Narayan and Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped more than 1% on Monday as investors adopted caution ahead of a U.S. Federal Reserve policy meeting and China's manufacturing data due this week, offsetting support from tension in the Middle East. China will report its October manufacturing and services PMIs this week, with investors looking out for more signs that the economy of the world's top crude importer is stabilising and fuel demand is improving after supportive measures by Beijing.
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Investors are watching for the outcome of Wednesday's U.S. Fed meeting, U.S. jobs data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could affect fuel demand in the world's top oil consumer. By Mohi Narayan and Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped more than 1% on Monday as investors adopted caution ahead of a U.S. Federal Reserve policy meeting and China's manufacturing data due this week, offsetting support from tension in the Middle East. Brent crude futures LCOc1 dropped 1.6%, or $1.11, to $89.37 a barrel by 0350 GMT, while U.S. West Texas Intermediate crude CLc1 was down 1.2%, or $1.34, at $84.20 a barrel.
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12833.0
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2023-10-30 00:00:00 UTC
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Oppenheimer Maintains Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/oppenheimer-maintains-apple-aapl-outperform-recommendation
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nan
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nan
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Fintel reports that on October 30, 2023, Oppenheimer maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 21.01% Upside
As of October 5, 2023, the average one-year price target for Apple is 203.55. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 21.01% from its latest reported closing price of 168.22.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 436,698MM, an increase of 13.74%. The projected annual non-GAAP EPS is 6.93.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6451 funds or institutions reporting positions in Apple. This is an increase of 60 owner(s) or 0.94% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. Total shares owned by institutions increased in the last three months by 0.33% to 9,938,356K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 6.04% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on October 30, 2023, Oppenheimer maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Oppenheimer maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Oppenheimer maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Oppenheimer maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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12834.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Wall St eyes higher open as investors await Fed rate verdict, more earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-as-investors-await-fed-rate-verdict-more-earnings
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nan
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nan
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By Amruta Khandekar and Shashwat Chauhan
Oct 30 (Reuters) - Wall Street was poised for a higher open on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict.
Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave.
However, the clashes had little impact on U.S. equity markets, with megacap names such as Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O up between 0.9% and 1.1% in premarket trading.
"On Friday going into this ground offensive, investors were really risk averse. So now because the offensive is not as big as everyone expected, on the margin this is good news for markets," said Anthi Tsouvali, multi-asset strategist at State Street Global Markets.
Geopolitical concerns as well as a surge in Treasury yields have weighed on U.S. equities this month, dragging the benchmark S&P 500 .SPX down over 10% from its intraday high in July.
On Monday, the yield on the ten-year note US10YT=RR was at 4.90% after having breached the 5% level earlier this month.
Adding to bond market worries, the U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit. A subsequent rise in yields may further pressure stocks.
The Fed is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's FedWatch tool.
However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
The October non-farm payrolls report due on Friday will be amongst the latest tests of the resilience of the world's largest economy.
The Bank of England and the Bank of Japan would also be announcing their verdict on rates later in the week.
On the earnings front, McDonald'sMCD.Nrose 2.7% after beating estimates for third-quarter profit and sales.
Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week.
Of the 245 companies in the S&P 500 that have reported earnings so far, 77.6% have beaten earnings estimates, as per the latest LSEG data.
At 8:27 a.m. ET, Dow e-minis 1YMcv1 were up 180 points, or 0.55%, S&P 500 e-minis EScv1 were up 23.75 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were up 99 points, or 0.69%.
Shares of Western Digital CorpWDC.Ojumped 12% as the memory chipmaker disclosed plans to separate itself into two independent public companies, while Revvity Inc RVTY.Nshed 9.9% on cutting its full-year forecast.
SoFi TechnologiesSOFI.Ogained 8.4% after the company's loss narrowed in the third quarter.
S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street was poised for a higher open on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street was poised for a higher open on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq (Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street was poised for a higher open on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. Adding to bond market worries, the U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street was poised for a higher open on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
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12835.0
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2023-10-30 00:00:00 UTC
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GLOBAL MARKETS-Stocks gain, oil falls, traders focus on rates outlook
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-gain-oil-falls-traders-focus-on-rates-outlook
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nan
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nan
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By Elizabeth Howcroft
LONDON, Oct 30 (Reuters) - European stock indexes rose on Monday as investors focused on the outlook for interest rates ahead of a busy week of central bank meetings and economic data.
Investors are waiting for the outcome of meetings at the Bank of Japan (BOJ) on Tuesday, the U.S. Federal Reserve on Wednesday and the Bank of England (BoE) on Thursday, as well as Chinese manufacturing data on Tuesday and key U.S. jobs data on Friday, all of which will be scrutinised for any clues that central banks have raised interest rates sufficiently to combat inflation and can look towards easing monetary policy again.
The earnings season also continues with Apple, Airbnb, McDonald's, Moderna and Eli Lilly & Co among the many reporting this week. Results so far have been underwhelming, contributing to the S&P 500's retreat into correction territory .SPX.
At 1152 GMT, the MSCI World Equity Index was little changed, up 0.1% on the day but still near its lowest since late March .MIWD00000PUS.
Stocks were subdued in the Asian session, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 0.3%, having hit a one-year low last week.
Europe's STOXX 600 was up 0.8% .STOXX and London's FTSE 100 was also 0.8% higher .FTSE.
U.S. stock futures were up, suggesting the market gains were set to continue in Wall Street NQcv1, EScv1.
The market is looking for "confirmation of the peak rate policy by central banks and any indication that might lead to thinking that perhaps central banks will be in a position to cut (rates) by the middle of next year," said Samy Chaar, chief economist at Lombard Odier.
Japan's Nikkei .N225 fell 0.95% amid speculation the BOJ might tweak its yield curve control policy when its two-day policy meeting wraps up on Tuesday.
Many analysts expect the central bank will lift its inflation forecast to 2%, but are unsure whether it will finally abandon yield curve control in the face of market pressure on bonds. Yields are already at their highest since 2013 at 0.89% JP10YT=RR.
In the euro zone, government bond yields were lower, with the benchmark 10-year German yield down 1 basis point at 2.822% DE10YT=RR.
Investors are betting that rates in the region will stay persistently high, although new data showed inflation in Germany is falling.
Yields on 10-year Treasuries US10YT=RR stood at 4.8857%, having climbed around 31 basis points this month. Sentiment will be tested further this week when the U.S. Treasury announces its refunding plans, with more increases likely.
The sharp rise in market borrowing costs has convinced analysts and markets the Federal Reserve will stand pat at its policy meeting this week. FEDWATCH
The U.S. dollar index was down around 0.1% at 106.450 =USD, and the euro was up 0.2% on the day at $1.05825 EUR=EBS.
The dollar was flat against the yen at 149.775 JPY=EBS, below last week's top of 150.78.
Risk appetite was dulled to some extent by Israel's push to surround Gaza's main city in a self-declared "second phase" of a three-week war against Iranian-backed Hamas militants. But analysts said this was just one of a number of factors affecting sentiment.
"It’s easy to blame last week’s declines in equity markets on the unpredictable nature of events unfolding in the Middle East, and while that is part of it, we also saw disappointment on several fronts over poor company updates, and downgrades to guidance which saw some outsized moves lower," Michael Hewson, chief market analyst at CMC Markets UK, wrote in a client note.
Lombard Odier’s Chaar said that investors would be watching for whether the conflict escalates beyond the region and whether or not it disrupts oil markets.
"If the conflict remains localised and global oil supply is unaffected, basically the market is going to remain much more focused on what happens with rates and what happens with central banks, and what happens with global growth and inflation," he said.
But, he added, there is some premium on gold, which touched a five-month high of $2,009.29 on Friday XAU=. GOL/
Oil prices fell by more than 1% as worries about demand outweighed risks to Middle East supplies. O/R
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
the race to raise rates https://tmsnrt.rs/45KHoZJ
(Reporting by Elizabeth Howcroft Additional reporting by Wayne Cole in Sydney Editing by Mark Potter)
((Elizabeth.Howcroft@thomsonreuters.com; +44 02075427104;))
The views and 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 Elizabeth Howcroft LONDON, Oct 30 (Reuters) - European stock indexes rose on Monday as investors focused on the outlook for interest rates ahead of a busy week of central bank meetings and economic data. Many analysts expect the central bank will lift its inflation forecast to 2%, but are unsure whether it will finally abandon yield curve control in the face of market pressure on bonds. Risk appetite was dulled to some extent by Israel's push to surround Gaza's main city in a self-declared "second phase" of a three-week war against Iranian-backed Hamas militants.
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Investors are waiting for the outcome of meetings at the Bank of Japan (BOJ) on Tuesday, the U.S. Federal Reserve on Wednesday and the Bank of England (BoE) on Thursday, as well as Chinese manufacturing data on Tuesday and key U.S. jobs data on Friday, all of which will be scrutinised for any clues that central banks have raised interest rates sufficiently to combat inflation and can look towards easing monetary policy again. Japan's Nikkei .N225 fell 0.95% amid speculation the BOJ might tweak its yield curve control policy when its two-day policy meeting wraps up on Tuesday. O/R Asia stock markets https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA the race to raise rates https://tmsnrt.rs/45KHoZJ (Reporting by Elizabeth Howcroft Additional reporting by Wayne Cole in Sydney Editing by Mark Potter) ((Elizabeth.Howcroft@thomsonreuters.com; +44 02075427104;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors are waiting for the outcome of meetings at the Bank of Japan (BOJ) on Tuesday, the U.S. Federal Reserve on Wednesday and the Bank of England (BoE) on Thursday, as well as Chinese manufacturing data on Tuesday and key U.S. jobs data on Friday, all of which will be scrutinised for any clues that central banks have raised interest rates sufficiently to combat inflation and can look towards easing monetary policy again. The market is looking for "confirmation of the peak rate policy by central banks and any indication that might lead to thinking that perhaps central banks will be in a position to cut (rates) by the middle of next year," said Samy Chaar, chief economist at Lombard Odier. "It’s easy to blame last week’s declines in equity markets on the unpredictable nature of events unfolding in the Middle East, and while that is part of it, we also saw disappointment on several fronts over poor company updates, and downgrades to guidance which saw some outsized moves lower," Michael Hewson, chief market analyst at CMC Markets UK, wrote in a client note.
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Investors are waiting for the outcome of meetings at the Bank of Japan (BOJ) on Tuesday, the U.S. Federal Reserve on Wednesday and the Bank of England (BoE) on Thursday, as well as Chinese manufacturing data on Tuesday and key U.S. jobs data on Friday, all of which will be scrutinised for any clues that central banks have raised interest rates sufficiently to combat inflation and can look towards easing monetary policy again. In the euro zone, government bond yields were lower, with the benchmark 10-year German yield down 1 basis point at 2.822% DE10YT=RR. "If the conflict remains localised and global oil supply is unaffected, basically the market is going to remain much more focused on what happens with rates and what happens with central banks, and what happens with global growth and inflation," he said.
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12836.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Wall Street ends sharply higher, powered by earnings momentum; Fed eyed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-sharply-higher-powered-by-earnings-momentum-fed-eyed
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nan
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nan
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By Stephen Culp
NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting.
All three major U.S. stock indexes closed up more than 1%, bouncing back from the previous week's sell-off. Interest rate sensitive megacap stocks provided the most upside muscle.
"Today is an earnings rebound," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. "The market got oversold, and the reality is that earnings have been pretty good, the U.S. economy continues to chug along, and is likely to do so in the fourth quarter and into the first part of next year."
Third-quarter earnings season, firing on all cylinders, has reached its halfway point, with 251 of the companies in the S&P 500 having reported. Of those, 78% have beaten Wall Street estimates, according to LSEG.
Analysts now expect, on aggregate, annual third quarter S&P 500 earnings growth of 4.3%, a marked improvement over the 1.6% year-on-year growth seen at the beginning of October.
Investors have shown “less pessimism," Pursche added. "First- and second-quarter calls had a more negative tone. There was anxiety over interest rates, Fed policy, the recession that never came."
In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results.
On Tuesday, the Federal Open Markets Committee (FOMC) is expected to convene for a two-day monetary policy meeting, which is expected to culminate in a decision to let the Fed funds target rate stand at 5.25%-5.50%.
Investors will scrutinize the accompanying statement and Fed Chair Jerome Powell's subsequent Q&A session for clues regarding the central bank's path forward with rates.
"The Fed wants to see the cumulative effects of their rate hikes on the economy but they’ve also said they’re prepared to over-shoot in an abundance of caution, as long as inflation is above 3%," Pursche said.
The Bank of England and the Bank of Japan would also be announcing rate decisions this week, with the latter set to consider a further adjustment to its yield curve control (YCC) framework, according to a Nikkei report.
Closely watched economic data is on tap this week, culminating in the U.S. Labor Department's October employment report due on Friday.
Geopolitical strife arising from the Israel-Hamas conflict as well as a surge in Treasury yields have weighed on stocks in recent weeks, dragging the benchmark S&P 500 .SPX down about 10% from its intraday high in July.
According to preliminary data, the S&P 500 .SPX gained 49.19 points, or 1.19%, to end at 4,166.56 points, while the Nasdaq Composite .IXIC gained 143.74 points, or 1.14%, to 12,786.75. The Dow Jones Industrial Average .DJI rose 512.02 points, or 1.58%, to 32,927.51.
McDonald's MCD.Nreported better than expected quarterly results, driven by demand for its more affordable food as consumers contend with inflation.
Onsemi ON.O tumbled after the chipmaker forecast weak fourth-quarter revenue on slowing demand for electric vehicles.
Western Digital Corp WDC.O jumped after the company disclosed plans to separate itself into two independent public companies.
Realty Income O.N slid following its announcement that it would by Spirit Realty Capital SRC.N in an all-stock deal valued at $9.3 billion. Spirit Realty Capital shares jumped.
S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by David Gregorio)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting. Investors will scrutinize the accompanying statement and Fed Chair Jerome Powell's subsequent Q&A session for clues regarding the central bank's path forward with rates.
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In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting. There was anxiety over interest rates, Fed policy, the recession that never came."
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In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting. On Tuesday, the Federal Open Markets Committee (FOMC) is expected to convene for a two-day monetary policy meeting, which is expected to culminate in a decision to let the Fed funds target rate stand at 5.25%-5.50%.
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In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting. There was anxiety over interest rates, Fed policy, the recession that never came."
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12837.0
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2023-10-30 00:00:00 UTC
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Apple expected to unveil new Macs as PC industry slump eases
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AAPL
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https://www.nasdaq.com/articles/apple-expected-to-unveil-new-macs-as-pc-industry-slump-eases
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nan
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nan
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By Stephen Nellis
Oct 30 (Reuters) - Apple AAPL.O is expected to unveil at an event on Monday new Mac computers and possibly a new chip to power them as it gears up for a fresh bout of competition against Windows-based PCs with better battery life starting next year, analysts said.
The event, to be livestreamed at 8 p.m. ET (0000 GMT Tuesday), comes as Apple has seen a revitalization in its Mac business, roughly doubling its market share to nearly 11% since 2020 when it parted ways with Intel INTC.O and started using its own custom-designed chips as the brains of the machines, according to preliminary data from IDC. The event could include laptops and desktops.
Apple's custom chips, which use technology from Arm Holdings O9Ty.F, ARM.O, have given its Macs better battery life and, for some tasks, better performance than machines using Microsoft's MSFT.O Windows operating system.
Apple's shakeup of the market has spurred Qualcomm QCOM.O to redouble its efforts to make Arm-based chips for Windows, and last week it said it plans to release a chip that is both faster and more energy efficient than some Apple offerings. Reuters last week reported that Nvidia also plans to jump into the PC market as early as 2025.
"The good thing here is, it feels like there's a competitive environment again on PC and Mac chips," said Ben Bajarin, CEO and principal analyst at Creative Strategies, who added that computer makers are racing to offer machines that can carry out artificial intelligence tasks like generating text and images.
At Apple, the Mac hit $40.18 billion in revenue for its fiscal 2022, or about 11% of its revenue. While that was up 14% from the previous fiscal year, sales this year have slowed along with the rest of the PC industry, which has suffered a post-pandemic slump.
Bajarin and other analysts expect Apple to debut on Monday a new chip called the M3, possibly with a few variants for higher performance. But it remains unclear how many models Apple will put the new chip into.
Analysts expect the M3 will be made with 3-nanometer manufacturing technology at Taiwan Semiconductor Manufacturing Co 2330.TW, which uses the same technology to make chips for the top-end iPhone 15 models.
Bajarin said he thinks that supply constraints will lead Apple to focus on higher-end Mac models used by large businesses.
"Most likely, more than 50% of their user base is still Intel-based Macs" and especially so among business users, Bajarin said. "Everything will be oriented at getting that Intel base to upgrade."
(Reporting by Stephen Nellis in San Francisco Editing by Marguerita Choy)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Oct 30 (Reuters) - Apple AAPL.O is expected to unveil at an event on Monday new Mac computers and possibly a new chip to power them as it gears up for a fresh bout of competition against Windows-based PCs with better battery life starting next year, analysts said. ET (0000 GMT Tuesday), comes as Apple has seen a revitalization in its Mac business, roughly doubling its market share to nearly 11% since 2020 when it parted ways with Intel INTC.O and started using its own custom-designed chips as the brains of the machines, according to preliminary data from IDC. "The good thing here is, it feels like there's a competitive environment again on PC and Mac chips," said Ben Bajarin, CEO and principal analyst at Creative Strategies, who added that computer makers are racing to offer machines that can carry out artificial intelligence tasks like generating text and images.
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By Stephen Nellis Oct 30 (Reuters) - Apple AAPL.O is expected to unveil at an event on Monday new Mac computers and possibly a new chip to power them as it gears up for a fresh bout of competition against Windows-based PCs with better battery life starting next year, analysts said. Apple's custom chips, which use technology from Arm Holdings O9Ty.F, ARM.O, have given its Macs better battery life and, for some tasks, better performance than machines using Microsoft's MSFT.O Windows operating system. Bajarin and other analysts expect Apple to debut on Monday a new chip called the M3, possibly with a few variants for higher performance.
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By Stephen Nellis Oct 30 (Reuters) - Apple AAPL.O is expected to unveil at an event on Monday new Mac computers and possibly a new chip to power them as it gears up for a fresh bout of competition against Windows-based PCs with better battery life starting next year, analysts said. ET (0000 GMT Tuesday), comes as Apple has seen a revitalization in its Mac business, roughly doubling its market share to nearly 11% since 2020 when it parted ways with Intel INTC.O and started using its own custom-designed chips as the brains of the machines, according to preliminary data from IDC. Apple's shakeup of the market has spurred Qualcomm QCOM.O to redouble its efforts to make Arm-based chips for Windows, and last week it said it plans to release a chip that is both faster and more energy efficient than some Apple offerings.
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By Stephen Nellis Oct 30 (Reuters) - Apple AAPL.O is expected to unveil at an event on Monday new Mac computers and possibly a new chip to power them as it gears up for a fresh bout of competition against Windows-based PCs with better battery life starting next year, analysts said. Apple's custom chips, which use technology from Arm Holdings O9Ty.F, ARM.O, have given its Macs better battery life and, for some tasks, better performance than machines using Microsoft's MSFT.O Windows operating system. "Most likely, more than 50% of their user base is still Intel-based Macs" and especially so among business users, Bajarin said.
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12838.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Wall St rises on megacap boost ahead of Fed rate verdict
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-megacap-boost-ahead-of-fed-rate-verdict
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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.
McDonald's rises after beating Q3 estimates
Western Digital jumps on plan to separate into two cos
Onsemi slips on dour Q4 rev forecast
Fed meet, jobs data in focus this week
Indexes up: Dow 0.88%, S&P 1.00%, Nasdaq 1.23%
Updated at 9:38 a.m. ET/1338 GMT
By Amruta Khandekar and Shashwat Chauhan
Oct 30 (Reuters) - Wall Street's main stock indexes on Monday were boosted by gains in megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve.
Major technology and growth names such as Nvidia NVDA.O, Amazon.com AMZN.O, Meta Platforms META.O, Alphabet GOOGL.O and Tesla TSLA.O were up between 1.3% and nearly 3%.
The gains made communication services .SPLRCL and consumer discretionary .SPLRCD the top gainers among major S&P 500 sub-indexes, up around 1.5% each, while the technology .SPLRCT sector rose about 1%.
Aiding gains, McDonald'sMCD.Nrose 0.7% after beating estimates for third-quarter profit and sales.
OnsemiON.O sank 14.5% after the chipmaker forecast fourth-quarter revenue and profit below estimates.
Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week.
The Fed is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's FedWatch tool.
However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
The October non-farm payrolls report due on Friday will be amongst the latest tests of the resilience of the world's largest economy.
The Bank of England and the Bank of Japan would also be announcing their verdict on rates later in the week.
In the Middle East, Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave.
"On Friday going into this ground offensive, investors were really risk averse. So now because the offensive is not as big as everyone expected, on the margin this is good news for markets," said Anthi Tsouvali, multi-asset strategist at State Street Global Markets.
Geopolitical concerns as well as a surge in Treasury yields have weighed on U.S. equities this month, dragging the benchmark S&P 500 .SPXaround 10% from its intraday high in July.
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJI was up 285.36 points, or 0.88%, at 32,702.95, the S&P 500 .SPX was up 41.00 points, or 1.00%, at 4,158.37, and the Nasdaq Composite .IXIC was up 155.87 points, or 1.23%, at 12,798.88.
Meanwhile, the U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit. A subsequent rise in yields may further pressure stocks.
Western Digital CorpWDC.Ojumped 8.1% as the memory chipmaker disclosed plans to separate itself into two independent public companies, while Revvity Inc RVTY.Nshed 15.1% on cutting its full-year forecast.
Advancing issues outnumbered decliners by a 5.45-to-1 ratio on the NYSE and by a 2.95-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 12 new lows, while the Nasdaq recorded eight new highs and 79 new lows.
S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 1.00%, Nasdaq 1.23% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main stock indexes on Monday were boosted by gains in megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve. However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 1.00%, Nasdaq 1.23% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main stock indexes on Monday were boosted by gains in megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve. S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq (Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 1.00%, Nasdaq 1.23% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main stock indexes on Monday were boosted by gains in megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve. The S&P index recorded no new 52-week high and 12 new lows, while the Nasdaq recorded eight new highs and 79 new lows.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 1.00%, Nasdaq 1.23% Updated at 9:38 a.m. ET/1338 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main stock indexes on Monday were boosted by gains in megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve. However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
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12839.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Wall St gains on megacap boost ahead of Fed rate verdict
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-on-megacap-boost-ahead-of-fed-rate-verdict
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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.
McDonald's rises after beating Q3 estimates
Western Digital jumps on plan to separate into two cos
Onsemi slips on dour Q4 rev forecast
Fed meet, jobs data in focus this week
Indexes up: Dow 0.88%, S&P 0.50%, Nasdaq 0.56%
Updated at 11:28 a.m. ET/1528 GMT
By Amruta Khandekar and Shashwat Chauhan
Oct 30 (Reuters) - Wall Street's main indexes rose on Monday, boosted by megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks, including the Federal Reserve.
Amazon.com AMZN.O, Alphabet GOOGL.O, Microsoft MSFT.O and Meta Platforms META.O, which reported earnings last week, rose between 1% and 2.6%.
The communication services .SPLRCL index jumped 1.8%, leading the advance among major S&P 500 sectors.
Aiding gains, McDonald'sMCD.Nrose 1.8% after beating estimates for third-quarter profit and sales.
"Last week, it (the market) was so down because the earnings especially on those big tech companies were not as good as expected," said Joe Saluzzi, partner and co-founder at Themis Trading in Chatham, New Jersey.
"In lack of any negative news, they (markets) decided to finally bounce."
Analysts now expect aggregate annual S&P earnings growth of 4.3%, bigger than the 1.6% increase seen at the beginning of October, according to LSEG data.
Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week.
The Fed is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's FedWatch tool, but concerns linger that interest rates could stay higher for longer in the face of a resilient U.S. economy.
The October non-farm payrolls report due on Friday will provide further cues on the interest rate path.
The Bank of England and the Bank of Japan would also be announcing rate decisions this week, with the latter set to consider a further adjustment to its yield curve control (YCC) framework, per a Nikkei report.
Meanwhile, Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday.
"Because the offensive is not as big as everyone expected, on the margin this is good news for markets," said Anthi Tsouvali, multi-asset strategist at State Street Global Markets.
Geopolitical concerns as well as a surge in Treasury yields have dragged the benchmark S&P 500 .SPXaround 10% from its intraday high in July.
At 11:28 a.m. ET, the Dow Jones Industrial Average .DJI was up 286.36 points, or 0.88%, at 32,703.95, the S&P 500 .SPX was up 20.47 points, or 0.50%, at 4,137.84, and the Nasdaq Composite .IXIC was up 71.25 points, or 0.56%, at 12,714.26.
The U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit.
Among other major movers,Western Digital CorpWDC.Ojumped 6.7% as the memory chipmaker disclosed plans to separate itself into two independent public companies.
OnsemiON.Osank 18.5% on a downbeat fourth-quarter forecast.
Advancing issues outnumbered decliners by a 1.62-to-1 ratio on the NYSE and by a 1.37-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 44 new lows, while the Nasdaq recorded 10 new highs and 262 new lows.
S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 0.50%, Nasdaq 0.56% Updated at 11:28 a.m. ET/1528 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main indexes rose on Monday, boosted by megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks, including the Federal Reserve. "Last week, it (the market) was so down because the earnings especially on those big tech companies were not as good as expected," said Joe Saluzzi, partner and co-founder at Themis Trading in Chatham, New Jersey.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 0.50%, Nasdaq 0.56% Updated at 11:28 a.m. ET/1528 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main indexes rose on Monday, boosted by megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks, including the Federal Reserve. S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq (Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 0.50%, Nasdaq 0.56% Updated at 11:28 a.m. ET/1528 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main indexes rose on Monday, boosted by megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks, including the Federal Reserve. "Last week, it (the market) was so down because the earnings especially on those big tech companies were not as good as expected," said Joe Saluzzi, partner and co-founder at Themis Trading in Chatham, New Jersey.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 0.88%, S&P 0.50%, Nasdaq 0.56% Updated at 11:28 a.m. ET/1528 GMT By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Wall Street's main indexes rose on Monday, boosted by megacap growth stocks ahead of a busy week of earnings and interest rate decisions from major central banks, including the Federal Reserve. The Fed is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's FedWatch tool, but concerns linger that interest rates could stay higher for longer in the face of a resilient U.S. economy.
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12840.0
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2023-10-30 00:00:00 UTC
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Apple Unveils Three M3 Chips, New MacBook Pros And IMacs
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AAPL
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https://www.nasdaq.com/articles/apple-unveils-three-m3-chips-new-macbook-pros-and-imacs
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nan
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nan
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(RTTNews) - Apple Inc. unveiled three M3 chips, new MacBook Pros and iMacs. Customers can order the new MacBook Pro and the iMac desktop computer starting today, with availability beginning November 7. The 14-inch MacBook Pro with M3 starts at $1,599. The 24-inch iMac desktop computer with M3 now starts at $1,299, the Cupertino, California-based company said in a statement on Monday.
Apple unveiled M3, M3 Pro, and M3 Max, the most advanced chips ever built for a personal computer. The industry's first 3-nanometer chips for a personal computer debut a next-generation GPU architecture and deliver dramatic performance improvements, a faster CPU and Neural Engine, and support for more unified memory, the company said.
The Tech giant said that the power-efficient performance of M3, M3 Pro, and M3 Max helps the new MacBook Pro and iMac meet the company's high standards for energy efficiency, and helps the new MacBook Pro achieve the longest battery life ever in a Mac — up to 22 hours.
Apple is carbon neutral for global corporate operations, and by 2030, plans to have net-zero climate impact across the entire business, which includes the entire manufacturing supply chains and life cycle of every product.
In a separate press release, Apple announced a new MacBook Pro lineup featuring the all-new family of M3 chips: M3, M3 Pro, and M3 Max.
All MacBook Pro models feature a Liquid Retina XDR display with 20 percent brighter SDR content, a built-in 1080p camera, an six-speaker sound system, and a wide array of connectivity option.
The company noted that the new 14-inch MacBook Pro with M3 is not only great for everyday tasks, but also delivers phenomenal sustained performance in pro apps and games.
MacBook Pro models with M3 Pro and M3 Max are available in space black. M3 Pro and M3 Max models are also available in silver, and the 14-inch MacBook Pro with M3 is available in silver and space gray.
The 14-inch MacBook Pro with M3 starts at $1,599 and $1,499 for education; the 14-inch MacBook Pro with M3 Pro starts at $1,999 and $1,849 for education; and the 16-inch MacBook Pro starts at $2,499 and $2,299 for education.
Meanwhile, Apple unveiled the new 24-inch iMac featuring the amazing M3 chip.
The new iMac features 4.5K Retina display, the latest wireless connectivity, and best-in-class camera, speakers, and mics, all in a strikingly thin design.
iMac with 8-core GPU starts at $1,299 and $1,249 for education, and is available in green, pink, blue, and silver. It features an 8-core CPU, 8GB of unified memory, 256GB SSD, two Thunderbolt ports, Magic Keyboard, and Magic Mouse.
iMac with 10-core GPU starts at $1,499 and $1,399 for education, and is available in green, yellow, orange, pink, purple, blue, and silver. It features an 8-core CPU, 8GB of unified memory, 256GB SSD, two Thunderbolt ports, two additional USB 3 ports, Magic Keyboard with Touch ID, Magic Mouse, and Gigabit Ethernet.
The views and 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 industry's first 3-nanometer chips for a personal computer debut a next-generation GPU architecture and deliver dramatic performance improvements, a faster CPU and Neural Engine, and support for more unified memory, the company said. All MacBook Pro models feature a Liquid Retina XDR display with 20 percent brighter SDR content, a built-in 1080p camera, an six-speaker sound system, and a wide array of connectivity option. The new iMac features 4.5K Retina display, the latest wireless connectivity, and best-in-class camera, speakers, and mics, all in a strikingly thin design.
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The 14-inch MacBook Pro with M3 starts at $1,599 and $1,499 for education; the 14-inch MacBook Pro with M3 Pro starts at $1,999 and $1,849 for education; and the 16-inch MacBook Pro starts at $2,499 and $2,299 for education. It features an 8-core CPU, 8GB of unified memory, 256GB SSD, two Thunderbolt ports, Magic Keyboard, and Magic Mouse. It features an 8-core CPU, 8GB of unified memory, 256GB SSD, two Thunderbolt ports, two additional USB 3 ports, Magic Keyboard with Touch ID, Magic Mouse, and Gigabit Ethernet.
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The Tech giant said that the power-efficient performance of M3, M3 Pro, and M3 Max helps the new MacBook Pro and iMac meet the company's high standards for energy efficiency, and helps the new MacBook Pro achieve the longest battery life ever in a Mac — up to 22 hours. In a separate press release, Apple announced a new MacBook Pro lineup featuring the all-new family of M3 chips: M3, M3 Pro, and M3 Max. The 14-inch MacBook Pro with M3 starts at $1,599 and $1,499 for education; the 14-inch MacBook Pro with M3 Pro starts at $1,999 and $1,849 for education; and the 16-inch MacBook Pro starts at $2,499 and $2,299 for education.
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The 14-inch MacBook Pro with M3 starts at $1,599. MacBook Pro models with M3 Pro and M3 Max are available in space black. The 14-inch MacBook Pro with M3 starts at $1,599 and $1,499 for education; the 14-inch MacBook Pro with M3 Pro starts at $1,999 and $1,849 for education; and the 16-inch MacBook Pro starts at $2,499 and $2,299 for education.
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12841.0
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2023-10-30 00:00:00 UTC
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Busy Week for Earnings, Fed, Reports; MCD, ON Beat in Q3
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AAPL
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https://www.nasdaq.com/articles/busy-week-for-earnings-fed-reports-mcd-on-beat-in-q3
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nan
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nan
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It’s the start of the busiest week of Q3 earnings season, and pre-market futures are up. Perhaps this is a sign of optimism for expected earnings, or perhaps it’s looking favorably on a parade of economic reports out this week. Perhaps it’s the widely held expectation that the Fed, on Wednesday, when it reports an update on interest rates following the second day of the Federal Open Market Committee (FOMC), will decide not to raise another 25 basis points (bps) and increases the chances hikes overall are finished.
At first blush, this would appear to be the case. While we may see pleasant data from Case-Shiller home prices tomorrow, private-sector jobs numbers Wednesday, U.S. Productivity and Unit Labor Costs Thursday or nonfarm payrolls Friday, more than likely the coming hold from Fed Chair Jerome Powell & Co. mid-week is the reason we currently see the Dow +177 points, the Nasdaq +83, the S&P 500 +21 and the small-cap Russell 2000 +10.
Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Perhaps, though cooler results may provide a glimpse into a less-ravenous global marketplace for iPhone updates — we’ll see. Among other industry leaders reporting the reminder of this week are AMD AMD, Caterpillar CAT, ConocoPhillips COP, Eli Lilly LLY, Pfizer PFE and Starbucks SBUX, to get alphabetical about it.
We also see some value on the major indices this morning, after mid-October near-term highs have given way to lower trading levels for the most part in the past couple weeks. We’re down, month to date, between -2.8% on the Dow and -6.5% on the Russell. Both of these indices are back in the red year-to-date, while the Nasdaq is still up +31% and the S&P +8.2% from the start of the year.
Ahead of today’s open, McDonald’s MCD reported Q3 results that outperformed expectations: earnings of $3.19 per share posted a +6.3% positive earnings surprise over the $3.00 per share in the Zacks consensus. Revenues in the quarter of $6.69 billion topped estimates by +1.79%. Shares are up +2.3% on the beat, bringing the stock back near breakeven year-to-date. For more on MCD’s earnings, click here.
ON Semiconductor ON beat expectations on both top and bottom lines in its Q3 report out this morning, with earnings of $1.39 per share beating the Zacks consensus by 4 cents (slightly below the $1.45 per share reported in the year-ago quarter) on $2.18 billion in revenues, slightly ahead of the $2.15 billion projected. However, softer guidance for Q4 has led to a pre-market sell-off of about -10% at this hour; the shares are still up +25% year-to-date.
Questions or comments about this article and/or author? Click here>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
ConocoPhillips (COP) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : 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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Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Perhaps it’s the widely held expectation that the Fed, on Wednesday, when it reports an update on interest rates following the second day of the Federal Open Market Committee (FOMC), will decide not to raise another 25 basis points (bps) and increases the chances hikes overall are finished.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Among other industry leaders reporting the reminder of this week are AMD AMD, Caterpillar CAT, ConocoPhillips COP, Eli Lilly LLY, Pfizer PFE and Starbucks SBUX, to get alphabetical about it.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Ahead of today’s open, McDonald’s MCD reported Q3 results that outperformed expectations: earnings of $3.19 per share posted a +6.3% positive earnings surprise over the $3.00 per share in the Zacks consensus.
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Perhaps Apple’s AAPL latest earnings quarter is also hotly anticipated? Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report To read this article on Zacks.com click here. It’s the start of the busiest week of Q3 earnings season, and pre-market futures are up.
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2023-10-30 00:00:00 UTC
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The 3 Best Warren Buffett Stocks to Buy Now: November Edition
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AAPL
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https://www.nasdaq.com/articles/the-3-best-warren-buffett-stocks-to-buy-now%3A-november-edition
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The current Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) equity portfolio is worth $326.2 billion as of Oct. 27. The portfolio has 55 Warren Buffett stocks, including two S&P 500 ETFs.
The top 10 holdings account for 87% of its total, with Apple (NASDAQ:AAPL) its largest holding at 47.2%. Like every other stock over the past couple of months, Berkshire has gotten knocked lower. As a result, the stock is up just 7% year-to-date, 64 basis points lower than the index.
Over the past 10 years, Berkshire’s stock has outperformed the index on seven occasions. Further, Berkshire, which doesn’t pay dividends, generated an average annual return of 14.2% over the past decade, 50 basis points higher than the index, whose return figures I got from the 2022 Berkshire shareholder letter, which includes dividends, so the beat is even more impressive.
I don’t think there’s any question the best of the Warren Buffett stocks is Berkshire itself.
However, if you don’t want to own the world’s greatest investment fund that charges zero fees, here are three Warren Buffett stocks to buy now.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
While there are other stocks in the Berkshire portfolio, there is no question that Apple represents the new guard, accounting for almost half the holding company’s $326 billion in equity securities.
As WhaleWisdom.com points out, Buffett first started Acquiring Apple shares in Q1 2016. Berkshire’s estimated average price paid is $39.62, so even with the fall off since July, Apple’s share price is still up more than 34% year-to-date.
In a nod to Halloween and the launch of its M3 next-generation silicon chip, Apple will hold the online-only “scary fast” event on Oct. 30. As part of the event, Apple will also release a revamped version of the iMac, the first update since it launched an iMac with Apple’s own M1 chip in 2021. This chip is thought to be considerably faster.
As someone who uses a number of Apple products (iPhone, iPad, Air Pods), it would be nice if the M3 iMac were worth breaking open the piggy bank for. I guess we’ll see.
In the meantime, Apple releases its earnings on Nov. 2. Investors will be watching very closely. Analysts are calling for earnings per share of $1.39 in Q4 2023 from revenue of $89.31 billion. Both numbers are up from last quarter.
Whatever happens, Buffett’s not going to be selling.
American Express (AXP)
Source: Shutterstock
American Express (NYSE:AXP) represents the old guard of Berkshire stocks. The company’s owned Amex stock in one form or another since 1991. It is Berkshire’s fourth-largest holding, accounting for 6.6% of its equity portfolio. The position represents a 20.8% ownership stake in the financial services company, making it by far Amex’s largest shareholder.
In August 1991, Buffett invested $300 million in preferred stock from the company. Berkshire’s preferred investment came with a fixed 8.5% dividend. At the time, American Express’s Shearson Lehman Bros. brokerage subsidiary was struggling, and its credit card business faced increased competition.
As Buffett has done many times since, he’s put his stamp of approval on struggling businesses with iconic brands — for a price, of course.
“Getting Buffett to come in with a relatively small investment is an attempt by Robinson to rebuild confidence,” said E. Wilson Davis, an analyst at Gerard Klauer Mattison. “It says: ‘This shrewd, intelligent, nuts-and-bolts investor has confidence in American Express,’ “the Los Angeles Times reported in 1991.
By the end of 1998, Berkshire owned 50.54 million shares of its stock at a cost of $1.47 billion, or $29.09 a share. At the time, it was the company’s largest holding by cost. Through splits, the share count has grown to 151.61 million.
While the shares haven’t performed over the past five years — up 36.3% compared to 51.2% for the S&P 500 — it gets $302 million in dividends from Amex, which it reinvests in its various businesses.
It’s long since paid for itself.
Mitsubishi (MSBHF)
Source: JHVEPhoto / Shutterstock.com
Mitsubishi (OTCMKTS:MSBHF) is the largest holding of the five Japanese trading houses that Berkshire has invested in, accounting for 1.7% of the company’s equity holdings.
In June, Berkshire confirmed it had added to its positions in each of the five companies. It now owns 8.3% of Mitsubishi Corp.
Nikkei Asia recently discussed how these trading companies — known as sogo shosha — have evolved into holding companies much like Berkshire Hathaway.
“Since the 1990s, the sogo shosha have shifted from a focus on trading to directly owning and running businesses as equity holders of companies and projects, which indeed has made them more comparable to U.S.-based Berkshire Hathaway,” Nikkei Asia contributor Mitsuru Claire Chino wrote on Oct. 2.
“Today the groups have a huge global presence as strategic investors in projects and entities in a range of industries, including energy, minerals, chemicals and food. Each one is like a combined logistics provider, financier, investment firm and consulting company.”
Chino writes that Mitsubishi has partnered with Tokyo Gas (OTCMKTS:TKGSY), Osaka Gas (OTCMKTS:OSGSY), Toho Gas (OTCMKTS:THOGF) and Sempra (NYSE:SRE) to develop an e-methane plant in the Gulf Coast. It will liquify the methane and export it to Japan.
Buffett’s investment is another example of him applying the Berkshire stamp of approval on a company or sector.
On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post The 3 Best Warren Buffett Stocks to Buy Now: November Edition 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 top 10 holdings account for 87% of its total, with Apple (NASDAQ:AAPL) its largest holding at 47.2%. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com While there are other stocks in the Berkshire portfolio, there is no question that Apple represents the new guard, accounting for almost half the holding company’s $326 billion in equity securities. “Since the 1990s, the sogo shosha have shifted from a focus on trading to directly owning and running businesses as equity holders of companies and projects, which indeed has made them more comparable to U.S.-based Berkshire Hathaway,” Nikkei Asia contributor Mitsuru Claire Chino wrote on Oct. 2.
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The top 10 holdings account for 87% of its total, with Apple (NASDAQ:AAPL) its largest holding at 47.2%. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com While there are other stocks in the Berkshire portfolio, there is no question that Apple represents the new guard, accounting for almost half the holding company’s $326 billion in equity securities. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The current Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) equity portfolio is worth $326.2 billion as of Oct. 27.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com While there are other stocks in the Berkshire portfolio, there is no question that Apple represents the new guard, accounting for almost half the holding company’s $326 billion in equity securities. The top 10 holdings account for 87% of its total, with Apple (NASDAQ:AAPL) its largest holding at 47.2%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The current Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) equity portfolio is worth $326.2 billion as of Oct. 27.
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The top 10 holdings account for 87% of its total, with Apple (NASDAQ:AAPL) its largest holding at 47.2%. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com While there are other stocks in the Berkshire portfolio, there is no question that Apple represents the new guard, accounting for almost half the holding company’s $326 billion in equity securities. In August 1991, Buffett invested $300 million in preferred stock from the company.
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12843.0
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2023-10-30 00:00:00 UTC
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Apple Q4 Preview: Should Investors Take a Bite?
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AAPL
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https://www.nasdaq.com/articles/apple-q4-preview%3A-should-investors-take-a-bite
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nan
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nan
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Earnings season continues its rapid pace this week, as we have another full slate of quarterly releases to sort through. We’ve already gotten results from the big banks and several mega-cap technology players, with many more releases coming in the following weeks.
This week, technology titan Apple AAPL will draw the most attention, one of two remaining from the ‘Big 7’ group yet to report. As we’re all aware, these mega-cap players have led the market’s surge in 2023, delivering outsized gains to investors.
Still, AAPL shares have faced adverse price action since their 2023 high in mid-July, down 13% since. Can a strong quarterly release breathe life back into shares? Let’s take a closer look at quarterly expectations and a few key metrics worth paying attention to.
Image Source: Zacks Investment Research
Apple Q4
Analysts have primarily kept their expectations unchanged for the upcoming release, with the $1.39 Zacks Consensus EPS Estimate up a fractional 0.6% since August and reflecting a change of +7.8% from the year-ago period.
Top line expectations have been taken modestly lower during the same period, as the $88.8 billion quarterly revenue estimate is down 1.1% and reflects a pullback of -1.5% year-over-year.
Image Source: Zacks Investment Research
Of course, a primary focus of the release will concern iPhone results. For the quarter, the Zacks Consensus Estimate for iPhone revenue stands at $44.2 billion, representing a positive change of +3.8% from the same period last year.
It’s worth noting that the company has struggled to exceed consensus iPhone revenue expectations as of late, falling short in three of its last four releases. Still, demand for the iPhone 15 Pro Max has been strong, likely to provide a tailwind.
Image Source: Zacks Investment Research
In addition, the company’s Services portfolio has become a notable contributor to its top line, which includes revenues from cloud services, the App Store, Apple Music, Apple Pay, and others. In fact, it was revealed in its latest release that its Services portfolio has amassed more than 1 billion paid subscribers and is expected to see accelerated growth in Q4 relative to Q3.
Regarding expectations, the Zacks Consensus Estimate for Services revenue stands at $21.4 billion, suggesting a climb of 11% from the year-ago period. The company has positively surprised on this metric in three consecutive quarters.
Image Source: Zacks Investment Research
To top it off, the company’s Wearables results (Apple Watch, AirPods) will also be a vital metric to keep a close eye on. The segment has seen solid growth in recent years, mainly thanks to consumers' extensive adoption of the Apple Watch and AirPods.
The Zacks Consensus Estimate for Wearables revenue presently sits at $9.3 billion, suggesting a change of -3.1% from the same period last year.
Bottom Line
Apple’s AAPL quarterly release headlines the reporting docket this week, undoubtedly a quarterly print that can bring market-moving effects.
Analysts have primarily kept their expectations unchanged, with earnings forecasted to see growth amid a pullback within revenue compared to the year-ago period. In addition, iPhone and Services results are expected to see accelerated growth relative to its Q3.
Apple shares currently trade at a 25.5X forward 12-month earnings multiple, beneath the 30.1X high this year and modestly above the 24.4X five-year median. The value undoubtedly resides on the higher end, but investors have had little issue forking up the premium given the company’s fortified stance in a somewhat uncertain outlook.
The stock has a Value Style Score of “D.”
Image Source: Zacks Investment Research
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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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This week, technology titan Apple AAPL will draw the most attention, one of two remaining from the ‘Big 7’ group yet to report. Still, AAPL shares have faced adverse price action since their 2023 high in mid-July, down 13% since. Bottom Line Apple’s AAPL quarterly release headlines the reporting docket this week, undoubtedly a quarterly print that can bring market-moving effects.
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This week, technology titan Apple AAPL will draw the most attention, one of two remaining from the ‘Big 7’ group yet to report. Still, AAPL shares have faced adverse price action since their 2023 high in mid-July, down 13% since. Bottom Line Apple’s AAPL quarterly release headlines the reporting docket this week, undoubtedly a quarterly print that can bring market-moving effects.
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This week, technology titan Apple AAPL will draw the most attention, one of two remaining from the ‘Big 7’ group yet to report. Still, AAPL shares have faced adverse price action since their 2023 high in mid-July, down 13% since. Bottom Line Apple’s AAPL quarterly release headlines the reporting docket this week, undoubtedly a quarterly print that can bring market-moving effects.
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Bottom Line Apple’s AAPL quarterly release headlines the reporting docket this week, undoubtedly a quarterly print that can bring market-moving effects. This week, technology titan Apple AAPL will draw the most attention, one of two remaining from the ‘Big 7’ group yet to report. Still, AAPL shares have faced adverse price action since their 2023 high in mid-July, down 13% since.
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12844.0
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2023-10-30 00:00:00 UTC
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Momentum Monday: Technical Breakdowns, Earnings, FOMC and More
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AAPL
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https://www.nasdaq.com/articles/momentum-monday%3A-technical-breakdowns-earnings-fomc-and-more
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nan
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nan
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Want to start the week ahead of the pack? Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.
Today, we will be taking a look at the broad stock market indexes to summarize the action of the last few weeks, then we will take a look at theeconomic calendarto address any market moving data coming our way. And finally, I will share three compelling technical trade setups in stocks with top Zacks Ranks.
Stocks Below Support
After bouncing early last week, stocks rolled over. All major indexes are now below important levels of support. There are signs of a bottom though, as the NAAIM Exposure index shows active managers are the most underweight equities this year showing extremely bearish sentiment, and seasonal studies indicate considerable strength into year end.
Image Source: TradingView
Busy Week Ahead
There is a lot of action on the calendar this week, from Fed meetings to earnings reports, and major actions from the US Treasury.
Notable earnings this week come from Apple AAPL on Thursday and Berkshire Hathaway BRK.B on Friday.
On Wednesday afternoon, the Federal Reserve will conduct its regular FOMC interest rate policy meeting. It is expected to keep rates at the current level.
Also on Wednesday, the US Treasury will release its Quarterly Refunding Announcement, where it shares its debt management expectations for the quarter. This data could be a major factor in the interest rate situation.
Image Source: CMEGroup
Technical Setups
Because of the broad weakness across the stock market, fewer leading stocks are set up for breakouts. The current environment calls for cautious trading and smaller position sizing.
Today, I am sharing two stocks that are more defensive in case the market continues to be weak, and two high beta names that should perform well if the market firms up. All stocks shared enjoy a Zacks Rank #1 (Strong Buy) rating, indicating upward trending earnings revisions.
Image Source: TradingView
Bottom Line
Even the best trading setups fail. Although these stocks have numerous bullish catalysts in their favor, traders should always stick to a trading plan, and most importantly prioritize prudent risk management. Always know the maximum amount of money you can lose on a trade and respect your stop losses.
Best of luck this week!
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
Berkshire Hathaway Inc. (BRK.B) : 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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Notable earnings this week come from Apple AAPL on Thursday and Berkshire Hathaway BRK.B on Friday. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. Notable earnings this week come from Apple AAPL on Thursday and Berkshire Hathaway BRK.B on Friday. Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. Notable earnings this week come from Apple AAPL on Thursday and Berkshire Hathaway BRK.B on Friday. Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.
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Notable earnings this week come from Apple AAPL on Thursday and Berkshire Hathaway BRK.B on Friday. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report To read this article on Zacks.com click here. All major indexes are now below important levels of support.
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12845.0
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2023-10-30 00:00:00 UTC
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A Deep Dive into 2023's Surprising Trends (8 Extreme Charts)
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AAPL
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https://www.nasdaq.com/articles/a-deep-dive-into-2023s-surprising-trends-8-extreme-charts
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nan
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nan
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The Uniqueness of 2023
“The Stock market is never obvious. It is designed to fool most of the people, most of the time.” ~ Jesse Livermore
2023 is a perfect example of how Wall Street is never obvious. Coming off a massive correction in tech stocks last year, most sentiment measures suggested that investors were bearish into 2023. As is often the case, stocks did the exact opposite of what the crowd anticipated. The Nasdaq 100 ETF (QQQ), the weakest index in 2022, became the strongest in 2023. Oil prices rebounded, Bitcoin decoupled, and the Regional Banking ETF (KRE) crashed amidst regional banking contagion fears. Below are 8 of the most mind-blowing market-related charts for 2023:
Small-Caps are in their Longest Bear Market Ever
A rising interest rate environment (like 2023) is bearish for small-cap stocks due to their impact on borrowing costs. Small-cap companies within the Russell 2000 Index ETF (IWM) rely on borrowing to fuel growth and expansion because they might not have as much access to capital as larger, more established companies. When interest rates increase, borrowing becomes more expensive, leading to higher operational costs and reduced profitability. The Russell 2000 Index last made a 52-week high nearly 500 days ago. When it’s all said and done, the current correction will be longer (from a time perspective) than any other small-cap correction in Russell 2000 history.
Image Source: Sentiment Trader
The Accuracy of Historical Seasonality
Historical, recurring seasonality trends have been the best guide for investors in 2023. The presidential seasonality cycle predicted a rally in early 2023, followed by a correction, and finally, and end-of-year rally. Seasonality suggests that the S&P 500 Index bottoms on October 27th on average.
Image Source: Ryan Detrick, Carson Research
New Highs-Lows
The NYSE New Highs – Lows Index shows use that there have been no net new highs since September. For bulls to take back control, this trend will have to change.
Image Source: Stockcharts.com
Equal Weight Versus Market Weight
The “Magnificent Seven” includes big-tech juggernautsApple (AAPL), Microsft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META). Every member of the group is up double digits year-to-date. Because of their sheer size and performance, these stocks are clearly buoying the market. To achieve a sustained bull market, stocks outside of this group will need to participate.
Image Source: TradingView
November is Strong for Tech Stocks
While things may seem grim for tech investors, the Nasdaq 100 ETF (QQQ) has been green 9 of the past 10 Novembers with an average return of 3.37%.
Image Source: TrendSpider
Number of Nasdaq 100 Stocks Above 100-Day MA
Only 14 stocks in the Nasdaq 100 are above their 100-day simple moving averages, marking the lowest levels since September 2022 (right before the market bottomed)
Image Source: McClellan Financial Publications
Is the SPAC / MEME Craze Over?
The number of Special Purpose Acquisition Companies (SPACs) going public has fallen off a cliff. SPACs and meme stocks catapulted to the forefront during the post-Covid, government subsidy-driven bull market. However, they come with significant risks. Namely, SPACs essentially invest in a blank-check company, now knowing which company the SPAC will acquire. Investors are back to being more selective and focused on quality, liquidity, and profitability.
Image Source: Statista
US Dollar: Raging Bull Market
The US Dollar ETF (UUP) is up 15 of the past 17 weeks. A strong dollar can be a headwind for equities because it makes US exports more expensive, reducing overseas sales for multinational companies. Equity bulls need to see the dollar break for a sustained bull market.
Image Source: TradingView
Bottom Line
Like a fingerprint, each market is unique. However, 2023 is especially abnormal, with many extremes. Investors should monitor the charts in this article, as extremes in one direction often bring about opportunities in the opposite direction.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
SPDR S&P Regional Banking ETF (KRE): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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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Image Source: Stockcharts.com Equal Weight Versus Market Weight The “Magnificent Seven” includes big-tech juggernautsApple (AAPL), Microsft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META). Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Coming off a massive correction in tech stocks last year, most sentiment measures suggested that investors were bearish into 2023.
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Image Source: Stockcharts.com Equal Weight Versus Market Weight The “Magnificent Seven” includes big-tech juggernautsApple (AAPL), Microsft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META). Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: TradingView November is Strong for Tech Stocks While things may seem grim for tech investors, the Nasdaq 100 ETF (QQQ) has been green 9 of the past 10 Novembers with an average return of 3.37%.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Stockcharts.com Equal Weight Versus Market Weight The “Magnificent Seven” includes big-tech juggernautsApple (AAPL), Microsft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META). Image Source: TradingView November is Strong for Tech Stocks While things may seem grim for tech investors, the Nasdaq 100 ETF (QQQ) has been green 9 of the past 10 Novembers with an average return of 3.37%.
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Image Source: Stockcharts.com Equal Weight Versus Market Weight The “Magnificent Seven” includes big-tech juggernautsApple (AAPL), Microsft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META). Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report SPDR S&P Regional Banking ETF (KRE): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The Uniqueness of 2023 “The Stock market is never obvious.
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12846.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Wall Street jumps as earnings gather momentum, Fed meeting nears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-jumps-as-earnings-gather-momentum-fed-meeting-nears
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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.
McDonald's rises after beating Q3 estimates
Western Digital jumps on plan to separate into two cos
Onsemi slips on dour Q4 rev forecast
Fed meet, jobs data in focus this week
Indexes up: Dow 1.53%, S&P 1.15%, Nasdaq 1.14%
Updated at 14:08 EDT
By Stephen Culp
A broad rally sent all three major U.S. stock indexes sharply higher, a partial rebound from the previous week's sell-off. Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle.
Third-quarter earnings season, firing on all cylinders, has reached its halfway point, with 251 of the companies in the S&P 500 having reported. Of those, 78% have beaten Wall Street estimates, according to LSEG.
Analysts now expect, on aggregate, annual third quarter S&P 500 earnings growth of 4.3%, a marked improvement over the 1.6% year-on-year growth seen at the beginning of October.
"Some common themes we’re seeing is companies are adjusting to a higher interest rate environment," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta, who also noted that "disruption from the supply chain seems to be lessening."
In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results.
On Tuesday, the Federal Open Markets Committee (FOMC) is expected to convene for a two-day monetary policy meeting, which is expected to culminate in a decision to let the Fed funds target rate stand at 5.25%-5.50%.
The accompanying statement and Fed Chair Jerome Powell's subsequent Q&A session will be scrutinized for clues regarding the central bank's path forward with rates.
"I think the Fed is going to hold interest steady on Wednesday and the market would be looking for some indication that they’re done raising rates for the year," Sroka added. "Powell and the other (FOMC) members are probably content to let the cumulative effect of past rate increases appear, and unless there’s data contradicting the direction of inflation they’re probably done. "
The Bank of England and the Bank of Japan would also be announcing rate decisions this week, with the latter set to consider a further adjustment to its yield curve control (YCC) framework, according to a Nikkei report.
Closely watched economic data is on tap this week, culminating in the U.S. Labor Department's October employment report due on Friday.
Geopolitical strife arising from the Israel-Hamas conflict as well as a surge in Treasury yields have weighed on stocks in recent weeks, dragging the benchmark S&P 500 .SPX down about 10% from its intraday high in July.
The Dow Jones Industrial Average .DJI rose 495.88 points, or 1.53%, to 32,913.47, the S&P 500 .SPX gained 47.33 points, or 1.15%, to 4,164.7 and the Nasdaq Composite .IXIC added 144.02 points, or 1.14%, to 12,787.04.
All 11 major sectors of the S&P 500 were green, with communication services .SPLRCL enjoying the biggest percentage gain.
McDonald's MCD.Nreported better than expected quarterly results, driven by demand for its more affordable food as consumers contend with ongoing inflation pressures. Its shares gained 2.2%.
Onsemi ON.O tumbled 19.5% after the chipmaker forecast weak fourth-quarter revenue on slowing demand for electric vehicles.
Western Digital Corp WDC.O jumped 7.8% after the company disclosed plans to separate itself into two independent public companies.
Realty Income O.N slid 5.6% following its announcement that it would by Spirit Realty Capital SRC.N in an all-stock deal valued at $9.3 billion. Spirit Realty Capital advanced 8.1%.
Advancing issues outnumbered declining ones on the NYSE by a 1.94-to-1 ratio; on Nasdaq, a 1.59-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and 44 new lows; the Nasdaq Composite recorded 13 new highs and 321 new lows.
S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by David Gregorio)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 1.53%, S&P 1.15%, Nasdaq 1.14% Updated at 14:08 EDT By Stephen Culp A broad rally sent all three major U.S. stock indexes sharply higher, a partial rebound from the previous week's sell-off.
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Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 1.53%, S&P 1.15%, Nasdaq 1.14% Updated at 14:08 EDT By Stephen Culp A broad rally sent all three major U.S. stock indexes sharply higher, a partial rebound from the previous week's sell-off.
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Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus this week Indexes up: Dow 1.53%, S&P 1.15%, Nasdaq 1.14% Updated at 14:08 EDT By Stephen Culp A broad rally sent all three major U.S. stock indexes sharply higher, a partial rebound from the previous week's sell-off.
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In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. Its shares gained 2.2%.
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12847.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Futures advance as investors await Fed rate verdict; more earnings on tap
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-advance-as-investors-await-fed-rate-verdict-more-earnings-on-tap
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nan
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By Amruta Khandekar and Shashwat Chauhan
Oct 30 (Reuters) - Futures for Wall Street's main stock indexes rose on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict.
Fierce air and artillery strikes rang out in Gaza as Israeli troops backed by tanks pressed into the Palestinian enclave with a ground assault that prompted more international calls for civilians to be protected.
However, the clashes had little impact on U.S. equity markets, with megacap names such as Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O up between 0.9% and 1.3% in premarket trading.
"The ground offensive in Gaza will still be causing some concern, but it has been largely expected," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"In the United States, the emphasis has returned to the resilience within the U.S. economy and that being a good thing rather than as an indicator that there could be a rate hike."
Geopolitical concerns as well as a surge in Treasury yields have weighed on U.S. equities this month, dragging the benchmark S&P 500 .SPX down over 10% from its intraday high in July.
On Monday, the yield on the ten-year note US10YT=RR was at 4.89%, after having breached the 5% level earlier this month.
Adding to bond market worries, the U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit. A subsequent rise in yields may further pressure stocks.
The Fed is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's FedWatch tool.
However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
The October non-farm payrolls report due on Friday will be amongst the latest tests of the resilience of the world's largest economy.
The Bank of England and the Bank of Japan would also be announcing their verdict on rates later in the week.
On the earnings front, McDonald'sMCD.N rose 2.1% after beating estimates for third-quarter profit and sales.
Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week.
Of the 245 companies in the S&P 500 that have reported earnings so far, 77.6% have beaten earnings estimates, as per LSEG data.
At 7:00 a.m. ET, Dow e-minis 1YMcv1 were up 188 points, or 0.58%, S&P 500 e-minis EScv1 were up 25 points, or 0.6%, and Nasdaq 100 e-minis NQcv1 were up 101 points, or 0.71%.
(Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)
((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Futures for Wall Street's main stock indexes rose on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. Fierce air and artillery strikes rang out in Gaza as Israeli troops backed by tanks pressed into the Palestinian enclave with a ground assault that prompted more international calls for civilians to be protected.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Futures for Wall Street's main stock indexes rose on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. (Reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel) ((Amruta.Khandekar@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Futures for Wall Street's main stock indexes rose on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. Adding to bond market worries, the U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit.
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Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.Nwould be some of the major Wall Street companies reporting later in the week. By Amruta Khandekar and Shashwat Chauhan Oct 30 (Reuters) - Futures for Wall Street's main stock indexes rose on Monday ahead of a busy week of earnings and interest rate decisions from major central banks including the Federal Reserve, while investors shrugged off concerns about the Middle East conflict. However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
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12848.0
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2023-10-30 00:00:00 UTC
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Barclays Maintains Apple (AAPL) Equal-Weight Recommendation
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AAPL
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https://www.nasdaq.com/articles/barclays-maintains-apple-aapl-equal-weight-recommendation-1
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nan
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nan
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Fintel reports that on October 30, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 21.01% Upside
As of October 5, 2023, the average one-year price target for Apple is 203.55. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 21.01% from its latest reported closing price of 168.22.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 436,698MM, an increase of 13.74%. The projected annual non-GAAP EPS is 6.93.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6451 funds or institutions reporting positions in Apple. This is an increase of 60 owner(s) or 0.94% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. Total shares owned by institutions increased in the last three months by 0.33% to 9,938,356K shares.
The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 6.04% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on October 30, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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Fintel reports that on October 30, 2023, Barclays maintained coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.05%, an increase of 2.90%. The put/call ratio of AAPL is 0.87, indicating a bullish outlook.
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12849.0
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2023-10-30 00:00:00 UTC
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5 Inverse Tech ETFs That Rose on Nasdaq Entry Into Correction
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AAPL
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https://www.nasdaq.com/articles/5-inverse-tech-etfs-that-rose-on-nasdaq-entry-into-correction
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nan
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The tech-heavy Nasdaq Composite Index entered into correction territory (down 10% from the peak) last week thanks to a steep drop in the big tech stocks. This marks the 70th correction in its 52-year history. The so-called "Magnificent Seven" failed to reassure investors in the face of heightened geopolitical risks and rising Treasury yields.
This resulted in a spike in inverse or inverse leveraged tech/Nasdaq ETFs as these fetch outsized returns on quick market turns in a short span. The ETFs that spiked are Daily Dow Jones Internet Bear 3X Shares WEBS, Direxion Daily GOOGL Bear 1X Shares ETF GGLS, Direxion Daily Semiconductor Bear 3x Shares SOXS, ProShares UltraPro Short QQQ SQQQ, and BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN FNGD.
These products either create a short position or a leveraged short position in the underlying index through the use of swaps, options, future contracts and other financial instruments.
The "Magnificent Seven" stocks that powered this year's rally have wiped off $386 billion from their market capitalization after reporting disappointing earnings. Four of the seven stocks — Microsoft MSFT, Alphabet (GOOG, GOOGL), Tesla TSLA and Meta Platforms META — slumped after their earnings announcement, while Amazon AMZN was the bright spot. The other two stocks, Apple AAPL and Nvidia NVDA, are yet to report.
In particular, Alphabet erased almost $180 billion in market value after the company’s Cloud unit revenues trailed analyst estimates despite beating the Zacks Consensus Estimate. Tesla’s value shrank by $72 billion in one day after the electric automaker posted its lowest profit in two years (read: Alphabet ETFs: Should You Buy the Dip?).
Facebook’s parent company Meta Platforms reported its most profitable quarter in years and the highest quarterly revenues since going public more than a decade ago. The third-quarter results are the strongest since Mark Zuckerberg rebranded the company from Facebook to Meta almost two years ago. However, META shares fell on the company’s warning of weaker advertising trends in the fourth quarter. Microsoft shares also dropped 3% despite the better-than-expected results and an upbeat revenue outlook for the current quarter.
Amazon climbed nearly 7% after third-quarter earnings tripled from the year-ago quarter. The e-commerce platform bucked the recent trend of slowing growth in its computing business (read: Amazon Q3 Earnings Triple YoY: ETFs to Tap).
Daily Dow Jones Internet Bear 3X Shares (WEBS) – Up 11.8%
Daily Dow Jones Internet Bear 3X Shares provides a three-times inverse play on the Internet corner of the broad technology sector by tracking the Dow Jones Internet Composite Index. Daily Dow Jones Internet Bear 3X Shares has attracted $38.4 million in its asset base and charges 95 bps in annual fees. The ETF sees an average daily volume of about 412,000 shares.
Direxion Daily GOOGL Bear 1X Shares ETF (GGLS) – Up 10%
Direxion Daily GOOGL Bear 1X Shares ETF offers inverse exposure to the performance of the Class A shares of Alphabet. It has accumulated $2 million in its asset base and charges 95 bps in annual fees. The fund trades in an average daily volume of 27,000 shares.
Direxion Daily Semiconductor Bear 3x Shares (SOXS) – Up 8.1%
Direxion Daily Semiconductor Bear 3x Shares targets the semiconductor corner of the technology sector with three times inverse leveraged exposure to the ICE Semiconductor Index. Direxion Daily Semiconductor Bear 3x Shares has amassed about $834.1 million in its asset base while charging 89 bps in fees per year. Volume is good as it exchanges 66.7 million shares per day on average.
ProShares UltraPro Short QQQ (SQQQ) – Up 7.9%
ProShares UltraPro Short QQQ provides three times inverse exposure to the daily performance of the Nasdaq-100 Index, charging 95 bps in annual fees. It has AUM of $4.2 billion and trades in an average daily volume of about 123 million shares.
BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN (FNGD) – Up 6.5%
BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN seeks to offer three times inverse leveraged exposure to the NYSE FANG+ Index, an equal-dollar weighted index, targeting the highly-traded growth stocks of next-generation technology and tech-enabled companies in the technology and consumer discretionary sectors.
BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN has accumulated $254.6 million in its asset base. It charges 95 bps in annual fees and trades in an average daily volume of 9 million shares.
Bottom Line
While the strategy is highly beneficial for short-term traders, it could lead to huge losses compared with traditional funds in fluctuating markets. Due to their compounding effect, investors can enjoy higher returns in a short period of time, provided the trend remains a friend (see: all the Inverse Equity ETFs here).
Further, their performance could vary significantly from the actual performance of the underlying index over a longer period compared to a shorter period (such as weeks or months).
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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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The other two stocks, Apple AAPL and Nvidia NVDA, are yet to report. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ProShares UltraPro Short QQQ (SQQQ): ETF Research Reports Direxion Daily Semiconductor Bear 3X Shares (SOXS): ETF Research Reports MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (FNGD): ETF Research Reports Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Direxion Daily GOOGL Bear 1X Shares (GGLS): ETF Research Reports To read this article on Zacks.com click here. The e-commerce platform bucked the recent trend of slowing growth in its computing business (read: Amazon Q3 Earnings Triple YoY: ETFs to Tap).
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ProShares UltraPro Short QQQ (SQQQ): ETF Research Reports Direxion Daily Semiconductor Bear 3X Shares (SOXS): ETF Research Reports MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (FNGD): ETF Research Reports Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Direxion Daily GOOGL Bear 1X Shares (GGLS): ETF Research Reports To read this article on Zacks.com click here. The other two stocks, Apple AAPL and Nvidia NVDA, are yet to report. The ETFs that spiked are Daily Dow Jones Internet Bear 3X Shares WEBS, Direxion Daily GOOGL Bear 1X Shares ETF GGLS, Direxion Daily Semiconductor Bear 3x Shares SOXS, ProShares UltraPro Short QQQ SQQQ, and BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN FNGD.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ProShares UltraPro Short QQQ (SQQQ): ETF Research Reports Direxion Daily Semiconductor Bear 3X Shares (SOXS): ETF Research Reports MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (FNGD): ETF Research Reports Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Direxion Daily GOOGL Bear 1X Shares (GGLS): ETF Research Reports To read this article on Zacks.com click here. The other two stocks, Apple AAPL and Nvidia NVDA, are yet to report. The ETFs that spiked are Daily Dow Jones Internet Bear 3X Shares WEBS, Direxion Daily GOOGL Bear 1X Shares ETF GGLS, Direxion Daily Semiconductor Bear 3x Shares SOXS, ProShares UltraPro Short QQQ SQQQ, and BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN FNGD.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report ProShares UltraPro Short QQQ (SQQQ): ETF Research Reports Direxion Daily Semiconductor Bear 3X Shares (SOXS): ETF Research Reports MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (FNGD): ETF Research Reports Direxion Daily Dow Jones Internet Bear 3X Shares (WEBS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Direxion Daily GOOGL Bear 1X Shares (GGLS): ETF Research Reports To read this article on Zacks.com click here. The other two stocks, Apple AAPL and Nvidia NVDA, are yet to report. The ETFs that spiked are Daily Dow Jones Internet Bear 3X Shares WEBS, Direxion Daily GOOGL Bear 1X Shares ETF GGLS, Direxion Daily Semiconductor Bear 3x Shares SOXS, ProShares UltraPro Short QQQ SQQQ, and BMO REX MicroSectors FANG+ Index -3X Inverse Leveraged ETN FNGD.
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12850.0
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2023-10-30 00:00:00 UTC
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GLOBAL MARKETS-Dollar falls vs yen, stocks advance; focus on rates outlook, earnings
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AAPL
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https://www.nasdaq.com/articles/global-markets-dollar-falls-vs-yen-stocks-advance-focus-on-rates-outlook-earnings
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Oct 30 (Reuters) - Global stock indexes were higher with the Dow Jones industrial average up more than 1% Monday as investors await further earnings reports, while the dollar fell to a two-week low against the yen ahead of central bank meetings.
oil prices dropped partly as fears eased about the Israel-Hamas war disrupting supply from the region, and U.S. Treasury yields rose before the Treasury Department's update on its expected financing need for the current quarter.
Investors are awaiting the outcome of meetings at the Bank of Japan (BOJ) on Tuesday, the Federal Reserve on Wednesday and the Bank of England (BoE) on Thursday.
The recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy, as speculation mounts that the central bank could hike its existing yield cap at this week's meeting.
Also ahead is the U.S. monthly jobs report, due Friday.
The yen was little changed against the dollar, which earlier fell to a two-week low of 149.28 yen and was last at 149.72. The Japanese currency got a slight reprieve after having struck a one-year trough of 150.78 per dollar last week. JPY=
"The U.S. dollar is sliding a little this morning, but not in any measure that puts it trading outside recent ranges," said Helen Given, FX trader at Monex USA in Washington.
"If consumer data domestically hadn't been so strong last week, we'd probably be looking at a bigger slide for the dollar, but markets are still finding it quite difficult to discount the resilience of the U.S. economy."
The U.S. dollar index =USD fell 0.46%, with the euro EUR= up 0.5% to $1.0617.
Stock investors also are closely monitoring quarterly results from companies, with several big companies including Caterpillar CAT.N and Apple AAPL.O due to report this week.
The Dow Jones Industrial Average .DJI rose 348 points, or 1.07%, to 32,765.59; the S&P 500 .SPX gained 30.42 points, or 0.74%, to 4,147.79; and the Nasdaq Composite .IXIC added 110.28 points, or 0.87%, to 12,753.29.
The pan-European STOXX 600 index .STOXX rose 0.40% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.59%.
The Treasury will give its overall financing estimate for the fourth quarter on Monday and will offer more details on the breakdown of the issuance on Wednesday.
Benchmark 10-year note yields US10YT=RR were last at 4.899%, up 5 basis points on the day. They are holding just below a 16-year high of 5.021% reached last Monday.
In energy, U.S. crude CLc1 recently fell 3.19% to $82.81 per barrel and Brent LCOc1 was at $88.04, down 2.7% on the day.
Spot gold XAU= dropped 0.4% to $1,998.32 an ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
the race to raise rates https://tmsnrt.rs/45KHoZJ
(Reporting by Caroline Valetkevitch; additional reporting by Gertrude Chavez-Dreyfuss in New York and by Elizabeth Howcroft in London; Editing by Mark Potter and Jonathan Oatis)
((caroline.valetkevitch@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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Stock investors also are closely monitoring quarterly results from companies, with several big companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. By Caroline Valetkevitch NEW YORK, Oct 30 (Reuters) - Global stock indexes were higher with the Dow Jones industrial average up more than 1% Monday as investors await further earnings reports, while the dollar fell to a two-week low against the yen ahead of central bank meetings. JPY= "The U.S. dollar is sliding a little this morning, but not in any measure that puts it trading outside recent ranges," said Helen Given, FX trader at Monex USA in Washington.
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Stock investors also are closely monitoring quarterly results from companies, with several big companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. By Caroline Valetkevitch NEW YORK, Oct 30 (Reuters) - Global stock indexes were higher with the Dow Jones industrial average up more than 1% Monday as investors await further earnings reports, while the dollar fell to a two-week low against the yen ahead of central bank meetings. The Dow Jones Industrial Average .DJI rose 348 points, or 1.07%, to 32,765.59; the S&P 500 .SPX gained 30.42 points, or 0.74%, to 4,147.79; and the Nasdaq Composite .IXIC added 110.28 points, or 0.87%, to 12,753.29.
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Stock investors also are closely monitoring quarterly results from companies, with several big companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. By Caroline Valetkevitch NEW YORK, Oct 30 (Reuters) - Global stock indexes were higher with the Dow Jones industrial average up more than 1% Monday as investors await further earnings reports, while the dollar fell to a two-week low against the yen ahead of central bank meetings. The recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy, as speculation mounts that the central bank could hike its existing yield cap at this week's meeting.
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Stock investors also are closely monitoring quarterly results from companies, with several big companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. By Caroline Valetkevitch NEW YORK, Oct 30 (Reuters) - Global stock indexes were higher with the Dow Jones industrial average up more than 1% Monday as investors await further earnings reports, while the dollar fell to a two-week low against the yen ahead of central bank meetings. The U.S. dollar index =USD fell 0.46%, with the euro EUR= up 0.5% to $1.0617.
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12851.0
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2023-10-30 00:00:00 UTC
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Apple, Intel, AMD, Qualcomm, and NVIDIA: Is the CPU Market Overcrowded or Just Heating Up?
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AAPL
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https://www.nasdaq.com/articles/apple-intel-amd-qualcomm-and-nvidia%3A-is-the-cpu-market-overcrowded-or-just-heating-up
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nan
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nan
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In today's video, I discuss recent news affecting Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM) and other semiconductor companies in the CPU market. 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 Oct. 30, 2023. The video was published on Oct. 30, 2023.
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Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel 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 news affecting Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM) and other semiconductor companies in the CPU market. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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In today's video, I discuss recent news affecting Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM) and other semiconductor companies in the CPU market. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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In today's video, I discuss recent news affecting Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM) and other semiconductor companies in the CPU market. See the 10 stocks *Stock Advisor returns as of October 30, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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In today's video, I discuss recent news affecting Apple (NASDAQ: AAPL), Intel (NASDAQ: INTC), Advanced Micro Devices (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM) and other semiconductor companies in the CPU market. 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 October 30, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm.
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12852.0
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2023-10-30 00:00:00 UTC
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After Hours Most Active for Oct 30, 2023 : RTX, AMBP, PINS, AYX, QQQ, AAPL, ING, GOOGL, GMED, AMZN, MSFT, AMD
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-30-2023-%3A-rtx-ambp-pins-ayx-qqq-aapl-ing-googl-gmed-amzn
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -11.84 to 14,323.67. The total After hours volume is currently 69,826,877 shares traded.
The following are the most active stocks for the after hours session:
RTX Corporation (RTX) is unchanged at $78.57, with 5,347,188 shares traded. RTX's current last sale is 93.54% of the target price of $84.
Ardagh Metal Packaging S.A. (AMBP) is +0.05 at $3.50, with 4,162,029 shares traded. AMBP's current last sale is 87.5% of the target price of $4.
Pinterest, Inc. (PINS) is +2.55 at $27.65, with 4,021,005 shares traded. As reported by Zacks, the current mean recommendation for PINS is in the "buy range".
Alteryx, Inc. (AYX) is unchanged at $31.68, with 2,989,665 shares traded.AYX is scheduled to provide an earnings report on 11/6/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.76 per share, which represents a -95 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -0.24 at $348.96, with 2,492,062 shares traded. This represents a 34.69% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago
ING Group, N.V. (ING) is +0.005 at $12.87, with 2,357,549 shares traded.ING is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.59 per share, which represents a 26 percent increase over the EPS one Year Ago
Alphabet Inc. (GOOGL) is -0.28 at $124.18, with 2,308,606 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Globus Medical, Inc. (GMED) is unchanged at $45.58, with 2,142,649 shares traded. GMED's current last sale is 74.11% of the target price of $61.5.
Amazon.com, Inc. (AMZN) is -0.09 at $132.64, with 1,984,954 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 $0.71. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Microsoft Corporation (MSFT) is +0.31 at $337.62, with 1,312,242 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.74. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is +0.07 at $96.25, with 1,248,431 shares traded.AMD is scheduled to provide an earnings report on 10/31/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.49 per share, which represents a 54 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 -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. Alteryx, Inc. (AYX) is unchanged at $31.68, with 2,989,665 shares traded.AYX is scheduled to provide an earnings report on 11/6/2023, for the fiscal quarter ending Sep2023. Advanced Micro Devices, Inc. (AMD) is +0.07 at $96.25, with 1,248,431 shares traded.AMD is scheduled to provide an earnings report on 10/31/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.76 per share, which represents a -95 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.76 per share, which represents a -95 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. Amazon.com, Inc. (AMZN) is -0.09 at $132.64, with 1,984,954 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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12853.0
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2023-10-30 00:00:00 UTC
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US STOCKS-Wall Street ends sharply higher, powered by earnings momentum; Fed eyed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-sharply-higher-powered-by-earnings-momentum-fed-eyed-0
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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.
McDonald's rises after beating Q3 estimates
Western Digital jumps on plan to separate into two cos
Onsemi slips on dour Q4 rev forecast
Fed meet, jobs data in focus
Indexes up: Dow 1.58%, S&P 1.20%, Nasdaq 1.16%
Updates to 16:10 EDT
By Stephen Culp
NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting.
All three major U.S. stock indexes closed up more than 1%, bouncing back from the previous week's sell-off. Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle.
"Today is an earnings rebound," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. "The market got oversold, and the reality is that earnings have been pretty good, the U.S. economy continues to chug along, and is likely to do so in the fourth quarter and into the first part of next year."
Third-quarter earnings season, firing on all cylinders, has reached its halfway point, with 251 of the companies in the S&P 500 having reported. Of those, 78% have beaten Wall Street estimates, according to LSEG.
Analysts now expect, on aggregate, annual third quarter S&P 500 earnings growth of 4.3%, a marked improvement over the 1.6% year-on-year growth seen at the beginning of October.
Investors have shown “less pessimism," Pursche added. "First- and second-quarter calls had a more negative tone. There was anxiety over interest rates, Fed policy, the recession that never came."
In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results.
On Tuesday, the Federal Open Markets Committee (FOMC) is expected to convene for a two-day monetary policy meeting, which is expected to culminate in a decision to let the Fed funds target rate stand at 5.25%-5.50%.
Investors will scrutinize the accompanying statement and Fed Chair Jerome Powell's subsequent Q&A session for clues regarding the central bank's path forward with rates.
"The Fed wants to see the cumulative effects of their rate hikes on the economy but they’ve also said they’re prepared to over-shoot in an abundance of caution, as long as inflation is above 3%," Pursche said.
The Bank of England and the Bank of Japan would also be announcing rate decisions this week, with the latter set to consider a further adjustment to its yield curve control (YCC) framework, according to a Nikkei report.
Closely watched economic data is on tap this week, culminating in the U.S. Labor Department's October employment report due on Friday.
Geopolitical strife arising from the Israel-Hamas conflict as well as a surge in Treasury yields have weighed on stocks in recent weeks, dragging the benchmark S&P 500 .SPX down about 10% from its intraday high in July.
The Dow Jones Industrial Average .DJIrose 511.37 points, or 1.58%, to 32,928.96, the S&P 500 .SPXgained 49.45 points, or 1.20%, to 4,166.82 and the Nasdaq Composite .IXICadded 146.47 points, or 1.16%, to 12,789.48.
All 11 major sectors of the S&P 500 ended the session green, with communication services .SPLRCL enjoying the biggest percentage gain, jumping 2.1%.
McDonald's MCD.Nreported better than expected quarterly results, driven by demand for its more affordable food as consumers contend with ongoing inflation pressures. Its shares gained 1.7%.
Onsemi ON.O tumbled 21.8% after the chipmaker forecast weak fourth-quarter revenue on slowing demand for electric vehicles.
Western Digital Corp WDC.O jumped 7.3% after the company disclosed plans to separate itself into two independent public companies.
Realty Income O.N slid 5.7% following its announcement that it would by Spirit Realty Capital SRC.N in an all-stock deal valued at $9.3 billion. Spirit Realty Capital advanced 7.9%.
Advancing issues outnumbered declining ones on the NYSE by a 2.15-to-1 ratio; on Nasdaq, a 1.62-to-1 ratio favored advancers.
The S&P 500 posted no new 52-week highs and 44 new lows; the Nasdaq Composite recorded 14 new highs and 363 new lows.
Volume on U.S. exchanges was 10.16 billion shares, compared with the 10.67 billion average for the full session over the last 20 trading days.
S&P 500 down 10% from year's high https://tmsnrt.rs/3FE4RBq
(Reporting by Stephen Culp; Additional reporting by Amruta Khandekar and Shashwat Chauhan in Bengaluru; Editing by David Gregorio)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus Indexes up: Dow 1.58%, S&P 1.20%, Nasdaq 1.16% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting.
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Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus Indexes up: Dow 1.58%, S&P 1.20%, Nasdaq 1.16% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting.
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Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus Indexes up: Dow 1.58%, S&P 1.20%, Nasdaq 1.16% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting.
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In the coming week, Caterpillar Inc CAT.N, Apple Inc AAPL.OO, Pfizer Inc PFE.N and Starbucks Corp SBUX.O are among the higher profile companies expected to post results. Interest rate sensitive megacap stocks, led by Microsoft Corp MSFT, Amazon.com AMZN.O, and Apple Inc AAPL.O provided the most upside muscle. McDonald's rises after beating Q3 estimates Western Digital jumps on plan to separate into two cos Onsemi slips on dour Q4 rev forecast Fed meet, jobs data in focus Indexes up: Dow 1.58%, S&P 1.20%, Nasdaq 1.16% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 30 (Reuters) - Wall Street rallied on Monday, kicking off what promises to be a hectic week that includes a heavy earnings docket, economic data and the Federal Reserve's two-day monetary policy meeting.
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2023-10-30 00:00:00 UTC
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Amazon, Microsoft, Alphabet, Apple and Nvidia are part of Zacks Earnings Preview
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https://www.nasdaq.com/articles/amazon-microsoft-alphabet-apple-and-nvidia-are-part-of-zacks-earnings-preview
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For Immediate Release
Chicago, IL – October 30, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Amazon AMZN, Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Nvidia NVDA.
Q3 Earnings: Tech Sector in Focus
A big contributing factor to the market's loss of momentum over the last three months is rising interest rates and the 'higher-for-longer' view of Fed policy. The interest rate issue is an even more significant headwind for Tech stocks, given their perceived 'long duration' status.
You can see this in the chart below, which shows the three-month performance of the S&P 500 index and the Zacks Tech sector. The chart also shows the performance of Amazon, Microsoft and Alphabet over the same period.
As you can see here, the Zacks Tech sector (blue line at the bottom; down – 11.5%) has lagged the broader market (red line, second from the bottom, down -9.7%), with Microsoft (green line, down -2.7%), Amazon (orange line, down -3.9%) and Alphabet (purple line, down -8.7%) doing better.
The relative outperformance of Microsoft and Amazon is a reflection of these mega-cap companies' earnings power that was reconfirmed in their quarterly results. Alphabet's results were no less impressive, but the market is putting a premium on momentum in cloud and AI. Alphabet appears to be fumbling a bit on that front.
The 'Big 7 Tech Players' group is on track to achieve +49% earnings growth in 2023 Q3 on +12.2% higher revenues.
Strong Q3 results from these mega-cap Tech players, of which only Apple and Nvidia have yet to report results at this stage, are a big reason why the aggregate Q3 earnings growth rate for the S&P 500 index has turned positive in recent days.
Q3 earnings for the S&P 500 index on a blended basis, meaning combining the actual earnings that have come out with estimates for the still-to-come companies, is now expected to increase +1.2% from the same period last year, with equal growth (+1.2%) expected in revenues. If we exclude the contribution from these 'Big 7 Tech Players', Q3 earnings for the remainder of the index would be down -5.7% from the same period last year.
As we all know by now, the group's phenomenal boost in 2021 partly reflected pulled forward demand from future periods that was in the process of getting adjusted last year and this year. As you can see above, the expectation is for the group to resume 'regular/normal' growth next year, but a lot of that is contingent on how the macroeconomic picture unfolds.
Beyond these mega-cap players, total Q3 earnings for the Technology sector as a whole are expected to be up +18.6% from the same period last year on +4% higher revenues.
As was the case with the 'Big 7 Tech Players,' the overall Tech sector has been dealing with the pulled forward revenues and earnings during Covid over the last many quarters. In fact, earnings growth for the Zacks Tech sector turned positive only in the preceding quarter (2023 Q2) after remaining in negative territory during the four quarters prior to that.
This big-picture view of the 'Big 7 players' and the sector as a whole shows that the worst of the growth challenge is shifting into the rearview mirror.
The Q3 Earnings Season Scorecard
Including all the earnings reports through Friday, October 27th, we now have Q3 results from 246 S&P 500 members, or 49.2% of the index's total membership. Total Q3 earnings for these companies are up +6% from the same period last year on +2.1% higher revenues, with 79.3% beating EPS estimates and 64.2% beating revenue estimates.
We have another super busy reporting docket this week with more than 1100 companies reporting Q3 results, including 159 S&P 500 members. In addition to the aforementioned Apple, which reports after the market's close on Thursday.
Companies are comfortably beating consensus EPS estimates but coming up a bit short on the revenue beats percentages. This becomes clearer when we look at the 'blended' beats percentage for Q3, which shows the proportion of these 246 index members that have beaten both EPS and revenue estimates.
The Earnings Big Picture
Looking at 2023 Q3 as a whole, the expectation currently is of S&P 500 earnings growing by +1.2% from the same period last year on +1.2% higher revenues. This would follow the -7.1% decline on +1.1% higher revenues in 2023 Q2. Please note that earnings growth has turned positive for the first time after staying in negative territory for three back-to-back quarters.
The earnings growth picture for the quarter improves further on an ex-Energy basis (+6.6% vs. +1.2%).
Look at current expectations for next year and the year after to understand the disconnect between the reality of current bottom-up aggregate earnings estimates and the seemingly never-ending worries about an impending economic downturn. That said, most economic analysts have been steadily lowering their recessionary odds in recent months.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>The Earnings Picture Continues to Improve
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week’s list includes Amazon AMZN, Microsoft MSFT, Alphabet GOOGL, Apple AAPL 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 Earnings: Tech Sector in Focus A big contributing factor to the market's loss of momentum over the last three months is rising interest rates and the 'higher-for-longer' view of Fed policy.
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This week’s list includes Amazon AMZN, Microsoft MSFT, Alphabet GOOGL, Apple AAPL 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. Total Q3 earnings for these companies are up +6% from the same period last year on +2.1% higher revenues, with 79.3% beating EPS estimates and 64.2% beating revenue estimates.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report 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 Amazon AMZN, Microsoft MSFT, Alphabet GOOGL, Apple AAPL and Nvidia NVDA. Q3 earnings for the S&P 500 index on a blended basis, meaning combining the actual earnings that have come out with estimates for the still-to-come companies, is now expected to increase +1.2% from the same period last year, with equal growth (+1.2%) expected in revenues.
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This week’s list includes Amazon AMZN, Microsoft MSFT, Alphabet GOOGL, Apple AAPL 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 chart also shows the performance of Amazon, Microsoft and Alphabet over the same period.
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2023-10-30 00:00:00 UTC
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GLOBAL MARKETS-Wall St rallies 1%, yen gains vs dollar; talk of BOJ policy tweak
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https://www.nasdaq.com/articles/global-markets-wall-st-rallies-1-yen-gains-vs-dollar-talk-of-boj-policy-tweak
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By Caroline Valetkevitch
NEW YORK, Oct 30 (Reuters) - Global stock indexes advanced on Monday, with U.S. stocks rallying more than 1% after recent sharp declines, while the yen rose to a two-week high against the dollar after a report that the Bank of Japan is considering tweaking its yield curve control policy.
Oil prices settled more than 3% lower, partly as fears eased about the Israel-Hamas war disrupting supply from the region.
The Nikkei report, that the BOJ is considering adjusting its yield curve control policy to allow the 10-year Japanese government bond yield to rise above 1%, pushed the yen to 148.81 per dollar, its strongest level since Oct. 17.
The BOJ kicked off its two-day monetary policy meeting Monday. The recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy.
"If the BOJ does not do anything tomorrow, which I think that's what economists expect, and just wait until December, I think the dollar jumps right back versus the yen," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
The dollar index =USD fell 0.469%, with the euro EUR= up 0.51% at $1.0618.
Stock investors also are closely monitoring quarterly earnings this week, with several big U.S. companies including Caterpillar CAT.N and Apple AAPL.O due to report this week.
The Dow Jones Industrial Average .DJI rose 511.37 points, or 1.58%, to 32,928.96, the S&P 500 .SPX gained 49.45 points, or 1.20%, to 4,166.82 and the Nasdaq Composite .IXIC added 146.47 points, or 1.16%, to 12,789.48.
Wall Street stocks posted losses for last week as economic data seemed to support the "higher for longer" interest rate scenario.
The pan-European STOXX 600 index .STOXX rose 0.36% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.86%.
In U.S. Treasuries, yields pared gains after the Treasury Department said it expects to borrow $76 billion less this quarter than anticipated in the third quarter on expectations of higher revenue receipts.
The Treasury said it expects to borrow $776 billion in the fourth quarter, down from $852 billion the prior quarters, assuming an end of December cash balance of $750 billion, the department said in a statement.
Yields on 10-year Treasury notes US10YT=RR were last up 4.1 basis points at 4.886%, after reaching 4.922% earlier in the day. Last week the benchmark note hit a 16-year high of 5.021%.
In energy, U.S. crude CLc1 fell $3.23 to settle at $82.31 a barrel, while Brent LCOc1 dropped $3.03 to $87.45.
Spot gold XAU= dropped 0.4% to $1,997.86 an ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
the race to raise rates https://tmsnrt.rs/45KHoZJ
(Reporting by Caroline Valetkevitch; additional reporting by Gertrude Chavez-Dreyfuss in New York and by Elizabeth Howcroft in London; Editing by Marguerita Choy and Richard Chang)
((caroline.valetkevitch@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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Stock investors also are closely monitoring quarterly earnings this week, with several big U.S. companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. The recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy. "If the BOJ does not do anything tomorrow, which I think that's what economists expect, and just wait until December, I think the dollar jumps right back versus the yen," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
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Stock investors also are closely monitoring quarterly earnings this week, with several big U.S. companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. By Caroline Valetkevitch NEW YORK, Oct 30 (Reuters) - Global stock indexes advanced on Monday, with U.S. stocks rallying more than 1% after recent sharp declines, while the yen rose to a two-week high against the dollar after a report that the Bank of Japan is considering tweaking its yield curve control policy. The recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy.
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Stock investors also are closely monitoring quarterly earnings this week, with several big U.S. companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. By Caroline Valetkevitch NEW YORK, Oct 30 (Reuters) - Global stock indexes advanced on Monday, with U.S. stocks rallying more than 1% after recent sharp declines, while the yen rose to a two-week high against the dollar after a report that the Bank of Japan is considering tweaking its yield curve control policy. In U.S. Treasuries, yields pared gains after the Treasury Department said it expects to borrow $76 billion less this quarter than anticipated in the third quarter on expectations of higher revenue receipts.
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Stock investors also are closely monitoring quarterly earnings this week, with several big U.S. companies including Caterpillar CAT.N and Apple AAPL.O due to report this week. By Caroline Valetkevitch NEW YORK, Oct 30 (Reuters) - Global stock indexes advanced on Monday, with U.S. stocks rallying more than 1% after recent sharp declines, while the yen rose to a two-week high against the dollar after a report that the Bank of Japan is considering tweaking its yield curve control policy. The recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy.
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2023-10-30 00:00:00 UTC
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Graphic pro-Israel ads make their way into children’s video games
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https://www.nasdaq.com/articles/graphic-pro-israel-ads-make-their-way-into-childrens-video-games-0
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By Raphael Satter, Katie Paul and Sheila Dang
Oct 30 (Reuters) - Maria Julia Assis was sitting down to a meal in her terraced home in north London when her 6-year-old son ran into the dining room, his face pale.
The puzzle game on his Android phone had been interrupted by a video showing Hamas militants, terrified Israeli families and blurred graphic footage. Over a black screen, a message from the Israeli Ministry of Foreign Affairs told the first grader: "WE WILL MAKE SURE THAT THOSE WHO HARM US PAY A HEAVY PRICE."
Assis, a 28-year-old barista from Brazil, said that the ad left her son shaken and she quickly deleted the game.
"He was shocked," she said in a telephone interview last week. "He literally said, 'What is this bloody ad doing in my game?'"
Reuters has not been able to establish how the ad came to her son's video game, but her family isn't alone. The news agency has documented at least five other cases across Europe where the same pro-Israel video, which carried footage of rocket attacks, a fiery explosion, and masked gunmen, was shown to gamers, including several children.
In at least one case, the ads were played inside the popular "Angry Birds" game made by SEGA-owned developer Rovio ROVIO.HE.
Rovio confirmed that "somehow these ads with disturbing content have in error made it through to our game" and were now being blocked manually. Spokesperson Lotta Backlund did not provide details on which of its "dozen or so ad partners" had supplied it with the ad.
Israeli Ministry of Foreign Affairs' head of digital, David Saranga, confirmed that the video was a government-promoted ad but said he had "no idea" how it ended up inside various games.
He said the footage was part of a larger advocacy drive by the Israeli Foreign Ministry, which has spent $1.5 million on internet ads since Hamas' Oct. 7 attack on civilians in southern Israel ignited war in Gaza. He said officials had specifically instructed advertisers "to block it for people under 18".
Saranga defended the graphic nature of the ad campaign.
"We want the world to understand that what happened here in Israel," he said. "It's a massacre."
Reuters contacted 43 advertising firms that Rovio listed on its website as "third-party data partners" to try to ascertain who placed the ad in the games.
Of those partners, 12 responded, including Amazon AMZN.O, Index Exchange and Pinterest PINS.N, and said they were not responsible for the ad appearing on Angry Birds.
Saranga said the ministry had spent money with ad companies including Taboola TBLA.O, Outbrain OB.O, Alphabet's GOOGL.O Google and X, formerly known as Twitter. Taboola and Outbrain said they had nothing to do with the gaming ads.
Google ran more than 90 ads for the foreign ministry but declined to comment on where it displayed those ads. X, formerly known as Twitter, didn't respond to requests for comment.
Reuters found no evidence of an analogous Palestinian digital advertising effort, save for a few Arabic-language videos promoted by West Bank-based Palestine TV, a news agency affiliated with the Palestinian Authority.
A representative from the Palestinian Authority's foreign ministry shared a statement saying the ministry was working to sway public opinion by sharing evidence of suffering in Gaza under the Israeli bombardment that followed the Oct. 7 attack, but did not say whether it was using advertising as a tool.
Representatives from Hamas, the Islamist movement that governs Gaza, did not respond to Reuters requests for comment about its media campaigns.
Reuters documented six cases – in Britain, France, Austria, Germany and Holland – where people had seen the same or similar ads as Assis' son or said their children had seen them. In the Assis family's case, the ads appeared in a game called "Alice's Mergeland" made by a developer called LazyDog Game. Other ads appeared on family-friendly digital pastimes such as the block-building game "Stack," puzzle game "Balls'n Ropes," "Solitaire: Card Game 2023," and run-and-jump adventure "Subway Surfers."
Alexandra Marginean, a 24-year-old intern living in Munich said she was surprised to see the pro-Israel video pop up in the middle of her game of Solitaire.
"I had a very aggressive reaction to it," Marginean said.
LazyDog Game did not respond to requests for comment. Stack's Ubisoft-owned UBIP.PA developer Ketchapp, Solitaire's Austrian developer nerByte, Balls'n Ropes' Turkish developer Rollic and Subway Surfers' Danish developer SYBO Games also did not return messages seeking comment on the ads.
Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers.
Rules on advertisements vary by country, but in Britain - where Assis and her son live - it's the Advertising Standards Authority that monitors publicity campaigns. The authority said that while it was not currently investigating any ads from the Israeli government, in general any publicity should avoid "overly graphic" images and that such footage should be "carefully targeted away from under-18s."
(Reporting by Raphael Satter in Washington, Sheila Dang and Katie Paul in New York; Editing by Ken Li and Lisa Shumaker)
((Raphael.Satter@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. By Raphael Satter, Katie Paul and Sheila Dang Oct 30 (Reuters) - Maria Julia Assis was sitting down to a meal in her terraced home in north London when her 6-year-old son ran into the dining room, his face pale. The news agency has documented at least five other cases across Europe where the same pro-Israel video, which carried footage of rocket attacks, a fiery explosion, and masked gunmen, was shown to gamers, including several children.
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. In the Assis family's case, the ads appeared in a game called "Alice's Mergeland" made by a developer called LazyDog Game. Other ads appeared on family-friendly digital pastimes such as the block-building game "Stack," puzzle game "Balls'n Ropes," "Solitaire: Card Game 2023," and run-and-jump adventure "Subway Surfers."
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. In the Assis family's case, the ads appeared in a game called "Alice's Mergeland" made by a developer called LazyDog Game. Other ads appeared on family-friendly digital pastimes such as the block-building game "Stack," puzzle game "Balls'n Ropes," "Solitaire: Card Game 2023," and run-and-jump adventure "Subway Surfers."
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Apple AAPL.O and Alphabet's GOOGL.O Google, which police the apps on their in-house software platforms for iPhones and Android phones, respectively, referred questions back to the games' developers. Israeli Ministry of Foreign Affairs' head of digital, David Saranga, confirmed that the video was a government-promoted ad but said he had "no idea" how it ended up inside various games. Saranga said the ministry had spent money with ad companies including Taboola TBLA.O, Outbrain OB.O, Alphabet's GOOGL.O Google and X, formerly known as Twitter.
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2023-10-30 00:00:00 UTC
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3 ETFs Setting the Gold Standard for Investor Returns
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https://www.nasdaq.com/articles/3-etfs-setting-the-gold-standard-for-investor-returns
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investing in stocks is imperative in building long-term wealth, prompting many to explore the top exchange-traded funds (ETFs) to buy. Yet, for those managing a portfolio of multiple stocks, the research can be overwhelming. From tracking individual companies to staying updated with macroeconomic shifts, the task can become incredibly taxing. This challenge leads many toward the allure of the best ETFs to buy.
For those unfamiliar, ETFs track the performance of a collection of stocks, bonds, commodities or other assets. They trade on stock exchanges like individual stocks and offer several benefits, including high liquidity, diversification and typically lower costs than actively managed investment vehicles.
Additionally, many ETFs include the perk of quarterly dividends. As the stock market rally seems poised to continue, focusing on securities with a potential for growth is prudent. And for investors seeking consistent performance with less legwork, a few standout ETFs might be worth considering.
Vanguard Growth ETF (VUG)
The Vanguard Growth ETF (NYSEARCA:VUG) has steadily carved out a commendable track record in recent years. With an impressive 24% surge year-to-date and a noteworthy 89.7% leap over the past half-decade, it’s hard not to notice. Additionally, VUG isn’t just about numbers; it’s designed to reflect the performance of the CRSP United States Large Cap Growth Index, housing a medley of established household names and offering a cushion against abrupt selloffs.
These companies, with their multifaceted business segments, often lead to substantial gains and an expansive market share. Their robust nature, having weathered diverse economic cycles, adds another layer of assurance. Furthermore, VUG’s modest 0.04% expense ratio, combined with its dividend offerings, enhances its appeal.
Moreover, a quick peek reveals giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) clinching top spots, constituting 12.78%, 11.79% and 5.93% of the fund’s assets respectively. Tech stocks wield a powerful influence, making up a whopping half of VUG’s total assets.
Invesco QQQ Trust Series 1 (QQQ)
For those looking to tap into the pulse of the tech sphere, the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) is often at the forefront. Additionally, with a lean 0.20% expense ratio, QQQ ensures a relatively cheap cost of entry for investors. Moreover, the fund’s accessibility is underscored by zero initial investment requirements and fractional share options.
QQQ manages over 101 holdings, collectively amassing over $200 billion in assets. Leading the pack are tech giants like Apple, Microsoft and Amazon, which represent 10.82%, 9.48% and 5.30% of the fund’s total assets, respectively. Notably, tech stocks constitute over half of QQQ’s assets, followed by the consumer discretionary sector, which accounts for nearly 20%.
Consequently, with a substantial 31% growth year-to-date and a commendable 114% increase over the past five years, QQQ offers a solid entry point for those keen on tech stocks and well-established names, especially within the FAANG group.
VanEck Semiconductor ETF (SMH)
For investors keen on the backbone of modern electronics and artificial intelligence (AI), the significance of semiconductors is undeniable. The VanEck Semiconductor ETF (NASDAQ:SMH) is a reliable fund that mirrors the MVIS U.S. Listed Semiconductor 25 Index. With more than $10 billion in net assets and a 0.35% expense ratio, SMH represents a focused approach to this essential sector. As the demand for computers, smartphones and AI tools grows, so does the importance of the chips they rely on, positioning the companies within SMH for potential growth.
Moreover, industry juggernauts like Nvidia (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and Broadcom (NASDAQ:AVGO) stand out as its top three holdings. Together, these firms account for over 29% of the fund’s total assets, reflecting their dominant roles in the semiconductor landscape.
SMH also reported a commendable 37% growth year-to-date and a staggering 239% return over the last five years. Notably, most of its investments are in U.S.-based companies, and the fund offers a 0.77% distribution yield.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 3 ETFs Setting the Gold Standard for Investor Returns 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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Moreover, a quick peek reveals giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) clinching top spots, constituting 12.78%, 11.79% and 5.93% of the fund’s assets respectively. Additionally, VUG isn’t just about numbers; it’s designed to reflect the performance of the CRSP United States Large Cap Growth Index, housing a medley of established household names and offering a cushion against abrupt selloffs. Consequently, with a substantial 31% growth year-to-date and a commendable 114% increase over the past five years, QQQ offers a solid entry point for those keen on tech stocks and well-established names, especially within the FAANG group.
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Moreover, a quick peek reveals giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) clinching top spots, constituting 12.78%, 11.79% and 5.93% of the fund’s assets respectively. Vanguard Growth ETF (VUG) The Vanguard Growth ETF (NYSEARCA:VUG) has steadily carved out a commendable track record in recent years. Consequently, with a substantial 31% growth year-to-date and a commendable 114% increase over the past five years, QQQ offers a solid entry point for those keen on tech stocks and well-established names, especially within the FAANG group.
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Moreover, a quick peek reveals giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) clinching top spots, constituting 12.78%, 11.79% and 5.93% of the fund’s assets respectively. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investing in stocks is imperative in building long-term wealth, prompting many to explore the top exchange-traded funds (ETFs) to buy. Vanguard Growth ETF (VUG) The Vanguard Growth ETF (NYSEARCA:VUG) has steadily carved out a commendable track record in recent years.
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Moreover, a quick peek reveals giants like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) clinching top spots, constituting 12.78%, 11.79% and 5.93% of the fund’s assets respectively. Notably, tech stocks constitute over half of QQQ’s assets, followed by the consumer discretionary sector, which accounts for nearly 20%. Consequently, with a substantial 31% growth year-to-date and a commendable 114% increase over the past five years, QQQ offers a solid entry point for those keen on tech stocks and well-established names, especially within the FAANG group.
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12858.0
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2023-10-30 00:00:00 UTC
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ITOT ETF: An Ideal Building Block for New Investors
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AAPL
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https://www.nasdaq.com/articles/itot-etf%3A-an-ideal-building-block-for-new-investors
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If you’re just starting out as an investor and looking for some foundational choices to build your portfolio around, the iShares Core S&P Total U.S. Stock Market ETF (NYSEARCA:ITOT) looks like a great building block to get started with. This $42 billion juggernaut from BlackRock (NYSE:BLK) offers tremendous diversification, an ultra-cheap expense ratio, and a strong track record of long-term performance, all in one convenient investment vehicle.
I’m bullish on ITOT as a long-term portfolio building block based on these factors. Even if you are a longtime investor with many years of experience in the markets, ITOT can still be a good choice for your portfolio for the same reasons.
What is the ITOT ETF’s Strategy?
ITOT seeks to track the S&P Total Market Index, a broad-based market of U.S. equities that gives investors comprehensive exposure to the entire U.S. stock market, “ranging from some of the smallest to largest companies,” according to iShares.
ITOT’s Extensive List of Holdings
While there are many popular S&P 500 (SPX) funds that simply invest in the S&P 500 Index, which gives investors exposure to 500 of the largest companies listed in the United States, ITOT goes a step further by investing in the much larger S&P Total Market Index.
This makes ITOT an incredibly diversified ETF. The fund holds an incredible 2,758 stocks, and its top 10 holdings make up 26.9% of the fund. For comparison, the popular Vanguard S&P 500 ETF (NYSEARCA:VOO), one of the stock market’s largest and most popular ETFs, invests in the S&P 500 and owns 504 stocks, with its top 10 holdings accounting for 26.9% of the fund.
Below, you’ll find a comprehensive overview of ITOT’s top 10 holdings using TipRanks’ holdings tool.
As you can see, ITOT’s top holdings consist of the "Magnificent Seven" tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), which dominate the top of the S&P 500.
However, at the other end of the spectrum, ITOT also invests in plenty of microcap stocks like Harpoon Therapeutics (NASDAQ:HARP), Mustang Bio (NASDAQ:MBIO), and Jaguar Animal Health (NASDAQ:JAGX) with market caps in the $10 to $20 million range that you won’t find in many other ETFs.
While these microcap stocks can be risky, they make up such minuscule parts of this massive fund that the downside from any individual one of these names is fairly limited while giving investors some upside if one of them turns into the next big thing.
As you can see, ITOT owns the market's largest and smallest stocks and pretty much everything in between.
Long-Term Track Record
In addition to this excellent diversification and comprehensive exposure to all corners of the U.S. stock market, ITOT has given its investors great returns for a long period of time, which is another important thing to consider when choosing an ETF to invest in.
You can’t really say that ITOT has "beaten the market" -- because ITOT is the market. That isn’t a bad thing, as investing in broad-market indices has proven to be a successful way to build wealth over time, and very few actively-managed ETFs or strategies manage to "beat the market" over the long run.
What do ITOT’s returns over time look like? As of the end of the most recent month, ITOT has returned 9.3% on a three-year annualized basis. Over the past five years, it has returned 9.0%. Going all the way out to the last 10 years, ITOT has generated an impressive 11.3% annualized return. Finally, since its inception in 2004, the fund has generated an annualized return of 8.9%.
Investing in a vehicle that is producing returns like this is likely to be a winning strategy over time. Think of it this way: an investor who put $10,000 into ITOT 10 years ago would have $19,292 today, nearly doubling their initial investment. If you invested $10,000 into ITOT at its inception in 2004, you would have $43,675 today.
Cost Structure
Another attractive aspect of ITOT is its investor-friendly expense ratio of just 0.03%. This means that if you put $10,000 into ITOT today, you will pay just a barely-noticeable $3 in fees during your first year of investing in the fund. Assuming that the fund returns 5% a year going forward and continues to charge 0.03%, you’ll pay just $39 in fees over the course of a decade.
When you’re just starting out, investing in low-cost funds like this is an important consideration, as it helps you to preserve more of your principal investment over time and saves you from spending large amounts of money on fees, which can really snowball over the years.
For example, let’s say you instead invest $10,000 into an ETF with an expense ratio of 0.35% (which is still reasonable compared to many of the expense ratios you will see out there) -- using the same parameters listed above, you’d pay $443 in fees over the course of 10 years.
Whether you’re a beginner or an experienced investor, it never hurts to own ETFs with low-cost expense ratios.
Is ITOT Stock a Buy, According to Analysts?
Turning to Wall Street, ITOT earns a Moderate Buy consensus rating based on 1,857 Buys, 831 Holds, and 71 Sell ratings assigned in the past three months. The average ITOT stock price target of $112.72 implies 23.8% upside potential.
A Solid Building Block
Adding it all up, ITOT serves as a robust building block and can be a cornerstone of investors' portfolios. This is due to the comprehensive, diversified exposure it offers to the entire U.S. stock market. Additionally, it boasts a strong track record of long-term performance compiled over many years. Furthermore, its attractively low expense ratio helps investors preserve their investment gains over time.
These features make ITOT an ideal choice for investors who are just getting started. Furthermore, these attributes make it a commendable ETF for investors of all experience levels to consider for long-term inclusion in their portfolios.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, ITOT’s top holdings consist of the "Magnificent Seven" tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), which dominate the top of the S&P 500. While these microcap stocks can be risky, they make up such minuscule parts of this massive fund that the downside from any individual one of these names is fairly limited while giving investors some upside if one of them turns into the next big thing. Long-Term Track Record In addition to this excellent diversification and comprehensive exposure to all corners of the U.S. stock market, ITOT has given its investors great returns for a long period of time, which is another important thing to consider when choosing an ETF to invest in.
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As you can see, ITOT’s top holdings consist of the "Magnificent Seven" tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), which dominate the top of the S&P 500. If you’re just starting out as an investor and looking for some foundational choices to build your portfolio around, the iShares Core S&P Total U.S. Stock Market ETF (NYSEARCA:ITOT) looks like a great building block to get started with. This $42 billion juggernaut from BlackRock (NYSE:BLK) offers tremendous diversification, an ultra-cheap expense ratio, and a strong track record of long-term performance, all in one convenient investment vehicle.
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As you can see, ITOT’s top holdings consist of the "Magnificent Seven" tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), which dominate the top of the S&P 500. ITOT seeks to track the S&P Total Market Index, a broad-based market of U.S. equities that gives investors comprehensive exposure to the entire U.S. stock market, “ranging from some of the smallest to largest companies,” according to iShares. ITOT’s Extensive List of Holdings While there are many popular S&P 500 (SPX) funds that simply invest in the S&P 500 Index, which gives investors exposure to 500 of the largest companies listed in the United States, ITOT goes a step further by investing in the much larger S&P Total Market Index.
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As you can see, ITOT’s top holdings consist of the "Magnificent Seven" tech stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), which dominate the top of the S&P 500. The fund holds an incredible 2,758 stocks, and its top 10 holdings make up 26.9% of the fund. Long-Term Track Record In addition to this excellent diversification and comprehensive exposure to all corners of the U.S. stock market, ITOT has given its investors great returns for a long period of time, which is another important thing to consider when choosing an ETF to invest in.
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12859.0
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2023-10-30 00:00:00 UTC
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Apple introduces new MacBook Pro and M3 chip family
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AAPL
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https://www.nasdaq.com/articles/apple-introduces-new-macbook-pro-and-m3-chip-family
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nan
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By Stephen Nellis
SAN FRANCISCO, Oct 30 (Reuters) - Apple AAPL.O on Monday introduced new MacBook Pro and iMac computers and three new chips to power them, with the company saying it had redesigned its graphics processing units, a key part of the chip where Nvidia NVDA.O dominates the market.
The new computers and the M3, M3 Pro and M3 Max chips were unveiled at an online event. The 14-inch MacBook Pro laptop will start at $1,599 and a 16-inch version starts at $2,499. The new iMac desktop with the M3 family of chips starts at $1,299.
Apple has seen a revitalization in its Mac business, roughly doubling its market share to nearly 11% since 2020 when it parted ways with Intel INTC.O and started using its own custom-designed chips as the brains of the machines, according to preliminary data from IDC.
Apple focused the event on professional users, showing off a new secure screen sharing feature that would let professional users work on their machines from remote locations.
The company's custom chips, which use design technology from Arm Holdings O9Ty.F, ARM.O, have given its Macs better battery life and, for some tasks, better performance than machines using Microsoft's MSFT.O Windows operating system.
Apple said the M3 Max chip was aimed at artificial intelligence developers, who need huge amounts of memory to develop chatbots and other models.
Apple's shakeup of the market has spurred Qualcomm QCOM.O to redouble its efforts to make Arm-based chips for Windows, announcing plans last week to release a chip that is both faster and more energy efficient than some Apple offerings. Reuters last week reported that Nvidia also plans to jump into the PC market as early as 2025.
At Apple, the Mac hit $40.18 billion in revenue for its fiscal 2022, or about 11% of its revenue. While that was up 14% from the previous fiscal year, sales this year have slowed along with the rest of the PC industry, which has suffered a post-pandemic slump.
Apple said the new chips would be the first for laptops and desktops that use 3 nanometer manufacturing technology, which will give the chips better performance for each watt of electricity used.
Throughout the event, Apple executives compared the performance of the new MacBooks and iMac machines to older Apple machines with chips from Intel, playing up how much speed customers would notice by upgrading to devices with Apple's own chips.
(Reporting by Stephen Nellis in San Francisco; Additional reporting by Shivani Tanna and Jahnavi Nidumolu in Bengaluru and Peter Henderson and Sayantani Ghosh in San Francisco; Editing by Marguerita Choy and Jamie Freed)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis SAN FRANCISCO, Oct 30 (Reuters) - Apple AAPL.O on Monday introduced new MacBook Pro and iMac computers and three new chips to power them, with the company saying it had redesigned its graphics processing units, a key part of the chip where Nvidia NVDA.O dominates the market. Apple has seen a revitalization in its Mac business, roughly doubling its market share to nearly 11% since 2020 when it parted ways with Intel INTC.O and started using its own custom-designed chips as the brains of the machines, according to preliminary data from IDC. The company's custom chips, which use design technology from Arm Holdings O9Ty.F, ARM.O, have given its Macs better battery life and, for some tasks, better performance than machines using Microsoft's MSFT.O Windows operating system.
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By Stephen Nellis SAN FRANCISCO, Oct 30 (Reuters) - Apple AAPL.O on Monday introduced new MacBook Pro and iMac computers and three new chips to power them, with the company saying it had redesigned its graphics processing units, a key part of the chip where Nvidia NVDA.O dominates the market. Throughout the event, Apple executives compared the performance of the new MacBooks and iMac machines to older Apple machines with chips from Intel, playing up how much speed customers would notice by upgrading to devices with Apple's own chips. (Reporting by Stephen Nellis in San Francisco; Additional reporting by Shivani Tanna and Jahnavi Nidumolu in Bengaluru and Peter Henderson and Sayantani Ghosh in San Francisco; Editing by Marguerita Choy and Jamie Freed) ((Stephen.Nellis@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis SAN FRANCISCO, Oct 30 (Reuters) - Apple AAPL.O on Monday introduced new MacBook Pro and iMac computers and three new chips to power them, with the company saying it had redesigned its graphics processing units, a key part of the chip where Nvidia NVDA.O dominates the market. Apple's shakeup of the market has spurred Qualcomm QCOM.O to redouble its efforts to make Arm-based chips for Windows, announcing plans last week to release a chip that is both faster and more energy efficient than some Apple offerings. Throughout the event, Apple executives compared the performance of the new MacBooks and iMac machines to older Apple machines with chips from Intel, playing up how much speed customers would notice by upgrading to devices with Apple's own chips.
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By Stephen Nellis SAN FRANCISCO, Oct 30 (Reuters) - Apple AAPL.O on Monday introduced new MacBook Pro and iMac computers and three new chips to power them, with the company saying it had redesigned its graphics processing units, a key part of the chip where Nvidia NVDA.O dominates the market. The 14-inch MacBook Pro laptop will start at $1,599 and a 16-inch version starts at $2,499. Apple said the new chips would be the first for laptops and desktops that use 3 nanometer manufacturing technology, which will give the chips better performance for each watt of electricity used.
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12860.0
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2023-10-29 00:00:00 UTC
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Wall St Week Ahead-Frazzled U.S. stock investors eye frothy Treasury market as Fed looms
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-frazzled-u.s.-stock-investors-eye-frothy-treasury-market-as-fed-looms-0
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By David Randall
NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc AAPL.Opossibly setting the course for stocks and bonds the rest of the year.
October has lived up to its reputation for volatility, as a surge in Treasury yields and geopolitical uncertainty pressured stocks. The S&P 500 index .SPXis down 3.5% for the month, adding to losses that have left it over 10% off its late-July high.
Whether the ride remains rough for the rest of 2023 may depend in large part on the bond market. The Fed's 'higher for longer' stance on interest rates and rising U.S. fiscal worries pushed the benchmark 10-year Treasury yield - which moves inversely to prices - to 5% earlier this month, the highest since 2007. Higher Treasury yields are seen as a headwind to stocks, in part because they compete with equities for buyers.
Investors worry that yields could rise further if the Fed reinforces its hawkish message at the central bank's Nov. 1 monetary policy meeting. Strong U.S. employment data next Friday could also be a catalyst for yields to rise if it bolsters the case for keeping rates elevated to cool the economy and prevent inflation from rebounding.
"Stocks will start to recover when the market believes that bond yields have peaked," said Sam Stovall, chief investment strategist at CFRA Research.
Overall, futures markets are pricing in a near-certainty that the Fed does not raise rates in November, and a nearly 80% chance that the central bank holds rates steady in December, according to CME's FedWatch Tool. Still, policymakers have projected they will keep the key policy rate at current levels through most of 2024, longer than markets had previously anticipated.
Investors are playing a "waiting game of how much does each economic data point need to increase to put another rate hike back on the table," said Alex McGrath, chief investment officer for NorthEnd Private Wealth.
With U.S. Gross Domestic Product growth at a sizzling 4.9% in the third quarter, signs that the labor market remains too hot, or the Fed sees the need for further tightening to control inflation, could fuel further volatility.
"It feels like we are at a crossroads whether or not the strong growth we've seen over the summer months will continue over the fourth quarter," and keep worries over inflation and restrictive monetary policy bubbling, said Charlie Ripley, senior investment strategist for Allianz Investment Management.
Adding to the bond market'sconcerns, the Treasury is expected to announce its upcoming auction sizes later this week. Worries about a growing federal deficit and increased supply have helped push yields higher.
Some investors believe the worst of the selling may be over.
A stock market rebound would follow seasonal trends, said Stovall, of CFRA Research. Since 1945, the S&P 500 has advanced by an average of 1.5% in November, making it the year's third-best performing month, he said.
More broadly, some believe the stock market's trading patterns this year point to a rebound in the fourth quarter.
In the 14 instances when the S&P 500 has gained at least 10% through July and then declined in August, as it did this year, the index has increased every time over the last four months of the year, according to Ned Davis Research. The average gain in those instances has been 10%.
Stocks appear "oversold" according to technical indicators and could rally if economic data comes in as expected, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
(Reporting by David Randall; Editing by Ira Iosebashvili and Richard Chang)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc AAPL.Opossibly setting the course for stocks and bonds the rest of the year. Investors are playing a "waiting game of how much does each economic data point need to increase to put another rate hike back on the table," said Alex McGrath, chief investment officer for NorthEnd Private Wealth. Stocks appear "oversold" according to technical indicators and could rally if economic data comes in as expected, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc AAPL.Opossibly setting the course for stocks and bonds the rest of the year. Investors worry that yields could rise further if the Fed reinforces its hawkish message at the central bank's Nov. 1 monetary policy meeting. "Stocks will start to recover when the market believes that bond yields have peaked," said Sam Stovall, chief investment strategist at CFRA Research.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc AAPL.Opossibly setting the course for stocks and bonds the rest of the year. The Fed's 'higher for longer' stance on interest rates and rising U.S. fiscal worries pushed the benchmark 10-year Treasury yield - which moves inversely to prices - to 5% earlier this month, the highest since 2007. "Stocks will start to recover when the market believes that bond yields have peaked," said Sam Stovall, chief investment strategist at CFRA Research.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc AAPL.Opossibly setting the course for stocks and bonds the rest of the year. Investors worry that yields could rise further if the Fed reinforces its hawkish message at the central bank's Nov. 1 monetary policy meeting. "It feels like we are at a crossroads whether or not the strong growth we've seen over the summer months will continue over the fourth quarter," and keep worries over inflation and restrictive monetary policy bubbling, said Charlie Ripley, senior investment strategist for Allianz Investment Management.
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12861.0
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2023-10-29 00:00:00 UTC
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Arm-Based PCs Aren't All Bad News for Intel
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AAPL
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https://www.nasdaq.com/articles/arm-based-pcs-arent-all-bad-news-for-intel
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nan
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nan
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Up until a few years ago, PCs almost exclusively ran on x86-based chips from Intel (NASDAQ: INTC) or AMD, not Arm-based chips using Arm Holdings' (NASDAQ: ARM) technology. In 2020, Apple officially made the switch from Intel CPUs to its own home-grown Arm-based chips for its Mac computers. It wasn't an easy thing to do. Apple had to come up with an emulation layer, called Rosetta 2, that allows software designed for Intel-based Macs to run on the new Arm-based Macs.
Microsoft has tried multiple times to bring its Windows operating system to Arm-based systems. The first attempt, Windows RT, was a disaster. The OS wasn't compatible with any Windows software designed for standard Windows, but it looked exactly the same as the current version of Windows. This made for a confusing and frustrating experience for those unfortunate enough to have bought a device running Windows RT.
Microsoft is now trying again with Arm versions of Windows 10 and Windows 11. Qualcomm has released a few Arm-based chips which are used in devices running the Arm version of Windows. This time around, Microsoft has included an emulation layer that allows standard Windows apps to run on Arm-based systems. It's not perfect – software drivers for some hardware won't work, and some PC games can't be played at all. But it's a huge step forward compared to Windows RT.
Doubling down on Arm
Qualcomm recently announced Snapdragon X Elite, a new platform for PCs that delivers huge performance gains over previous generations. The company claims that its new chips handily beat competing chips from Intel and use less power in the process. The first PCs featuring the new chips are expected in mid-2024.
Rumors have also been swirling that both Nvidia and AMD plan to jump into the Arm-based PC chip market as well. Nvidia supplied the processor for Microsoft's ill-fated Surface RT device, and it's released server chips using Arm technology. AMD has toyed with Arm-based chips in the past. Both companies are certainly capable of launching solid Arm-based chips that can run Windows.
This presents a problem for Intel. The company dominates the market for PC CPUs, partly because Windows has historically only worked with chips based on its x86 instruction set. In a world where Windows works perfectly fine on Arm-based chips, Intel will almost certainly lose some market share. Arm-based chips tend to be extremely power efficient, making them a good choice for laptops that need extreme battery life.
There's an upside for Intel
While Intel's PC chip business is likely to face increased competition as the ecosystem around Windows for Arm matures, the company's foundry business can benefit. Intel struck a deal with Arm Holdings earlier this year to co-optimize Arm's chip design for Intel's upcoming Intel 18A manufacturing process. Intel expects its Intel 18A process to lead the industry when it crosses the finish line in late 2024, and it integrates innovative technologies including backside power delivery and a new transistor design.
Any chip designer building an Arm-based chip in 2025 and beyond will need to seriously consider using Intel for manufacturing. If Intel does indeed reclaim its manufacturing edge over Taiwan Semiconductor, its manufacturing technology could deliver a competitive advantage to those using it.
While Intel's PC chip business may lose some of its dominance to Arm-based chips, some of them may be rolling off Intel's production lines. There's also no reason why Intel can't design its own Arm-based chips, although there's been no indication from the company that such a move is in the cards.
The coming age of capable Arm-based PCs isn't all bad news for Intel. Through Intel's manufacturing deal with Arm, the company can benefit from Arm's success. Even if Intel loses a considerable share of the PC market, the company's foundry business can thrive as demand for Arm-based PC chips soars.
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Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Doubling down on Arm Qualcomm recently announced Snapdragon X Elite, a new platform for PCs that delivers huge performance gains over previous generations. The company dominates the market for PC CPUs, partly because Windows has historically only worked with chips based on its x86 instruction set. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing.
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Up until a few years ago, PCs almost exclusively ran on x86-based chips from Intel (NASDAQ: INTC) or AMD, not Arm-based chips using Arm Holdings' (NASDAQ: ARM) technology. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. 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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Up until a few years ago, PCs almost exclusively ran on x86-based chips from Intel (NASDAQ: INTC) or AMD, not Arm-based chips using Arm Holdings' (NASDAQ: ARM) technology. Intel struck a deal with Arm Holdings earlier this year to co-optimize Arm's chip design for Intel's upcoming Intel 18A manufacturing process. While Intel's PC chip business may lose some of its dominance to Arm-based chips, some of them may be rolling off Intel's production lines.
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Up until a few years ago, PCs almost exclusively ran on x86-based chips from Intel (NASDAQ: INTC) or AMD, not Arm-based chips using Arm Holdings' (NASDAQ: ARM) technology. Microsoft is now trying again with Arm versions of Windows 10 and Windows 11. Qualcomm has released a few Arm-based chips which are used in devices running the Arm version of Windows.
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12862.0
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2023-10-29 00:00:00 UTC
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Weekly Preview: Earnings to Watch This Week 10-29-23 (AMD, AAPL, MRNA, SQ)
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AAPL
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https://www.nasdaq.com/articles/weekly-preview-earnings-to-watch-amd-aapl-mrna-sq
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nan
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A
n important week in the third-quarter earnings season just concluded, where tech giants such as Microsoft (MSFT), Meta Platforms (META), Google parent Alphabet (GOOG , GOOGL), and Amazon (AMZN) reported their results. Depending on your point of view, the re-emergence of mega-cap Big-Tech dominance in the stock market could be imminent.
However, there are many factors still driving the market and the direction stocks take to close out the year. With all three major averages entering correction territory, it’s not just the mega-caps or tech stocks that are sputtering. And unlike previous quarters, it doesn’t appear as if we can bet on strong earnings as the sole catalyst to push stocks higher. On Friday, the the personal consumption expenditures (PCE) price index — a closely-watched measure of inflation by the Federal Reserve — increased 0.3% for September, as expected.
Notably, consumer spending rose 0.7% in September even as inflation pushed prices higher, better than the 0.5% forecast. Meanwhile, personal income rose 0.3%, which was below the estimates by about one-tenth of a percentage point. The data also showed that the PCE index rose 0.4% when factoring food and energy prices, which tend to be more volatile. This means, on a year-over-year basis, the core PCE grew 3.7% in September: this is the Fed’s main gauge of where prices are headed over the longer term when making its policy decisions.
Although the core PCE is still relatively high at 3.7%, it is significantly below its peak of 5.6% in early 2022. This means the Fed’s efforts over the past year to combat inflation has had an effect, though the core PCE still remains below the Fed’s target of 2%. The headline PCE, meanwhile, was up 3.4% in September which was unchanged from August. Essentially, the data the Fed watches suggests there may be no reason for more rate hikes, but that depends on your point of view, with some taking a more hawkish stance.
Although the rate hikes have shown to have an effect, the fact that consumer spending rose 0.7% in September even as inflation pushed prices higher suggests consumer behavior has not changed drastically enough to warrant a pivot in monetary policy. On Friday, if judging by market movements, investors believe the Fed will continue to raise rates. The Dow Jones Industrial Average was punished, falling 366.71 points, or 1.12%, to end the session at 32,417.59. The S&P 500 declined 19.86 points, or 0.48%, finishing at 4,117.37, while the tech-heavy Nasdaq Composite bucked the trend and added 47.41 points, or 0.38%, to close at 12,643.01.
Friday’s divergence in the three benchmarks suggests investors are still unsure about the direction of the economy and the near-term and long-term impact of monetary policy decisions. But while it’s still early, and more than half of the earnings season still remain, the outlook companies have provided so far suggests stocks can still rebound to close the year. Here are the names I’ll be watching.
Advanced Micro Devices (AMD) - Reports after the close, Tuesday, Oct. 31
Wall Street expects AMD to earn 64 cents per share on revenue of $5.37 billion. This compares to the year-ago quarter when earning were 67 cents per share on $5.62 billion in revenue.
What to watch: There continues to be a noticeable rebound in global PC shipments, according to Gartner, which suggested a recovery in the global PC market could be underway. In the most recent quarter, worldwide PC shipments totaled 59.7 million units, marking an almost 17% decrease year over year. But that decline is showing signs of stabilization, including sequential growth from the previous quarter, noted Gartner analyst Mikako Kitagawa. “The rate of decline in the PC market has slowed, indicating that shipment volumes may have reached their lowest point,” said Kitagawa, adding, “There has been progress in reducing PC inventory after more than a year of issues, supported by a gradual increase in business PC demand. Gartner expects that PC inventory will normalize by the end of 2023, and PC demand will return to growth starting in 2024.”
This bodes well for Advanced Micro Devices, which is one of the key players in the global semiconductor industry. AMD has consistently grown its market share of the global CPU processors, driven by product innovations such as its Ryzen processors built on the Zen microarchitecture. However, margin erosion and the cyclicality in the chip business have been two of the company’s biggest headwinds over the past several quarters. Investors are anxious to see whether margin pressures have bottomed and are now ready for expansion.
Meanwhile, AMD stock, which is up 48% year to date, compared with a 7% rise in the S&P 500 index, assumes these issues are in the rearview mirror. This is because even amid these challenges, the company is demonstrating strong operating leverage, evidenced by its ability to grow profits at a faster rate than its revenue. Assuming the company’s growth metrics rebound in Q3, along with strong guidance, AMD stock will continue to rise despite its recent outperformance.
Moderna (MRNA) - Reports before the open, Thursday, Nov. 2
Wall Street expects Moderna to lose $1.79 per share on revenue of $1.32 billion. This compares to the year-ago quarter when earnings were $2.53 per share on $3.36 billion in revenue.
What to watch: Can Moderna still provide healthy returns? Given that Covid-19 numbers have drastically declined across the globe, the assumption is that Moderna will struggle to grow revenue. Currently down 60% year to date, compared to the 7% rise in the S&P 500 index, Moderna shares have been punished over the past six months, falling 45%, including 12% decline last week. As it stands, their shares have been in a downward spiral, losing a staggering 50% over the past year.
Moderna's management is being tasked to demonstrate that the company can produce and sustain operating profitability and growth beyond its Covid expertise, in which the company said it expects to generate $5 billion in vaccine revenue this year. The market, however, appears to have discounted this forecast, given the weak demand Moderna has seen so far for its boosters shots. But the beyond the Covid vaccine, the company's pipeline is promising; the pipeline, which uses its messenger RNA (mRNA) technology, has several candidates that can come to market to sustain long-term growth, including drug development for influenza and HIV vaccine.
So while the stock price has been under heavy selling pressure, Moderna’s business fundamentals are still intact. The market will nonetheless want to hear what the company has to say on Thursday about its growth expectations for both the near term and long term.
Block (SQ) - Reports after the close, Thursday, Nov. 2
Wall Street expects Block to earn 47 cents per share on revenue of $5.43 billion. This compares to the year-ago quarter when earnings came to 42 cents per share on revenue of $4.49 billion.
What to watch: Shares of Block have been under heavy selling pressure, falling close to 40% over the past six months, including 14% decline in thirty days. It would be an understatement to say that the fintech specialist has felt the recent pullback in the tech sector. But this is a buying opportunity, according to Bank of America analyst Jason Kupferberg. Calling the stock's recent pullback “unjustified,” Kupferberg last week reaffirmed his Buy rating on Block, pointing out that the stock now trades near a historically low valuation at 2.9 times his 2024 enterprise-value-to-EBITDA estimate.
Originally called Square, and known for its peer-to-peer money-transfer service Cash App, the company rebranded its name to Block to present an emphasis on its shift towards blockchain technology. Although Block continues to build out what it envisions as a decentralized finance business using cryptocurrency, its management expects Cash App, which is already used to buy and sell Bitcoin, to lead the new business. For these reasons, the stock was initiated as a Buy at Berenberg Capital Markets. Analyst Mark Palmer calls the stock's pullback represents an attractive entry point. "Management's sharpened focus on controlling the growth of Block's operating expenses has enabled it to demonstrate the significant operating leverage inherent in its business model," said Palmer, adding, ”We believe Block has reached an inflection point regarding its profit power, and it has plenty of runway for increased profitability.” On Thursday investors will want more details on these initiatives to assess where the stock valuation should be.
Apple (AAPL) - Reports after the close, Thursday, Nov. 2
Wall Street expects Apple to earn $1.31 per share on revenue of $84.18 billion. This compares to the year-ago quarter when earnings came to $1.29 per share on revenue of $90.15 billion.
What to watch: Since mid June, Apple shares have not performed as well as investors would have liked. The shares have fallen more than 14% over the past three months, including a 3% decline in the past thirty days. And while the stock is still up respectively by close to 30% year to date, besting the 7% rise in the S&P 500 index, investors are less excited given the stock was up close to 50% year to date at one point, pushing Apple past a $3 trillion valuation.
But despite the bearish tenor of the overall market, the tech giant is doing a solid job navigating through the various headwinds that have impacted its business, namely rising inflation, economic and political woes in China, and a potential recession. As such, there are still tons of reasons to stay bullish on the company’s growth potential. The sales prospects for the new iPhone 15, which was launched in September, is one reason. But it’s not just about the iPhones.
Apple’s Services segment, which generated $21.2 billion in Q3, is up 8.2% year over year and impressively generated $20.9 billion in Q2. Service revenue should continue to generate higher-digit revenue growth this quarter and well into 2024, which will help offset the macro weakness impacting iPhone sales. Notably, its management had already noted that they expect the "September quarter Y/Y revenue performance to be similar to the June quarter, assuming that the macroeconomic outlook doesn't worsen from what we are projecting today for the current quarter." The market will look for details about the state the iPhone, along with more clues about its long-awaited mixed reality headset, dubbed Vision Pro, which was unveiled at the company's Worldwide Developers Conference.
The views and 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) - Reports after the close, Thursday, Nov. 2 Wall Street expects Apple to earn $1.31 per share on revenue of $84.18 billion. Originally called Square, and known for its peer-to-peer money-transfer service Cash App, the company rebranded its name to Block to present an emphasis on its shift towards blockchain technology. But despite the bearish tenor of the overall market, the tech giant is doing a solid job navigating through the various headwinds that have impacted its business, namely rising inflation, economic and political woes in China, and a potential recession.
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Apple (AAPL) - Reports after the close, Thursday, Nov. 2 Wall Street expects Apple to earn $1.31 per share on revenue of $84.18 billion. Advanced Micro Devices (AMD) - Reports after the close, Tuesday, Oct. 31 Wall Street expects AMD to earn 64 cents per share on revenue of $5.37 billion. Block (SQ) - Reports after the close, Thursday, Nov. 2 Wall Street expects Block to earn 47 cents per share on revenue of $5.43 billion.
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Apple (AAPL) - Reports after the close, Thursday, Nov. 2 Wall Street expects Apple to earn $1.31 per share on revenue of $84.18 billion. Moderna's management is being tasked to demonstrate that the company can produce and sustain operating profitability and growth beyond its Covid expertise, in which the company said it expects to generate $5 billion in vaccine revenue this year. "Management's sharpened focus on controlling the growth of Block's operating expenses has enabled it to demonstrate the significant operating leverage inherent in its business model," said Palmer, adding, ”We believe Block has reached an inflection point regarding its profit power, and it has plenty of runway for increased profitability.” On Thursday investors will want more details on these initiatives to assess where the stock valuation should be.
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Apple (AAPL) - Reports after the close, Thursday, Nov. 2 Wall Street expects Apple to earn $1.31 per share on revenue of $84.18 billion. Moderna (MRNA) - Reports before the open, Thursday, Nov. 2 Wall Street expects Moderna to lose $1.79 per share on revenue of $1.32 billion. Currently down 60% year to date, compared to the 7% rise in the S&P 500 index, Moderna shares have been punished over the past six months, falling 45%, including 12% decline last week.
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12863.0
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2023-10-29 00:00:00 UTC
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3 No-Brainer Vanguard ETFs to Buy Now
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AAPL
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https://www.nasdaq.com/articles/3-no-brainer-vanguard-etfs-to-buy-now
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nan
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nan
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Exchange-traded funds, or ETFs for short, can be wonderful investing vehicles. ETFs are cost and tax-efficient, trade-like individual stocks, and can provide instant diversification across a wide swath of the broader market, or within a specific theme. Not all ETFs are table-pounding buys, however. Some funds come with hefty expense ratios, which can diminish future returns.
Fortunately, there is a simple solution to this problem: Vanguard ETFs. Vanguard ETFs are designed to be investor friendly, evinced by their remarkably low expensive ratios. In fact, the firm's broad family of ETFs sport expense ratios that are 80% lower, on average, compared to the broader industry. Best of all, most Vanguard funds have 10-year performance records comparable, and often superior, to many actively managed funds, or even other types of passively managed funds.
Image Source: Getty Images.
Which low-cost Vanguard funds are no-brainer buys right now? If you have a 10 to 20-year investing horizon, the following three funds ought to be on your radar right now.
Vanguard Dividend Appreciation Index Fund
Although dividend investing hasn't been a winning strategy in 2023 due to sticky inflation, dramatic interest rate hikes, and the possibility of a recession, companies that frequently boost their dividend have a proven track record as top capital appreciation vehicles over long periods of time (10 to 20 years).
This strategy, known as dividend growth investing, isn't new by any stretch of the imagination but it is highly effective. The one drawback associated with it is that sometimes companies with normally reliable dividends get hit with an unexpected setback, resulting in slower dividend growth, or worse still, a dividend reduction. This is where dividend appreciation ETFs come into play.
The Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG) (aka VIG) tracks the performance of the S&P U.S. Dividend Growers Index. The VIG comes with a tiny expense ratio of 0.06%, it only requires a minimal investment of $1, and it has delivered phenomenal returns over the prior 10 years (up 172.4%).
The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. Most of its holdings are large to mega-cap companies with enormous cash positions, healthy free cash flows, and reasonable levels of debt. As such, this low-cost ETF provides exposure to a wide range of blue chip companies, making it an ultra-low-risk dividend growth vehicle.
Vanguard 500 Index Fund
Stock investing doesn't have to be difficult. Many of the best investors in the world – including Warren Buffett – have often advised average investors to keep it simple by regularly buying shares of a low-cost index fund that tracks the benchmark S&P 500. The Vanguard 500 Index Fund (NYSEMKT: VOO), or VOO, ticks both of those boxes.
The fund invests in companies in the S&P 500 and it comes with an ultra-low expense ratio of 0.03%. Its five top holdings are Apple, Microsoft, Amazon, Nvidia, and Alphabet. Over the past 10 years, the VOO has delivered cumulative returns in excess of 200% for shareholders. That's a pretty amazing return on investment for a passive index fund.
Vanguard Growth Index Fund
Want exposure to some of the most innovative and fastest-growing companies on the planet? Meet the Vanguard Growth Index Fund (NYSEMKT: VUG), or VUG in common parlance. The VUG tracks the CRSP US Large Cap Growth Index and it comes with a bargain basement expense ratio of 0.04%. Since its inception in 2004, this large-cap growth ETF has delivered a blistering 544% total return on investment for shareholders. This year, the fund has dramatically outperformed the broader market, posting a remarkable 23.7% total return year-to-date.
VUG Total Return Level data by YCharts
What's in the VUG? The fund's top five holdings consist of Apple, Microsoft, Amazon, Nvidia, and Alphabet. Now, the VUG does lean heavily into pricey tech stocks, and some of these names may be due for a pullback from recent highs. Over the long term, though, these financially sound growth companies should continue to deliver strong top and bottom-line growth. The VUG, for its part, allows investors an easy way to benefit from this underlying growth trend without having to pick favorites.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Apple and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, JPMorgan Chase, Microsoft, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Vanguard Specialized Funds-Vanguard Dividend Appreciation ETF. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. ETFs are cost and tax-efficient, trade-like individual stocks, and can provide instant diversification across a wide swath of the broader market, or within a specific theme. In fact, the firm's broad family of ETFs sport expense ratios that are 80% lower, on average, compared to the broader industry.
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The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. The Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG) (aka VIG) tracks the performance of the S&P U.S. Dividend Growers Index. Meet the Vanguard Growth Index Fund (NYSEMKT: VUG), or VUG in common parlance.
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The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. Vanguard Dividend Appreciation Index Fund Although dividend investing hasn't been a winning strategy in 2023 due to sticky inflation, dramatic interest rate hikes, and the possibility of a recession, companies that frequently boost their dividend have a proven track record as top capital appreciation vehicles over long periods of time (10 to 20 years). The Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG) (aka VIG) tracks the performance of the S&P U.S. Dividend Growers Index.
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The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. Vanguard 500 Index Fund Stock investing doesn't have to be difficult. * 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!
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12864.0
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2023-10-29 00:00:00 UTC
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The Fed, Earnings and Other Can't Miss Items This Week
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AAPL
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https://www.nasdaq.com/articles/the-fed-earnings-and-other-cant-miss-items-this-week
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nan
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nan
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Earnings last week proved to be exciting with many companies posting better-than-expected results and their stocks reacting the next session. Microsoft (MSFT) comes to mind with a better-than-expected release, the stock popped the following session and then slowly proceeded to fill the gap. Even with that gap filled it still managed to close the week up almost 1%.
In addition to Microsoft, we had Amazon (AMZN) report on Thursday with a large beat and the stock continued to rally all through Friday to close the week up over 2%. These are impressive closes given the fact that the overall market, measured here through the S&P 500 ($SPX) (SPY), closed the week down over 2.50%.
This week we have more earnings in store as well as what a lot of the markets are waiting for: The Fed Funds rate. Here are 5 things to watch this week in the market.
Earnings
Coming out this week we have McDonalds (MCD) on Monday before the market opens along with HSBC. Tuesday has some heavy hitters with Pfizer (PFE), Advanced Micro Devices (AMD), Anheuser-Busch (BUD) and Caterpillar (CAT). BUD will be an interesting watch as they recently announced a huge brand sponsorship with the UFC. Thursday after the market closes, Apple (AAPL) reports. This could really be one to watch due to the fact that Apple is so heavily intertwined in the market. If Apple misses or investors don’t like what they hear, it's possible that it takes the whole market with it if it falls.
Consumer Confidence
On the news front, one of the first important releases is Tuesday at 10 a.m. Eastern with Consumer Confidence. This report may not move the market much but it can be a good forward-looking indicator of how the overall economy is viewed. It will be interesting to watch this with the Fed setting their new rates on Wednesday, if this comes in hot we may see the Fed step up rates again to really help cool the economy off. If we come in cool then it's possible the Fed keeps the same rate or perhaps even cuts.
JOLTS Job Opening
Wednesday morning at 10 a.m. Eastern is the Jolts Job opening. The Fed continually talks about the tight labor market so watching this could be an important signal heading into the Fed release later Wednesday.
FOMC Statement/Rate
The new Fed Funds rate is released Wednesday at 2 p.m. Eastern. They are expected to hold steady at 5.50%. If there is a surprise hike, it's possible we start to see a chain reaction move through futures and equities as the market could fear additional interest rate hikes. This could also potentially carry over into the Bond markets as well.
If there is a continued hold at 5.50% then looking at both the statement and the press conference at 2:30 could be important to see how and why the Fed made the decision it did. If it's because it thinks inflation is under control we could see a rally, if it's because they are waiting to hike at a later date we could see the market rollover.
In addition, the press conference at 2:30 also can cause some volatility as Powell takes questions from reporters and explains what he and the other voting members are looking at both now and going forward.
Non-Farm Employment Change
Non-farm payrolls are out Friday morning at 8:30 a.m. Eastern. After last month's hefty beat, eyes could be on the language in the report to see if any of those additions get rolled back and revised lower. If the market likes the Fed meeting results from earlier this week, it's possible that both a beat or a miss can cause the market to rally. If it does not like the language Powell uses or the new Fed Funds rate, it's possible the market will look to a healthy jobs report to keep it stable.
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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Wall Street Sees 20% Upside Potential for This Dividend King
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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Thursday after the market closes, Apple (AAPL) reports. Microsoft (MSFT) comes to mind with a better-than-expected release, the stock popped the following session and then slowly proceeded to fill the gap. In addition to Microsoft, we had Amazon (AMZN) report on Thursday with a large beat and the stock continued to rally all through Friday to close the week up over 2%.
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Thursday after the market closes, Apple (AAPL) reports. JOLTS Job Opening Wednesday morning at 10 a.m. Eastern is the Jolts Job opening. FOMC Statement/Rate The new Fed Funds rate is released Wednesday at 2 p.m. Eastern.
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Thursday after the market closes, Apple (AAPL) reports. The Fed continually talks about the tight labor market so watching this could be an important signal heading into the Fed release later Wednesday. If the market likes the Fed meeting results from earlier this week, it's possible that both a beat or a miss can cause the market to rally.
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Thursday after the market closes, Apple (AAPL) reports. This week we have more earnings in store as well as what a lot of the markets are waiting for: The Fed Funds rate. It will be interesting to watch this with the Fed setting their new rates on Wednesday, if this comes in hot we may see the Fed step up rates again to really help cool the economy off.
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12865.0
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2023-10-29 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-14
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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Top Large-Cap Growth Stocks
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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2023-10-29 00:00:00 UTC
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If You Had Invested $10,000 in Apple When the iPhone Came Out, This Is How Much You Would Have Today
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AAPL
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https://www.nasdaq.com/articles/if-you-had-invested-%2410000-in-apple-when-the-iphone-came-out-this-is-how-much-you-would
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nan
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nan
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There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. The device, which was the first touchscreen-based smartphone, ushered in the mobile computing era. At this point, it's responsible for well more than $1 trillion in revenue for Apple -- and with high margins.
From a business perspective, the iPhone is one of the most successful products in history, and 16 years later, it still underpins Apple's tech empire today. The smartphone is bolstered by complementary devices like AirPods and the Apple Watch, as well as its services business, which has driven much of the company's profit growth in recent years.
To give a sense of how transformative the iPhone has been for Apple, the chart below shows how the stock has done since its iconic smartphone was released.
AAPL data by YCharts
With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. That's a life-changing result from one investment, and Apple's gain since the debut of the iPhone offers a number of lessons for investors.
Breakthrough products can produce transformative returns
It would have been hard to know how successful the iPhone would go on to be when it was first released, but there were some clues.
The device that preceded it -- the iPod -- was also a breakthrough product in music, becoming the de facto MP3 player. As a result, Apple's new phone was highly anticipated. Once it came out, users largely raved about it at the time. It was evident that the iPhone was something new, combining much of the utility of a computer with the portability and convenience of a cellphone. Additionally, there was plenty of hype heading into its release.
Predicting its future revenue and profits would have been impossible, but some of the signs of its success seem clear in retrospect. As an investor, it can be easy to overthink things, but sometimes the seemingly obvious choice is the right one. If you see a product that looks like it could be a big success, investing in the parent company could be a winning move.
Image source: Getty Images.
New products don't immediately move the needle
It would take a few years for the tech stock to consistently move higher following the release of the iPhone, which was partly due to the impact of the financial crisis and the stock market crash. However, it would also take years for the iPhone to become Apple's biggest product and therefore move the needle on the bottom line.
In other words, to invest in Apple successfully back then, you needed to have the foresight to see how impactful the iPhone could be, but also the patience to wait out the volatility as the device gained momentum.
Can the Vision Pro do it again?
Apple is set to have another big product release -- arguably its biggest since the iPhone -- early next year when the Vision Pro goes on sale. The Mac maker introduced its new spatial computing headset back in June at its developer conference. It will sport a price tag of $3,500.
At this point, it's unclear how the Vision Pro will fare with the general public, because no one has tried the device yet. However, it does have the potential to kick off the next generation of computing, similar to how the iPhone heralded the start of the mobile computing era.
The major difference between Apple today and Apple in 2007, when the iPhone came out, is its size. Today, the company has a market capitalization of nearly $3 trillion, while it was just a fraction of that size in 2007 at roughly $100 billion.
That means it will be much more difficult for a single product to have the kind of impact that the iPhone did. However, investors will want to pay attention to the early response to the Vision Pro since the new device certainly has the potential to move the stock. It just won't turn $10,000 into $383,000 the way that the iPhone did.
10 stocks we like better than Apple
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. The smartphone is bolstered by complementary devices like AirPods and the Apple Watch, as well as its services business, which has driven much of the company's profit growth in recent years.
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There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. Apple is set to have another big product release -- arguably its biggest since the iPhone -- early next year when the Vision Pro goes on sale.
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There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. New products don't immediately move the needle It would take a few years for the tech stock to consistently move higher following the release of the iPhone, which was partly due to the impact of the financial crisis and the stock market crash.
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There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. At this point, it's responsible for well more than $1 trillion in revenue for Apple -- and with high margins.
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12867.0
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2023-10-29 00:00:00 UTC
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Oil dips as caution about data-heavy week offsets Mid-East war boost
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AAPL
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https://www.nasdaq.com/articles/oil-dips-as-caution-about-data-heavy-week-offsets-mid-east-war-boost
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nan
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nan
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By Florence Tan
SINGAPORE, Oct 30 (Reuters) - Oil prices slipped $1 a barrel on Monday as investors adopted caution ahead of the Fed policy meeting and China's manufacturing data later this week, offsetting support from geopolitical tensions in the Middle East.
Brent crude futures LCOc1 dropped 98 cents, or 1.1%, to $89.50 a barrel by 0001 GMT while U.S. West Texas Intermediate crude CLc1 was at $84.54 a barrel, down $1, or 1.2%.
Investors are eyeing the outcome of the Federal Reserve monetary policy meeting on Wednesday, U.S. employment data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could impact fuel demand at the world's top oil consumer, CMC Markets analyst Tina Teng said.
Both Brent and WTI ended 3% higher on Friday after Israel stepped up its ground incursions into Gaza, stoking worries that the conflict could widen in the region that accounts for a third of global oil production.
"Despite an escalation in the Hamas-Israel war, the ground invasion was widely expected," Teng said.
"The weekend playout signals no further expansion into a wider regional war, which caused a retreat in oil prices."
Last week, Brent and WTI marked their first weekly fall in three weeks as developments in the Middle East keep investors on edge and prices volatile.
China will report its October manufacturing and services PMIs this week, with investors watching out for further signs of a stabilising economy and improving fuel demand at the world's top crude importer and No. 2 oil consumer after Beijing launched a burst of supportive policy measures.
(Reporting by Florence Tan; Editing by Muralikumar Anantharaman)
((Florence.Tan@thomsonreuters.com; Reuters Messaging: florence.tan.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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Investors are eyeing the outcome of the Federal Reserve monetary policy meeting on Wednesday, U.S. employment data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could impact fuel demand at the world's top oil consumer, CMC Markets analyst Tina Teng said. By Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped $1 a barrel on Monday as investors adopted caution ahead of the Fed policy meeting and China's manufacturing data later this week, offsetting support from geopolitical tensions in the Middle East. Both Brent and WTI ended 3% higher on Friday after Israel stepped up its ground incursions into Gaza, stoking worries that the conflict could widen in the region that accounts for a third of global oil production.
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Investors are eyeing the outcome of the Federal Reserve monetary policy meeting on Wednesday, U.S. employment data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could impact fuel demand at the world's top oil consumer, CMC Markets analyst Tina Teng said. By Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped $1 a barrel on Monday as investors adopted caution ahead of the Fed policy meeting and China's manufacturing data later this week, offsetting support from geopolitical tensions in the Middle East. China will report its October manufacturing and services PMIs this week, with investors watching out for further signs of a stabilising economy and improving fuel demand at the world's top crude importer and No.
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Investors are eyeing the outcome of the Federal Reserve monetary policy meeting on Wednesday, U.S. employment data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could impact fuel demand at the world's top oil consumer, CMC Markets analyst Tina Teng said. By Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped $1 a barrel on Monday as investors adopted caution ahead of the Fed policy meeting and China's manufacturing data later this week, offsetting support from geopolitical tensions in the Middle East. Last week, Brent and WTI marked their first weekly fall in three weeks as developments in the Middle East keep investors on edge and prices volatile.
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Investors are eyeing the outcome of the Federal Reserve monetary policy meeting on Wednesday, U.S. employment data and earnings from tech giant Apple Inc AAPL.O for signs of any economic slowdown that could impact fuel demand at the world's top oil consumer, CMC Markets analyst Tina Teng said. By Florence Tan SINGAPORE, Oct 30 (Reuters) - Oil prices slipped $1 a barrel on Monday as investors adopted caution ahead of the Fed policy meeting and China's manufacturing data later this week, offsetting support from geopolitical tensions in the Middle East. Brent crude futures LCOc1 dropped 98 cents, or 1.1%, to $89.50 a barrel by 0001 GMT while U.S. West Texas Intermediate crude CLc1 was at $84.54 a barrel, down $1, or 1.2%.
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12868.0
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2023-10-28 00:00:00 UTC
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Can Apple Stock Double in 5 Years? Here's What It Would Take.
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AAPL
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https://www.nasdaq.com/articles/can-apple-stock-double-in-5-years-heres-what-it-would-take.
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nan
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nan
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In the last five years, shares of Apple (NASDAQ: AAPL) have more than tripled. That impressive gain trounces the 77% rise of the Nasdaq Composite Index.
Key to this outperformance has been strong financial performance, but investors care about what the future holds, not necessarily what past returns looked like.
So, is it possible for this FAANG stock, which carries a market cap of $2.7 trillion (as of Oct. 24), to double in five years? Let's see what it would take for this to happen, and if this is a realistic scenario.
Strong earnings growth
Between fiscal 2017 and fiscal 2022 (ended Sept. 24, 2022), Apple saw its revenue and diluted earnings per share (EPS) rise at compound annual rates of 11.5% and 21.6%, respectively. Wonderful fundamental gains like this certainly helped propel the stock price higher.
But as we look toward the next five years, if the stock were to double, investors should expect the strong financial performance to continue. To be more specific, if Apple's price-to-earnings (P/E) multiple stays constant, the company's diluted EPS would need to double for the stock to do so as well between now and 2028.
How likely is this? One thing is for sure: Apple's revenue growth prospects aren't as great as they were in prior years. The iPhone, which represents 48% of the overall business, is a mature product that depends more on price increases than gains in unit volume. Plus, with trailing-12-month revenue of $384 billion, the law of large numbers is catching up with this massive enterprise.
However, the company has sizable growth in its services segment, which saw sales jump 8% in the third quarter (ended July 1). As offerings like Apple TV+, Music, Pay, and iCloud, for example, become bigger revenue drivers (they currently represent 26% of company sales), the business can also benefit from margin expansion. Services carry a stellar gross margin of 71%, much higher than products at 35%.
Another important factor that can boost the EPS figure are share repurchases. Through the first nine months of this fiscal year, the company bought back $56.5 billion worth of its stock. Thanks to Apple's significant free cash flow, sizable repurchases are definitely on the table. A shrinking share count helps to increase EPS.
Investors should be cautious
It might not be hard to envision Apple's diluted EPS doubling in five years, but investors might want to temper their expectations as it relates to the P/E ratio. It's reasonable to assume that in 2028, this business will have fewer growth prospects than it does today because it will be more mature, and its market cap will likely be even higher.
In this scenario, does the stock still deserve a P/E multiple of 29, which is what it carries today? Trying to predict the valuation ratio five years out is anyone's guess. But honestly, I think it's very likely that Apple's P/E will be lower in the future.
For comparison's sake, in the last decade, the P/E has averaged 20.4. Should Apple's stock revert back to this average, it creates a 30% headwind for the share price. Consequently, diluted EPS would need to rise at an even faster clip to overcome this.
To reiterate, Apple is a mature business these days, and unless there's a wildly successful new product launch that can meaningfully move the needle from a financial perspective, investors are better off limiting their optimism. A push into virtual reality and augmented reality, as well as a rumored car, might give some shareholders hope, but getting excited based purely on speculation isn't a sound strategy.
Apple might have been a fantastic investment in the recent past, but I'm not so optimistic that the stock can double in the next five years.
10 stocks we like better than Apple
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*Stock Advisor returns as of October 23, 2023
Neil Patel and his clients have 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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In the last five years, shares of Apple (NASDAQ: AAPL) have more than tripled. Key to this outperformance has been strong financial performance, but investors care about what the future holds, not necessarily what past returns looked like. As offerings like Apple TV+, Music, Pay, and iCloud, for example, become bigger revenue drivers (they currently represent 26% of company sales), the business can also benefit from margin expansion.
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In the last five years, shares of Apple (NASDAQ: AAPL) have more than tripled. Strong earnings growth Between fiscal 2017 and fiscal 2022 (ended Sept. 24, 2022), Apple saw its revenue and diluted earnings per share (EPS) rise at compound annual rates of 11.5% and 21.6%, respectively. But as we look toward the next five years, if the stock were to double, investors should expect the strong financial performance to continue.
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In the last five years, shares of Apple (NASDAQ: AAPL) have more than tripled. Strong earnings growth Between fiscal 2017 and fiscal 2022 (ended Sept. 24, 2022), Apple saw its revenue and diluted earnings per share (EPS) rise at compound annual rates of 11.5% and 21.6%, respectively. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen.
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In the last five years, shares of Apple (NASDAQ: AAPL) have more than tripled. But as we look toward the next five years, if the stock were to double, investors should expect the strong financial performance to continue. Investors should be cautious It might not be hard to envision Apple's diluted EPS doubling in five years, but investors might want to temper their expectations as it relates to the P/E ratio.
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12869.0
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2023-10-28 00:00:00 UTC
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3 Tech Stocks to Load Up on Immediately
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-to-load-up-on-immediately
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cloud computing, artificial intelligence, autonomous systems and other emerging innovations that reshape our lives and economies remain a focal point for investors seeking robust growth. With top tech stocks constantly innovating, allocation to the sector is mandatory.
However, rapid innovation also causes massive disruption. Indeed, some incumbents face competition from new entrants with superior technologies. At the same time, some smaller players lack scale and distribution to challenge Big Tech. Investors know to be selective, choosing those with strategic competitive advantages or with rapidly expanding total addressable markets.
From the growing automotive semiconductor market to cloud data platforms and niche software, the following companies exemplify the pinnacle of tech evolution. Let’s dive into three tech stocks to consider adding to your portfolio.
NXP Semiconductors (NXPI)
Source: Lukassek / Shutterstock.com
Dutch-based NXP Semiconductors (NASDAQ:NXPI) produces semiconductors for various motor vehicle applications, including advanced driver assistance systems (ADAS), vehicle networks, secure car access, and cockpit.
Semiconductor content per vehicle is increasing due to advanced safety, connectivity, multimedia applications, and standardization of higher-end options in most vehicles. KPMG estimates that the automotive semiconductor market can grow at a 7.7% compounded AGR, reaching 200 billion by 2040.
In Q2 2023, NXPI generated over 56% revenue from its automotive segment. The company has been honored as an automotive semiconductor leader, continuing to win deals with automakers such as NIO (NYSE:NIO).
Beyond automotive, NXP is a leader in near-field communication technologies which are crucial for mobile payments and counts Apple (NASDAQ:AAPL) as a key customer.
Under its industrial and Internet of Things (IoT) segment, it provides embedded processors and MCUs for various applications. Additionally, it remains a major supplier of chips for communication infrastructure, such as amplifiers used in 5G equipment.
Although Industrial & IoT declined -19% year over year (YOY), they grew 15% quarter over quarter (QOQ). Meanwhile, automotive continued its impressive record, rising 9% YOY. It’s time to buy one of the top tech stocks at a cheap 16 times trailing earnings.
Snowflake (SNOW)
Source: Sundry Photography / Shutterstock
Snowflake (NYSE:SNOW) is well-poised to capture a significant share of the cloud computing and data analytics space. Furthermore, AI applications will collect and analyze more data, presenting a tailwind.
Snowflake data lake and warehouse platform enables enterprises to create and query insights from their data. Enterprise customers are subscribing to its data analytics services for significant cost savings.
Since its public debut, Snowflake has demonstrated robust growth, compounding revenues at 82% over the last three years. In addition to acquiring new customers, it has expanded existing client relationships. The company’s net retention rate was an impressive 142% in the latest quarter, highlighting the value it delivers to its user base.
Snowflake has a massive growth runway, fostering partnerships with major cloud providers, including AWS, Microsoft Azure, and Google Cloud Platform. These relationships validate Snowflake’s value proposition and enable it to reach a more extensive customer base.
Analysts view this stock to buy as an AI beneficiary. Baird recently reiterated their outperform rating on the stock. Their $200 price target presents over 30% upside from current levels.
Roper Technologies (ROP)
Source: IgorGolovniov / Shutterstock.com
After impressive Q3 earnings, Roper Technologies (NASDAQ:ROP) is a diversified software business operating in various niche markets. ROP provides specialized solutions in application software, network software, and technology. Their products are often mission-critical, resulting in a loyal customer base and recurring revenue streams.
Over the years, Roper has become a cash-generating machine through high-margin niche software acquisitions and divestitures of its less profitable industrial businesses. Notably, the company has maintained industry-leading adjusted EBITDA margins of over 40%. This cash generation provides the resources to pursue strategic acquisitions and invest in growth initiatives.
Roper Technologies reported an excellent Q3 2023, with total revenue up 16% YOY and organic revenue increasing 6%. Management continued its record of acquisitions.
“We deployed $2.0 billion toward vertical software acquisitions during the third quarter, highlighted by Syntellis Performance Solutions, which has been combined with our Strata Decision Technology business,” said CEO Neil Hunn.
Now, ROP is a high-margin software business that trades at 27x forward earnings, a reasonable multiple for one of the top tech stocks.
On the date of publication, Charles Munyi 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.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.
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The post 3 Tech Stocks to Load Up on Immediately 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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Beyond automotive, NXP is a leader in near-field communication technologies which are crucial for mobile payments and counts Apple (NASDAQ:AAPL) as a key customer. “We deployed $2.0 billion toward vertical software acquisitions during the third quarter, highlighted by Syntellis Performance Solutions, which has been combined with our Strata Decision Technology business,” said CEO Neil Hunn. Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing.
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Beyond automotive, NXP is a leader in near-field communication technologies which are crucial for mobile payments and counts Apple (NASDAQ:AAPL) as a key customer. From the growing automotive semiconductor market to cloud data platforms and niche software, the following companies exemplify the pinnacle of tech evolution. NXP Semiconductors (NXPI) Source: Lukassek / Shutterstock.com Dutch-based NXP Semiconductors (NASDAQ:NXPI) produces semiconductors for various motor vehicle applications, including advanced driver assistance systems (ADAS), vehicle networks, secure car access, and cockpit.
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Beyond automotive, NXP is a leader in near-field communication technologies which are crucial for mobile payments and counts Apple (NASDAQ:AAPL) as a key customer. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cloud computing, artificial intelligence, autonomous systems and other emerging innovations that reshape our lives and economies remain a focal point for investors seeking robust growth. NXP Semiconductors (NXPI) Source: Lukassek / Shutterstock.com Dutch-based NXP Semiconductors (NASDAQ:NXPI) produces semiconductors for various motor vehicle applications, including advanced driver assistance systems (ADAS), vehicle networks, secure car access, and cockpit.
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Beyond automotive, NXP is a leader in near-field communication technologies which are crucial for mobile payments and counts Apple (NASDAQ:AAPL) as a key customer. From the growing automotive semiconductor market to cloud data platforms and niche software, the following companies exemplify the pinnacle of tech evolution. In Q2 2023, NXPI generated over 56% revenue from its automotive segment.
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12870.0
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2023-10-28 00:00:00 UTC
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Verizon's Stock Is Now Too Good to Pass Up
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AAPL
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https://www.nasdaq.com/articles/verizons-stock-is-now-too-good-to-pass-up
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nan
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Verizon's (NYSE: VZ) period of worsening cash flow and investment in the 5G network is turning around, and the cash flow machine is starting to work in overdrive. Third-quarter 2023 results showed continued improvements across the board for the business, and the single-digit price-to-earnings multiple and dividend yield of over 7% now seem too good to pass up.
In this video, Travis Hoium goes over the results and covers why he's so bullish on the stock.
*Stock prices used were end-of-day prices of Oct. 24, 2023. The video was published on Oct. 25, 2023.
10 stocks we like better than Verizon Communications
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of October 23, 2023
Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Verizon Communications. 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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Third-quarter 2023 results showed continued improvements across the board for the business, and the single-digit price-to-earnings multiple and dividend yield of over 7% now seem too good to pass up. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications wasn't one of them!
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See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Verizon Communications.
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10 stocks we like better than Verizon Communications When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney.
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See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends Verizon Communications. Their opinions remain their own and are unaffected by The Motley Fool.
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12871.0
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2023-10-28 00:00:00 UTC
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Is Affirm Holdings Stock a Buy?
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AAPL
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https://www.nasdaq.com/articles/is-affirm-holdings-stock-a-buy
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nan
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nan
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Affirm (NASDAQ: AFRM) got off to a rocky start after its initial public offering (IPO) a couple of years ago. However, 2023 has been a much better year for shareholders, with the stock gaining more than 75% since January. The buy now, pay later (BNPL) company continues to benefit from consumer preferences for its services along with a recent partnership with Amazon. Here's what you should know before buying the stock.
Buy now, pay later's growing popularity
Affirm allows consumers to split payment for a purchase into installments. BNPL has become popular in recent years, as customers prefer the straightforward approval process and ease of use. According to the Consumer Financial Protection Bureau, the number of BNPL loans originated in the U.S. from the top five companies grew 970% from 2019 to 2021.
Affirm's growth over the years has been a bit of a mixed bag. From 2020 to its most recent 2023 earnings (for the fiscal year ended June 30), Affirm's net revenue grew 212% to $1.6 billion. However, net losses for the company continue to mount. In 2020, the BNPL company had a net loss of $126 million. This year, its net loss was $985 million.
Affirm's recent partnership with Amazon
Shifting consumer preferences toward BNPL solutions has been as a tailwind for Affirm's growth. More recently, the company partnered with online retail giant Amazon to become the first BNPL payment option through its Amazon Pay payment option.
This partnership is one component of Affirm's solid fourth-quarter earnings results. In the quarter, its gross merchandise volume rose 25% to $5.5 billion, while revenue jumped 22% to $446 million. While these figures beat analysts' expectations, the company's rosy outlook for its first-quarter revenue (ended September 30) had investors optimistic about its continued growth. According to Adobe Analytics, Amazon Prime Day shoppers chose BNPL options at a rate that was 20% higher than last year's, which should benefit the company's current quarterly earnings.
A subscription service may be on the way
In addition to its Amazon Pay partnership, Affirm is exploring the possibility of a monthly subscription service. According to a Bloomberg report, the proposed service would cost $7.99 per month and would offer upgrades for its users and savings account holders. The service, called Affirm Plus, would guarantee a rate of 0% on installment loans up to $2,500 and would pay savings account holders higher interest rates. The subscription services could encourage more repeat usage by customers while generating recurring revenue for the fintech.
Image source: Getty Images.
Consumer spending slowdown could hurt Affirm
Robust consumer spending has surprised many experts, many of whom predicted a recession would come this year. Some of that strong spending has come on the back of increasing consumer debts. According to the New York Federal Reserve Bank, credit card debt topped $1 trillion for the first time ever after rising 5% in the second quarter. Additionally, the delinquency rate on credit card debt is up to 2.77% and is now above pre-pandemic levels.
An economic slowdown could result in less spending, and higher default rates in the future could hurt Affirm and other consumer finance companies. In response, Affirm has tightened its lending standards, which appears to be working thus far. Its 30-plus-day delinquency rate has gradually fallen from 2.7% of loans outstanding in the first quarter of its fiscal year to 2.1% in the fourth quarter. Investors will want to keep a close eye on these trends when Affirm announces first-quarter earnings in early November.
Is Affirm the right stock for you?
Affirm's revenue and volume growth are undeniable as it rides the wave of shifting consumer preference for BNPL. The business is growing, making progress through its Amazon partnership, and its potential subscription product could also be a source of steady cash flow as well.
For more aggressive investors willing to withstand near-term volatility, Affirm presents an intriguing opportunity. Priced at 3.2 times sales, it is trading near its lowest valuation since going public. The company should also benefit from tailwinds from a growing BNPL market, which eMarketer projects could double from $72 billion this year to $125 billion by 2027.
However, the company will face headwinds from a potentially slowing economy, which could put pressure on its impressive growth rate. It also continues to lose money fast, and is facing increased competition from Apple, PayPal, and others. For that reason, conservative investors looking for steady returns should avoid the stock for now.
10 stocks we like better than Affirm
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 Affirm 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 23, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Courtney Carlsen has positions in Apple. The Motley Fool has positions in and recommends Adobe, Amazon.com, Apple, and PayPal. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe, short December 2023 $67.50 puts on PayPal, and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While these figures beat analysts' expectations, the company's rosy outlook for its first-quarter revenue (ended September 30) had investors optimistic about its continued growth. According to Adobe Analytics, Amazon Prime Day shoppers chose BNPL options at a rate that was 20% higher than last year's, which should benefit the company's current quarterly earnings. An economic slowdown could result in less spending, and higher default rates in the future could hurt Affirm and other consumer finance companies.
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The buy now, pay later (BNPL) company continues to benefit from consumer preferences for its services along with a recent partnership with Amazon. From 2020 to its most recent 2023 earnings (for the fiscal year ended June 30), Affirm's net revenue grew 212% to $1.6 billion. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe, short December 2023 $67.50 puts on PayPal, and short January 2024 $430 calls on Adobe.
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The buy now, pay later (BNPL) company continues to benefit from consumer preferences for its services along with a recent partnership with Amazon. Affirm's recent partnership with Amazon Shifting consumer preferences toward BNPL solutions has been as a tailwind for Affirm's growth. According to Adobe Analytics, Amazon Prime Day shoppers chose BNPL options at a rate that was 20% higher than last year's, which should benefit the company's current quarterly earnings.
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The buy now, pay later (BNPL) company continues to benefit from consumer preferences for its services along with a recent partnership with Amazon. From 2020 to its most recent 2023 earnings (for the fiscal year ended June 30), Affirm's net revenue grew 212% to $1.6 billion. Affirm's recent partnership with Amazon Shifting consumer preferences toward BNPL solutions has been as a tailwind for Affirm's growth.
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12872.0
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2023-10-27 00:00:00 UTC
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Big Banks and Big Rates
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AAPL
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https://www.nasdaq.com/articles/big-banks-and-big-rates
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nan
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nan
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In this podcast, Motley Fool host Dylan Lewis and analysts Emily Flippen and Jason Moser discuss:
What big interest rates mean for big banks and the latest insights from Jamie Dimon.
Pepsi's earnings showing signs that growth might be propped up by price hikes.
Atlassian's $1 billion acquisition of Loom.
The market reaction to the Birkenstock IPO.
Spotify's latest audio push.
Two stocks worth watching: Outset Medical and Twilio.
Bloomberg's Zeke Faux talks with Motley Fool host Deidre Woollard about the trial of FTX's Sam Bankman Fried.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Oct. 13, 2023.
Dylan Lewis: We've got an update on what Big Banks are doing with big rates and one acquisition announced, another one closed. Motley Fool Money starts now.
Jason Moser: From Fool Global headquarters, this is Motley Fool Money.
Dylan Lewis: It's the Motley Fool Money radio show. I'm Dylan Lewis, joining me in studio, Motley Fool Senior Analysts Emily Flippen and Jason Moser. Great to have you both here. Hey.
Emily Flippen: Hey.
Dylan Lewis: We've got the story from the courthouse at the trial of Sam Bank, been freed. A tepid reception for a new IPO and a big deal, finally coming to a close. But first, we've got earnings, results that will have us checking in on two major stories, interest rates and pricing power. Jason, we're going to start with interest rates and the Big Banks. They reported Friday morning getting the earnings party started. What did you see in results from JP Morgan and Wells Fargo?
Jason Moser: It seems on a day where the markets viewing things from the glass-half-empty perspective, these banks are at least presenting a little green for us. I think the big headline for these banks, of course, is the higher rate environment. Rates hit banks in a number of different ways. Some good, some bad. They're going to pay up for deposits as consumers shift holdings and higher yielding instruments, they benefit from higher interest payments on those mortgage loans. By the same token, higher borrowing costs tamp down demand for those loans. Then the bonds owned by these banks, they start to fall in value as these yields rise. It hits their capital positions. I think that beyond the macro stuff, I mean that's one thing to keep an eye on is the capital requirements as this landscape begins to evolve for these greater capital requirements for these banks. Jamie Dimon is not a big fan, but we'll get to that. Talking about JP Morgan, I mean solid quarter revenue up 21 percent. Just over $40 billion. They saw net income up 35 percent. That was actually up 24 percent of your exclude First Republic. But I think the big story for JP Morgan and Wells Fargo on the profitability side, we just saw net interest income really grow nicely and that's thanks to these higher rates. We saw net interest income for JP Morgan up 30 percent, up 21 percent excluding First Republic. I think probably with JP Morgan, the thing that stands out most was Jamie Dimon's language in the release regarding the great macro. He's talking about US consumers and businesses generally remain healthy though spending is down, those excess cash buffers are dwindling. Coupled that with what did he say? This may be the most dangerous time that the world has seen in decades. That's an attention getter.
Dylan Lewis: I think when America's banker speaks, we all tend to listen. Emily, I look at those comments and think there are a lot of different directions we could take that, but this seems to be a tough environment and yet we're seeing that the consumer seems to be OK. Let's parse that a little bit.
Emily Flippen: I think what's happening here is that we're seeing Dimon and Banks kind of manage expectations. This is actually a really strong environment with which to be a bank operating. Those heightened regulations, yes, they hamper capital just a little bit, but it creates a more sound financial system. All of this put together is, banks are doing well, consumers seem to be doing well, the economy is not yet crumbling, but then you have Dimon over here who's saying, hold up. This is really dangerous, stuff's happening, there's geopolitical tension, there's question marks about debt, not just from the government side, but from the consumer side. Banks ultimately need a really healthy consumer in order to drive solid business. I think what they're trying to do is, almost as we've seen every single quarter, I swear Dimon has some other thing to say about, we're not out of the tunnel quite yet. That is because they don't want to have expectations that are mismanaged. That's going to hurt their stock.
Jason Moser: Well, I liked what we were talking about, pre-production too. Emily put it so perfectly. We were talking about these Basel Three, these regulatory demands. These banks they're going to have to deal with these higher capital requirements. Jamie Dimon is not a big fan. I mean, he'll tell you, listen, I know what I'm doing. I don't need these capital requirements. These requirements aren't for folks who know what they're doing, these requirements are for the bankers, who don't know what they're doing to protect us. Because not everybody is on the same playing field when it comes to these regulatory requirements. Banks, listen, they're dealing with a lot of money and there are a lot of economic forces that come into play with how those financial models work.
Dylan Lewis: We talked about a promised pricing power. We have to get to that part of the earnings discussion as well. We get that in Pepsi's results. And I think to some extent we get a little bit of a look here, Emily, at the health of the consumer and what's going on with consumer wallets too.
Emily Flippen: Honestly, you can take what's happening with PepsiCo and apply it to basically any consumer goods business that we're seeing reporting earnings. I would say not just previously but even coming into earnings season. PepsiCo in this case, headline numbers look good. Earnings and revenue both beat expectations. It's weird to see this type of business that's growing in the double digit rates. That's unusual for a business like PepsiCo. But the flip side is that, even though they have raised guidance, 13 percent earnings per share, growth guidance, that's incredible. The majority of their growth is still coming from pricing increases. If you actually look at the volumes of products that Pepsi sells and it's not just the beverages, but it's also their packaged foods goods, volumes are largely down across the board, especially in North America that drives a majority of their revenue. You can raise prices so much. You can only offset declining demand so much with price increases. Especially if the consumer health of Americans declines over time. Things look good right now. Guidance, a middle for the rest of the year looks solid. Organic revenue growth in the high single digits is nothing to dismiss, but I think I'm just a little bit more cautious of this business because pricing only goes so far.
Jason Moser: Where do you stand on the Ozempic conversation here? Seriously, we were talking before and Shrink, we talked about it on this show over the last several quarters, Shrink being a very popular term that was thrown out there on inventory on earnings calls everywhere. It seems like we're starting to hear Ozempic a lot more in relation to a lot of different businesses that cover a lot of different markets. I don't know that they necessarily buy into, I mean, maybe Ozempic is something that hits them on the margin, but I don't know if it's as great a threat as maybe some think.
Emily Flippen: Look, I don't know Ozempic personally. At the risk of being horribly wrong in a decade and we're all super skinny and super healthy and eating carrots, there's one thing I do know across my 30 years of being an American and that I generally don't bet against bad habits by Americans, especially as it applies to drinking cokes and eating chips. I think those habits stick.
Jason Moser: I'm with you.
Dylan Lewis: I'm right there with you too. That's my plan for lunch. [laughs] Taking a step back as we wrap up this earnings talk and looking at the themes that we're seeing from the banks and the themes that we're seeing so far in Pepsi's results, knowing that we're going to be seeing a lot more companies report over the next couple of weeks. Emily, anything that you're particularly paying attention to for the industry?
Emily Flippen: I want to continue to watch consumer discretionary spent here. We're coming off the week where Amazon had their prime day and passed with very little fanfare heading into the holiday season as well. Consumer spending I think is going to be very indicative of the health of the economy moving forward, especially with the resumption of student loan repayments. I'm cautious.
Dylan Lewis: Jason, what about you?
Jason Moser: It's the consumer. It doesn't feel like the consumer should be as healthy as the consumer is today. I feel like that is just, that's getting ready to change here. It's slowly and then all at once. One thing to remember with inflation too, we talk about inflation slowing down a little bit. But inflation is still rising and it's compounding off a very high base over these last several months. It is getting to a point where you have to look at those words Jamie Dimon offered in regard to the US consumer and wonder if the beginning of 2024, we don't start to see some real pinching of the purse strings, so to say.
Dylan Lewis: It's not all about the earnings beat this week. Up next we've got one software company dropping 1 billion to add a new piece to its suite and a fresh debut for a funky sandal company. Stay right here, you're listening to Motley Fool Money. Welcome back to Motley Fool Money, I'm Dylan Lewis, joined here in studio by Emily Flippen and Jason Moser. We're going to kick off the segment talking deals. Atlassian announced a one billion dollar acquisition of software company Loom this week. Emily, the market kind of shrugged at the acquisition, shares of Atlassian were down 4% since being announced. Different story at Loom, co-founder and CTO Vane Herrimath said, we are insanely hyped. Can we talk a little bit about what Loom does and how this fits into the Atlassian software suite?
Emily Flippen: Yeah, sure. Fool. Look, if I also sold a company that's probably worth 200 million for a billion dollars, I would also be 'insanely hyped. '
Jason Moser: You're saying they overpaid?
Emily Flippen: [laughs] I'm willing to bet that in five years even I'll say three years. I bet in three years, Atlassian has taken a massive write down on this acquisition. To answer your question, Dylan, which is what does Loom do? How does it fit into the Atlassian portfolio? Loom does asynchronous video communications. If you imagine sitting in front of your computer, I'm going to record a video of myself talking over say like a PowerPoint presentation or the like. I'm then going to send it to my co-worker and Loom has the technology to allow your co-worker to what is this? Watch the video that you recorded and respond to the video that you recorded, and it doesn't fit really into any of Atlassian's existing products and that's actually the thing that I had the least amount of gripe with. Atlassian has a really robust portfolio of communication tools that's largely used for asynchronous workflow. The video aspect, it's new for them, but I don't hate it as much as I just hate the existence of Loom in the first place. I apologize, they're 25 million customers, they do have paying customers, but I don't know what this company does that isn't already achieved by the likes of their potential namesake, Zoom.
Jason Moser: You mentioned their customers and I think part of the reason this deal even happened was Atlassian was a Loom customer to start. That I think is how the relationship got started and maybe what creased the wheels. We will check back in 2026 and see will this wound up being an acquisition that was worth happening. Loom CTO did wind up saying he wanted people to think they got to steal with Loom, which I think a lot of people may feel that way as they're being acquired into a business. One of the questions we generally have as we look at software is, is this a feature of something or is this a product that is sellable in and of itself? Emily, it sounds like you're in the camp of this is a feature that can be replicated.
Emily Flippen: This is a feature that is already replicated by the likes of Zoom and others. Now they might have differences in how they've executed, but the core service here is not something super proprietary. For that reason, I think that billion-dollar price tag is pretty crazy and for exactly that quote that you mentioned, Dylan, which is Atlassians are customers of Loom and we love Loom and that quote from the co-founder and CTO, who clearly is obsessed with Atlassian, which is also a founder-led company. To me, this reeks of pet project. This reeks of two very nice visionary co-founders and CEOs, or CTO's, in this case getting together and saying, well, we both really like each other. We both have cool companies and cool technology, why don't we just combine? From the investing perspective, I'm not sure, I'm excited about this at all.
Jason Moser: You know what that feels like? That really, honestly feels like Square or Blocks recent acquisition of Title. I mean, Jack Dorsey and Jay-Z are tight, I know. Really Title? Seriously, come on man.
Dylan Lewis: What do those businesses have to do with each other?
Jason Moser: Well, and I feel like maybe that was like there was probably more like an NFT angle with that deal than anything else given blocks pivot or not pivot really, but just really more laser focus on blockchain and cryptocurrency technology and whatnot. But I mean, yeah, when you're talking about music streaming, I mean there's Apple music, there's Spotify, and then there's whatever else. It doesn't matter because Apple and Spotify rule it. It sounds a lot like that title deal.
Dylan Lewis: It sounds to me like Atlassian shareholders should mind the goodwill line item on the balance sheet going forward and be paying attention to that.
Emily Flippen: Yeah, I think I like Atlassian to be clear. I don't think this is a reason to be selling your Atlassian shares, but it does worry me a little bit. I just want to hear more from their co-founders and their CEOs. Their Co-CEOs I believe, and hear about how they're going to integrate this into their product suite to actually be a creative. Because the only mention they've had right now is that this is going to hurt operating margins over the relatively near term, and as an Atlassian investor, those are words you never want to hear.
Dylan Lewis: This week we also had a fresh debut shares of sandal company Birkenstock, down over 10% after the company IPOed on the New York Stock Exchange. Jason, we talked about this one a few weeks ago when we got a look at the prospectus and we talked through the footbed technology. We spent a lot of time on the footbed technology, if I remember correctly, and the company's timeless appeal. What are you thinking about with this company now that it's public and we have a sense of the valuation?
Jason Moser: Yeah. Well, I mean, I said then. I mean, I was a bit surprised going through the F1 as it really did capture my attention. I think a lot of that was really, how they're selling the company right Birkenstock. It's a mindset. It's a way of life. I will say, I mean, it piqued my interest. I went and looked at the website to see all of the different types of styles and shoes they had. This is not the Birkenstock that existed when I went to college. This is a far bigger and more diverse company now. At the end of the day, it is still footwear, so let's keep our expectations in check. I do think that in regard to the valuation, I mean you've got a shoe company. I mean a lot of positive qualities, but it's still valued. It's something like 40 times trailing earnings, which just in this market right now, that sounds very expensive. Now they do have some growth to back that up. In 2022, $1.24 billion in revenue recorded a gross margin of 60% and they're direct to consumer, and I think that's going to be a big key to the story. Is they can continue with this direct to consumer penetration that grew from 30% of revenue in fiscal 2020 to 38% in fiscal 2022, and they've grown revenue at a 20% annual growth rate from fiscal 2014-2022. There is growth there, but I think you have to keep those expectations in check when you understand this is really, it's a company that does one thing and they do it very well. This is just a difficult market. I think you look at some of these other IPOs, you look at arms IPO for example, that priced at $51 the price today is right around $52 in change. That's arm, that thing got a lot of hype. Instacart $30 IPA today, the price is around $25 I think we're just seeing it's a very difficult time for businesses big and small to go public, and it's going to take a lot to really prove that case. Ultimately, we just need to get to a point where market conditions are a little bit more welcoming of these businesses that are taking that leap.
Dylan Lewis: As a testament Jason to this not being the Birkenstock of your college years. This is a business that has expanded into offerings that look an awful lot more like crocks. Trying to play a little bit on the trend there. Do you think that there's enough there for them to capture a next wave of consumer and continue to be relevant?
Jason Moser: I think they need to be careful in how far they pursue that. I don't know that I necessarily want to see Birkenstock offering up a Reese's peanut butter cup version of their shoe, or a Taco Bell sponsored version of a Birkenstock. I think there is a line that they probably want to focus on not crossing. This is a higher price point item to be sure. Footbed technology does not come cheap and I only say that half tongue in cheek, Dylan. These are really good shoes and the footbed technology is a real deal. I think that you look at a company like Tiffany. I'm not comparing them to Tiffany directly. But Tiffany is not going to cave on the pricing side, because they've got a rep to protect. I think Birkenstock ought to be thoughtful about that as well.
Dylan Lewis: All right, our last story for the news round-up, Emily, Spotify is continuing its march toward offering all things audio. The company announced plans to offer audiobooks to premium subscribers. What do you make of it?
Emily Flippen: It's a bit of a divisive action because Spotify, we actually saw it get downgraded by at least one Wall Street analyst as a result of the launch of their audio-book offering. Who believed that this would be gross margin decretive, I should say, or hurt their gross margins. Management actually thinks that their launch of audio-book offerings for all Spotify members can have gross margins somewhere around 40% which would be bigger than their current business. But really what this is doing is just adding an extra value add. If you're paying Spotify subscriber, you'll have 15 free hours every month of audiobook listening. If you want more than that, you can pay a little bit extra for it. There's already plenty of options to have access to audiobooks today. People have libraries obviously. There's also competitive offerings by Audible from Amazon. But in this case, Spotify, I think has the advantage of having it all in one app, easily accessible, all building off the acquisition of audiobook offering find a way that they made in 2021. I like this move by them and I'm excited to see where it takes them.
Dylan Lewis: Emily, this is a company that has had a lot of different ambitions in the audio space. Started out really focused on music streaming over the last couple of years, has focused heavily on podcasting and also gone into some of their own original content. We now see them focused on audio books. Are there places where you are more excited or less excited to see them investing and putting resources to work?
Emily Flippen: The three main areas that I'm equally excited about are their existing business, which is music streaming, has gross margins around 30%. They've already largely achieved that, so that's a mature offering. Then you have podcast, which is largely ad based. They were about a decade late to the podcasting game, and now they're the largest podcasting platform in the world. That says a lot about their ability to come into an industry and dominate it. The ad market's been soft though, so the podcasting business has been unprofitable for them. That's where a lot of the flag they get from Wall Street analysts. If audiobook also ends up hurting their margins, then I could see that also dragging them down. But long term, I think both, I should say all three of these offerings end up being successful.
Jason Moser: I'm going to see bring earnings calls into this platform. I know that's a little nerdy and maybe they just need to acquire that app by order. It's a great app for that. Man, I mean, I tell you there's probably a pretty big audience of listeners out there with a love that value ad of just earnings calls and earnings investor presentations.
Dylan Lewis: It would certainly make preparing for the Friday show just just a smidge easier.
Jason Moser: About how much easier it is, just to access all of that information and have it all in one nice little place.
Dylan Lewis: I'm 100% with you, Jason. Let's see if we can make it happen. Jason and Emily, we're going to see you guys a little bit later in the show. Up next we've got the story of what's happening on the ground in New York at the trial of former crypto billionaire Sam Bankman-Fried. Stay right here. You're listening to Motley Fool money.
Welcome back to Motley Fool Money, I'm Dylan Lewis. The trial of FTX Sam Bankman-Fried is underway and we're beginning to get details on the alleged fraud and how the crypto exchanges customer funds were misused. Bloomberg Zeke Faux has been at the courthouse covering the trial and Motley Fool Money's Deidre Woollard spoke with him about the atmosphere details and what we've learned so far about the case.
Deidre Woollard: I'm Deidre Woollard checking in today with Zeke Faux, the writer of the book Number Go Up, which is about Sam Bankman-Fried and the crypto craze. I interviewed him a couple of weeks ago. He's been at the trial a couple of days this week and is giving us the latest. Zeke just quickly, for people who might not be following the frenzy, what is the trial about and why is it happening?
Zeke Faux: Sam Bankman-Fried ran the crypto exchange FTX and back in November the exchange collapsed. Basically, think of this like an app like E*TRADE, where people sent in money to trade crypto, just like you might send money to E*TRADE to trade stocks. Back in November when customers tried to get their money out, a lot of people at once lost confidence and asked for their money back. It was revealed the money was gone. There's 8 billion dollars missing. The US government arrested Sam Bankman-Fried and charged him with a giant fraud. They're essentially alleging it boils down to, he embezzled this money and allowed a hedge fund that he controlled to gamble it away and spend it on all sorts of stuff like real estate in the Bahamas, political donations, even a private jet to fly Amazon packages from Miami to the Bahamas for employees.
Deidre Woollard: That detail is pretty stunning. There's this media hype around this. It reminds me a little bit of the Theranos trial. What's it like being there, what's the scene like?
Zeke Faux: There's about 50 reporters there every day. The Court's packed. Right around the corner trump has been on trial for fraud himself, so there's all sorts of security in the area, tons of TV crews, you can't quite tell. Well, the first day I arrived I was like, are all these crazy military type security guys here for Bankman-Fried? It turns out they were Trump. But around the corner where the Bankman-Fried trial is happening, there's camera crews set up and there's all sorts of Paparazzi who chase any witnesses who come in. The main guy himself, Bankman-Fried is in jail pending trial or during the trial so he comes in through a basement garage. I believe he can't be photographed, but his parents and the witnesses get chased by paparazzi as soon as they show up, and reporters camp out starting at 5.00 or 6:00 AM to get seats in the main court room.
Deidre Woollard: Wow. Sounds crazy. So much has been made about his appearance, he cut the crazy hair, he's wearing a suit. Is that all? Do you think that he's trying to signal that he's taking this seriously?
Zeke Faux: Definitely. I mean, while he rose to power, it was really his thing that he showed no respect for traditional rules, he wouldn't dress up for anybody. Always shorts and a T shirt. Wild hair that he didn't comb. Occasionally for Congress he would put on a suit, but it always looked like he just bought it at the store on his way in. He didn't even tie his shoes. He testified before Congress with shoes that he just bought at the store and the laces were still in that clump that they come in when you buy them from the store. For a court, he's signaling respect by dressing up, cutting his hair, and listening attentively, but I don't know how much that's going to help given the barrage of evidence the government has been presenting.
Deidre Woollard: I know that people have talked a lot about how he's not being too demonstrative, he's just staring mostly at his laptop. I'm wondering what has surprised you so far in this?
Zeke Faux: I knew what to expect. We knew that his top lieutenants were all going to testify against him, but it's still very powerful to hear them doing it in person because you've got this jury there of regular people who frankly, many of them seem bored, some have fallen asleep. But if they do snap to attention, what they have in front of them is a series of very nice, trustworthy seeming young people, nerdy, maybe a little shy but perfectly well spoken, who are saying, hey, I committed a big fraud, I'm very sorry about it. I did it with that guy, Sam, over there. The details are frankly very complicated and I'm sure the jury is doing their best to understand them. But if they don't catch the details, what they just get is a bunch of fairly trustworthy seeming people saying yes, it was a fraud, it was not some accident. The customer's money was stolen and it was Sam's fault.
Deidre Woollard: So much of it right now with the case has been hinging on the testimony of Caroline Ellison, the head of Alameda Research and his on and off girlfriend. What's your impression of her testimony so far?
Zeke Faux: Back in November, just after FTX collapsed, I flew down to the Bahamas to talk with Sam before the cops showed up. We had this long, long talk about what had happened. He made a lot of excuses about how it was all a mistake, and he basically blamed it on Caroline Ellison who ran his hedge fund. He said, I wasn't paying any attention to the money and the people running that hedge fund, they should have known that there was a problem. Now Caroline, she finally showed up this week to testify. What she said pretty convincingly was Sam knew all the numbers, we had regular meetings. I would tell him about the situation, about how much customer money the hedge fund was using, about how risky it appeared. She pretty much demolished Sam's excuses that he hadn't been aware he hadn't been directing this. He had told them to use, according to her, he had told them to delete all their text messages. They used auto delete on Signal. However, they also used Google Docs. She presented Google Docs that showed the financial situation of Alameda, the hedge fund, and they even had comments on them from Bankman-Fried right there in the Google Doc. She can't prove that everything that she's saying about her meetings with Sam Bankman-Fried, but there's clear evidence that she consulted with Bankman-Fried about the hedge funds financial situation. His excuses didn't seem very credible before, and now just seem seem like lies.
Deidre Woollard: There's a lot of coercive nature that she testifies to of not wanting to upset him and trying to follow everything he did. One thing I was wondering is the romantic relationship, is that a little bit of a smokescreen around the business relationship too because it's very complicated? Because they were together, they weren't together and it seems like she's painting it very much that he told her to do these things and she had no option because this is her boss and her boyfriend.
Zeke Faux: Well, it's been part of his excuse. He's claimed that because they broke up, they were not talking. That was part of why he didn't know what was going on. She said, yes, it was a bad break up, but we still talked about business. We had regular meetings and he was aware of everything. She hasn't tried to say he made me do it, I had no choice. She sobbed in court and said she feels horrible about what happened and what she did. It's also been interesting to see that she was paid very poorly compared to men at the company. Admittedly, she still got like tens of billions of dollars. That she had asked for an ownership stake in the hedge fund which she was running. Other employees had gotten things like that and Sam had said it was too complicated. Even when they were dating, it seemed like she was not treated as a equal partner in this business.
Emily Flippen: Also she said that he told her to use FDX customer funds for Alameda, and some of that was some of the spending you talked about with the penthouse and things like that. Also venture fund investing, do you think he somehow thought that he was going to make it back?
Zeke Faux: Yes. He had always said, I want to make tons of money so I can give it all away, and basically save the world. I think that he really did believe that, and that he thought it was good for him to make money, and that that would justify whatever actions he had to take to make that money. Caroline said that was seductive, and she came to feel that way too, and many people at the company fell into this cult of Sam Bankman-Fried, and they really thought they were the heroes of this movie, and they had to do whatever was necessary. I think that yes, Sam did think he would make it all back, and that he had taken these crazy gambles because that's what it was going to take to become a trillionaire, and that's what was needed to save the world from things like the next pandemic, or evil AI robots, something they really talked about quite a lot.
Emily Flippen: The other thing is they were trying to raise money from various sources including MBS to basically to make up that shortfall. If they had gotten the money, would this be happening now, or would this be pushed down the road? Would more people have gotten hurt?
Zeke Faux: So Crypto prices have not recovered, so a lot of their investments would still be looking bad. But sure, yeah, if they had raised enough money, they could have covered up this hole, and maybe we still wouldn't know about it. One of their investments that they made with this customer money was in an AI company, and it looks like it was a pretty good investment, and it might have made them billions of dollars. I'm not sure if that's enough to cover the hole, but it looks like that's going to be part of Bankman-Fried's defense, that in fact the bets would have worked out, and maybe even in some cases have worked out. However, I don't think that's really going to work. If I rob a casino and then I go take the money to another casino, bet it on red, double my money, and return the money to the first casino, I think I'm still going to jail.
Emily Flippen: I think so. That's part of the defense too, is that his lawyers are arguing he acted in good faith. It does not sound like you believe he acted in good faith.
Zeke Faux: No. It was so clear that you were not supposed to borrow the customer money and gamble it at other casinos or invested in venture capital or whatever. The more testimony that comes out, his associates are saying that this started really early on at FTX. Within months of launching the exchange, they were dipping into the customer money. Each day of testimony looks worse and worse for Sam, to be fair, he hasn't really been able to put on his side yet, and maybe there's some really surprising thing that his lawyers are going to pull out when it's their turn. But in cross examining these Prosecution witnesses, they've been totally ineffective, and the Judge has scolded them for wasting time.
Emily Flippen: Obviously, this is being widely reported. Is there anything in the public conversation, do you think that is either being overblown or something that people are getting wrong?
Zeke Faux: One thing that interests me, which you brought up a little before, is was this guy just a con man, a scammer, who never intended to do anything good for the world? I really don't think that's the case, I think he did have this crazy plan. A bad plan, maybe even an evil plan. But I think that he did have a plan to try to save the world. Caroline spoke about this in her testimony. His philosophy, utilitarianism, means that you have to judge your actions based on what will create the greatest good for the greatest number of beings. She was asked about this, and they said, how would lying or stealing fit into that? Caroline said, he didn't think rules like don't lie or don't steal fit into that framework. In other words, the ends justify the means, he had to do anything it took to make money because he believed he was doing something good for the world in the end. He just had to get to be a trillionaire first.
Dylan Lewis: Zeke Faux's book on crypto number Go up is out now, and you can catch his latest coverage on the trial at Zeke Faux on X. Coming up after the break, Emily Flippen and Jason Moser return with a couple stocks on their radar. Stay right here, you're listening to motley for money.
As always, people on the program may have interests in the stocks they talk about, and the motley fool may have formal recommendations for, or against, so don't buy or sell anything based solely on what you hear. I'm Dylan Lewis, joined again by Emily Flippen and Jason Moser. We've got stocks on our radar in a second. But first, Microsoft shareholders can rest easy knowing they'll be the proud owners of some of the biggest video game titles in the world. Their planned $69,000,000,000 Acquisition of Activision officially closed Friday after some regulatory hoop-jumping. Jason, I have to be honest, I wasn't sure that this deal was actually going to go through.
Jason Moser: Well, we've been covering this story off and on since it's inception here on the show, so it's been a while. I'm glad that we can tie a bow on it. It struck me that just how protracted this had become in the concessions, we would see ongoing. I mean, it felt to me like they were doing whatever they could to make sure this deal got done. I'm not terribly surprised at the end of the day that it got done, given everything that we've seen. I'm sure that shareholders that have hung in there. Dad, congratulations. My dad's a longtime shareholder of Activision Blizzard. Hey, you made it. Yeah, I think and Emily, you said there was a special dividend. I think that those who kept their patients will get from this as well.
Emily Flippen: Yeah, it's a good thing for activist and shareholders who have been holding on. They got that special dividend as a result of the delay that was caused by the UK regulatory authorities. But this is a loss for regulators because regulators across the world largely sought to either change this deal or prevent this deal from happening entirely. It does raise the question of, Activision's first now owned by Microsoft, who's next?
Dylan Lewis: I was going to say, Emily, now that we know that the door might be open for some bigger deals, are there any that we should be either in a very real way, or in a fantastical way keeping our eye on?
Emily Flippen: I mean, I don't think it's a coincidence that we've heard rumors this week that the Disney Board has apparently been talking to management about potentially acquiring EA, or at least some assets from EA to push Disney back toward Game Development, which was historically a lucrative opportunity for them. That could be interesting now, granted EA still much smaller than Activision. But if you allow Microsoft to acquire Activision, you have a really hard uphill battle trying to explain why Disney can't acquire EA.
Dylan Lewis: Jason, anything for you, anything in terms of the deal-making environment that you'd be keep an eye on?
Jason Moser: Honestly, I'm keeping an eye on all of the FDC right now, or the Amazon and Google. I think that's what I want to keep an eye on because we saw Satya Nadella, CEO of Microsoft on the stand there last week in regard to the antitrust case against Google. It's going to be very interesting to see how those two cases shake out, because I think they're fairly weak as well, and if they lose one or both of those, boy oh boy, talk about compounding your losses.
Dylan Lewis: Let's get over to stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Jason, you're up first, what are we looking at this week?
Jason Moser: What a miserable week for Outset Medical. First, there are headlines at the weight loss drug, Ozempic, showed surprisingly early effectiveness in a study aimed at combating kidney failure. That sent shares of all dialysis providers down Outset, Davida and others. But then adding insult to injury, Thursday evening Outset pre-announces earnings. It's not a very good look there. There is the Ozempic threat, of course, that to the extent that there is one granted, that's entirely unknowable at this point. There was an FDA letter that should have been filed regarding the Tableau cart that they didn't file, but management has noted that they did file it. It is something, it's a technicality, it seems at this point that should be resolved. But I think the bigger picture here is the ratcheting back of guidance, and partly based on this climate of cautious hospital spending that management quoted. I'm not going to hold that against him, and one of the main reasons why is because that's totally real. That's not something that's just an Outset problem. Intuitive Surgical for example, just last quarter noted that very same thing in their call. They said, 'customers particularly in the US, appear to be cautious in their capital spending given ongoing financial pressures. Customers are talking about the hospitals,' so that's something that they're dealing with. In a high flyer like Outset Medical is still working its way to profitability, market just doesn't have any tolerance for that stuff, and unfortunately we've seen the stock really take a shacking.
Dylan Lewis: Dan, a question about outset medical.
Dan Boyd: Now, Jason, you said it was a bad week for Outset Medical, but, man, it's starting to look like it's been a bad three years for Outset Medical.
Jason Moser: Well, there are some pockets of success in there, Dan. I will say there are some pockets of success in there, focus on the pockets.
Dylan Lewis: All right. Emily, what is on your radar this week?
Emily Flippen: Well, I'm worried about how Dan's going to feel about my radar stock now, but Twilio is actually back on my radar now. This is a communication as a platform service provider whose services are really integral to the companies that they provide services for, obviously, for their day-to-day functioning. But this is a business that had a growth-at-any-cost mentality, earned a lot of cash as a result, and now has quite a fall from grace. But I think it's current valuation could be potentially compelling. They're trading at around two times enterprise value to sales right now, so if they're able to really improve their margin profile, which is management's guidance, then this could end up being a bit of a steal at today's prices.
Dylan Lewis: Dan, a question about TWLO, Twilio.
Dan Boyd: Twilio sounds like it should be a Halloween candy. Probably one that nobody likes. Also, Emily, this stock chart is ridiculous. They're back down to pre-pandemic levels for the stock price. Like what's going on?
Emily Flippen: Yeah, they're no Twix. I'd buy up Twix really quickly. But I do think that Twilio, this is a turnaround story. They lose money or they're a great performer.
Dylan Lewis: Dan, which comeback story are you putting on your watch list?
Dan Boyd: Just 'cause I'm hungry, I'm going to go with Twilio.
Dylan Lewis: It sounds like a snack, it's not, but it sounds like one. Dan, thanks for weighing in on our radar stocks. Emily Flippen, and Jason Moser, thanks for being here and bringing them to us.
Jason Moser: Thank you.
Dylan Lewis: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Dan Boyd. I'm Dylan Lewis. Thanks for listening. We'll see you next time.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Dan Boyd has positions in Amazon and Walt Disney. Deidre Woollard has positions in Alphabet, Amazon.com, Apple, Intuitive Surgical, JPMorgan Chase, and Walt Disney. Dylan Lewis has positions in Block, Spotify Technology, and Twilio. Emily Flippen has positions in Block and Spotify Technology. Jason Moser has positions in Alphabet, Amazon, Apple, Block, Outset Medical, Twilio, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Atlassian, Bank of America, Block, Intuitive Surgical, JPMorgan Chase, Outset Medical, Spotify Technology, Twilio, Walt Disney, and Zoom Video Communications. 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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I believe he can't be photographed, but his parents and the witnesses get chased by paparazzi as soon as they show up, and reporters camp out starting at 5.00 or 6:00 AM to get seats in the main court room. But if they do snap to attention, what they have in front of them is a series of very nice, trustworthy seeming young people, nerdy, maybe a little shy but perfectly well spoken, who are saying, hey, I committed a big fraud, I'm very sorry about it. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Atlassian, Bank of America, Block, Intuitive Surgical, JPMorgan Chase, Outset Medical, Spotify Technology, Twilio, Walt Disney, and Zoom Video Communications.
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In this podcast, Motley Fool host Dylan Lewis and analysts Emily Flippen and Jason Moser discuss: What big interest rates mean for big banks and the latest insights from Jamie Dimon. Jason Moser has positions in Alphabet, Amazon, Apple, Block, Outset Medical, Twilio, and Walt Disney. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Atlassian, Bank of America, Block, Intuitive Surgical, JPMorgan Chase, Outset Medical, Spotify Technology, Twilio, Walt Disney, and Zoom Video Communications.
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In this podcast, Motley Fool host Dylan Lewis and analysts Emily Flippen and Jason Moser discuss: What big interest rates mean for big banks and the latest insights from Jamie Dimon. I'm Dylan Lewis, joining me in studio, Motley Fool Senior Analysts Emily Flippen and Jason Moser. Welcome back to Motley Fool Money, I'm Dylan Lewis, joined here in studio by Emily Flippen and Jason Moser.
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In this podcast, Motley Fool host Dylan Lewis and analysts Emily Flippen and Jason Moser discuss: What big interest rates mean for big banks and the latest insights from Jamie Dimon. Jason, we're going to start with interest rates and the Big Banks. Welcome back to Motley Fool Money, I'm Dylan Lewis, joined here in studio by Emily Flippen and Jason Moser.
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12873.0
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2023-10-27 00:00:00 UTC
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3 Things the Smartest Investors Know About Invesco QQQ Trust
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AAPL
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https://www.nasdaq.com/articles/3-things-the-smartest-investors-know-about-invesco-qqq-trust
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The smartest investors know that a great way to get broad market exposure is to buy exchange-traded funds (ETFs). On the technology front, the Nasdaq 100 is a frequently favored index. Which is why Invesco QQQ Trust (NASDAQ: QQQ) is an ETF you might want to look at. Just make sure you know these three things before you buy it.
1. The Nasdaq 100 isn't all technology
The Nasdaq 100 is called the Nasdaq 100 because it is an index of 100 of the largest non-financial stocks that trade on the Nasdaq exchange. Historically, this exchange had been a favorite listing choice for smaller technology companies. Many of those companies are no longer small, so the index has a heavy exposure to technology. That leads some investors to think of the Nasdaq 100 as strictly a tech index. It isn't.
Image source: Getty Images.
Although technology stocks do account for about 57% of the value of the Invesco QQQ Trust portfolio, that leaves around 43% of its value in other sectors. For example, consumer discretionary stocks make up nearly 19% of its value. Healthcare chimes in at 7%. Telecom and industrials are both roughly 5%. There's even a bit of utility exposure in the mix (a tiny 1% or so). So smart investors will understand that the Invesco QQQ Trust is a technology-heavy ETF, but not a pure-play technology ETF.
2. Invesco QQQ Trust isn't exactly cheap
Sticking to big-picture issues before digging in a little deeper, Invesco QQQ Trust's expense ratio is 0.2%. Compared to most actively managed mutual funds, that makes it a fairly low-cost fund. But when you weigh that 0.2% against what some other ETFs charge, well, it isn't quite as attractive anymore.
For example, the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) has an expense ratio of just 0.0945%. Meanwhile, Technology Select Sector SPDR Fund (NYSEMKT: XLK) and Vanguard Information Technology ETF (NYSEMKT: VGT) both have expense ratios of 0.1%. In other words, you could get a fund with broad market exposure or even technology exposure for about half the cost.
3. Invesco QQQ Trust carries some concentration risk
As noted above, Invesco QQQ Trust has a lot of technology exposure. That's a concentration risk, but you are likely seeking out precisely that sort of concentrated exposure if you are buying this ETF. However, if you dig into the portfolio a little bit, you'll spot another concentration risk that's worth paying attention to.
Apple (NASDAQ: AAPL) accounts for roughly 11% of the portfolio's value. Microsoft (NASDAQ: MSFT) makes up nearly 10%. The two share classes of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) total about 6.5%. And Amazon (NASDAQ: AMZN) is roughly 5%. Add all of that up and just four companies account for about a third of the portfolio. That's a lot of exposure to a handful of stocks that all happen to reside in the same sector.
These four companies also fall into what has been dubbed the "Magnificent Seven." That group of stocks has been the driving force behind much of the broad market's overall performance of late. Smart investors recognize that when investor sentiment turns negative on these stocks, the Invesco QQQ Trust is likely to fall on hard times.
A quick and dirty tool, but not a perfect one
At the end of the day, Invesco QQQ Trust is a quick way to get exposure to the top stocks in the Nasdaq 100. While that will mean material exposure to technology stocks, it is not a pure-play technology offering. It is also not the cheapest way to get exposure to technology stocks, nor even a broad market index, as other ETFs offer notably lower expenses. But the biggest issue, which you may view positively or negatively, is that a tiny group of high-profile stocks accounts for a significant portion of the portfolio's value. While that's a positive when those stocks are in favor, it could quickly turn into a negative. Basically, you should make sure you understand what you'd be owning before you buy this concentrated ETF.
10 stocks we like better than Invesco Qqq Trust, Series 1
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 Invesco Qqq Trust, Series 1 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 23, 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. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) accounts for roughly 11% of the portfolio's value. It is also not the cheapest way to get exposure to technology stocks, nor even a broad market index, as other ETFs offer notably lower expenses. But the biggest issue, which you may view positively or negatively, is that a tiny group of high-profile stocks accounts for a significant portion of the portfolio's value.
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Apple (NASDAQ: AAPL) accounts for roughly 11% of the portfolio's value. So smart investors will understand that the Invesco QQQ Trust is a technology-heavy ETF, but not a pure-play technology ETF. Invesco QQQ Trust isn't exactly cheap Sticking to big-picture issues before digging in a little deeper, Invesco QQQ Trust's expense ratio is 0.2%.
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Apple (NASDAQ: AAPL) accounts for roughly 11% of the portfolio's value. The Nasdaq 100 isn't all technology The Nasdaq 100 is called the Nasdaq 100 because it is an index of 100 of the largest non-financial stocks that trade on the Nasdaq exchange. Invesco QQQ Trust carries some concentration risk As noted above, Invesco QQQ Trust has a lot of technology exposure.
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Apple (NASDAQ: AAPL) accounts for roughly 11% of the portfolio's value. Although technology stocks do account for about 57% of the value of the Invesco QQQ Trust portfolio, that leaves around 43% of its value in other sectors. Invesco QQQ Trust carries some concentration risk As noted above, Invesco QQQ Trust has a lot of technology exposure.
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12874.0
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2023-10-27 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-5
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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 Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
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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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet.
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Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL).
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12875.0
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2023-10-27 00:00:00 UTC
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The Government's Case Against Google and How AI May Be Affecting Hiring
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AAPL
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https://www.nasdaq.com/articles/the-governments-case-against-google-and-how-ai-may-be-affecting-hiring
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In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss:
The DOJ's case against Alphabet's Google.
Google's exclusive deals with Apple and how lucrative those deals were for Apple.
The similarities between this case and the government's antitrust case against Microsoft in the 1990s.
Motley Fool host Mary Long caught up with Motley Fool analyst Sanmeet Deo for a chat about airport security stock Clear Secure and the race to the front of the line.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Clear Secure
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 Clear Secure 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 16, 2023
This video was recorded on Oct. 11, 2023.
Dylan Lewis: PSA. If you're looking for something you don't have to Google it, you can also use Bing, Yahoo and Duck Duck Go. Motley Fool Money starts now. I'm Dylan Lewis and I'm joined over the airwaves by Motley Fool analyst Tim Byers. Tim, scale is zero to 10. What are we looking at in terms of caffination right now?
Tim Beyers: We're going to 11 Dylan. Let's not get around.
Dylan Lewis: I'm about a half cut behind you but I will get there, I promise. Today, we are looking at the DOJ's case against Alphabet's Google, and one spot where AI may be affecting hiring. Let's start with the antitrust talk, Tim. So many of our antitrust conversations recently have been about potential deals and whether or not they will go through. In the case of the DOJ and Google, though, this is the government looking at past action by a company and saying it led to a monopoly or reinforced monopoly.
Tim Beyers: This is the deal between Google and Apple for over many years, in which Google became the default search engine across all Apple devices. But I think the one that's primarily at issue here is the iPhone, where if you were looking on the iPhone, using Safari on the iPhone, and searching on the iPhone, your default search engine was Google and this has proven to be incredibly lucrative for Apple over time, and theoretically incredibly lucrative for Google. But they're being very cagy about it, Dylan. But I think I know we're going to get to it in a second. Some of the things that current CEO, Sundar Pichai, said about this back in the day. He's being more cagy about it right now, but he wasn't so cagy in the past, which I think is very interesting. But before we get to those comments, let me just quickly frame up here to give folks a sense of how lucrative this could really be. Apple is a massive company today, with about $119 billion in operating income. That's in 2022, fiscal 2022 over the trailing 12 months, about $111 billion in operating income. Reportedly, this deal is worth about $10 billion to Apple on an annual basis. What you're talking about is close to 10 percent of operating income for Apple from one deal that has a very long history, Dylan. This is significant.
Dylan Lewis: Yeah. The arrangement for Apple would be incredibly high margin. What we're talking about here is essentially setting something as the default search engine and forgetting it and just leaving it there. There's been some talk about whether or not this is material to Apple. I think that perspective right there is pretty perfect, Tim. I think we can all agree that's material and something that is definitely benefiting the company and both companies. You mentioned the Sundar Pichai comments earlier, back in 2007 when he was in charge of Google's Chrome browser, not the CEO of the company, he had written a letter to Larry Page and Sergey Brin saying at one point I don't think it's a good user experience and I don't think the optics are great for us to be the only provider in the browser. Even suggesting there should be other options as a dropdown. Those are coming up because he is now in charge and is having to answer for this arrangement that we have in place.
Tim Beyers: To put it even more context around it, at that time, he said there should be wait for it, Yahoo as an option. That is significant at the time, because Yahoo, we haven't thought about Yahoo as a legitimate search engine for decades, let alone years. This is very significant and the fact that he brought this up at the time, I think is very damaging to Google's case because it makes it seem like what Google really paid for is not just space on the iPhone, it paid for exclusivity. Now, whether or not Google is willing to admit that it paid for exclusivity is an entirely different matter and I'm not a lawyer, so I'm not going to make a legal judgment here. But that sounds very suspicious, it sounds very damaging and according to the report that we're seeing, is that over time as this deal was renegotiated, it was renegotiated to allow Apple to have other providers in different parts of the world. To this day, Apple does have, if you use an Apple device in different parts of the world, your default search engine may not be Google, but in most of the world it still is. Of course, there are ways that you can choose to have a different search engine on your iPhone. But Dylan, I'm a reasonably smart tech guy. I've never even tried to make a different default search engine on my iPhone. I am certain that it's possible, but I don't know how to do it. I know I'd have to go research it, and I think that's part of the government's case. It's not instantly intuitive, which is what we want.
Dylan Lewis: Yeah, there is an inertia to things being defaults and just the average person is not going to go out of their way to make those changes. When you solidify yourself there, you wind up in a spot where you are the 90 percent search market share leader in the most valuable search market in the world. Google very smartly positioned themselves this way, but it seems like maybe they are finally having to pay for it. One of the things I see coming up with this case a lot, and I wanted to ask you about Tim, is there are a lot of comparisons to what is happening here and the government's antitrust case against Microsoft in the 1990s with a very similar notion of pre-installed defaults gate keeping, What is and isn't there for consumers when they open a device. Do you feel like that's a fair comparison?
Tim Beyers: I don't know that it's a fair comparison legally, but from the perspective of the narrative, point, the echoes here are just far too loud. Because at the time, for those who weren't there and didn't see this. The argument with Microsoft is that as part of their deals with different PC makers, they would ship as part of your Windows license, you were shipping Internet Explorer as the default browser inside Windows, and so that really crowded out, which was the alternative at the time, which was Netscape Navigator and it really crushed Netscape's market share over time because it was very easy, you just pointed out, Dylan. If it's the default and it's easy to set up and it's right there for you and you don't have to go download it. Then that's largely what you're going to use. Part of the issue at the time, which people may not remember, is Bill Gates wrote an internal memo that became public later and it was in some ways a roadmap for Microsoft and it was entirely about the Internet, and how important that Gates thought the Internet would be to Microsoft. Of course, the Department of Justice absolutely used that as a sledgehammer against Microsoft at the time. Said this was intentional, this is what Microsoft wanted to do. They made it the default because they had to grab market share because they knew this was the most strategic market for them. Because the Internet made the PC so relevant at the time, which is a legitimate argument. Now, again, let's separate the legality from the narrative. But I think that narrative was so strong and it echoes so much with what Sundar Pichai was saying, saying, look, this is something we don't want to get caught in because we are essentially saying, if we're the default, we own this and so we get all the advertising revenue and we're going to pay Apple to play a little bit along with us here. It feels very familiar, Dylan, and that's not a good look at all.
Dylan Lewis: Interestingly enough, that decision, that antitrust movement against Microsoft opened the window for Google and for Chrome and for all of this other second wave innovation that we saw on.
Tim Beyers: Irony never disappoints, Dylan. Irony never disappoints. [laughs]
Dylan Lewis: One of the things that's interesting about this is we don't exactly know what a remedy would look like if we wind up in a spot where the DOJ is successful here. There's discussion of would there be a fine, would there be proposed break ups for Google's search properties and its Internet properties. Tim, what do you make of all of that as a risk to the business? Is it sing you factor in at all or are you just say this is the reality of owning shares of a business that is this big.
Tim Beyers: I think it's part of the reality. I recognize this is something that could happen and there are multiple scenarios here. I think the more likely, if history is the guide, the more likely outcome is a fine, maybe a very substantial fine. But let's remember that Google has a massive balance sheet. They have a lot of cash, they generate a lot of cash. If it's a fine, they are going to be more than happy to pay it and they can make this go away if it is a break up. I think that's the unlikely scenario. But let's say it is, that is fine with me. I am an owner of Google shares. I will happily take the break up. Give me my position in YouTube, give me my position in Google Cloud, give me my position in the Alphabet core business, and separate it all out. I will take that because I think that ultimately creates value for me as a shareholder. I see that less as a risk, Dylan, as more as something that is a potential outcome that I would be happy to see if that's the route the government goes down, I think it's more likely we'll see a fine that's a short term hit that I think alphabet could easily absorb. Either way, I'm OK with this, but I do think there's a likelihood of consequences. I just don't know what the consequences would be.
Dylan Lewis: Over to our second tech story today. That in a job market that is relatively strong, we are seeing some weakness in one zone. That's IT. Tim. The unemployment rate for information technology jobs was higher than the overall jobless rate last month. The immediate take that I'm seeing online is some AI automation may be impacting entry level IT jobs. Does that hold water for you?
Tim Beyers: Well, yes and no and maybe no and yes, maybe let's put those in order. The reason it's a no is because I think we've all seen the number of layoffs in the IT sector. It's been absolutely staggering. You can expect that a large number of those layoffs were more junior people, although I'm assuming too, there are some other senior people in there because we have seen some start ups with some founders that are closer to my age. I'm in my '50s and that's actually a good cohort for venture capitalists to put some money behind because you've got seasoned entrepreneurs who know how to do this. There's probably layoffs across the spectrum. There's that, but also there is a lot of talk about AI as an automation mechanism. I do expect there is automation happening. I think it's more like Dylan, we've seen a huge number of layoffs and you have some IT firms that are unwilling as business picks up to hire back at the same pace because they may be automating some of those jobs that previously were held by a person.
Dylan Lewis: For folks that aren't as dialed in on tech trends and the role that AI plays in businesses, what would AI automation replacing entry level jobs look like at some of these places Tim?
Tim Beyers: Probably customer service jobs may be automated. Like instead of a customer service agent who is sending out e mails and responding to customer requests, that is probably something that's automated through maybe some bots. It could be having to, maybe route calls, maybe thinning out your customer service department so that more of the requests are automated and handled via automation. You have a much smaller customer service department. I could easily see some elements of marketing and marketing automation handled by different types of AI workflows that are just doing things like maybe writing base copy. Doing basic copy or updating website copy and things like that. Something that a marketing in turn might do that now an AI might be doing. Really it's not much of an AI, it's more like an algorithm, a machine learning system that has a bunch of copy in it and is doing automatically generated pages. It's not really doing anything intelligent, it's just automating things. I do think there is a bit of an emphasis on automation, and we're categorizing that as AI. You know what, there is something that's fair but also unfair about that. But I do think automation is hitting a lot of these tech companies. Where the jobs are in IT are probably a bit more senior, and the junior level jobs are going to be a little bit tougher to get. That's a trend I expect to hold up for a little while.
Dylan Lewis: Tim, no risk of us automating you away from being one of our Motley Fool Money.
Tim Beyers: I hope not.
Dylan Lewis: Always love going to you for tech intelligence. Thanks so much for joining me today.
Tim Beyers: Thanks, Dylan.
Dylan Lewis: Coming up. If you've been to an airport recently, you might know Clear. It's the company that lets travelers cut through the security line but you might not know that it's a publicly traded company. Mary Long cut up with Motley Fool senior analyst Samneet Deo, for a chat about the business and the competitors in the race to the front of a line.
Mary Long: Clear's mission is quote, to enable friction-less and safe journeys using your identity and quote, what does that mean and what does it look like as an actual business model?
Sanmeet Deo: Clear Secure ticker Y-O-U. Their business models basically is simply, we describe as like an identity management platform. They use biometric technology to verify a person's identity by looking at faces, fingerprints, you know, et cetera. It's not just an airport company though. A majority of the revenue still comes from there. But it's expanding to use cases such as stadium security, online identity verification by linkedin, financial security like know your customer, type use cases and et cetera.
Mary Long: Let's focus first on that airport security piece because that's probably one that listeners are most familiar with. Clear Plus is the company's flagship offering, and that grants expedited entry to over 50 airports in the US. It comes out to about $189 a year. How many paying members does Clear actually have today?
Sanmeet Deo: Clear as of the second quarter of 2023, they have over 6 million active Clear Plus members, so those are paying members. This is up from around 3.8 million as of the end of quarter one 2021. Clear is a pretty sticky product with their net member retention above 90%. They have a key performance indicator that that their report is called the annual plus member usage. That's been steadily increasing over the past eight quarters. That indicates how much utilization of their product, of their pass is being utilized. The amount of verification is done over how many actual members there are.
Mary Long: Interesting. Within the airport space and others because you mentioned that Clear is expanding into different sectors as well. Are there any competitors that clears up against or is this the only game in town?
Sanmeet Deo: One of the first competitors that you would think of when you think of Clear in the airport, if you've ever seen in the airport, is TSA pre-check. TSA pre-check is solely focused on airport security and royal members through an online application and in person appointments. They rely on traditional documents like boarding passes, and government ID's. It costs about $85 for a five year membership, offers no family plans or discounts. In contrast, Clear primary serves airports, but has expanded to use cases. They use stadiums, other venues, they enroll members through in personal kiosk using biometric identification, fingerprints, high scans, and they have an app which you can also enroll on. It costs about 189 per year and offers family plans, free membership for kids under 18 and various discounts. Key differentiator for Clear versus TSA pre check is that it lets you skip lines at boarding gates and passport control desks in addition to the security checks. Now an interesting thing is in 2020, TSA actually awarded Clear what they call the TSA biometric pre-check expansion services and vetting programs. That's a mouthful.
They have to have an acronym for that at some point I guess. But as part of this program, Clear is going to leverage their network and resources to handle the TSA pre check, subscription renewal processing, and new enrollments for TSA pre check. While it seems like they would be competitors, they are actually more of complimentary products. In addition to this, Clear is going to be offering a bundled Clear Plus membership and TSA pre check subscription for new members. You can have both with a bundled offering that enhances your ability to get through lines and use their products. TSA pre check while you would think right off the bat that that's a competitor, it's a little bit more of a complimentary service, especially with some of their partnerships and collaboration that they've been doing. There are some other smaller competitors like Verify and others that do some of this airport security type identification, but many of them don't have airport presence like Clear does. That's been a huge staple of Clear's businesses, having those kiosks, having that presence in the airport where passengers get an idea of what their business is all about, what their offerings are all about. And they have ambassadors, which some people might get annoyed by because they try to sell them the pass at the airport. They do also help them with kind of getting enrolled, using the service, what it could actually do for them, so you have someone to speak to at the airports to get a better understanding for that product. That's something that other competitors don't have. In terms of their biometric technology, some of the competition I would say is typically from big tech Alphabet, Google, Apple, Microsoft, Meta. Some of those big tech companies, if they start offering more identity verification system software to help with that, that could be a competitor. Of course, having privacy and all of that information with Big Tech is probably going to be a concern for many people given that they already have so much of our information. Do you want to really be giving them a lot more? So that's kind of the competitive landscape that Clear is facing.
Mary Long: When talking about the competitive landscape, you mentioned like I'll say, the threat of big tech and like their handling of biometric data and how that could be a potential obstacle for Clear. But if we focus on Clear alone, what do they actually do with our data? Should we be wary of them?
Sanmeet Deo: Look, you give them your driver's license, your passport, all this information that like, wow, they have it all. But privacy is actually heavily embedded in the DNA of the company. They're committed to never selling member data. They may use the data to improve their own marketing, but they're never going to sell your data to other outside parties. They've built a comprehensive information security and cybersecurity program. Their platform is certified at the highest level of security by government regulators and it is constantly being monitored and evaluated. The Department of Homeland Security has certified Clears security program with a FISMA high rating, which is the highest designated designation according to the Federal Information and Security Modernization Act. They do have some backing by government regulators, Department of Homeland Security. They're under the microscope, if they're not careful, they're not protecting that data, those government organizations have a much, much more in rows into really clamping down on them.
Mary Long: Clear might be a bit of an older company than people might expect and you've talked to me before about its founding story. How did Clear come to be?
Sanmeet Deo: Yeah, it's an interesting story. It was founded in 2003 and it was originally named Verified Identity Pass. It was founded by Stephen Brill who's a law writer and entrepreneur. It was in response to the intensive security checks and long wait times after the 911 attacks. And probably thought, how can we improve this? By 2008, they had 250,000 paying customers. They've been using 18 airports across the country. But then due to unsuccessful negotiations with their largest creditor, they had to file for bankruptcy and they ceased operations in 2009. Incomes, the two co founders now co founders Caryn Seidman Becker and Ken Cornick came in and bought out the assets out of bankruptcy for $6 million including hardware, access to the members,250,000 members, the Clear brand name and licenses with the Department of Homeland Security and other organizations. Seidman Becker and Cornick had come from the financial industry, running hedge funds and decided they wanted to buy this out of bankruptcy and run the company. Clear relaunched in 2010, it was a smart card company before launching pods and kiosk at airports, which many of you may have seen already. And then a partnership and investment by Delta in 2016 kind of helped accelerate their growth. Then they got 135 million in six investment rounds from various institutional investors and United Airlines bought a stake in 2019. All of that really started building their funding, building their platform. It took almost seven years for them to reach 1 million members. But it's added each subsequent million in less than a year. So it's been growing very fast and so ending in 2019, they had more than 5 million members. It's been around for a decent amount of time in a different entity. But it's really lately that it's definitely taken off. And it's well funded and has a strong balance sheet which I like as well.
Mary Long: So the company went public in June 2021, and since then, despite everything that we've talked about, the increasing enrollments, etc, the stock is down over 55% and it's now trading at about $17.50 a share. Again, that's in spite of increasing enrollments, the company's grown quarterly revenue since its Public Offering. In its most recent earnings, which were the second quarter of 2023, it posted positive net income for the first time as a public company. If we could say all that, why has the stock slumped so much?
Sanmeet Deo: One of the things that intrigued me about this investment is that it's trading it almost like a 10% free cash flow yield which is a 10 multiple on its free cash flow. So it's trading very reasonably cheaply actually in so it's like what's going on here? One, it's a very tightly held company. The co-founders own about 17% of the whole company themselves and they have pretty much, I think it's 80% of the voting control of the company. Then the rest of the holders of the stock, there's some institutional shareholders in there, Bill Miller and some T Row and some other institutional investors. The actual float that's out there is not as much as you might think. Given that it's a very tightly held company, the stock is going to be very volatile. So that definitely accounts for that. It does have an 18% short interest in the company. So that has probably been a result of some of the declines in the stock. As well a couple other points, you know, since it's heavily into the aviation airport industry as that industry news flow and things are discussed about that industry, the stock will trade on those data points, so that causes some volatility in the stock. But I have no reason to believe that they can't continue to maintain the profitability, continuing to grow, you know, memberships while, it could slow.
They have stated that the travel industry is still very strong and that's been confirmed by some other companies that you are widely followed like booking and Airbnb and others where the revenge travel as they've called it post-pandemic is still going and that could slow for sure. I think another reason that the stock may be trading down a little bit is because, it does have a huge concentration in the aviation industry. All these use cases that I was discussing briefly before are, they're working on, but there's no guarantee that that's going to be successful or even take off. That it will be a big platform that everyone's using and it's very ubiquitous. So there's probably a lot of skepticism around that.
Mary Long: Yeah, lots of potential for it to expand into industries beyond aviation, but still early days for a lot of that it seems. Sanmeet, thanks for clarifying Clear for us. It's been great talking to you today.
Sanmeet Deo: Yeah, thank you, Mary.
Dylan Lewis: As always, people on the program may own stocks mentioned and the Motley Fool may have formal recommendations for or against. So don't fire-sell anything based solely on what you hear. I'm Dylan Lewis. Thanks for listening. We'll be back tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dylan Lewis has no position in any of the stocks mentioned. Mary Long has positions in Airbnb. Sanmeet Deo has positions in Airbnb and Alphabet. Tim Beyers has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Airbnb, Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But I think that narrative was so strong and it echoes so much with what Sundar Pichai was saying, saying, look, this is something we don't want to get caught in because we are essentially saying, if we're the default, we own this and so we get all the advertising revenue and we're going to pay Apple to play a little bit along with us here. I think it's more like Dylan, we've seen a huge number of layoffs and you have some IT firms that are unwilling as business picks up to hire back at the same pace because they may be automating some of those jobs that previously were held by a person. Mary Long cut up with Motley Fool senior analyst Samneet Deo, for a chat about the business and the competitors in the race to the front of a line.
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In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss: The DOJ's case against Alphabet's Google. Motley Fool host Mary Long caught up with Motley Fool analyst Sanmeet Deo for a chat about airport security stock Clear Secure and the race to the front of the line. Mary Long cut up with Motley Fool senior analyst Samneet Deo, for a chat about the business and the competitors in the race to the front of a line.
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In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss: The DOJ's case against Alphabet's Google. Motley Fool host Mary Long caught up with Motley Fool analyst Sanmeet Deo for a chat about airport security stock Clear Secure and the race to the front of the line. Tim Beyers: This is the deal between Google and Apple for over many years, in which Google became the default search engine across all Apple devices.
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In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss: The DOJ's case against Alphabet's Google. Tim Beyers: This is the deal between Google and Apple for over many years, in which Google became the default search engine across all Apple devices. Sanmeet Deo: Clear as of the second quarter of 2023, they have over 6 million active Clear Plus members, so those are paying members.
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12876.0
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2023-10-27 00:00:00 UTC
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US STOCKS-Nasdaq, S&P 500 edge higher as Amazon, Intel lift megacaps
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-sp-500-edge-higher-as-amazon-intel-lift-megacaps
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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.)
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Amazon.com says growth in cloud business stabilizing
*
Intel forecast Q4 revenue, margins above estimates
*
Ford withdraws full-year results forecast
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Chevron posts slump in third-quarter profit
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Dow off 0.23%, S&P up 0.08%, Nasdaq climbs 0.69%
(Updated at 9:50 a.m. ET/ 1350 GMT)
By Ankika Biswas and Shashwat Chauhan
Oct 27 (Reuters) - The Nasdaq and S&P 500 rose on Friday
as robust updates from Amazon.com and Intel lifted beaten-down
megacaps, while investors also drew comfort from data that
showed inflation rose largely in line with expectations.
Amazon.com jumped 7.0% after the e-commerce giant
reported a pick up in growth at its most profitable cloud
business.
Intel rallied 11.0% after the chipmaker forecast
fourth-quarter revenue and margins above estimates. Chip stocks
Advanced Micro Devices and Nvidia added 1.4%
and 1.0%, respectively.
Megacaps Microsoft , Meta Platforms , Tesla
and Apple rose between 0.5% and 3.5% at the
end of a rough week for Big Tech.
Meanwhile, data showed U.S. consumer spending increased more
than expected in September, keeping it on a higher growth path
heading into the fourth quarter.
The personal consumption expenditures price index,
considered to be the Federal Reserve's preferred inflation
gauge, climbed 0.4% in September compared with an estimated 0.3%
rise.
Core inflation which excludes volatile food and energy
components rose 0.3%, meeting estimates.
"There's a lot of evidence of disinflation really kicking in
throughout the economy," said David Russell, global head of
market strategy at TradeStation.
"The Fed seems to have accomplished a lot of what they were
trying to do in terms of inflation but then we have a very
strong job market, very strong GDP and the Fed really has no
incentive to change their policy anytime soon."
Futures contracts tracking Federal Reserve's policy rate
rose, reflecting increased confidence among traders that the
central bank will not raise borrowing costs any further.
At 9:50 a.m. ET, the Dow Jones Industrial Average <.DJI> was
down 75.24 points, or 0.23%, at 32,709.06, the S&P 500 <.SPX>
was up 3.30 points, or 0.08%, at 4,140.53, and the Nasdaq
Composite <.IXIC> was up 87.37 points, or 0.69%, at 12,682.98.
Weighing on the Dow, Chevron fell 5.0% after the oil
major reported a drop in third-quarter profit.
Shares of Exxon Mobil advanced 0.5% after it posted
a higher profit compared with the prior quarter, though
year-on-year earnings plunged nearly 54%.
Ford Motor sank 8.0% after withdrawing its full-year
results forecast due to "uncertainty" over the pending
ratification of its deal with the United Auto Workers union, and
warning of continued pressure on electric vehicles.
Of the 245 companies in the S&P 500 that have reported
earnings so far, 77.6% beat earnings expectations, LSEG data
showed. Third-quarter earnings are expected to grow 4.3% from a
year earlier.
Toothpaste-maker Colgate-Palmolive rose 1.6% after
raising its annual organic sales and profit forecasts for a
third time this year.
Enphase Energy dipped 13.5% after the solar
inverter maker forecast fourth-quarter revenue below estimates.
The tensions in the Middle East were also on investors'
radar, with a Hamas official tying the release of hostages to
Israel stopping the bombardment of Gaza which it launched after
a deadly rampage by Hamas militants into the southern part of
the country nearly three weeks ago.
Declining issues outnumbered advancers by a 1.62-to-1 ratio
on the NYSE and by a 1.51-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 40 new lows,
while the Nasdaq recorded eight new highs and 186 new lows.
(Reporting by Ankika Biswas, Shashwat Chauhan and Sruthi
Shankar in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com;
Shashwat.Chauhan@thomsonreuters.com))
Keywords: USA STOCKS/ (UPDATE 3)
The views and 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 personal consumption expenditures price index, considered to be the Federal Reserve's preferred inflation gauge, climbed 0.4% in September compared with an estimated 0.3% rise. Futures contracts tracking Federal Reserve's policy rate rose, reflecting increased confidence among traders that the central bank will not raise borrowing costs any further. Ford Motor sank 8.0% after withdrawing its full-year results forecast due to "uncertainty" over the pending ratification of its deal with the United Auto Workers union, and warning of continued pressure on electric vehicles.
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* Intel forecast Q4 revenue, margins above estimates * Ford withdraws full-year results forecast Futures contracts tracking Federal Reserve's policy rate rose, reflecting increased confidence among traders that the central bank will not raise borrowing costs any further.
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(Updated at 9:50 a.m. ET/ 1350 GMT) By Ankika Biswas and Shashwat Chauhan Oct 27 (Reuters) - The Nasdaq and S&P 500 rose on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations. Shares of Exxon Mobil advanced 0.5% after it posted a higher profit compared with the prior quarter, though year-on-year earnings plunged nearly 54%. Toothpaste-maker Colgate-Palmolive rose 1.6% after raising its annual organic sales and profit forecasts for a third time this year.
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* Dow off 0.23%, S&P up 0.08%, Nasdaq climbs 0.69% (Updated at 9:50 a.m. ET/ 1350 GMT) By Ankika Biswas and Shashwat Chauhan Oct 27 (Reuters) - The Nasdaq and S&P 500 rose on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations. Enphase Energy dipped 13.5% after the solar inverter maker forecast fourth-quarter revenue below estimates.
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12877.0
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2023-10-27 00:00:00 UTC
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Q3 Earnings: Tech Sector in Focus
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AAPL
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https://www.nasdaq.com/articles/q3-earnings%3A-tech-sector-in-focus
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A big contributing factor to the market’s loss of momentum over the last three months is rising interest rates and the ‘higher-for-longer’ view of Fed policy. The interest rate issue is an even more significant headwind for Tech stocks, given their perceived ‘long duration’ status.
You can see this in the chart below, which shows the three-month performance of the S&P 500 index and the Zacks Tech sector. The chart also shows the performance of Amazon AMZN, Microsoft MSFT, and Alphabet GOOGL over the same period.
Image Source: Zacks Investment Research
As you can see here, the Zacks Tech sector (blue line at the bottom; down – 11.5%) has lagged the broader market (red line, second from the bottom, down -9.7%), with Microsoft (green line, down -2.7%), Amazon (orange line, down -3.9%) and Alphabet (purple line, down -8.7%) doing better.
The relative outperformance of Microsoft and Amazon is a reflection of these mega-cap companies’ earnings power that was reconfirmed in their quarterly results. Alphabet’s results were no less impressive, but the market is putting a premium on momentum in cloud and AI. Alphabet appears to be fumbling a bit on that front.
The ‘Big 7 Tech Players’ group that includes Apple AAPL, Meta META, Tesla TSLA, and Nvidia NVDA, in addition to Amazon, Microsoft, and Alphabet, is on track to achieve +49% earnings growth in 2023 Q3 on +12.2% higher revenues, as the chart below shows.
Image Source: Zacks Investment Research
Strong Q3 results from these mega-cap Tech players, of which only Apple and Nvidia have yet to report results at this stage, are a big reason why the aggregate Q3 earnings growth rate for the S&P 500 index has turned positive in recent days.
Q3 earnings for the S&P 500 index on a blended basis, meaning combining the actual earnings that have come out with estimates for the still-to-come companies, is now expected to increase +1.2% from the same period last year, with equal growth (+1.2%) expected in revenues. If we exclude the contribution from these ‘Big 7 Tech Players’, Q3 earnings for the remainder of the index would be down -5.7% from the same period last year.
The chart below shows the group’s earnings and revenue growth on an annual basis.
Image Source: Zacks Investment Research
As we all know by now, the group’s phenomenal boost in 2021 partly reflected pulled forward demand from future periods that was in the process of getting adjusted last year and this year. As you can see above, the expectation is for the group to resume ‘regular/normal’ growth next year, but a lot of that is contingent on how the macroeconomic picture unfolds.
Beyond these mega-cap players, total Q3 earnings for the Technology sector as a whole are expected to be up +18.6% from the same period last year on +4% higher revenues.
The chart below shows the sector’s Q3 earnings and revenue growth expectations in the context of where growth has been in the preceding two quarters and what is expected in the coming three periods.
Image Source: Zacks Investment Research
As was the case with the ‘Big 7 Tech Players’, the overall Tech sector has been dealing with the pulled forward revenues and earnings during Covid over the last many quarters. In fact, earnings growth for the Zacks Tech sector turned positive only in the preceding quarter (2023 Q2) after remaining in negative territory during the four quarters prior to that.
This big-picture view of the ‘Big 7 players’ and the sector as a whole shows that the worst of the growth challenge is shifting into the rearview mirror.
You can see this clearly in the chart below.
Image Source: Zacks Investment Research
The Q3 Earnings Season Scorecard
Including all the earnings reports through Friday, October 27th, we now have Q3 results from 246 S&P 500 members, or 49.2% of the index’s total membership. Total Q3 earnings for these companies are up +6% from the same period last year on +2.1% higher revenues, with 79.3% beating EPS estimates and 64.2% beating revenue estimates.
We have another super busy reporting docket this week with more than 1100 companies reporting Q3 results, including 159 S&P 500 members. In addition to the aforementioned Apple AAPL, which reports after the market’s close on Thursday, we have many other notable companies reporting results this week, including Airbnb, Shopify, Qualcomm, and others.
The comparison charts below put the Q3 earnings and revenue growth rates at this very stage in a historical context.
Image Source: Zacks Investment Research
The comparison charts below put the Q3 EPS and revenue beats percentages in a historical context.
Image Source: Zacks Investment Research
As you can see here, companies are comfortably beating consensus EPS estimates but coming up a bit short on the revenue beats percentages. This becomes clearer when we look at the ‘blended’ beats percentage for Q3, which shows the proportion of these 246 index members that have beaten both EPS and revenue estimates.
Image Source: Zacks Investment Research
The Earnings Big Picture
Looking at 2023 Q3 as a whole, the expectation currently is of S&P 500 earnings growing by +1.2% from the same period last year on +1.2% higher revenues. This would follow the -7.1% decline on +1.1% higher revenues in 2023 Q2. Please note that earnings growth has turned positive for the first time after staying in negative territory for three back-to-back quarters.
The chart below highlights the year-over-year Q3 earnings and revenue growth in the context of where growth has been in recent quarters and what is expected in the next few periods.
Image Source: Zacks Investment Research
The earnings growth picture for the quarter improves further on an ex-Energy basis (+6.6% vs. +1.2%).
The chart below shows the earnings and revenue growth picture on an annual basis.
Image Source: Zacks Investment Research
Look at current expectations for next year and the year after to understand the disconnect between the reality of current bottom-up aggregate earnings estimates and the seemingly never-ending worries about an impending economic downturn. That said, most economic analysts have been steadily lowering their recessionary odds in recent months.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>The Earnings Picture Continues to Improve
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.
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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.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ‘Big 7 Tech Players’ group that includes Apple AAPL, Meta META, Tesla TSLA, and Nvidia NVDA, in addition to Amazon, Microsoft, and Alphabet, is on track to achieve +49% earnings growth in 2023 Q3 on +12.2% higher revenues, as the chart below shows. In addition to the aforementioned Apple AAPL, which reports after the market’s close on Thursday, we have many other notable companies reporting results this week, including Airbnb, Shopify, Qualcomm, and others. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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The ‘Big 7 Tech Players’ group that includes Apple AAPL, Meta META, Tesla TSLA, and Nvidia NVDA, in addition to Amazon, Microsoft, and Alphabet, is on track to achieve +49% earnings growth in 2023 Q3 on +12.2% higher revenues, as the chart below shows. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition to the aforementioned Apple AAPL, which reports after the market’s close on Thursday, we have many other notable companies reporting results this week, including Airbnb, Shopify, Qualcomm, 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The ‘Big 7 Tech Players’ group that includes Apple AAPL, Meta META, Tesla TSLA, and Nvidia NVDA, in addition to Amazon, Microsoft, and Alphabet, is on track to achieve +49% earnings growth in 2023 Q3 on +12.2% higher revenues, as the chart below shows. In addition to the aforementioned Apple AAPL, which reports after the market’s close on Thursday, we have many other notable companies reporting results this week, including Airbnb, Shopify, Qualcomm, and others.
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The ‘Big 7 Tech Players’ group that includes Apple AAPL, Meta META, Tesla TSLA, and Nvidia NVDA, in addition to Amazon, Microsoft, and Alphabet, is on track to achieve +49% earnings growth in 2023 Q3 on +12.2% higher revenues, as the chart below shows. In addition to the aforementioned Apple AAPL, which reports after the market’s close on Thursday, we have many other notable companies reporting results this week, including Airbnb, Shopify, Qualcomm, and others. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12878.0
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2023-10-27 00:00:00 UTC
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Technology Sector Update for 10/27/2023: MASI, AAPL, INTC, SWI, AGRI
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-27-2023%3A-masi-aapl-intc-swi-agri
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Tech stocks were gaining late Friday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.4% and the Philadelphia Semiconductor Index adding 1%.
In company news, Masimo (MASI) shares rose 2.1% after the US International Trade Commission issued a limited exclusion order on Thursday that may potentially ban Apple (AAPL) from importing Apple Watches with light-based pulse oximetry functionality. Apple rose 0.5%.
Intel (INTC) shares jumped over 9% following better-than-expected Q3 results and upbeat guidance.
AgriFORCE Growing Systems (AGRI) shares soared 10% after the company regained compliance with Nasdaq's minimum bid price requirement.
SolarWinds (SWI) is evaluating options including a potential sale and is working with financial advisors on a sale process that could begin early next year, Bloomberg reported late Thursday. Its shares rose 6%.
The views and 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 company news, Masimo (MASI) shares rose 2.1% after the US International Trade Commission issued a limited exclusion order on Thursday that may potentially ban Apple (AAPL) from importing Apple Watches with light-based pulse oximetry functionality. Tech stocks were gaining late Friday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.4% and the Philadelphia Semiconductor Index adding 1%. AgriFORCE Growing Systems (AGRI) shares soared 10% after the company regained compliance with Nasdaq's minimum bid price requirement.
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In company news, Masimo (MASI) shares rose 2.1% after the US International Trade Commission issued a limited exclusion order on Thursday that may potentially ban Apple (AAPL) from importing Apple Watches with light-based pulse oximetry functionality. Apple rose 0.5%. SolarWinds (SWI) is evaluating options including a potential sale and is working with financial advisors on a sale process that could begin early next year, Bloomberg reported late Thursday.
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In company news, Masimo (MASI) shares rose 2.1% after the US International Trade Commission issued a limited exclusion order on Thursday that may potentially ban Apple (AAPL) from importing Apple Watches with light-based pulse oximetry functionality. AgriFORCE Growing Systems (AGRI) shares soared 10% after the company regained compliance with Nasdaq's minimum bid price requirement. SolarWinds (SWI) is evaluating options including a potential sale and is working with financial advisors on a sale process that could begin early next year, Bloomberg reported late Thursday.
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In company news, Masimo (MASI) shares rose 2.1% after the US International Trade Commission issued a limited exclusion order on Thursday that may potentially ban Apple (AAPL) from importing Apple Watches with light-based pulse oximetry functionality. Tech stocks were gaining late Friday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.4% and the Philadelphia Semiconductor Index adding 1%. Apple rose 0.5%.
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12879.0
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2023-10-27 00:00:00 UTC
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Wall Street ends mixed at close of earnings-packed week
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https://www.nasdaq.com/articles/wall-street-ends-mixed-at-close-of-earnings-packed-week-0
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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.
Amazon.com says growth in cloud business stabilizing
Intel forecast better than expected Q4 revenue, lifts chips
Chevron posts slump in third-quarter profit
All three major U.S. stock indexes post weekly losses
Indexes: Dow down 1.12%, S&P off 0.48%, Nasdaq up 0.38%
Updates to 16:10 EDT
By Stephen Culp
NEW YORK, Oct 27 (Reuters) - U.S. stocks closed mostly lower on Friday, losing momentum as investors digested a hectic week of mixed earnings, and economic data that seemed to support the "higher for longer" interest rate scenario.
The Nasdaq advanced, with tech and tech-adjacent momentum stocks led by Amazon.com AMZN.O, Apple AAPL.O and Meta Platforms META.O providing much of the heavy lifting, while the S&P 500 and the Dow Jones Industrial Average lost ground.
All three indexes notched weekly losses steeper than 2%.
The benchmark S&P 500 closed 10.28% below its July 31 closing high.
"It's hard to fight the trend in the market, and the trend has been lower," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "Earnings have been fine but they're not providing the kind of catalyst to spark a reversal to the upside."
The Commerce Department's hotly anticipated Personal Consumption Expenditures (PCE) report showed inflation gradually cooling down as expected, getting closer to the Federal Reserve's 2% annual target while consumer spending, which accounts for about 70% of the U.S. economy, posted a robust upside surprise.
"The economy would be just fine with inflation around 3%," Mayfield added. "It's that last mile of getting where we are today to the Fed target. It just depends how aggressively (the Fed) want(s) to pursue a hard 2%. That's the big question."
The data did little to move the needle regarding market expectations that the Fed will leave its key interest rate unchanged at its November policy meeting.
Market participants are nearing the end of a busy earnings week, during which nearly one-third of the companies in the S&P 500 posted third-quarter results.
As of Friday, the reporting season had essentially reached the halfway point, with 245 of the companies in the S&P 500 having reported. Of those, 78% have delivered consensus-beating earnings.
Analysts now expect aggregate annual S&P earnings growth of 4.3%, a sharp improvement over the 1.6% growth seen at the beginning of the month.
"Big tech earnings were priced for perfection, and they were mostly just 'good.' That was not enough," Mayfield said. "But the broader picture is good. This could be the building blocks for a rally to year end."
Amazon.com jumped 6.8% after the e-commerce giant reported its cloud business growth is stabilizing and predicted a revenue increase over the holiday season.
Intel INTC.O surged 9.3% following the chipmaker's consensus-beating quarterly report, lifting the whole sector.
The Philadelphia SE Semiconductor index .SOX advanced 1.2%.
The Dow Jones Industrial Average .DJIfell 366.71 points, or 1.12%, to 32,417.59, the S&P 500 .SPXlost 19.86 points, or 0.48%, at 4,117.37 and the Nasdaq Composite .IXICadded 47.41 points, or 0.38%, at 12,643.01.
Among the 11 major sectors of the S&P 500, energy .SPNY suffered the steepest percentage drop. Consumer discretionary .SPLRCD tech .SPLRCT and communication services .SPLRCL were the only gainers.
Chevron CVX.N dropped 6.7% after the oil and gas company reported lower third-quarter profit. Shares of Exxon Mobil XOM.N gave up early gains, falling 1.9% after it posted a 54% year-on-year drop in profit.
Ford Motor F.N sank 12.2% after it withdrew its full-year forecast due to "uncertainty" over the pending ratification of its deal with the United Auto Workers union, and warned of continued pressure on electric vehicles.
Declining issues outnumbered advancers on the NYSE by a 2.69-to-1 ratio; on Nasdaq, a 2.08-to-1 ratio favored decliners.
The S&P 500 posted no new 52-week highs and 67 new lows; the Nasdaq Composite recorded 10 new highs and 478 new lows.
Volume on U.S. exchanges was 10.55 billion shares, compared with the 10.69 billion average for the full session over the last 20 trading days.
Inflation https://tmsnrt.rs/49oRGC3
(Reporting by Stephen Culp; Additional reporting by Ankika Biswas, Shashwat Chauhan and Sruthi Shankar in Bengaluru; Editing by Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Nasdaq advanced, with tech and tech-adjacent momentum stocks led by Amazon.com AMZN.O, Apple AAPL.O and Meta Platforms META.O providing much of the heavy lifting, while the S&P 500 and the Dow Jones Industrial Average lost ground. Amazon.com says growth in cloud business stabilizing Intel forecast better than expected Q4 revenue, lifts chips Chevron posts slump in third-quarter profit All three major U.S. stock indexes post weekly losses Indexes: Dow down 1.12%, S&P off 0.48%, Nasdaq up 0.38% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 27 (Reuters) - U.S. stocks closed mostly lower on Friday, losing momentum as investors digested a hectic week of mixed earnings, and economic data that seemed to support the "higher for longer" interest rate scenario. The Commerce Department's hotly anticipated Personal Consumption Expenditures (PCE) report showed inflation gradually cooling down as expected, getting closer to the Federal Reserve's 2% annual target while consumer spending, which accounts for about 70% of the U.S. economy, posted a robust upside surprise.
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The Nasdaq advanced, with tech and tech-adjacent momentum stocks led by Amazon.com AMZN.O, Apple AAPL.O and Meta Platforms META.O providing much of the heavy lifting, while the S&P 500 and the Dow Jones Industrial Average lost ground. Amazon.com says growth in cloud business stabilizing Intel forecast better than expected Q4 revenue, lifts chips Chevron posts slump in third-quarter profit All three major U.S. stock indexes post weekly losses Indexes: Dow down 1.12%, S&P off 0.48%, Nasdaq up 0.38% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 27 (Reuters) - U.S. stocks closed mostly lower on Friday, losing momentum as investors digested a hectic week of mixed earnings, and economic data that seemed to support the "higher for longer" interest rate scenario. The Dow Jones Industrial Average .DJIfell 366.71 points, or 1.12%, to 32,417.59, the S&P 500 .SPXlost 19.86 points, or 0.48%, at 4,117.37 and the Nasdaq Composite .IXICadded 47.41 points, or 0.38%, at 12,643.01.
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The Nasdaq advanced, with tech and tech-adjacent momentum stocks led by Amazon.com AMZN.O, Apple AAPL.O and Meta Platforms META.O providing much of the heavy lifting, while the S&P 500 and the Dow Jones Industrial Average lost ground. Amazon.com says growth in cloud business stabilizing Intel forecast better than expected Q4 revenue, lifts chips Chevron posts slump in third-quarter profit All three major U.S. stock indexes post weekly losses Indexes: Dow down 1.12%, S&P off 0.48%, Nasdaq up 0.38% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 27 (Reuters) - U.S. stocks closed mostly lower on Friday, losing momentum as investors digested a hectic week of mixed earnings, and economic data that seemed to support the "higher for longer" interest rate scenario. The Commerce Department's hotly anticipated Personal Consumption Expenditures (PCE) report showed inflation gradually cooling down as expected, getting closer to the Federal Reserve's 2% annual target while consumer spending, which accounts for about 70% of the U.S. economy, posted a robust upside surprise.
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The Nasdaq advanced, with tech and tech-adjacent momentum stocks led by Amazon.com AMZN.O, Apple AAPL.O and Meta Platforms META.O providing much of the heavy lifting, while the S&P 500 and the Dow Jones Industrial Average lost ground. Amazon.com says growth in cloud business stabilizing Intel forecast better than expected Q4 revenue, lifts chips Chevron posts slump in third-quarter profit All three major U.S. stock indexes post weekly losses Indexes: Dow down 1.12%, S&P off 0.48%, Nasdaq up 0.38% Updates to 16:10 EDT By Stephen Culp NEW YORK, Oct 27 (Reuters) - U.S. stocks closed mostly lower on Friday, losing momentum as investors digested a hectic week of mixed earnings, and economic data that seemed to support the "higher for longer" interest rate scenario. "The economy would be just fine with inflation around 3%," Mayfield added.
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2023-10-27 00:00:00 UTC
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Stock Market News for Oct 27, 2023
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https://www.nasdaq.com/articles/stock-market-news-for-oct-27-2023
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Wall Street closed sharply lower on Thursday, pulled down by tech and related stocks. Disappointing numbers coming in from big-tech earnings weighed on the market. All of the three major stock indexes ended in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.8% or 251.63 points to close at 32,784.3. Twenty-two components of the 30-stock index ended in negative territory, while eight ended in positive.
The tech-heavy Nasdaq Composite plunged 225.62 points or 1.8% to close at 12,595.61.
The S&P 500 fell 49.54 points, or 1.2%, to close at 4,137.23, notching its sixth decline in seven sessions. Eight out of the 11 broad sectors of the benchmark index closed in the red. The Communication Services Select Sector SPDR (XLC), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) slid 2.2%, 1.9% and 1.6%, respectively, while the Real Estate Select Sector SPDR (XLRE) advanced 2.1%.
The fear-gauge CBOE Volatility Index (VIX) increased 2.4% to 20.68. A total of 11.6 billion shares were traded on Thursday, higher than the last 20-session average of 10.7 billion. Decliners outnumbered advancers on the NYSE by a 1.02-to-1 ratio. On the Nasdaq, declining issues led advancers by 1.14-to-1.
“Magnificent Seven” Weigh on the Market
The quarterly earnings numbers coming in from the “Magnificent Seven” tech behemoths have not been too disappointing. However, the guidance for growth from these companies does not paint a rosy picture. Most of these companies suggest a flattish growth as we move into the next quarter.
Alphabet Inc. GOOGL, Amazon.com, Inc. AMZN, Apple Inc. AAPL, Meta Platforms, Inc. META, Microsoft Corporation MSFT, Tesla, Inc. TSLA and NVIDIA Corporation NVDA have driven tech-growth throughout the year, but may not be in the best position to drive the boom into the next year. Since July, these stocks have been down on an average of 11%. As a result, the S&P 500 has also come down 10% from its July peak.
It is increasingly becoming clear that investors are betting on the economy to slow down because of sustained high levels of interest rates. The regular release of sectoral data reflecting a resilient economy is also not helping. The Magnificent Seven are finding it hard to drive the tech sector with them. Over the past two sessions, the tech-heavy Nasdaq has shed close to 5.5% of its worth. The tech behemoths are, in apprehension of the economy slowing down, leading the rout.
Consequently, shares of NVIDIA and Apple fell 3.5% and 2.5%, respectively. NVIDIA carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
The Labor Department said on Thursday that initial jobless claims rose to 210,000, increasing 10,000 for the week ending Oct 21. The previous week's level was revised up by 2,000 from 198,000 to 200,000. The four-week moving average increased to 207,500, marking a rise of 1,250 from the previous week. The prior week's average was revised up by 500 to 206,250.
Continuing claims came in at 1,790,000 for the week ending Oct 14, increasing 63,000 from the previous week’s revised level. The prior week's numbers were revised down by 7,000 from 1,734,000 to 1,727,000. The four-week moving average was 1,723,500, an increase of 31,250 from the previous week's revised average. Last week's average was revised down by 1,750 from 1,694,000 to 1,692,250.
Per the U.S. Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 4.9% in the third quarter of 2023, according to the “advance” estimate. In the second quarter, real GDP increased 2.1%.
The National Association of Realtors reported that pending home sales for September increased 1.1%. In August, it had gone down 7.1%.
The U.S. Census Bureau reported that durable goods orders for September increased 4.7%. The August number has been revised to a decrease of 0.1% from the earlier reported 0.2% growth.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet Inc. GOOGL, Amazon.com, Inc. AMZN, Apple Inc. AAPL, Meta Platforms, Inc. META, Microsoft Corporation MSFT, Tesla, Inc. TSLA and NVIDIA Corporation NVDA have driven tech-growth throughout the year, but may not be in the best position to drive the boom into the next year. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Economic Data The Labor Department said on Thursday that initial jobless claims rose to 210,000, increasing 10,000 for the week ending Oct 21.
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Alphabet Inc. GOOGL, Amazon.com, Inc. AMZN, Apple Inc. AAPL, Meta Platforms, Inc. META, Microsoft Corporation MSFT, Tesla, Inc. TSLA and NVIDIA Corporation NVDA have driven tech-growth throughout the year, but may not be in the best position to drive the boom into the next year. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Continuing claims came in at 1,790,000 for the week ending Oct 14, increasing 63,000 from the previous week’s revised level.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet Inc. GOOGL, Amazon.com, Inc. AMZN, Apple Inc. AAPL, Meta Platforms, Inc. META, Microsoft Corporation MSFT, Tesla, Inc. TSLA and NVIDIA Corporation NVDA have driven tech-growth throughout the year, but may not be in the best position to drive the boom into the next year. The Communication Services Select Sector SPDR (XLC), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) slid 2.2%, 1.9% and 1.6%, respectively, while the Real Estate Select Sector SPDR (XLRE) advanced 2.1%.
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Alphabet Inc. GOOGL, Amazon.com, Inc. AMZN, Apple Inc. AAPL, Meta Platforms, Inc. META, Microsoft Corporation MSFT, Tesla, Inc. TSLA and NVIDIA Corporation NVDA have driven tech-growth throughout the year, but may not be in the best position to drive the boom into the next year. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Eight out of the 11 broad sectors of the benchmark index closed in the red.
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2023-10-27 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-8
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Are you ready to punt your stock-picking duties to someone else? It's perfectly fine if you are. Properly researching a potential investment takes time that most people just don't have these days. Borrowing a handful of stock picks from a proven professional makes sense. And what better professional to borrow your picks from than perhaps the most-proven pro of all -- Warren Buffett?
With that as the backdrop, here's a rundown of five names Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is currently holding that would be at home in your portfolio as well.
1. Apple
Apple (NASDAQ: AAPL) is such a frequently suggested pick that it's almost become a cliché. Clichés are clichés for good reason, however.
In this case, the reason is the company's control of the smartphone market. Apple's iPhone is the world's single-most-popular mobile device, accounting for roughly half of Apple's total revenue. Some would argue the company is too dependent on the iPhone, in fact.
There's more to the story, though. Consumer Intelligence Research Partners reports that 94% of current iPhone owners intend to buy another iPhone in the future, versus only 91% for users of Android smartphones.
This slight lead in the loyalty front is how Apple has managed to amass more than 2 billion active users of its iOS operating system; most of them are iPhone owners. Of course, iOS users are increasingly paying for apps and other digital content, spurring sales growth for Apple's Services arm. Its revenue was up 8% for the quarter ending in July.
Tech stocks typically haven't been Warren Buffett's thing, so the fact that Apple is Berkshire's single-biggest stock holding speaks volumes about the Oracle of Omaha's view of the company.
2. Coca-Cola
Buffett's Berkshire isn't just a major shareholder of Coca-Cola (NYSE: KO). He's also a big fan of the product. Buffett reportedly drinks five cans of the company's namesake cola every single day!
On the surface, it's a quirky anecdote. But, in a more philosophical sense, Buffett's borderline-addictive loyalty to the company -- he no longer drinks Pepsi -- is representative of most consumers' love for the brand. Digital advertising analytics outfit DesignRush says U.S. consumers' loyalty to Coca-Cola is the nation's fifth-fiercest loyalty, one place behind Apple.
Of course, Buffett's got to like the dividend and its growth too. Coca-Cola's stock's yielding 3.3% of its current value, and the company's now raised its dividend payment for 61 consecutive years.
3. American Express
With nothing more than a passing glance, American Express (NYSE: AXP) is just another credit card payment middleman, in the same vein as Visa and Mastercard. And to be fair, there's plenty of overlap.
American Express isn't just a credit card company, though. In fact, the crux of its business is managing a perks and rewards program for its charge-card holders -- programs so compelling that consumers and corporations alike are willing to pay steep annual fees for access to them.
These fees alone make up more than a tenth of its top line, and in its high-margin revenue, these fees make an even bigger impact on the bottom line. Of course, all these perks also inspire cardholders to use their cards more and more, often in lieu of cash. The so-called "discount revenue" driven by this spending makes up more than half of its business.
Its unique business model is a key reason Berkshire Hathaway has been sitting on 151.6 million AmEx shares since late 2006.
4. Bank of America
It's been tough to be a bank investor lately, even when that bank is stalwart Bank of America (NYSE: BAC). Rising interest rates aren't just creating liquidity woes for the industry and crimping demand for loans. They're also making it tough for borrowers to repay existing loans; defaults and delinquencies are on the rise as well.
It's not all bad news for banks right now, however. Interest income is way up thanks to higher interest rates. Last quarter's net interest income was up 4% year over year for Bank of America, and while the bank's provisions for future losses on loans is growing, this growth pace is slowing down.
The company may be able to ease its way back from more serious trouble -- particularly if the economy experiences a recession-evading "soft landing." Newcomers will be collecting a dividend of nearly 3.8% on the stocks in the meantime.
5. Procter & Gamble
Last but not least, consider following Warren Buffett's lead by taking a stake in consumer goods giant Procter & Gamble (NYSE: PG).
For the record, Berkshire shed most of its position in Procter & Gamble in late 2015 following some dealmaking that ended with Berkshire buying battery brand Duracell from P&G. It's curiously held on to 315,400 shares of P&G stock ($44 million worth) since then, however, technically qualifying it as a Buffett holding.
You may want to step into a relatively larger stake for yourself in light of last quarter's results. Although the total amount of product sold was essentially flat year over year for the quarter ending in September, organic revenue grew 7% thanks to price increases that customers willingly paid. It's a testament to the pricing power Procter & Gamble enjoys.
Of course, it's also a testament to the fact that Procter & Gamble can simply outpromote its competitors. P&G is one of the world's very biggest advertisers, and depending on the year is occasionally the planet's single-biggest spender on ads.
The company's deeper pockets may give it an unfair advantage on smaller consumer goods outfits, but investors aren't looking for a fair fight. They're looking for reliable returns that deep-pocketed outfits like Procter & Gamble can offer.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool 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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Apple Apple (NASDAQ: AAPL) is such a frequently suggested pick that it's almost become a cliché. This slight lead in the loyalty front is how Apple has managed to amass more than 2 billion active users of its iOS operating system; most of them are iPhone owners. Of course, iOS users are increasingly paying for apps and other digital content, spurring sales growth for Apple's Services arm.
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Apple Apple (NASDAQ: AAPL) is such a frequently suggested pick that it's almost become a cliché. Procter & Gamble Last but not least, consider following Warren Buffett's lead by taking a stake in consumer goods giant Procter & Gamble (NYSE: PG). The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa.
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Apple Apple (NASDAQ: AAPL) is such a frequently suggested pick that it's almost become a cliché. Tech stocks typically haven't been Warren Buffett's thing, so the fact that Apple is Berkshire's single-biggest stock holding speaks volumes about the Oracle of Omaha's view of the company. Procter & Gamble Last but not least, consider following Warren Buffett's lead by taking a stake in consumer goods giant Procter & Gamble (NYSE: PG).
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Apple Apple (NASDAQ: AAPL) is such a frequently suggested pick that it's almost become a cliché. Tech stocks typically haven't been Warren Buffett's thing, so the fact that Apple is Berkshire's single-biggest stock holding speaks volumes about the Oracle of Omaha's view of the company. That's right -- they think these 10 stocks are even better buys.
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2023-10-27 00:00:00 UTC
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7 Stocks Set to Soar in a Year-End Santa Claus Rally
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https://www.nasdaq.com/articles/7-stocks-set-to-soar-in-a-year-end-santa-claus-rally
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We’re nearing the year-end holidays, which is typically a positive time for the stock market and investors. Known as the “Santa Claus rally,” the stock market tends to rise steadily during the fourth quarter of the year, with share prices peaking in late December. According to data compiled by LPL Financial, a Santa Claus rally has occurred 79% of the time since 1950. Many investors look forward to a year-end rally that boosts their portfolios, and professional traders often rely on it to help determine their year-end bonus at work. A Santa Claus rally would be especially welcome this year as stocks have been in a funk since August and continue to trend lower as we approach Halloween.
Of course, year-end holiday shopping often provides a sales boost to retailers and other companies, which can also help to lift stock prices. In this area, things look promising. Deloitte’s annual Holiday Retail Survey forecasts that consumer spending will surpass pre-pandemic levels for the first time this year, with the average consumer spending $1,652 on gifts, a 14% increase from 2022 levels. With Thanksgiving and Christmas on the horizon, we look at seven stocks set to soar in a year-end Santa Claus rally.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
E-commerce giant Amazon (NASDAQ:AMZN) is already in full holiday mode. The company held its latest Prime Day sales event on Oct. 10 and 11, and has announced plans to hire 250,000 additional workers across its global operations as it prepares for the busy year-end shopping season. The new hires include full-time, part-time, and temporary seasonal workers. The company is hiring 100,000 more workers than in the final quarter of 2022 as it prepares for a busy year-end sales period.
Amazon’s biannual Prime Day events help to boost the company’s revenue. The last event held in July generated more than $12 billion in sales, making it the most successful Prime Day ever for Amazon. The company has been moving its second Prime Day sales event earlier in the fourth quarter each year as it extends the holiday buying season. Amazon also gets a big lift from the Black Friday and Cyber Monday sales events held at the end of November and tied to Thanksgiving. AMZN stock is up 45% year-to-date (YTD).
Walmart (WMT)
Source: fotomak / Shutterstock.com
Discount retailer Walmart (NYSE:WMT) is another company that pulls out all the stops for the year-end holidays, hiring additional staff and staying open 24-hours a day between Thanksgiving and Christmas so consumers can purchase last minute items. Walmart, too, benefits greatly from the Black Friday and Cyber Monday sales events, as well as Boxing Day specials. With deals on everything from electronics to toys to clothes, Walmart’s in-store and online sales get a big increase from holiday shopping and a Santa Claus rally in the market.
Walmart most recently reported second-quarter financial results that beat Wall Street forecasts and raised its forward guidance. Driven by strong grocery sales and online spending, Walmart reported Q2 EPS of $1.84 versus $1.71 that was expected. Revenue amounted to $161.63 billion compared to previous analyst estimates of $160.27 billion. The big box retailer said its e-commerce sales during Q2 rose 24% from a year earlier. Same-store sales increased 6.4%. The company now expects full year sales to increase 4% to 4.50%.
WMT stock has gained 11% so far in 2023.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
Tech giant Meta Platforms (NASDAQ:META) is banking on a big year-end sales push and its stock could benefit greatly should investor sentiment improve and there’s a strong year-end Santa Claus rally in the market. The company recently introduced a series of new consumer electronics with the goal of capitalizing on holiday consumer spending. Chief among these items is the newly released Quest 3 virtual reality headset, which costs $499 to purchase, and is focused on video games.
The new Quest 3 headset supports games from Microsoft’s (NASDAQ:MSFT) Xbox video game unit and is positioned to attract gamers. Meta’s new VR headset has been released months ahead of the launch of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset that is scheduled to be available to consumers in early 2024. Meta has also introduced a new version of its Ray-Ban mixed reality smart glasses that can capture photographs and videos with a voice command and is expected to sell briskly.
META stock is already up 147% this year amid a big rally in mega-cap tech stocks. Further gains could come with a Santa Claus rally.
Apple (AAPL)
Source: Moab Republic / Shutterstock
If there’s another tech company that benefits from year-end holiday shopping and whose share price could get a lift from a Santa Claus rally, it is Apple. Each September, the company unveils its latest consumer electronics products ahead of the holiday shopping boom, where it sees increased sales for items ranging from its iPhone to its MacBook computer. This September, Apple introduced new smart watches, iPads, AirPods and, of course, the iPhone 15 that has a new charging port and stronger Titanium case, among other features.
Apple’s year-end sales boost is likely to extend into early 2024 as the company makes its highly anticipated Vision Pro mixed reality headset available to consumers. Introduced in June of this year, the Vision Pro headset is the first wholly new product from Apple in a decade, and it is expected to be a bestseller. AAPL stock could use any boost it gets from a Santa Claus rally. Due to ongoing issues in China, the company’s share price has slumped 3% over the past month, though it remains up 37% on the year.
Costco Wholesale (COST)
Source: ARTYOORAN / Shutterstock.com
Costco Wholesale (NASDAQ:COST) and its stock always do well during the holidays. The company’s grocery sales get a boost from holiday shopping, as do its online sales of electronics and other items. Like the other retailers on this list, Costco offers deals and discounts during Black Friday, Cyber Monday, and Boxing Day that attract consumer dollars. At the same time, COST stock also tends to get a boost whenever investor sentiment towards the retail sector improves, as it often does during a Santa Claus rally.
This year, the holidays arrive as Costco undergoes a leadership change for the first time in decades. The company just announced that Craig Jelinek, the long-time CEO of Costco, is retiring at the start of 2024. Jelinek, age 71, will be succeeded in the top job by current Chief Operating Officer (COO) Ron Vachris, a company veteran, as part of what the company says is a longstanding and orderly succession plan. Vachris, age 58, will become only the third CEO in Costco’s 40-year history. He assumes the CEO role on Jan. 1. COST stock is up 21% YTD.
American Express (AXP)
Source: Shutterstock
Consumers tend to put a lot of their holiday purchases on credit cards, which is good news for American Express (NYSE:AXP). The credit card company tends to shine amid the frenzy of year-end shopping that takes place. In September of this year, American Express issued a report to its merchants called “7 Strategies to Capitalize on Traffic This Holiday Season.” The company also touts its various credit card rewards with consumers in the run up to the Christmas shopping period.
The company just issued third-quarter financial results that showed continued strength when it comes to consumers using its credit cards for purchases. American Express announced its sixth consecutive quarter of record revenue, as well as a Q3 profit of $2.45 billion, or $3.30 per share. The profit figure was well ahead of the $2.96 a share in earnings that Wall Street analysts had forecast. The company said that its results got a lift from continued spending on the part of wealthy clients. Here’s hoping that continues through Christmas.
Target (TGT)
Source: Sundry Photography / Shutterstock.com
Discount retailer Target (NYSE:TGT) also tends to shine during the holidays as it too draws in consumers with year-end deals. The company and its stock could certainly use some positive news. Target most recently announced that it’s closing nine stores in major U.S. cities due to rising incidence of violence and organized retail theft. Target, which has nearly 2,000 stores in the U.S., is outspoken about organized retail crime and its financial impacts.
When the company reported its Q2 earnings earlier this year, executives said theft is expected to reduce its full-year profitability by more than $500 million. The big-box retailer that competes directly against Walmart cut both its full-year sales and profit forecasts, saying consumers are refusing to spend on discretionary items at its stores. Unlike Walmart, Target is not a big player in the grocery space. Hopefully, the company and its stocks will get a lift from a year-end Santa Claus rally. TGT stock is down nearly 30% so far in 2023.
On the date of publication, Joel Baglole held long positions in AAPL and MSFT. 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 7 Stocks Set to Soar in a Year-End Santa Claus Rally 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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Meta’s new VR headset has been released months ahead of the launch of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset that is scheduled to be available to consumers in early 2024. Apple (AAPL) Source: Moab Republic / Shutterstock If there’s another tech company that benefits from year-end holiday shopping and whose share price could get a lift from a Santa Claus rally, it is Apple. AAPL stock could use any boost it gets from a Santa Claus rally.
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Meta’s new VR headset has been released months ahead of the launch of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset that is scheduled to be available to consumers in early 2024. Apple (AAPL) Source: Moab Republic / Shutterstock If there’s another tech company that benefits from year-end holiday shopping and whose share price could get a lift from a Santa Claus rally, it is Apple. AAPL stock could use any boost it gets from a Santa Claus rally.
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Apple (AAPL) Source: Moab Republic / Shutterstock If there’s another tech company that benefits from year-end holiday shopping and whose share price could get a lift from a Santa Claus rally, it is Apple. Meta’s new VR headset has been released months ahead of the launch of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset that is scheduled to be available to consumers in early 2024. AAPL stock could use any boost it gets from a Santa Claus rally.
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Meta’s new VR headset has been released months ahead of the launch of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset that is scheduled to be available to consumers in early 2024. Apple (AAPL) Source: Moab Republic / Shutterstock If there’s another tech company that benefits from year-end holiday shopping and whose share price could get a lift from a Santa Claus rally, it is Apple. AAPL stock could use any boost it gets from a Santa Claus rally.
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2023-10-27 00:00:00 UTC
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Tata to make iPhones in India after buying Wistron business
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AAPL
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https://www.nasdaq.com/articles/tata-to-make-iphones-in-india-after-buying-wistron-business
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nan
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NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday.
A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X.
The Wistron board approved the sale of Wistron InfoComm Manufacturing India Private Limited to Tata Electronics Private Limited for an estimated $125 million, according to a statement from the Taiwan-based supplier shared by the minister.
Wistron did not immediately respond to requests for comment.
Apple has been touting India as its next big growth driver as it looks to move some production away from China.
The tech giant began iPhone assembly in the country with Wistron in 2017, before expanding through contracts with firms including Foxconn 2354.TW, and Pegatron Corp 4938.TW.
In December 2020, the Wistron plant in Karnataka state's Narasapura was forced to shut for three months after workers destroyed property during protests over non-payment of wages, causing millions of dollars in losses.
(Reporting by Munsif Vengattil; Writing by Blassy Boben; Editing by Alexander Smith)
((blassy.boben@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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NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X. In December 2020, the Wistron plant in Karnataka state's Narasapura was forced to shut for three months after workers destroyed property during protests over non-payment of wages, causing millions of dollars in losses.
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NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X. The Wistron board approved the sale of Wistron InfoComm Manufacturing India Private Limited to Tata Electronics Private Limited for an estimated $125 million, according to a statement from the Taiwan-based supplier shared by the minister.
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NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. The Wistron board approved the sale of Wistron InfoComm Manufacturing India Private Limited to Tata Electronics Private Limited for an estimated $125 million, according to a statement from the Taiwan-based supplier shared by the minister. (Reporting by Munsif Vengattil; Writing by Blassy Boben; Editing by Alexander Smith) ((blassy.boben@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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NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X. Wistron did not immediately respond to requests for comment.
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2023-10-27 00:00:00 UTC
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Should Fidelity Value Factor ETF (FVAL) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-fidelity-value-factor-etf-fval-be-on-your-investing-radar
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Launched on 09/12/2016, the Fidelity Value Factor ETF (FVAL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Fidelity. It has amassed assets over $514.64 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
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 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.79%.
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 26.20% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL).
The top 10 holdings account for about 33.91% of total assets under management.
Performance and Risk
FVAL seeks to match the performance of the Fidelity U.S. Value Factor Index before fees and expenses. The Fidelity U.S. Value Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies that have attractive valuations.
The ETF has gained about 6.27% so far this year and is up roughly 6.74% in the last one year (as of 10/27/2023). In the past 52-week period, it has traded between $42.39 and $50.98.
The ETF has a beta of 1.05 and standard deviation of 17.71% for the trailing three-year period. With about 130 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Value Factor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FVAL is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard High Dividend Yield ETF (VYM) and the Vanguard Value ETF (VTV) track a similar index. While Vanguard High Dividend Yield ETF has $46.47 billion in assets, Vanguard Value ETF has $95.20 billion. VYM has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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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Fidelity Value Factor ETF (FVAL): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
Vanguard High Dividend Yield ETF (VYM): 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 7.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Click to get this free report Fidelity Value Factor ETF (FVAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/12/2016, the Fidelity Value Factor ETF (FVAL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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Click to get this free report Fidelity Value Factor ETF (FVAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). The Vanguard High Dividend Yield ETF (VYM) and the Vanguard Value ETF (VTV) track a similar index.
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Click to get this free report Fidelity Value Factor ETF (FVAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Alternatives Fidelity Value Factor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.87% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Click to get this free report Fidelity Value Factor ETF (FVAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/12/2016, the Fidelity Value Factor ETF (FVAL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
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2023-10-27 00:00:00 UTC
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74% of Warren Buffett's $335 Billion Portfolio Is Invested in Just 5 Stocks
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https://www.nasdaq.com/articles/74-of-warren-buffetts-%24335-billion-portfolio-is-invested-in-just-5-stocks
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If you've ever wondered why Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett commands so much attention, look no further than his track record.
Despite being just as fallible as every other investor on the planet, he's delivered an aggregate return of better than 4,100,000% for his company's Class A shares (BRK.A) since becoming CEO of Berkshire in the mid-1960s. By comparison, the broad-based S&P 500 has generated a total return, inclusive of dividends paid, that doesn't even tally 30,000% over the same nearly six-decade stretch.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Many of the Oracle of Omaha's "ingredients" for investing success are well known, such as his long-term mindset and love of brand businesses with trusted management teams. But one of the biggest catalysts to Buffett's outperformance, which receives far too little credit, is his penchant for portfolio concentration. Even though Berkshire Hathaway holds stakes in more than 50 securities, Buffett and his investment team have long believed in putting most of their company's invested capital to work in their top ideas.
As of the closing bell on Oct. 20, approximately 74% ($249.3 billion) of Warren Buffett's $335 billion investment portfolio was invested in just five stocks.
Apple: $158.3 billion (47.2% of invested assets)
If there were ever any doubt that Warren Buffett favors portfolio concentration, tech stock Apple (NASDAQ: AAPL) completely puts that uncertainty to bed. The more than $158 billion the Oracle of Omaha has tied up in Apple stock accounts for close to half of Berkshire Hathaway's invested assets.
During Berkshire's annual shareholder meeting in early May, Buffett opined that Apple is "a better business than any we own." Mind you, Berkshire owns a highly successful insurance company (GEICO) and railroad (BNSF), and has generated a nearly 3,000% unrealized gain on credit-rating agency Moody's, not counting dividends. Despite this, Apple is viewed as a pillar to Berkshire Hathaway's foundation.
Most eyes are likely on Apple's recently debuted iPhone 15, which includes an all-new titanium shell and a faster processing chip. Apple holds a more than 50% share of the U.S. smartphone market, and iPhone continues to be the company's key sales driver.
However, Apple's ongoing transformation into a platforms-focused business is what's expected to really pump up its profit potential for the remainder of the decade, if not well beyond. Subscription services can lift Apple's operating margin, further improve customer loyalty, and help smooth out the sales fluctuations that often accompany major iPhone replacement cycles.
I'd be remiss if I didn't also mention Apple's capital-return program, which is unmatched among public companies. Apple is returning $15 billion annually as a dividend to its shareholders, and has repurchased around $600 billion worth of its common stock since the start of 2013.
Bank of America: $27.2 billion (8.1% of invested assets)
Even though Apple is Berkshire Hathaway's largest investment by a considerable amount, there's no question that bank stocks are where Warren Buffett's true expertise lies. This is a big reason why Bank of America (NYSE: BAC) is the second-largest holding by market value in the investment portfolio Buffett oversees at Berkshire.
As a long-term investor, the Oracle of Omaha is focused on winning what I like to refer to as the "numbers game." Though he realizes that recessions are an inevitable part of the economic cycle, he astutely understands that periods of expansion last significantly longer than recessions. Cyclical bank stocks like Bank of America should be able to grow their loan portfolio to take advantage of these extended periods of expansion.
In particular, Bank of America has the highest interest rate sensitivity among U.S. money-center banks. A cumulative 525-basis-point increase in the federal funds rate since March 2022 is generating billions of dollars in added net interest income each quarter. The further the Fed pushes out its easing cycle, the more profitable BofA is likely to be.
Bank stocks typically also offer robust capital-return programs -- at least when the U.S. economy is humming along. With central bank approval, it's not uncommon for Bank of America to return $20 billion or more to its shareholders each year via dividends and share buybacks. Warren Buffett is a huge fan of businesses that reward/incent long-term investing.
Image source: Coca-Cola.
Coca-Cola: $21.8 billion (6.5% of invested assets)
The longest-held stock in Berkshire Hathaway's portfolio -- beverage stock Coca-Cola (NYSE: KO) -- has, once again, become the third-largest holding by market value. Shares of Coca-Cola have been a continuous holding by Buffett's company since 1988.
What Coca-Cola brings to the table is consistency, top-notch marketing, and a whopper of a dividend, relative to Berkshire's cost basis in the company.
With regard to the former, food and beverages are a necessity to live. Regardless of how well or poorly domestic or international economies are performing, consumers are unlikely to alter their shopping habits much. Since Coca-Cola's products are sold in all but three countries worldwide (Cuba, North Korea, and Russia), the company is raking in highly predictable cash flow in developed countries, while leaning on potentially faster organic growth opportunities in emerging/developing countries.
Coca-Cola also happens to be one of the world's most-recognized and valuable brands in the consumer goods space. It's one of a few wholesome brands that's been able to successfully transcend generational gaps and connect with consumers of all ages. Whether it's using artificial intelligence (AI) to tailor ads for a younger audience on social media or relying on well-known brand ambassadors for a more mature audience, Coke's marketing is a key reason for its long-term success.
Coca-Cola's $1.84/share base annual payout, in relation to Berkshire's sub-$3.25-per-share cost basis in the company, is netting a jaw-dropping 57% yield on cost each year for Buffett and company.
American Express: $21.5 billion (6.4% of invested assets)
The fourth-largest holding in the portfolio Buffett oversees at Berkshire Hathaway is credit-services provider American Express (NYSE: AXP). AmEx, as the company is commonly known, is the second longest-held stock by Berkshire Hathaway (since 1993), behind only Coca-Cola.
American Express is another company that's able to take advantage of the aforementioned "numbers game." Even though recessions will occur from time to time, all 12 U.S. recessions following World War II were short-lived. Nine lasted less than a year, while none of the 12 surpassed 18 months. That's music to the ears of cyclical stocks like American Express.
The true beauty of AmEx's operating model is its ability to play both sides of a transaction. On top of being the No. 3 payment processor in the U.S., based on credit card network purchase volume (as of 2021), it also acts a lender via its credit cards. This allows American Express to collect fees from merchants, as well as annual fees and/or interest income from its cardholders. Being able to double-dip during long-winded expansions has paid off handsomely.
Furthermore, American Express has always had a knack for attracting high-earning individuals as cardholders. High earners are less likely than the average cardholder to change their spending habits or fail to pay their bills during minor economic disruptions. AmEx's ability to court the well-to-do should help the company navigate short-lived downturns better than many of its peers.
Chevron: $20.5 billion (6.1% of invested assets)
The fifth stock that, collectively with Apple, Bank of America, Coca-Cola, and American Express, adds up to approximately 74% of Berkshire Hathaway's $335 billion in invested assets is energy stock Chevron (NYSE: CVX). Chevron is the newest holding on this list, having been first added to Berkshire's portfolio during the fourth quarter of 2020.
Big bets on the energy sector have been quite rare for the Oracle of Omaha and his team since this century began. Having more than $20 billion invested in Chevron appears to be a clear signal that Buffett and his investment team expect the spot price for crude oil to remain elevated or further increase.
A couple of macro factors certainly support a higher spot price for crude oil. For instance, Russia's ongoing war with Ukraine places Europe's energy supply needs into question. Additionally, more than three years of reduced capital investment by energy majors due to the COVID-19 pandemic has led to tight oil supply worldwide. Drilling provides Chevron with its juiciest margins.
However, Chevron is also an integrated energy company. It operates transmission pipelines, which generate highly predictable cash flow, as well as refineries and chemical plants that act as a hedge if the spot price of crude oil declines -- i.e., lower input costs and increased consumer demand help these downstream segments.
Big oil is known for paying gushing dividends as well. Chevron has increased its base annual payout for 36 consecutive years, and its board approved a $75 billion share repurchase program earlier this year.
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Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $158.3 billion (47.2% of invested assets) If there were ever any doubt that Warren Buffett favors portfolio concentration, tech stock Apple (NASDAQ: AAPL) completely puts that uncertainty to bed. Mind you, Berkshire owns a highly successful insurance company (GEICO) and railroad (BNSF), and has generated a nearly 3,000% unrealized gain on credit-rating agency Moody's, not counting dividends. Subscription services can lift Apple's operating margin, further improve customer loyalty, and help smooth out the sales fluctuations that often accompany major iPhone replacement cycles.
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Apple: $158.3 billion (47.2% of invested assets) If there were ever any doubt that Warren Buffett favors portfolio concentration, tech stock Apple (NASDAQ: AAPL) completely puts that uncertainty to bed. Coca-Cola: $21.8 billion (6.5% of invested assets) The longest-held stock in Berkshire Hathaway's portfolio -- beverage stock Coca-Cola (NYSE: KO) -- has, once again, become the third-largest holding by market value. American Express: $21.5 billion (6.4% of invested assets) The fourth-largest holding in the portfolio Buffett oversees at Berkshire Hathaway is credit-services provider American Express (NYSE: AXP).
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Apple: $158.3 billion (47.2% of invested assets) If there were ever any doubt that Warren Buffett favors portfolio concentration, tech stock Apple (NASDAQ: AAPL) completely puts that uncertainty to bed. Bank of America: $27.2 billion (8.1% of invested assets) Even though Apple is Berkshire Hathaway's largest investment by a considerable amount, there's no question that bank stocks are where Warren Buffett's true expertise lies. Coca-Cola: $21.8 billion (6.5% of invested assets) The longest-held stock in Berkshire Hathaway's portfolio -- beverage stock Coca-Cola (NYSE: KO) -- has, once again, become the third-largest holding by market value.
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Apple: $158.3 billion (47.2% of invested assets) If there were ever any doubt that Warren Buffett favors portfolio concentration, tech stock Apple (NASDAQ: AAPL) completely puts that uncertainty to bed. Coca-Cola: $21.8 billion (6.5% of invested assets) The longest-held stock in Berkshire Hathaway's portfolio -- beverage stock Coca-Cola (NYSE: KO) -- has, once again, become the third-largest holding by market value. Chevron: $20.5 billion (6.1% of invested assets) The fifth stock that, collectively with Apple, Bank of America, Coca-Cola, and American Express, adds up to approximately 74% of Berkshire Hathaway's $335 billion in invested assets is energy stock Chevron (NYSE: CVX).
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POLL-Taiwan Q3 economic growth seen picking up pace on domestic consumption
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https://www.nasdaq.com/articles/poll-taiwan-q3-economic-growth-seen-picking-up-pace-on-domestic-consumption
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reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI poll data
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Preliminary Q3 GDP seen at +2.1% y/y (prior qtr +1.36%)
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Q3 exports -5.1% y/y vs Q2 -16.9% y/y
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GDP data due Tuesday, Oct 31, after 4 p.m. (0800 GMT)
TAIPEI, Oct 27 (Reuters) - Taiwan's trade-dependent economy likely grew faster in the third quarter than the second thanks to resilient domestic consumption and a tentative rebound in exports, a Reuters poll showed on Friday.
Gross domestic product (GDP) is expected to have expanded 2.1% in the July-September period versus a year earlier, the poll of 20 economists showed. GDP grew 1.36% year-on-year in the second quarter, having slipped into recession in the first.
The economists' forecasts for preliminary GDP data due on Tuesday varied widely from an expansion of just 0.5% to as much as 3.75%.
Taiwan's exports emerged from a year-long decline in September, rising for the first time in 13 months on increased demand from the United States ahead of the year-end holiday shopping season.
Third quarter exports dropped 5.1% compared with the same period in 2022, a marked improvement on the second quarter's annual contraction of 16.9%.
Kevin Wang, an economist at Taishin Securities Investment Advisory in Taipei, said although external demand for made-in-Taiwan goods was picking up, the momentum was not strong.
"Private consumption was the bright spot in the third quarter, owing to the contribution of the peak summer vacation season," he added.
The government's statistics bureau said in August it expects full-year 2023 growth of 1.61%, its slowest pace in eight years and lower than the 2.45% growth for 2022.
The economy in China, Taiwan's largest export market, grew at a faster-than-expected clip in the third quarter, expanding 4.9% from the year earlier.
Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc , and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) .
Taiwan's preliminary GDP figures will be released in a statement with minimal commentary. Revised figures will be released a few weeks later, with more details and forward-looking forecasts. (Poll compiled by Veronica Khongwir, Anant Chandak and Carol Lee; Reporting by Ben Blanchard and Jeanny Kao; Editing by Sam Holmes) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/GDP (POLL)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Gross domestic product (GDP) is expected to have expanded 2.1% in the July-September period versus a year earlier, the poll of 20 economists showed. Taiwan's exports emerged from a year-long decline in September, rising for the first time in 13 months on increased demand from the United States ahead of the year-end holiday shopping season. Kevin Wang, an economist at Taishin Securities Investment Advisory in Taipei, said although external demand for made-in-Taiwan goods was picking up, the momentum was not strong.
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* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI poll data * Preliminary Q3 GDP seen at +2.1% y/y (prior qtr +1.36%) * Q3 exports -5.1% y/y vs Q2 -16.9% y/y * GDP data due Tuesday, Oct 31, after 4 p.m. (0800 GMT) TAIPEI, Oct 27 (Reuters) - Taiwan's trade-dependent economy likely grew faster in the third quarter than the second thanks to resilient domestic consumption and a tentative rebound in exports, a Reuters poll showed on Friday. Gross domestic product (GDP) is expected to have expanded 2.1% in the July-September period versus a year earlier, the poll of 20 economists showed. The economists' forecasts for preliminary GDP data due on Tuesday varied widely from an expansion of just 0.5% to as much as 3.75%.
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* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI poll data * Preliminary Q3 GDP seen at +2.1% y/y (prior qtr +1.36%) * Q3 exports -5.1% y/y vs Q2 -16.9% y/y * GDP data due Tuesday, Oct 31, after 4 p.m. (0800 GMT) TAIPEI, Oct 27 (Reuters) - Taiwan's trade-dependent economy likely grew faster in the third quarter than the second thanks to resilient domestic consumption and a tentative rebound in exports, a Reuters poll showed on Friday. The economy in China, Taiwan's largest export market, grew at a faster-than-expected clip in the third quarter, expanding 4.9% from the year earlier. (Poll compiled by Veronica Khongwir, Anant Chandak and Carol Lee; Reporting by Ben Blanchard and Jeanny Kao; Editing by Sam Holmes) ((ben.blanchard@thomsonreuters.com;)) Keywords: TAIWAN ECONOMY/GDP (POLL) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI poll data * Preliminary Q3 GDP seen at +2.1% y/y (prior qtr +1.36%) * Q3 exports -5.1% y/y vs Q2 -16.9% y/y * GDP data due Tuesday, Oct 31, after 4 p.m. (0800 GMT) TAIPEI, Oct 27 (Reuters) - Taiwan's trade-dependent economy likely grew faster in the third quarter than the second thanks to resilient domestic consumption and a tentative rebound in exports, a Reuters poll showed on Friday. The economists' forecasts for preliminary GDP data due on Tuesday varied widely from an expansion of just 0.5% to as much as 3.75%. The economy in China, Taiwan's largest export market, grew at a faster-than-expected clip in the third quarter, expanding 4.9% from the year earlier.
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2023-10-27 00:00:00 UTC
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The Motley Fool's Bill Mann on the "On The Market" Podcast
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https://www.nasdaq.com/articles/the-motley-fools-bill-mann-on-the-on-the-market-podcast
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Today we've got an episode of BiggerPockets' "On the Market" podcast featuring Motley Fool analyst Bill Mann. Host Dave Meyer caught up with Bill to chat about what's going on around the world.
They discuss:
Why the US dollar is a "bit of a wrecking ball."
Semiconductor supply chains.
Apple's political risks.
China's real estate market.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart 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 10/16/2023
This video was recorded on Oct. 14, 2023
Bill Mann: We always think of things as being the snap test. If a company disappeared, instantly things would get much, much worse if Taiwan Semiconductor disappeared. But things would get gradually much, much, much worse if ASML disappeared because ASML is absolutely crucial to manufacturing for Taiwan Semiconductor, among many others.
Mary Long: I'm Mary Long, and that's Bill Mann. He recently appeared on the BiggerPockets podcast On the Market. Today we're sharing that episode with you. Host Dave Meyer caught up with Bill to talk about the global economy, the reaction to the return of normal interest rates, China's real estate situation, and the two most important companies in the world that aren't often discussed.
Dave Meyer: Bill Mann, welcome to On the Market. Thanks for being here.
Bill Mann: Hey, Dave, how you doing?
Dave Meyer: I'm doing great and I'm very excited to be talking to you. For everyone who doesn't know you from your work at the Motley Fool, can you tell us just a little bit about yourself and your work?
Bill Mann: I am the director of Small Cap Research here. I also have our international brief at the company. The Motley Fool is almost entirely equity-based. We look for companies all around the world and we have a very specific style. We are long term buy-and-hold investors. We believe that people are best suited doing the work and making decisions for themselves. From my own standpoint, I view every day for me as being like a treasure hunt. I come in and I look at parts of the market where a lot of people don't really spend a whole lot of time.
Dave Meyer: Are you finding a lot of treasures right now?
Bill Mann: The answer is yes, but they've been laying around for a long time. I would describe the current market environment as being one in which in the US we have an S&P 7 and then an S&P 493, and then everything else below that. It's almost they are unrelated from each other at the moment. There are a lot of treasures. Dave, as you know, the difficulty in the market is that just because you found a treasure, it's not like somebody is going to come by instantly and say that's a treasure. It could look like junk to everybody else for a long period of time. You have to be a patient treasure hunter and hold on to your treasure as long as you can.
Dave Meyer: Well, I think that our audience is mostly real estate investors. I think that is a very apt analogy also for our industry, too. Being patient is investing the name of the game. It's a great way to proceed. Glad we agree there on general philosophy.
Bill Mann: Yeah, I still kick myself. In 1993, I looked at a place to buy in an area at Washington, DC called Logan Circle, which I don't know a lot of your real estate investors now, when I say the words Logan Circle, will go because it's literally the nicest part of Washington, DC now. At that time, it wasn't, but you needed to be willing to bend your headlights around corners and see what was coming. Yes, I'm glad to be talking to people who understand this principle internally.
Dave Meyer: People did not know Logan Circle was a treasure for a few years, not in 1993 and maybe not for a little while, but they got there eventually. Most of our audience is real estate investors and we might delve into equities a little bit here. But you are also a student of the global economy. So I was curious to just get your high level view of the global economy right now. Where do you think we are in this very unique moment?
Bill Mann: Economies, our systems and maybe that's not a really brilliant insight, but we have just gone through a period of time in which in 2020 we had $19 trillion of sovereign debt that the debt holders were paying for the right to hold. They were negative yielding interest rates, which is a kind of thing that for the entire history of the financial markets, people thought of that as being like the Yeti. There's no such thing as negative yielding interest rates. Obviously, one of the reasons why that sort of thing would exist is that inflation was the thing that the central banks were trying to bring about. Inflation is something that comes along with economic activity, it comes along with growth. Anything that they could do to keep us from entering a deflationary environment they did. We've gone in a very short period of time, as short as we can ever remember, from a low interest rate environment to, I guess, what you would maybe feel like a high interest rate environment. But it's somewhere in the middle. All of these systems really, really struggle when you go through that period of change. You get to stats on the other side and it's fine, but it's hard to guess. It really is. Where are interest rate is going to end up. We don't really know. But globally, what we're seeing right now is that the US has been raising faster than everybody else and commodity prices have been going up. You can see it in a dollar basis. But you can imagine in a market in which the dollar has increased against your local currency and oil prices have gone up. Just how destabilizing that can be. This doesn't maybe count for the countries that produce oil, but for everybody else, it's a really big deal. I would describe the global markets right now as being unsettled and looking for a new equilibrium, which they will find. But it's tough to predict when, and I think interest rates and currencies have a lot to do with that.
Dave Meyer: Uncertainty is the only honest way to assess the situation right now. It also seems that different countries in different regions are experiencing really different environments. In the US, obviously as you said, inflation was the thing. It's same thing in Europe, a lot of South America, same thing. But then you look at an economy like China that's now experiencing deflation. How do you square this on a global sense where there's different areas of the world that seem so different when just a few years ago it seemed like the global economy obviously has its own little sectors and caveats, but was moving in the same general direction?
Bill Mann: We've really gone through a period of time in which and it started in the middle of last decade and it really started with China's Belt and Road Initiative, where you began to see some of the larger countries using economics as a form of warfare. You've seen it with Russia in regards to both our isolation of Russia, but then also Russia using gas prices as a weapon in Europe. I think one of the things that is really happening is that we have gone from being a system that has favored globalization to one where you've start to see that fracture a little bit. I think the US economy and the Chinese economy still are very deeply linked, but they are much less so than they were even just prior to the pandemic. Again, to get back to what I was saying before, a dislocation or a change, then you're going to see each individual part of that system move in its own way. In the case of China, it has essentially grown over the last decade. Doing a bunch of capital projects, a huge amount of construction. They build roads to nowhere, they build airports. These types of things are a form of growth. But if they don't end up being used, then they can become deflationary because you don't need it and you don't need to build another one. That is an interesting thing about infrastructure investments is that once the infrastructure is in place, there's no need to repeat it.
Dave Meyer: If it works.
Bill Mann: Hey, let's put in a third airport. You don't need that sort of thing. What you're seeing in China now is an echo of what has probably been fairly, poorly conceived capital projects that have brought about growth, but not all growth is the same because the consumption hasn't been there.
Dave Meyer: How concerned are you about this, both from a equity standpoint and just from a global economy standpoint? It seems that at least in my lifetime or adult lifetime, all we hear out of China is outsized growth. We've never really seen a period where the China is standing as the second largest economy in the world goes into a recession or goes into a deflationary environment. We've never seen it. What do you think might come of this?
Bill Mann: I think one of the most important things for people to realize is that there is a bit of a decoupling from China. But to your point, we talk about, for example, the China geopolitical risks. But we don't talk about the things, for example, that 94% of Apple's production is in China and 25% of its revenues come from China. What happens to Apple, which is a huge component of the US stock market, if China continues to stumble? I think it is absolutely the case that China is stumbling and will continue to do so. Apple can't simply snap their fingers and move everything to India. They absolutely, positively can't do it. First of all, the Chinese would notice. [laughs] They're like, "What are you doing?" "Oh, nothing, we're fine." [laughs] It doesn't really work that way. We are still deeply, deeply linked to China. The Goldilocks scenario is actually fairly negative, but it's not terrible. We bumble on along and China continues to be a manufacturing growth engine. There is some decoupling from China and the poor capital investments that have been made over the last decade start to get absorbed. The really bad ones would be if China's unemployment rate continues to skyrocket, and among people below 25, it's believed that it's as high as 45%.
Dave Meyer: But we won't know because they stopped releasing that data.
Bill Mann: Exactly. Even before they stopped releasing it, those numbers, I don't know how to say it unpejoratively, they were not necessarily the ones that you would put your full faith into they're being correct.
Dave Meyer: Fair enough.
Bill Mann: Ultimately, if China does go into a deflationary spiral because our countries are so highly linked, I think that there is the potential for some real pain in the US, but even worse in places like Japan and Australia.
Dave Meyer: Yeah, absolutely. That does seem to be the case. In the real estate industry, I'm just looking at it as the financial sector that we see that China's central government is pushing their banks to support the real estate industry, which might be by issuing riskier loans and maybe that's just kicking the can down the line. Of course, like you said, there is some decoupling, but the global financial system is strongly linked and I worry a little bit. I'm not like staying up at night thinking about this. [laughs] But you read about this stuff and you do think, if the Chinese market continues to collapse, it could lead to some tighter credit conditions here in the United States, and that's just one small example.
Bill Mann: Dave, I think that's exactly right. The faith that I always put into the system is that that it is somewhat self-healing, but it is not a new thing that the central government of China, the Communist Party of China is using the banking system to further its political interests. That's something that has existed forever.
Dave Meyer: That's a good point. Because it's not like if there is this big downturn in China that it's not foreseen, I think a lot of banks and companies that are operating in China know that this is going on. The property crisis has been going on for a year or two already. This is not a quick moving thing, so at least as an economy and individual companies do have some time to adapt to it.
Bill Mann: Yeah. This is where you get into the topics of the phantom cities, the ghost developments all around China. A lot of people don't really realize, they think of China as having a huge amount of US treasuries, that that is a weapon that they have over us, but that's only one part of the balance sheet. They also have an incredible amount of debt. It may be the most indebted large economy in the world, which seems amazing in a world in which the United States and Japan exist. [laughs] But it certainly may be the case. The way that China's provinces have raised money to operate themselves is through land sales. They go to their own land banks and they sell into these property developers who then develop and the loans come from the banks. It's all mandated by the central authority. Again, this gets back to something that I was talking about earlier when we were talking about infrastructure. I guess you would consider housing to be infrastructure also. But even in a totalitarian society, it's hard to sell the same land twice once you have sold it. I mean, I guess you could take it back, but at some point, the buyers are going to figure out what the game is. They are selling ever more adversely selected land in a period of time in which the land that has been sold before has not generated a great capital return. The rot that's in China right now on every level is substantial. When you say the central government is getting involved in mandating the banks to do these sorts of things to support these property developers, they are literally just trying to plug holes in the bottom of the barrel of the whole Chinese economy.
Dave Meyer: Yeah. That's not what you want. That doesn't spell confidence to me.
Bill Mann: [laughs] What a way to break it down. Yes, that's not what you want. [laughs]
Dave Meyer: Listener, if you are curious, not ideal situation. I want to switch gears a little bit from real estate to something that I think is a little bit more. I mean, obviously real estate, there are equities and REITs and stuff. But let's talk a little bit about chip manufacturing and semiconductors because this is something that is related to China, the whole global economy, and is closely connected to one of, what do you call it, the S&P 7 before. [laughs]
Bill Mann: That's right.
Dave Meyer: I assume NVIDIA is one of those seven that you were saying.
Bill Mann: It is. They did it, yeah.
Dave Meyer: They made it to the seven. Well, maybe you could just start by giving us a background on the situation with chip manufacturing and how it is distributed across the globe and why it's so important.
Bill Mann: Obviously, the majority of the advanced microchips in the world are produced in Taiwan, and they're almost all produced by a company called Taiwan Semiconductor. Whenever you talk about the geopolitical situation in Taiwan and obviously it predates the existence of Taiwan Semiconductor, but Taiwan Semiconductor is absolutely now the prize of Taiwan. The company has such a linchpin on the global economy that if you even ask experts, there really isn't a good answer where the second option were to be. Like if you snapped your fingers and Taiwan Semiconductor disappeared, there's nobody to step in. They are so far ahead of any other comparable producer.
Dave Meyer: Why?
Bill Mann: They would say that it has to do with the process and the type of talent that they have in Taiwan. I think that this is probably somewhat true that they have 3,000 of some of the best developers in the world all in one space. They have been incredibly paranoid about technology transfer, making sure that their trade secrets don't get out. You can be fired in Taiwan Semiconductor for doing something like changing the heading on an email that you've been forwarded. It seems nuts. I mean, I've done worse things than that. I don't know about you, and I haven't been fired.
Dave Meyer: I've done worse things today, for sure.
Bill Mann: Exactly. Exactly. We had lunch here and I had seconds.
Dave Meyer: If that is a fireable offense, I wouldn't have made it past my first week.
Bill Mann: Exactly. It is a potentially catastrophic situation. I mean, the US has recognized this. A couple of years ago, the US government passed a bill called the CHIPS and Science Act, which has helped essentially fund Taiwan Semiconductor's development of additional facilities like in Arizona. That's the huge one. That's being done not necessarily at the total choice of Taiwan Semi. Almost 70% of it is being funded by the US government.
Dave Meyer: That is something I was curious about because Taiwan Semiconductor Company has this monopoly essentially on the most advanced types of chips. Why would they expand to the US? Is it because the US government and the Taiwanese government are also intertwined and the US provides a lot of aid to Taiwan and is seen as this military backstop against any sort of Chinese incursion? Is all of that playing into like these little, I mean not little, but these seemingly innocuous semiconductor plants that are going into the US?
Bill Mann: Well, you've heard of money.
Dave Meyer: A few times, yeah. I don't have a lot of it, but I would like to have more of it.
Bill Mann: You don't have Taiwan Semiconductor money, but a lot of it has to do with the fact that the US government almost, because when the US went in and said, OK, we don't want these companies to sell into China anymore, Taiwan Semi cut off sales to Huawei, which was like its second-largest customer. Huawei is one of the largest Chinese companies. Just shut it off.
Dave Meyer: I didn't know that.
Bill Mann: They didn't really have any choice.
Dave Meyer: Because the US government insisted basically?
Bill Mann: Yes, exactly. What's the giveback there? Look, we understand that this is a painful thing for you, one of the most important companies in the world. How about we find ways to help you derisk a little bit? Hey, by the way, we've got this land in Arizona. If you would like to build there, we will provide all of the infrastructure. We will provide a lot of the funding and we're just talking about manufacturing. You can retain all of your development, you can retain everything that you want in Taiwan. Because, by the way, Taiwan Semiconductor, like a lot of chip companies and memory companies, a lot of their manufacturing was in China. It's not in Taiwan now. Some of the choices that they had to make, they were forced to make at the behest of the US government and other Western powers. There is a little bit of a give back there, and so I think that that has a whole lot to do with that and the money thing.
Dave Meyer: The money, that small money thing. [laughs] When you look at the stock market, is it TSCM? Sorry, I can never get it.
Bill Mann: TSMC.
Dave Meyer: TSMC. Yeah, there we go. Thank you. They are obviously a publicly traded company, but you look at other chip companies that have been going crazy in terms of valuation over this year. Is this largely and due to the same thing, there's still just a chip shortage, demand is out of control, or is something else going on here?
Bill Mann: At least partially. So one of the largest chip companies in the world is Micron Technologies and they just reported earnings, and they've actually seen a real softening in terms of pricing. I mean, in a lot of ways you have to separate Taiwan Semi from most of the other chip companies because they are commodities. Ultimately, chip production is in some ways no different from oil production. You basically don't get to name your own price, the price is set for you.
Dave Meyer: The distinction is that Taiwan Semiconductor has the more advanced chips.
Bill Mann: Exactly.
Dave Meyer: Is that the difference?
Bill Mann: Yeah.
Dave Meyer: Okay.
Bill Mann: Exactly. They have chips that are, generally speaking, the rule of thumb is that they are two years ahead of their next competitor.
Dave Meyer: Wow.
Bill Mann: I know which especially in technology seems like that's literally forever. It feels like we were still using digital watches two years ago.
Dave Meyer: God, I mean, now that really just underscores the importance. Can you imagine having to go back to like an iPhone 11? It would be unbearable. It would be absolutely horrible.
Bill Mann: The horror. So you get it, that's ultimately it.
Dave Meyer: This is what's at stake here.
Bill Mann: Exactly. If we were just being released, excited about the iPhone 11, so that's really what it comes down to. I mean, it is potentially a massive deal.
Dave Meyer: One company that I am particularly interested in, because I live in the Netherlands, I don't know if you know that, Bill, and there is a company here called ASML, they make the machines that make the chips.
Bill Mann: Right.
Dave Meyer: Is that correct?
Bill Mann: Yes.
Dave Meyer: How do they fit into this whole global competition for chips?
Bill Mann: We have now touched upon maybe the two most important companies in the world that nobody's ever heard of. I mean, ASML is another one of those technology companies that the technology that they build is so sensitive that the US government, the Dutch government, the British government, they have no interest in having that technology and that know-how end up in China or in Russia to some degree, but really China is the country that knows what to do with that type of technology. ASML is the manufacturer of the equipment that makes the highest end chips. So we always think of things as being the snap test like if a company disappeared, instantly, things would get much, much worse if Taiwan Semiconductor disappeared. But things would get gradually much, much, much worse if ASML disappeared because ASML is absolutely crucial to manufacturing for Taiwan Semiconductor, among many others.
Dave Meyer: I think ASML is like one of those backlogs of product orders that they could stop taking orders now and they'd be busy for the next 30 years like Boeing, they have these orders for decades. Do you see more manufacturing coming into the United States? This obviously matters for just the economy in general, but as real estate investors like the places where these plants go tend to be economic hot spots after they go in. So just curious your outlook.
Bill Mann: I think ASML, it's a really good question. It seems to me, and this is somewhat theorizing. If this turns out to be 1,000% wrong, we can blame it on just a bad theory.
Dave Meyer: Well played.
Bill Mann: [laughs] Like years later.
Dave Meyer: Years later.
Bill Mann: ASML is one of those companies that is it's so sensitive that I think it's pretty much comfortable for all of the actors for it to be in a centralized place. I don't really foresee too much of ASML's manufacturing capacity moving away from the Netherlands, moving away from its central place, and there are other companies that are like that. FANUC in Japan, which is a robot maker, is one where they make basically everything in a single facility and it is for those industrial espionage and technology transfer limitation reasons that they do it. I'm not sure that ASML is going to be of a great benefit for real estate investors anywhere other than in the Netherlands now.
Dave Meyer: For sure. I guess my question is more like, because ASML is so backlogged, is there realistic that producers who need the ASML machines are going to be able to build new plants in the US, whether it's Taiwan Semiconductor or any other chip maker?
Bill Mann: I never really thought about it that way.
Dave Meyer: Maybe just a stupid question.
Bill Mann: No, it's not a stupid question. It's actually a fantastic one, which, ultimately, when you think about a company like ASML, what you're talking about is not so much a backlog. It's a backlog at the very, very top end. So it doesn't really slow down a Taiwan Semiconductor for ASML to have a backlog, what it does is it limits their capacity to bring out the next and the next technologies. Yes, that backlog is not ideal. It's possible that they will solve it through an addition of ASML capacity. Most likely the way that that plays out is that it simply changes the curve on new technology adoption.
Dave Meyer: Great. Well, we started in China, we went to microchips. We talked a little bit about my home here in the Netherlands. I'd love to just hear your thoughts on Europe in general because we have Germany, which is the biggest driver of economic growth traditionally in the EU, technically in a recession right now and we're seeing the continent, some economies doing well, some doing poorly, and has obviously a big integrated part of the global economy. Give us an assessment of the Eurozone.
Bill Mann: So I would describe the US dollar right now as being a bit of a wrecking ball. When we were talking earlier about oil prices and then US dollar inflation, because 60% of the world's commodities are priced in dollars, a strong US dollar is a problem very specifically for Europe. Europe has a number of economies and maybe Netherlands is at the top of the list, but Germany as well, that are both export-oriented and they are very good capital reinvestment countries. The one that I would put at maybe at the top of the list, though, is Sweden as a country that has done an incredibly good job at looking outside of the country in terms of reinvesting their profits. So I think the Swedish economy is probably the one to me that is most interesting as an investor.
Dave Meyer: Cool. Interesting, wouldn't have thought of that. All right. Well, Bill, this has been very fascinating, very helpful conversation and getting a better understanding of the global economy. Crystal ball time here, if you had to take a guess on how the global economy evolves over the next year, what's your view?
Bill Mann: I think it really is going to be based on a couple of things that are hard to predict. The first of which is India is really driving hard to become a manufacturing center in a very high tech way. India I would describe as the economy of the future and it maybe always will be. But I mean, you can see now they're trying to open up a very high tech manufacturing area in Gujarat. At any point, particularly when you see a break in the past, the things that have been the drivers of the past and I'm thinking specifically here of AI, of artificial intelligence, I think you have a real opportunity for advancements in parts of the economy that we haven't really expected. I expect that probably we have come close to the end of the US Federal Reserve raising interest rates. So I think you're going to see a little bit of a return to stability that will give companies a little bit of a longer, their binoculars will look out a little bit further so they can make some additional plans. You're going to see some real redeployment, but I see the global economy moving back to a reasonable rate of in inflation and GDP growth across the globe of 3.5-4%.
Dave Meyer: Well, Bill, let's hope you're right. I like your vision of the future. That sounds like a vision of the future we could all get behind.
Bill Mann: I'd vote for me.
Dave Meyer: If you could do it, I'd vote for you, too. Well, Bill, obviously you are doing a lot of research, you make a lot of content. Where can people follow you if they want to learn more?
Bill Mann: I run a few services at the Motley Fool, one called Global Partners which is an international equities service. I run another called Value Hunters, which is kind of scouring the globe and looking for companies that have been left behind.
Dave Meyer: Treasures.
Bill Mann: Treasures, exactly.
Dave Meyer: You're finding the treasures.
Bill Mann: I should just call it treasures. So those are the best places to find me and I'm on Motley Fool Money a couple of days a week. That is our free podcast and radio show.
Dave Meyer: Awesome. Well, Bill Mann, thank you so much for joining us. We really appreciate it.
Bill Mann: Thanks, Dave. I really appreciate the invitation.
Mary Long: As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Mary Long, thanks for listening. We'll see you tomorrow.
Bill Mann has no position in any of the stocks mentioned. Mary Long has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Fanuc. 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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Host Dave Meyer caught up with Bill to talk about the global economy, the reaction to the return of normal interest rates, China's real estate situation, and the two most important companies in the world that aren't often discussed. Bill Mann: Ultimately, if China does go into a deflationary spiral because our countries are so highly linked, I think that there is the potential for some real pain in the US, but even worse in places like Japan and Australia. A couple of years ago, the US government passed a bill called the CHIPS and Science Act, which has helped essentially fund Taiwan Semiconductor's development of additional facilities like in Arizona.
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In 1993, I looked at a place to buy in an area at Washington, DC called Logan Circle, which I don't know a lot of your real estate investors now, when I say the words Logan Circle, will go because it's literally the nicest part of Washington, DC now. A couple of years ago, the US government passed a bill called the CHIPS and Science Act, which has helped essentially fund Taiwan Semiconductor's development of additional facilities like in Arizona. The Motley Fool has positions in and recommends ASML, Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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Host Dave Meyer caught up with Bill to talk about the global economy, the reaction to the return of normal interest rates, China's real estate situation, and the two most important companies in the world that aren't often discussed. Bill Mann: You don't have Taiwan Semiconductor money, but a lot of it has to do with the fact that the US government almost, because when the US went in and said, OK, we don't want these companies to sell into China anymore, Taiwan Semi cut off sales to Huawei, which was like its second-largest customer. Dave Meyer: One company that I am particularly interested in, because I live in the Netherlands, I don't know if you know that, Bill, and there is a company here called ASML, they make the machines that make the chips.
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Host Dave Meyer caught up with Bill to talk about the global economy, the reaction to the return of normal interest rates, China's real estate situation, and the two most important companies in the world that aren't often discussed. Dave Meyer: Bill Mann, welcome to On the Market. Dave Meyer: I didn't know that.
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2023-10-27 00:00:00 UTC
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US STOCKS-Nasdaq jumps over 1% as Amazon, Intel updates lift megacaps
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https://www.nasdaq.com/articles/us-stocks-nasdaq-jumps-over-1-as-amazon-intel-updates-lift-megacaps
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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.
Amazon.com says growth in cloud business stabilizing
Intel forecast Q4 revenue, margins above estimates
Ford withdraws full-year results forecast
Chevron posts slump in third-quarter profit
All three indexes eye weekly losses
Indexes: Dow down 0.43%, S&P up 0.16%, Nasdaq up 1.12%
Updated at 11:58 a.m. ET/ 1558 GMT
By Ankika Biswas and Shashwat Chauhan
Oct 27 (Reuters) - The Nasdaq outperformed peers on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations.
Amazon.comAMZN.O jumped 8.4% after the e-commerce giant reported a pick up in growth at its most profitable cloud business.
IntelINTC.O rallied 9.0% after the chipmaker forecast fourth-quarter revenue and margins above estimates. Chip stocks Advanced Micro Devices AMD.O and Nvidia NVDA.O added 3.6% and 1.3%, respectively.
Megacaps Microsoft MSFT.O, Meta Platforms META.O, Tesla TSLA.O and Apple AAPL.O rose between 0.8% and 2.9% at the end of a rough week for Big Tech.
Meanwhile, data showed U.S. consumer spending increased more than expected in September, keeping it on a higher growth path heading into the fourth quarter.
The personal consumption expenditures price index, considered to be the Federal Reserve's preferred inflation gauge, climbed 0.4% in September compared with an estimated 0.3% rise. Core inflation which excludes volatile food and energy components rose 0.3%, meeting estimates.
Data earlier this week showed the U.S. economy grew almost 5% in the third quarter.
"Strong growth in employment and GDP are keeping the door open to further rate hikes by the Federal Open Market Committee," said Philip Marey, senior U.S. strategist at Rabobank.
Traders, however, have nearly fully priced in the Fed keeping interest rates unchanged in its meet next week, according to CME's FedWatch Tool, while bets of a pause in December stand at nearly 80%.
At 11:58 a.m. ET, the Dow Jones Industrial Average .DJI was down 141.09 points, or 0.43%, at 32,643.21, the S&P 500 .SPX was up 6.63 points, or 0.16%, at 4,143.86, and the Nasdaq Composite .IXIC was up 141.43 points, or 1.12%, at 12,737.04.
Consumer discretionary .SPLRCD and information technology .SPLRCT led gains amongst the major S&P 500 sectors, while energy .SPNY was the top laggard.
Weighing on the Dow, ChevronCVX.N fell 5.5% after the oil major reported a drop in third-quarter profit.
Shares of Exxon MobilXOM.N lost 1.8% after its year-on-year earnings plunged nearly 54%, though it posted a higher profit compared with the prior quarter.
Ford MotorF.N sank 9.2% after withdrawing its full-year results forecast due to "uncertainty" over the pending ratification of its deal with the United Auto Workers union, and warning of continued pressure on electric vehicles.
Of the 245 companies in the S&P 500 that have reported earnings so far, 77.6% beat earnings expectations, LSEG data showed. Third-quarter earnings are expected to grow 4.3% from a year earlier.
Enphase EnergyENPH.O dipped 14.6% after the solar inverter maker forecast fourth-quarter revenue below estimates.
Accounting for Friday's moves, all three indexes are set to log weekly losses.
The tensions in the Middle East were also on investors' radar, with a Hamas official tying the release of hostages to Israel stopping the bombardment of Gaza which it launched after a deadly rampage by Hamas militants into the southern part of the country nearly three weeks ago.
Declining issues outnumbered advancers by a 1.38-to-1 ratio on the NYSE and by a 1.21-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 50 new lows, while the Nasdaq recorded 10 new highs and 311 new lows.
(Reporting by Ankika Biswas, Shashwat Chauhan and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacaps Microsoft MSFT.O, Meta Platforms META.O, Tesla TSLA.O and Apple AAPL.O rose between 0.8% and 2.9% at the end of a rough week for Big Tech. Amazon.com says growth in cloud business stabilizing Intel forecast Q4 revenue, margins above estimates Ford withdraws full-year results forecast Chevron posts slump in third-quarter profit All three indexes eye weekly losses Indexes: Dow down 0.43%, S&P up 0.16%, Nasdaq up 1.12% Updated at 11:58 a.m. ET/ 1558 GMT By Ankika Biswas and Shashwat Chauhan Oct 27 (Reuters) - The Nasdaq outperformed peers on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations. Traders, however, have nearly fully priced in the Fed keeping interest rates unchanged in its meet next week, according to CME's FedWatch Tool, while bets of a pause in December stand at nearly 80%.
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Megacaps Microsoft MSFT.O, Meta Platforms META.O, Tesla TSLA.O and Apple AAPL.O rose between 0.8% and 2.9% at the end of a rough week for Big Tech. Amazon.com says growth in cloud business stabilizing Intel forecast Q4 revenue, margins above estimates Ford withdraws full-year results forecast Chevron posts slump in third-quarter profit All three indexes eye weekly losses Indexes: Dow down 0.43%, S&P up 0.16%, Nasdaq up 1.12% Updated at 11:58 a.m. ET/ 1558 GMT By Ankika Biswas and Shashwat Chauhan Oct 27 (Reuters) - The Nasdaq outperformed peers on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations. The S&P index recorded no new 52-week high and 50 new lows, while the Nasdaq recorded 10 new highs and 311 new lows.
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Megacaps Microsoft MSFT.O, Meta Platforms META.O, Tesla TSLA.O and Apple AAPL.O rose between 0.8% and 2.9% at the end of a rough week for Big Tech. Amazon.com says growth in cloud business stabilizing Intel forecast Q4 revenue, margins above estimates Ford withdraws full-year results forecast Chevron posts slump in third-quarter profit All three indexes eye weekly losses Indexes: Dow down 0.43%, S&P up 0.16%, Nasdaq up 1.12% Updated at 11:58 a.m. ET/ 1558 GMT By Ankika Biswas and Shashwat Chauhan Oct 27 (Reuters) - The Nasdaq outperformed peers on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations. Meanwhile, data showed U.S. consumer spending increased more than expected in September, keeping it on a higher growth path heading into the fourth quarter.
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Megacaps Microsoft MSFT.O, Meta Platforms META.O, Tesla TSLA.O and Apple AAPL.O rose between 0.8% and 2.9% at the end of a rough week for Big Tech. Amazon.com says growth in cloud business stabilizing Intel forecast Q4 revenue, margins above estimates Ford withdraws full-year results forecast Chevron posts slump in third-quarter profit All three indexes eye weekly losses Indexes: Dow down 0.43%, S&P up 0.16%, Nasdaq up 1.12% Updated at 11:58 a.m. ET/ 1558 GMT By Ankika Biswas and Shashwat Chauhan Oct 27 (Reuters) - The Nasdaq outperformed peers on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations. Meanwhile, data showed U.S. consumer spending increased more than expected in September, keeping it on a higher growth path heading into the fourth quarter.
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12889.0
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2023-10-27 00:00:00 UTC
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Invesco’s Quality ETFs Attract Significant Flows
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https://www.nasdaq.com/articles/invescos-quality-etfs-attract-significant-flows
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Invesco’s suite of quality ETFs is garnering significant investor attention.
The Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P 500 Quality ETF (SPHQ) are among Invesco’s most popular ETFs over one-week and one-month periods, as measured by net flows.
Many investors turn to high-quality companies with consistent earnings and strong balance sheets during periods of market uncertainty and growing volatility.
XMHQ has seen $144 million in one-week flows and $323 million in one-month flows. Meanwhile, SPHQ has seen $115 million and $287 million in one-week and one-month flows, respectively.
SPHQ and XMHQ are large funds, with $6.1 billion and $1.6 billion, respectively, in assets under management. The smaller Invesco S&P SmallCap Quality ETF (XSHQ), which has $58 million in assets, has seen $5 million in net flows over a one-month period.
Comparing Invesco’s Quality ETFs
SPHQ consists of 100 companies from the S&P 500 that have high-quality scores. Three fundamental measures -- return on equity, accruals ratio, and financial leverage ratio -- are used to calculate the quality scores.
SPHQ includes familiar megacap names, including Microsoft (MSFT) and Apple Inc (AAPL).
XMHQ shifts exposure down the cap spectrum, providing access to quality midcap companies. Its underlying index comprises 80 securities in the S&P Midcap 400 Index. The selected companies have the highest-quality scores, determined using the same proprietary factors as SPHQ.
Companies in XMHQ include Manhattan Associates Inc (MANH) and Toro Company (TTC).
XSHQ provides exposure to high-quality small-cap stocks. The fund includes 120 securities in the S&P SmallCap 600 Index that have the highest quality score, calculated using the same measures as SPHQ and XMHQ.
XSHQ includes lesser-known names such as SM Energy Company (SM) and Mueller Industries Inc (MLI).
For more news, information, and analysis, visit the Innovative ETFs Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SPHQ includes familiar megacap names, including Microsoft (MSFT) and Apple Inc (AAPL). Many investors turn to high-quality companies with consistent earnings and strong balance sheets during periods of market uncertainty and growing volatility. XMHQ shifts exposure down the cap spectrum, providing access to quality midcap companies.
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SPHQ includes familiar megacap names, including Microsoft (MSFT) and Apple Inc (AAPL). The Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P 500 Quality ETF (SPHQ) are among Invesco’s most popular ETFs over one-week and one-month periods, as measured by net flows. The smaller Invesco S&P SmallCap Quality ETF (XSHQ), which has $58 million in assets, has seen $5 million in net flows over a one-month period.
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SPHQ includes familiar megacap names, including Microsoft (MSFT) and Apple Inc (AAPL). The Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P 500 Quality ETF (SPHQ) are among Invesco’s most popular ETFs over one-week and one-month periods, as measured by net flows. The smaller Invesco S&P SmallCap Quality ETF (XSHQ), which has $58 million in assets, has seen $5 million in net flows over a one-month period.
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SPHQ includes familiar megacap names, including Microsoft (MSFT) and Apple Inc (AAPL). The Invesco S&P MidCap Quality ETF (XMHQ) and the Invesco S&P 500 Quality ETF (SPHQ) are among Invesco’s most popular ETFs over one-week and one-month periods, as measured by net flows. Comparing Invesco’s Quality ETFs SPHQ consists of 100 companies from the S&P 500 that have high-quality scores.
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12890.0
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2023-10-27 00:00:00 UTC
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Wall St Week Ahead-Frazzled U.S. stock investors eye frothy Treasury market as Fed looms
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https://www.nasdaq.com/articles/wall-st-week-ahead-frazzled-u.s.-stock-investors-eye-frothy-treasury-market-as-fed-looms
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By David Randall
NEW YORK, Oct 27 (Reuters) -
Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year.
October has lived up to its reputation for volatility, as a surge in Treasury yields and geopolitical uncertainty pressured stocks. The S&P 500 index is down 3.5% for the month, adding to losses that have left it over 10% off its late-July high.
Whether the ride remains rough for the rest of 2023 may depend in large part on the bond market. The Fed's 'higher for longer' stance on interest rates and rising U.S. fiscal worries pushed the benchmark 10-year Treasury yield - which moves inversely to prices - to 5% earlier this month, the highest since 2007. Higher Treasury yields are seen as a headwind to stocks, in part because they compete with equities for buyers.
Investors worry that yields could rise further if the Fed reinforces its hawkish message at the central bank's Nov. 1 monetary policy meeting. Strong U.S. employment data next Friday could also be a catalyst for yields to rise if it bolsters the case for keeping rates elevated to cool the economy and prevent inflation from rebounding.
"Stocks will start to recover when the market believes that bond yields have peaked," said Sam Stovall, chief investment strategist at CFRA Research.
Overall, futures markets are pricing in a near-certainty that the Fed does not raise rates in November, and a nearly 80% chance that the central bank holds rates steady in December, according to CME's FedWatch Tool. Still, policymakers have projected they will keep the key policy rate at current levels through most of 2024, longer than markets had previously anticipated.
Investors are playing a "waiting game of how much does each economic data point need to increase to put another rate hike back on the table," said Alex McGrath, chief investment officer for NorthEnd Private Wealth.
With U.S. Gross Domestic Product growth at a sizzling 4.9% in the third quarter, signs that the labor market remains too hot, or the Fed sees the need for further tightening to control inflation, could fuel further volatility.
"It feels like we are at a crossroads whether or not the strong growth we've seen over the summer months will continue over the fourth quarter," and keep worries over inflation and restrictive monetary policy bubbling, said Charlie Ripley, senior investment strategist for Allianz Investment Management.
Adding to the bond market's concerns, the Treasury is expected to announce its upcoming auction sizes later this week. Worries about a growing federal deficit and increased supply have helped push yields higher.
Investors are also awaiting Apple's results on Thursday, during an earnings season with disappointments from some growth and technology giants, including Tesla and Google. The tech-heavy Nasdaq 100 index is down 11% from its high, though still up nearly 30% on the year.
Some investors believe the worst of the selling may be over.
A stock market rebound would follow seasonal trends, said Stovall, of CFRA Research. Since 1945, the S&P 500 has advanced by an average of 1.5% in November, making it the year's third-best performing month, he said.
More broadly, some believe the stock market's trading patterns this year point to a rebound in the fourth quarter.
In the 14 instances when the S&P 500 has gained at least 10% through July and then declined in August, as it did this year, the index has increased every time over the last four months of the year, according to Ned Davis Research. The average gain in those instances has been 10%.
Stocks appear "oversold" according to technical indicators and could rally if economic data comes in as expected, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
"The stock market is poised for a late Q4 rally."
(Reporting by David Randall; Editing by Ira Iosebashvili and Richard Chang) ((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net)) ((Wall St Week Ahead runs every Friday. For thedaily stock marketreport, please click [.N])) Keywords: USA STOCKS/WEEKAHEAD (SCHEDULED COLUMN)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year. Investors are playing a "waiting game of how much does each economic data point need to increase to put another rate hike back on the table," said Alex McGrath, chief investment officer for NorthEnd Private Wealth. Stocks appear "oversold" according to technical indicators and could rally if economic data comes in as expected, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year. Investors worry that yields could rise further if the Fed reinforces its hawkish message at the central bank's Nov. 1 monetary policy meeting. "Stocks will start to recover when the market believes that bond yields have peaked," said Sam Stovall, chief investment strategist at CFRA Research.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year. "Stocks will start to recover when the market believes that bond yields have peaked," said Sam Stovall, chief investment strategist at CFRA Research. In the 14 instances when the S&P 500 has gained at least 10% through July and then declined in August, as it did this year, the index has increased every time over the last four months of the year, according to Ned Davis Research.
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By David Randall NEW YORK, Oct 27 (Reuters) - Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year. The Fed's 'higher for longer' stance on interest rates and rising U.S. fiscal worries pushed the benchmark 10-year Treasury yield - which moves inversely to prices - to 5% earlier this month, the highest since 2007. In the 14 instances when the S&P 500 has gained at least 10% through July and then declined in August, as it did this year, the index has increased every time over the last four months of the year, according to Ned Davis Research.
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12891.0
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2023-10-27 00:00:00 UTC
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Dip buyers flock to tech funds after earnings spark rout
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https://www.nasdaq.com/articles/dip-buyers-flock-to-tech-funds-after-earnings-spark-rout
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By Bansari Mayur Kamdar
Oct 27 (Reuters) - Bargain hunting drove investors to exchange-traded funds (ETFs) tracking technology companies after shares fell sharply on mixed earnings from heavyweights.
The iShares US Technology ETF , which has $11.2 billion in assets with Apple and Microsoft among its top holdings, saw net inflows of $694 million in the week ended Oct. 25, according to Lipper data, its best performance in over a year.
"Investors want large-cap tech exposure – whether that's because they can handle higher rates better or simply because they're more comfortable with those names in a really challenging macro environment," said Todd Sohn, ETF and technical strategist at Strategas Securities.
The fund's price fell nearly 4% in the week, as mixed results from megacaps like Alphabet weighed on the sector.
Despite potential short-term challenges, investors are starting to turn attention to 2024 where tech is expected to outperform, said Todd Rosenbluth, research head at VettaFi.
Tech-heavy Nasdaq gained 20% since the start of the year, supported by rallies in the "Magnificent 7" tech stocks on optimism around artificial intelligence.
However, worries about higher-for-longer interest rates have stalled the momentum and set the benchmark on course for monthly losses.
Tech funds saw inflows of $2 billion in the week to Wednesday, their largest in eight weeks, according to BofA Global Research, which it attributed to investors "buying the dip".
The $14 billion ProShares UltraPro QQQ posted net weekly inflows of $68.15 million, even as the price of the fund fell 9.5%.
"TQQQ is experiencing a surge in net flows as more aggressive retail traders seek to make big gains on hopes of a quick rebound," Vanda Research's analysts said in a note.
The $46.5 billion Technology Select Sector SPDR Fund and the $9 billion VanEck Semiconductor ETF posted net inflows of $205.7 million and $280.6 million, respectively, for the week.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shweta Agarwal) ((BansariMayur.Kamdar@thomsonreuters.com; Follow on X: @BansariKamdar;)) Keywords: ETF TECH/
The views and 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 Bansari Mayur Kamdar Oct 27 (Reuters) - Bargain hunting drove investors to exchange-traded funds (ETFs) tracking technology companies after shares fell sharply on mixed earnings from heavyweights. "Investors want large-cap tech exposure – whether that's because they can handle higher rates better or simply because they're more comfortable with those names in a really challenging macro environment," said Todd Sohn, ETF and technical strategist at Strategas Securities. "TQQQ is experiencing a surge in net flows as more aggressive retail traders seek to make big gains on hopes of a quick rebound," Vanda Research's analysts said in a note.
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By Bansari Mayur Kamdar Oct 27 (Reuters) - Bargain hunting drove investors to exchange-traded funds (ETFs) tracking technology companies after shares fell sharply on mixed earnings from heavyweights. The $14 billion ProShares UltraPro QQQ posted net weekly inflows of $68.15 million, even as the price of the fund fell 9.5%. The $46.5 billion Technology Select Sector SPDR Fund and the $9 billion VanEck Semiconductor ETF posted net inflows of $205.7 million and $280.6 million, respectively, for the week.
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The iShares US Technology ETF , which has $11.2 billion in assets with Apple and Microsoft among its top holdings, saw net inflows of $694 million in the week ended Oct. 25, according to Lipper data, its best performance in over a year. Tech funds saw inflows of $2 billion in the week to Wednesday, their largest in eight weeks, according to BofA Global Research, which it attributed to investors "buying the dip". The $46.5 billion Technology Select Sector SPDR Fund and the $9 billion VanEck Semiconductor ETF posted net inflows of $205.7 million and $280.6 million, respectively, for the week.
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By Bansari Mayur Kamdar Oct 27 (Reuters) - Bargain hunting drove investors to exchange-traded funds (ETFs) tracking technology companies after shares fell sharply on mixed earnings from heavyweights. The $14 billion ProShares UltraPro QQQ posted net weekly inflows of $68.15 million, even as the price of the fund fell 9.5%. The $46.5 billion Technology Select Sector SPDR Fund and the $9 billion VanEck Semiconductor ETF posted net inflows of $205.7 million and $280.6 million, respectively, for the week.
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12892.0
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2023-10-27 00:00:00 UTC
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Should Vanguard Large-Cap ETF (VV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-large-cap-etf-vv-be-on-your-investing-radar-3
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.
The fund is sponsored by Vanguard. It has amassed assets over $26.38 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.59%.
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 28.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.45% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 29.62% of total assets under management.
Performance and Risk
VV seeks to match the performance of the CRSP US Large Cap Index before fees and expenses. The CRSP US Large Cap Index includes U.S. companies that comprise the top 85% of investable market capitalization and are traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has added about 9.66% so far this year and it's up approximately 9.98% in the last one year (as of 10/27/2023). In the past 52-week period, it has traded between $169.44 and $209.59.
The ETF has a beta of 1.01 and standard deviation of 18.09% for the trailing three-year period, making it a medium risk choice in the space. With about 550 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard 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, VV 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 $335.90 billion in assets, SPDR S&P 500 ETF has $383.10 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Large-Cap ETF (VV): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.45% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Large-Cap ETF (VV): 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. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.
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Click to get this free report Vanguard Large-Cap ETF (VV): 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 7.45% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Vanguard Large-Cap ETF (VV), a passively managed exchange traded fund launched on 01/27/2004.
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Click to get this free report Vanguard Large-Cap ETF (VV): 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 7.45% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard 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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Click to get this free report Vanguard Large-Cap ETF (VV): 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 7.45% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
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12893.0
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2023-10-27 00:00:00 UTC
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Got $1,000? Buy These Hot Growth Stocks Before They Take Off
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AAPL
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https://www.nasdaq.com/articles/got-%241000-buy-these-hot-growth-stocks-before-they-take-off-7
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nan
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nan
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External factors such as COVID-19 and an economic downturn in 2022 have caused some volatility in the stock market in recent years. The challenges highlight why it's crucial to keep a long-term mindset to see big gains. As investing mogul Warren Buffett has often preached, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes."
Therefore, it's wise to dedicate a large part of your portfolio to proven growth stocks. Holding such investments over many years can offer significant growth and won't require tens of thousands of dollars upfront.
Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are two attractive options, each delivering triple-digit stock growth over the last five years. These companies are active in multiple expanding industries and could have a lot to offer new investors.
So, got $1,000? Here are two hot growth stocks to buy before they take off.
1. Apple
Shares of Apple have climbed 211% over the last five years. The company is easily one of the most reliable stocks available, significantly profiting from its dominance in consumer tech and almost unwavering loyalty from its users.
Apple's success over the years is primarily owed to the popularity of the iPhone, which enabled the company to claim a 55% market share in smartphones. Consumer trends have shown people rarely change smartphone operating systems.
Meanwhile, Apple has strategically created an interconnected ecosystem for its devices that encourages shoppers to stay within its lineup when shopping for new products. So, as iPhone users have risen, so have sales for many of Apple's other devices.
In this way, Apple has also achieved leading market shares in headphones, smartwatches, and tablets. The company's product segments have faced hurdles in the last year as macroeconomic headwinds curbed consumer spending. However, economic challenges won't last forever, and Apple has much to gain once the market recovers.
In the meantime, the tech giant is gradually expanding its business to lean less on product sales over the long term. Its services segment, which includes income from the App Store and subscription platforms like Apple TV+, is now the second-highest earning part of its business and hit revenue growth of 8% year over year in the third quarter of 2023. The digital business is expanding quickly and has shown little sign of slowing down.
Apple's dominance in tech and reputation as a reliable growth stock suggests it's not a bad idea to dedicate the bulk of your $1,000 to the iPhone company. Four shares in the tech giant would be about 70% of the investment, and will likely offer a significant return over the long term.
2. Advanced Micro Devices
The tech market is expanding quickly, with an increasing number of sectors requiring powerful chips to take their devices to the next level. The rise of artificial intelligence (AI) over the last year has highlighted the importance of chipmakers, as their hardware is crucial for developing AI models. However, multiple industries need similar hardware to expand, making chip stocks an attractive investment right now.
AMD is an excellent option with its years of success in the chip market, its growing position in AI, and its role as a leading chip supplier to companies across tech. AMD has experienced rapid growth, with its annual revenue rising 265% over the last five years and operating income up 180%.
The tech giant has significantly profited from supplying its chips to multiple companies. AMD is the exclusive chip provider to Sony's PlayStation 5 and Microsoft's Xbox Series X|S, two of the world's most popular game consoles. AMD has also formed lucrative partnerships with several other companies that use its chips to power laptops, handheld gaming machines, and custom-built PCs.
Moreover, AMD is gearing up to make a big splash in AI next year, a market projected to expand at a compound annual growth rate of 37% through 2030. The company will go head-to-head with market leader Nvidia when it launches a new chip in 2024. If AMD can offer competitive pricing, it could enjoy a significant boost in earnings next year.
AMD gives stockholders the chance to invest in multiple areas of tech. It's a promising growth stock, and you won't want to miss out on its likely lucrative future. The remaining 30% of your $1,000 investment would buy about three shares in this chipmaker.
10 stocks we like better than Apple
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are two attractive options, each delivering triple-digit stock growth over the last five years. Apple's success over the years is primarily owed to the popularity of the iPhone, which enabled the company to claim a 55% market share in smartphones. Apple's dominance in tech and reputation as a reliable growth stock suggests it's not a bad idea to dedicate the bulk of your $1,000 to the iPhone company.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are two attractive options, each delivering triple-digit stock growth over the last five years. Holding such investments over many years can offer significant growth and won't require tens of thousands of dollars upfront. However, multiple industries need similar hardware to expand, making chip stocks an attractive investment right now.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are two attractive options, each delivering triple-digit stock growth over the last five years. Apple's dominance in tech and reputation as a reliable growth stock suggests it's not a bad idea to dedicate the bulk of your $1,000 to the iPhone company. AMD is an excellent option with its years of success in the chip market, its growing position in AI, and its role as a leading chip supplier to companies across tech.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) are two attractive options, each delivering triple-digit stock growth over the last five years. However, economic challenges won't last forever, and Apple has much to gain once the market recovers. Four shares in the tech giant would be about 70% of the investment, and will likely offer a significant return over the long term.
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12894.0
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2023-10-26 00:00:00 UTC
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Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-9
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Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
DGRW is managed by Wisdomtree, and this fund has amassed over $9.75 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. DGRW seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for DGRW are 0.28%, which makes it on par with most peer products in the space.
DGRW's 12-month trailing dividend yield is 1.94%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
DGRW's heaviest allocation is in the Information Technology sector, which is about 30.20% of the portfolio. Its Consumer Staples and Industrials round out the top three.
Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO).
DGRW's top 10 holdings account for about 35.91% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Quality Dividend Growth ETF has added roughly 5.32% so far, and is up about 9.32% over the last 12 months (as of 10/26/2023). DGRW has traded between $58.09 and $68.50 in this past 52-week period.
DGRW has a beta of 0.88 and standard deviation of 14.67% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 297 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth 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 Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.54 billion in assets, Vanguard Dividend Appreciation ETF has $65.20 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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 WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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 WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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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Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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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12895.0
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2023-10-26 00:00:00 UTC
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1 Simple Reason Warren Buffett Prefers to Buy Apple Rather Than Tesla Stock
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AAPL
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https://www.nasdaq.com/articles/1-simple-reason-warren-buffett-prefers-to-buy-apple-rather-than-tesla-stock
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nan
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Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) are two of the top companies in the world. They both have strong followings and are profitable, growing businesses with strong fundamentals.
But despite its strong position and growth prospects in the electric vehicle (EV) market, Tesla isn't in the Berkshire Hathaway portfolio. CEO Warren Buffett is a big fan of Apple and that's Berkshire's top holding. Why isn't Tesla also in there?
Buffett values predictability
At Berkshire Hathaway's 2023 annual meeting, Buffett outlined the simple reason why he doesn't invest in most car companies: The industry is too competitive, and it's difficult to predict where a company such as Tesla will be.
What's important to Buffett is being able to know where a business will be in the future. Buffett said that he can't predict where automakers will be in the next five to 10 years but he has a much better idea of where Apple will be. While he didn't make a forecast for Apple, he alluded to the company's strong brand and its dominance in its industry.
Whether Tesla will be the dominant brand in 10 years is the big unknown. Buffett values a company that has a moat, a strong competitive advantage that can keep competitors away. He clearly does not see Tesla or another major automaker dominating to the point where it can make for a strong investment. Berkshire does own shares of General Motors but at 0.2%, it's a negligible size of its overall portfolio and Berkshire has been reducing its overall stake in the car company.
While Tesla has become profitable of late on a consistent basis, that alone is not enough to confidently know what its future will look like, especially given all the change happening in the industry.
AAPL Profit Margin data by YCharts
Berkshire's portfolio is filled with similar types of stocks
If you look through many of the top stocks in Berkshire's portfolio, you'll see a common thread: big-name brands that have a strong moat.
Apple with its loyal fanbase sits at the top. Other big brands include Bank of America, American Express, Coca-Cola, and Kraft Heinz. These are all examples of companies that are likely to remain leading brands and businesses within their respective industries, even a decade from now.
Whether Tesla or another automaker will be the leading EV maker is much more debatable. And therein lies the value that Buffett places on predictability and being able to spot quality businesses.
That doesn't mean that all of the stocks in Berkshire's portfolio fit that mold. After all, Buffett isn't doing all the buying for Berkshire. But many of his favorite stocks and largest investments follow that pattern of being profitable, predictable, and having strong brands.
What can investors learn from Buffett's approach?
The takeaway for investors is that if you're looking for a stock to buy and hold for years, you should have some reasonably strong confidence in where it will be five or 10 years from now.
One thing to remember is that Buffett also focuses on his circle of competence, on businesses and industries that he's familiar with, which is why he missed the boat on big tech stocks such as Microsoft and Amazon in their early days; he simply isn't all that comfortable with technology.
While it may have been difficult to predict they would be the big successes that they are today, if Buffett's circle of competence extended into technology, there's a chance they would have made it into Berkshire's portfolio years ago. Amazon is in there today, but it's a relatively small holding.
Apple is an example of a phenomenal business that's poised to dominate for years and that's why Buffett is a big fan. Tesla may turn out that way as well, but it's not nearly as easy of a prediction to make, and that's the key difference.
It doesn't mean that Tesla is a risky buy, only that there's more uncertainty about its future than there is with Apple -- according to Buffett, anyway.
If you want to invest like Buffett, you should be familiar with the industry you're investing in, and have a strong degree of confidence about where the company's future.
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 23, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, Berkshire Hathaway, Microsoft, and Tesla. The Motley Fool recommends General Motors and Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) are two of the top companies in the world. AAPL Profit Margin data by YCharts Berkshire's portfolio is filled with similar types of stocks If you look through many of the top stocks in Berkshire's portfolio, you'll see a common thread: big-name brands that have a strong moat. But despite its strong position and growth prospects in the electric vehicle (EV) market, Tesla isn't in the Berkshire Hathaway portfolio.
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Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) are two of the top companies in the world. AAPL Profit Margin data by YCharts Berkshire's portfolio is filled with similar types of stocks If you look through many of the top stocks in Berkshire's portfolio, you'll see a common thread: big-name brands that have a strong moat. Other big brands include Bank of America, American Express, Coca-Cola, and Kraft Heinz.
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AAPL Profit Margin data by YCharts Berkshire's portfolio is filled with similar types of stocks If you look through many of the top stocks in Berkshire's portfolio, you'll see a common thread: big-name brands that have a strong moat. Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) are two of the top companies in the world. Buffett values predictability At Berkshire Hathaway's 2023 annual meeting, Buffett outlined the simple reason why he doesn't invest in most car companies: The industry is too competitive, and it's difficult to predict where a company such as Tesla will be.
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Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) are two of the top companies in the world. AAPL Profit Margin data by YCharts Berkshire's portfolio is filled with similar types of stocks If you look through many of the top stocks in Berkshire's portfolio, you'll see a common thread: big-name brands that have a strong moat. Why isn't Tesla also in there?
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12896.0
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2023-10-26 00:00:00 UTC
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The New CPU King? Outperforming Intel, Advanced Micro Devices, and Apple CPUs?
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AAPL
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https://www.nasdaq.com/articles/the-new-cpu-king-outperforming-intel-advanced-micro-devices-and-apple-cpus
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In today's video, I discuss recent updates impacting Qualcomm (NASDAQ: QCOM) and its recently announced Snapdragon X Elite platform. 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 Oct. 25, 2023. The video was published on Oct. 25, 2023.
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*Stock Advisor returns as of October 23, 2023
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Nvidia, 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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See the 10 stocks *Stock Advisor returns as of October 23, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Nvidia, and Qualcomm.
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Jose Najarro has positions in Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Nvidia, 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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See the 10 stocks *Stock Advisor returns as of October 23, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, Nvidia, 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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Check out the short video to learn more, consider subscribing, and click the special offer link below. The video was published on Oct. 25, 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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12897.0
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2023-10-26 00:00:00 UTC
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Intel's Turnaround Was Just Dealt a Devastating Blow
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AAPL
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https://www.nasdaq.com/articles/intels-turnaround-was-just-dealt-a-devastating-blow
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Intel (NASDAQ: INTC) is in the midst of a massive turnaround plan -- one that includes catching up to rivals in CPU technology, inventing new AI-related platforms via its Gaudi accelerators, and building out a massive foundry for third-party chip manufacturing.
That turnaround will take money, and Intel's cash flow is highly dependent on the core PC CPU business, where it has traditionally dominated.
Yet coming off the worst PC rout in modern memory after the boom of the pandemic, Intel faces yet another challenge. In fact, it actually faces three big challenges, all coming at once for its cash-cow PC business -- and that could put its whole turnaround plan in jeopardy.
Qualcomm, Nvidia and AMD are coming
This week, Reuters reported that both Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) were "quietly" developing a PC processor based on the Arm Holdings (NASDAQ: ARM) architecture, which would run on the Microsoft (NASDAQ: MSFT) Windows operating system. According to sources cited by Reuters, these new chips from Nvidia and AMD will be available for PCs in 2025.
Of note, Microsoft had already recruited Qualcomm (NASDAQ: QCOM) to make Arm-based chips for Windows back in 2016, with an exclusivity deal that expires in 2024. Qualcomm just unveiled its new Arm chip for PCs on Tuesday, promising eye-opening performance.
Microsoft has seen Apple (NASDAQ: AAPL) take PC market share over the last few years, ever since Apple ditched Intel x86 chips for its own Arm-based M2 chips. In general, x86 chips, which are dominated by the traditional Intel and AMD duopoly, offer more performance, but they're generally less power-efficient than Arm-based chips. That's why Arm has found such a home in mobile devices. However, with the success of the M-series chips in Macs, Microsoft has taken notice, and is now looking to diversify.
Qualcomm just released its new Arm PC chip Tuesday
Nvidia and AMD are known as very innovative chipmakers, so one should expect some serious innovation and disruption in the PC world, especially as device-makers look to infuse PCs and desktops with artificial intelligence capabilities.
But already, Qualcomm looks to give everyone a run for their money, based on the specs for its new Snapdragon X Elite processor for Windows laptops, which it unveiled on Tuesday. These new chips should be available in Windows laptops sometime in 2024.
The new system-on-chip processor contains Qualcomm's Oryon central processing unit, an Adreno graphics processor, a Hexagon neural (AI) processor, RAM memory, and other circuitry that makes PCs run.
Based on Qualcomm's tests, the company claims the new Snapdragon chip outperforms the Intel i9 for gaming, as well as Apple's M2. The new chip is also apparently useful for artificial intelligence operations, capable of processing large language models with up to 13 billion parameters.
Image source: Getty Images.
Implications for Intel
Since Arm chips have been around for a long time, why haven't PCs adopted them more? Well, the x86 architecture is very well-ingrained, and software developers tend to develop PC software for x86 chips. Prior attempts at Arm-based tablets have typically been beset with glitches due to this. In fact, even Nvidia attempted an Arm-based processor for Microsoft tablets in 2012, but it was unsuccessful due to these software compatibility issues. So, that compatibility issue has traditionally offered a moat to Intel and the x86 architecture.
However, Apple was able to make the M-series work thanks to its in-house developed application compatibility software layer called Rosetta 2. Rosetta 2 was developed by Apple in 2020 in order to allow Intel-based software to run on Apple's Arm-based M2 chip, and it is what has made its M2-based Macs so successful.
Can Microsoft provide such a software translator? Microsoft certainly has the capability and financial resources. However, as Apple is able to optimize for the M2, Microsoft will have to make sure Intel software can run on the new Qualcomm chips, as well as those forthcoming from AMD and Nvidia, if they come. That's a more complicated task. Still, Qualcomm CEO Cristiano Amon says, "We knew that as we moved from the x86 to an Arm-compatible instruction set, there would be a journey to get all of the applications and the performance ... I think the Elite X is us getting to the end of this journey."
If these new Arm chips are successful, even moderately, it would be devastating for Intel. The company is looking to regain its technology lead, build out foundries, and catch up to rivals in other ways. But its financial resources depend on cash flow from the wide-moat PC chip business. After the PC downturn over the past few years, now Intel must contend with the potential breaching of its moat in x86 PC chips. That could strain its financial capability even further.
Intel CEO Pat Gelsinger's turnaround just got that much harder.
10 stocks we like better than Intel
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 Intel 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 23, 2023
Billy Duberstein has positions in Apple and Microsoft. His clients may own shares of the companies mentioned. The Motley Fool recommends Advanced Micro Devices, Apple, Intel, Microsoft, Nvidia, and Qualcomm. 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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Microsoft has seen Apple (NASDAQ: AAPL) take PC market share over the last few years, ever since Apple ditched Intel x86 chips for its own Arm-based M2 chips. That turnaround will take money, and Intel's cash flow is highly dependent on the core PC CPU business, where it has traditionally dominated. Of note, Microsoft had already recruited Qualcomm (NASDAQ: QCOM) to make Arm-based chips for Windows back in 2016, with an exclusivity deal that expires in 2024.
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Microsoft has seen Apple (NASDAQ: AAPL) take PC market share over the last few years, ever since Apple ditched Intel x86 chips for its own Arm-based M2 chips. That turnaround will take money, and Intel's cash flow is highly dependent on the core PC CPU business, where it has traditionally dominated. Qualcomm, Nvidia and AMD are coming This week, Reuters reported that both Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) were "quietly" developing a PC processor based on the Arm Holdings (NASDAQ: ARM) architecture, which would run on the Microsoft (NASDAQ: MSFT) Windows operating system.
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Microsoft has seen Apple (NASDAQ: AAPL) take PC market share over the last few years, ever since Apple ditched Intel x86 chips for its own Arm-based M2 chips. Qualcomm, Nvidia and AMD are coming This week, Reuters reported that both Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) were "quietly" developing a PC processor based on the Arm Holdings (NASDAQ: ARM) architecture, which would run on the Microsoft (NASDAQ: MSFT) Windows operating system. However, as Apple is able to optimize for the M2, Microsoft will have to make sure Intel software can run on the new Qualcomm chips, as well as those forthcoming from AMD and Nvidia, if they come.
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Microsoft has seen Apple (NASDAQ: AAPL) take PC market share over the last few years, ever since Apple ditched Intel x86 chips for its own Arm-based M2 chips. In fact, even Nvidia attempted an Arm-based processor for Microsoft tablets in 2012, but it was unsuccessful due to these software compatibility issues. However, as Apple is able to optimize for the M2, Microsoft will have to make sure Intel software can run on the new Qualcomm chips, as well as those forthcoming from AMD and Nvidia, if they come.
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12898.0
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2023-10-26 00:00:00 UTC
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Meet the S&P 500’s 3 most hated companies
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AAPL
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https://www.nasdaq.com/articles/meet-the-sp-500s-3-most-hated-companies
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The S&P 500 is one of the most widely used measures of U.S. stock market performance. Launched in 1957, it has long served as a benchmark for institutional and private investors alike.
At the surface, the S&P 500 is simply a market cap weighted collection of the 500 largest publicly traded equities. But it's the diversification this creates that is the main attraction.
While it is considered a large cap index, company sizes vary tremendously. At the top of the heap are a handful of trillion dollar companies — Apple, Microsoft, Alphabet, Amazon and Nvidia — that presently account for around 25% of day-to-day returns. At the bottom are 50 or so companies with $4 billion to $10 billion valuations — technically speaking, these are mid-caps.
You then have representation across all 11 economic sectors and 24 industry groups. There are also big differences in growth stages, profitability and risk profiles. Put it all together and you get one powerful wealth generator.
Including dividends, the S&P 500 has produced an annualized return of approximately 10.2% since inception. A $100 investment in 1957 would be worth more than $65,000 today. That is, if you went ‘long.’
Some investors also make money by going ‘short’ or betting against stocks. Although not a prudent strategy long-term, short selling the S&P 500 over shorter periods can prove valuable when markets are too hot or volatile.
Shorting individual S&P 500 stocks is a different story. Since index inclusion requirements go beyond size and into measures of financial stability, S&P 500 companies tend to be of high quality. This makes betting against quality ‘blue chips’ a risky proposition. It is also why S&P 500 stocks tend to have lower short interest than less proven, fundamentally weaker stocks.
But like everything in stock investing, there are exceptions.
Ten S&P 500 companies currently have at least 10% of their publicly available shares, or float, in the hands of short sellers. These three have the dubious distinction of being the ‘S&P’s 3 Most Hated.’
#1 - RL
Ralph Lauren Corporation (NYSE: RL) may be admired for its iconic clothing, but it is currently the most disrespected stock in the S&P 500. Short sellers hold 13.2% of the 38.9 million share float. The premium apparel maker is up 9.6% this year but a week away from finishing down for the third straight month.
The main knock on Ralph Lauren is that it commands high prices to match its polo-themed shirts and pants. Although it caters to more affluent customers, not everyone will be able to keep up with price hikes. In response to cost inflation, Ralph Lauren has been raising prices to boost profits. So far the strategy has worked, as evidenced by recent quarterly earnings growth. But as the bears will argue, this runs the risk of alienating customers. This has made Ralph Lauren the S&P’s poster child for inflation’s impact on discretionary spending.
#2 - PARA
With 13.1% of its float short, Paramount Global (NASDAQ: PARA) is neck and neck with Ralph Lauren for the S&P 500’s most hated stock. Even with the stock trading near a three-year low of $11.50, shorts continue to hammer away.
The media conglomerate is a popular bearish bet in part because it relies on traditional TV programming on CBS, BET, MTV, VH1, CMT, Comedy Central, Nickelodeon and its other cable networks. With consumers shifting to digital platforms, Paramount has become a quintessential ‘cord-cutting’ play.
Of course, the company has pivoted to streaming to survive but faces immense competition from Netflix, Disney+ and several others. This has forced Paramount to spend mightily to attract subscribers, an uphill battle that is taking a toll on profitability. The wild card here is that if Paramount’s value keeps plummeting, it may become an attractive acquisition target. This could lead to a premium bid and some significant short covering.
#3 - SEDG
Last week, investors saw first hand why SolarEdge Technologies, Inc. (NASDAQ: SEDG) is a top shorted stock. The maker of solar power inverters suffered a huge selloff on Friday after announcing disappointing preliminary third-quarter financials. Management revealed that it will miss its sales guidance by as much as $200 million due to “substantial unexpected cancellations and pushouts” from European distributors. The warning shows that inflation and high rates are taking a greater-than-anticipated toll on solar panel installation activity worldwide.
Short interest on SolarEdge decreased after some bears banked their winnings but still remained high at 12.2%. Friday’s 21.3 million share trading volume suggests that the news was the last straw for many shareholders who were holding out hope for a turnaround. The question now: did the selloff go too far?
Most Wall Street analysts have suggested SolarEdge is at least a hold if not a buy following Friday’s 27% selloff. Only one, Bank of America, sees the stock heading even lower. With the latest consensus price target implying 84% upside, this solar stock could turn into a heated debate.
The article "Meet the S&P 500’s 3 most hated companies" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At the top of the heap are a handful of trillion dollar companies — Apple, Microsoft, Alphabet, Amazon and Nvidia — that presently account for around 25% of day-to-day returns. Management revealed that it will miss its sales guidance by as much as $200 million due to “substantial unexpected cancellations and pushouts” from European distributors. The warning shows that inflation and high rates are taking a greater-than-anticipated toll on solar panel installation activity worldwide.
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Short sellers hold 13.2% of the 38.9 million share float. With 13.1% of its float short, Paramount Global (NASDAQ: PARA) is neck and neck with Ralph Lauren for the S&P 500’s most hated stock. Last week, investors saw first hand why SolarEdge Technologies, Inc. (NASDAQ: SEDG) is a top shorted stock.
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It is also why S&P 500 stocks tend to have lower short interest than less proven, fundamentally weaker stocks. With 13.1% of its float short, Paramount Global (NASDAQ: PARA) is neck and neck with Ralph Lauren for the S&P 500’s most hated stock. Last week, investors saw first hand why SolarEdge Technologies, Inc. (NASDAQ: SEDG) is a top shorted stock.
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That is, if you went ‘long.’ Some investors also make money by going ‘short’ or betting against stocks. It is also why S&P 500 stocks tend to have lower short interest than less proven, fundamentally weaker stocks. Last week, investors saw first hand why SolarEdge Technologies, Inc. (NASDAQ: SEDG) is a top shorted stock.
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12899.0
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2023-10-26 00:00:00 UTC
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The Magnificent 7 Stocks for October: 4 to Buy and 3 to Skip
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AAPL
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https://www.nasdaq.com/articles/the-magnificent-7-stocks-for-october%3A-4-to-buy-and-3-to-skip
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Magnificent Seven stocks have propped up the stock market in what would have otherwise been a down year. If the S&P 500 was an equal-weighted index, it would have only been up by 0.1% year-to-date as of October 5th. The index has been slightly down since October 5th, implying an equally weighted index would have lost money for investors this year.
The Magnificent Seven stocks are household names that have performed well over the past year. However, not all of these stocks are good picks when looking at the years ahead. Some of these stocks carry notable risks that can result in sideways price movements or declines. It’s time to explore each of the Magnificent Seven stocks to discover which ones to keep and which ones to skip.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) looks like a cautious buy at the moment. October 24th earnings report will offer more insights, though. Alphabet makes most of its revenue from its advertising platform. It’s a revenue stream that can face downward pressure in a slowing economy.
Alphabet is laying off workers again. It’s a move that indicates cost-cutting measures in response to weakening consumer demand. While lower demand is just a theory at this point, the return of layoffs isn’t encouraging. Any hints of a slowdown in advertising can hurt the stock.
Microsoft (MSFT)
Source: The Art of Pics / Shutterstock.com
Microsoft (NASDAQ:MSFT) combines healthy financials with solid growth rates. Microsoft closed the fourth quarter of fiscal 2023 with an 8% year-over-year increase in revenue and a 20% increase in net income.
Microsoft has various business segments, such as gaming, cloud computing, business software, LinkedIn, and PCs. The company has a pristine balance sheet and enough current assets to comfortably cover current liabilities. In fact, the company’s $184 million in current assets is more than enough to address $104 million in total current liabilities. That’s good for a 1.77 current ratio.
Tesla (TSLA)
Source: sdx15 / Shutterstock.com
Tesla (NASDAQ:TSLA) is a stock to avoid as car sales slow down and people hold onto their older vehicles for longer periods of time. Cars have improved dramatically over the years, and it’s easier to rack up 300,000 miles on a single vehicle.
The advancement of automobile technology has left people with fewer reasons to get a new car, especially with high prices. Tesla shares have gained 96% year-to-date but have endured a correction this month. The stock trades at 68x earnings, which also makes it vulnerable to more losses. While some companies deserve high multiples, Tesla’s third-quarter earnings report indicates caution is the right approach.
Revenue growth came to a screeching halt, as the company only reported 9% year-over-year growth. Net income and free cash flow dropped by 445 and 74% year-over-year, respectively. Tesla has enough current assets to cover current liabilities and has a solid 1.69 current ratio.
However, the P/E ratio is simply too high and warrants a sharp price cut. Shares are overvalued, and if the trend of lower demand and big losses continues, it creates more reasons for a sustained downturn.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Like Microsoft, Apple (NASDAQ:AAPL) has been left behind by the other Magnificent Seven stocks. Still, shares gained a respectable 38% year-to-date and are up by 220% over the past five years.
However, Apple has several obstacles that prevent me from giving it a buy rating. For one, Apple’s main weakness used to be its biggest strength: smartphones. Millions of people still use iPhones, but fewer people are in a rush to get new devices.
iPhone sales make up close to half of Apple’s total revenue. However, net sales for the device dropped year-over-year. Product sales make up roughly 75% of the company’s total sales. A segment that makes up 75% of Apple’s revenue was down by almost 5% year-over-year.
Apple is relying on its services segment for future growth, but that segment only makes up roughly 25% of the company’s revenue at the moment. Services only grew by 8.2% year-over-year. That’s not an impressive growth rate for the company’s main growth driver.
A growing number of people are taking longer to replace their iPhones. The value proposition isn’t as present as it was in prior years, and people’s finances are tighter now. Apple is a luxury brand, and many luxury brands don’t do well during economic slowdowns.
Apple needs to innovate beyond the smartphone and its core products. That model still generates demand, but flat growth isn’t enough for shareholders.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
Meta Platforms (NASDAQ:META) is a risky member of the Magnificent Seven that can hurt shareholders in 2024. Shares have gained an impressive 147% year-to-date, but an advertising slowdown combined with a 37 P/E ratio warrants caution.
An advertising slowdown can emerge due to student loan payments, the elevated costs of goods and services, and other factors. Meta Platforms doesn’t offer a good margin of safety compared to other stocks in the advertising sectors.
Meta Platforms has left behind a string of bad earnings in 2022. Revenue increased by 11% year-over-year in the second quarter while net income grew by 16% year-over-year.
These are much better growth rates than last year, but it is important to remember that Meta Platforms is using growth rates against soft earnings from the previous year. In other words, it’s easy to exceed year-over-year benchmarks if you set low standards in the previous year.
Alphabet has a lower valuation which makes it a cautious buy. Meta Platforms’ elevated valuation and vulnerability to an economic slowdown make it a more concerning pick.
It’s important to remember that Meta Platforms saw its stock plunge by over 75% from its 2021 peak to its 2022 trough. While we may not see that type of drop in 2024, it’s important to remember how quickly a reversal can take shape. Meta Platforms is far more reliant on its advertising revenue than Alphabet.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA) is a semiconductor juggernaut that produces critical CPU chips for artificial intelligence tools and other technologies. An incredible rally saw shares nearly triple year-to-date as the stock crossed the $1 trillion market cap level for the first time.
Normally, a valuation as high as Nvidia’s would turn me away from the stock. However, the company’s exceptional growth rates are very hard to ignore. Nvidia reported 101% year-over-year revenue growth and 843% year-over-year net income growth in the second quarter.
Those types of numbers are extremely hard to find and contributed to the stock holding a forward P/E ratio of 25. The forward P/E ratio is the main draw for me as an investor. It makes the stock easier to justify at current levels.
Nvidia’s growth rates are not sustainable. Investors cannot expect the company to double its revenue growth each year. However, if these growth trends hold for a few more quarters, the valuation will become easy to justify.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon (NASDAQ:AMZN) shares have gained 45% year-to-date. The 2023 rally helped shares correct course after being flat for the four previous years. While there was plenty of volatility during those four years, shares have gained 52% over the past five years, including year-to-date gains.
Amazon has the most popular e-commerce platform, a top-tier infrastructure as a service in Amazon Web Services, a video game streaming platform in Twitch, and other business segments. Amazon has a forward P/E ratio of 38, and gave investors much to cheer about with its second quarter. In that quarter, Amazon grew its sales by 11% year-over-year.
Investors shouldn’t expect significant gains from Amazon shares. The company seems like a moderate performer, as highlighted by the company’s 52% gain over the past five years. It’s a far cry from the other Magnificent Seven stocks on this list, but it is less vulnerable to a market downturn. People will still need to shop, and companies will continue using the AWS infrastructure.
On this date of publication, Marc Guberti held long positions in NVDA and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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The post The Magnificent 7 Stocks for October: 4 to Buy and 3 to Skip 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 Like Microsoft, Apple (NASDAQ:AAPL) has been left behind by the other Magnificent Seven stocks. On this date of publication, Marc Guberti held long positions in NVDA and AAPL. An incredible rally saw shares nearly triple year-to-date as the stock crossed the $1 trillion market cap level for the first time.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Like Microsoft, Apple (NASDAQ:AAPL) has been left behind by the other Magnificent Seven stocks. On this date of publication, Marc Guberti held long positions in NVDA and AAPL. Alphabet (GOOG, GOOGL) Source: IgorGolovniov / Shutterstock.com Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) looks like a cautious buy at the moment.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Like Microsoft, Apple (NASDAQ:AAPL) has been left behind by the other Magnificent Seven stocks. On this date of publication, Marc Guberti held long positions in NVDA and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Magnificent Seven stocks have propped up the stock market in what would have otherwise been a down year.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Like Microsoft, Apple (NASDAQ:AAPL) has been left behind by the other Magnificent Seven stocks. On this date of publication, Marc Guberti held long positions in NVDA and AAPL. Alphabet makes most of its revenue from its advertising platform.
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