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13000.0
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2023-10-23 00:00:00 UTC
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Is iShares ESG Aware MSCI USA ETF (ESGU) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-esg-aware-msci-usa-etf-esgu-a-strong-etf-right-now-9
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nan
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nan
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Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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
The fund is sponsored by Blackrock. It has amassed assets over $11.93 billion, making it one of the largest ETFs in the Style Box - All Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the MSCI USA ESG Focus Index.
The MSCI USA Extended ESG Focus Index comprises of U.S. companies that have positive environmental, social and governance characteristics while exhibiting risk and return characteristics similar to those of the parent index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.15% for ESGU, making it one of the least expensive products in the space.
ESGU's 12-month trailing dividend yield is 1.64%.
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.
For ESGU, it has heaviest allocation in the Information Technology sector --about 29.40% of the portfolio --while Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.12% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Its top 10 holdings account for approximately 29.76% of ESGU's total assets under management.
Performance and Risk
The ETF has added about 10.27% and is up about 15.77% so far this year and in the past one year (as of 10/23/2023), respectively. ESGU has traded between $82.26 and $100.86 during this last 52-week period.
ESGU has a beta of 1.02 and standard deviation of 18.21% for the trailing three-year period. With about 302 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares ESG Aware MSCI USA ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index. Vanguard ESG U.S. Stock ETF has $6.32 billion in assets, iShares ESG Aware MSCI EAFE ETF has $6.75 billion. ESGV has an expense ratio of 0.09% and ESGD charges 0.20%.
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 Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports
Vanguard ESG U.S. Stock ETF (ESGV): 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 7.12% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.12% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.12% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.12% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports Vanguard ESG U.S. Stock ETF (ESGV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 12/01/2016, smart beta exchange traded fund iShares ESG Aware MSCI USA ETF (ESGU) provides investors broad exposure to the Style Box - All Cap Growth category of the market.
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13001.0
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2023-10-23 00:00:00 UTC
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The 1 Stock Warren Buffett Is Virtually Guaranteed to Be Buying Right Now
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AAPL
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https://www.nasdaq.com/articles/the-1-stock-warren-buffett-is-virtually-guaranteed-to-be-buying-right-now
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nan
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nan
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For more than a half century, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has put on an investing clinic for Wall Street. Even though the Oracle of Omaha, as he's affably known, is just as fallible as any other investor, he's overseen a greater than 4,250,000% aggregate return in his company's Class A shares (BRK.A) since the mid-1960s. That compares to a total return, including dividends paid, of less than 30,000% for the benchmark S&P 500 over the same stretch.
In addition to his success as an investor, what makes Warren Buffett so special is his willingness to share his "recipe" for wealth creation. Buffett typically gravitates to brand-name, cyclical, dividend-paying companies with trusted management teams.
Mirroring the Oracle of Omaha's trading activity has been a path to riches for many investors. Thanks to required quarterly 13F filings, along with Form 4 filings in situations where Berkshire Hathaway holds at least a 10% stake in a public company, tracking Buffett's buying and selling activity is a relative breeze.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett has been adding to select core holdings in recent years
Although Buffett has frequently opined that investors should never "bet against America," he and his investing lieutenants, Ted Weschler and Todd Combs, have been net-sellers of equities over a nine-month stretch (Oct. 1, 2022 to June 30, 2023). Berkshire's three quarterly reports during this span show an aggregate of $33 billion in net-selling activity.
While the Oracle of Omaha may be pickier than normal about what he's currently buying, the past few 13Fs do point to pockets of optimism.
For instance, Buffett and his team have been steadfastly building up their company's stake in energy stock Occidental Petroleum (NYSE: OXY). Since the start of 2022, Buffett's company has purchased over 224 million shares of Occidental, which were worth about $14.7 billion, as of the closing bell on Oct. 17, 2023.
Though Berkshire Hathaway does outright own a handful of energy companies, Buffett has often shied away from investing in energy stocks. This sizable investment in Occidental appears to be a clear signal that Buffett and his lieutenants expect the spot price of crude oil to remain elevated, or perhaps increase further.
Despite Occidental Petroleum being an integrated energy company that also operates chemical plants, its revenue generation heavily skews toward drilling. If supply chain challenges for crude oil persist in the wake of the COVID-19 pandemic, Occidental could see a more sizable operating cash flow benefit than most oil and gas drillers.
Likewise, the Oracle of Omaha has continued to modestly add to Berkshire Hathaway's mammoth stake in tech stock Apple (NASDAQ: AAPL). The more than $162 billion stake Buffett's company holds in Apple accounts for nearly 47% of Berkshire Hathaway's invested assets.
Even though Warren Buffett couldn't tell his investors how an iPhone works, he's astute when it comes to observing and understanding consumer buying habits. Apple's ongoing innovation has allowed it to retain more than half of the smartphone market share in the U.S.
Meanwhile, CEO Tim Cook is overseeing the evolution of Apple into a platforms company. Becoming more reliant on a variety of subscription services should help smooth out the revenue fluctuations often observed during major iPhone replacement cycles. Further, subscription services should steadily lift Apple's operating margin and keep its customer base loyal to the brand.
Image source: Getty Images.
This is the stock Warren Buffett is likely buying right now
Although Form 13Fs provide a detailed snapshot of what Wall Street's most successful money managers have been buying and selling, these under-the-hood looks come with a drawback: They're usually more than six-weeks old, once released. In other words, investors may not be seeing what Warren Buffett is up to until weeks or months after the fact.
The next round of 13Fs will be filed with the Securities and Exchange Commission in mid-November and cover trading activity during the third quarter (July 1-Sept. 30). But given the basis of evidence we have as investors, there's one stock Warren Buffett almost assuredly bought in the third quarter, and is virtually guaranteed to be buying in the fourth quarter -- and you won't find it listed on the company's 13Fs. This mystery stock is none other than Buffett's own company, Berkshire Hathaway.
Prior to July 17, 2018, the only way buybacks could be given a green light at Berkshire Hathaway was if shares of the company traded at or below 120% of book value (i.e., no more than 20% above their book value). For well over five years leading up to this mid-July date in 2018, shares of Berkshire Hathaway never fell below this line in the sand. Ergo, no share repurchases were undertaken.
On July 17, 2018, Berkshire Hathaway's board amended its share repurchase program to allow Warren Buffett and executive vice chairman Charlie Munger to "get in the game." The new criteria simply stated that if Berkshire has at least $30 billion in cash, cash equivalents, and Treasury securities on its balance sheet, and Buffett and Munger agree that shares of their company are intrinsically cheap, repurchases can continue with no cap.
In the 20 quarters since Berkshire's board amended its share repurchase policy, the Oracle of Omaha and Charlie Munger have OK'd more than $71 billion worth of buybacks. More importantly, they've repurchased shares of Berkshire Hathaway 20 out of 20 quarters. With Berkshire Hathaway's cash pile soaring above $147 billion, as of June 30, it's only logical to expect Buffett and Munger to deploy at least some additional capital into buybacks.
As a reminder, buybacks can reduce the number of shares outstanding, which for companies with steady or growing net income should lead to higher earnings per share (EPS). A steady increase in EPS is an easy way to add luster to an already attractive stock.
Share repurchases are also Warren Buffett's way of rewarding his investors. Since Berkshire Hathaway doesn't pay a dividend, reducing the company's outstanding share count over time via buybacks is incrementally increasing the ownership stakes of the company's longtime shareholders.
If there's one stock Warren Buffett is buying right now, the evidence virtually guarantees it's Berkshire Hathaway.
10 stocks we like better than Berkshire Hathaway
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*Stock Advisor returns as of October 16, 2023
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Likewise, the Oracle of Omaha has continued to modestly add to Berkshire Hathaway's mammoth stake in tech stock Apple (NASDAQ: AAPL). This sizable investment in Occidental appears to be a clear signal that Buffett and his lieutenants expect the spot price of crude oil to remain elevated, or perhaps increase further. On July 17, 2018, Berkshire Hathaway's board amended its share repurchase program to allow Warren Buffett and executive vice chairman Charlie Munger to "get in the game."
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Likewise, the Oracle of Omaha has continued to modestly add to Berkshire Hathaway's mammoth stake in tech stock Apple (NASDAQ: AAPL). For more than a half century, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has put on an investing clinic for Wall Street. In the 20 quarters since Berkshire's board amended its share repurchase policy, the Oracle of Omaha and Charlie Munger have OK'd more than $71 billion worth of buybacks.
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Likewise, the Oracle of Omaha has continued to modestly add to Berkshire Hathaway's mammoth stake in tech stock Apple (NASDAQ: AAPL). Though Berkshire Hathaway does outright own a handful of energy companies, Buffett has often shied away from investing in energy stocks. This mystery stock is none other than Buffett's own company, Berkshire Hathaway.
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Likewise, the Oracle of Omaha has continued to modestly add to Berkshire Hathaway's mammoth stake in tech stock Apple (NASDAQ: AAPL). The more than $162 billion stake Buffett's company holds in Apple accounts for nearly 47% of Berkshire Hathaway's invested assets. In the 20 quarters since Berkshire's board amended its share repurchase policy, the Oracle of Omaha and Charlie Munger have OK'd more than $71 billion worth of buybacks.
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13002.0
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2023-10-22 00:00:00 UTC
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Where Will TSMC Stock Be in 1 Year?
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AAPL
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https://www.nasdaq.com/articles/where-will-tsmc-stock-be-in-1-year-1
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nan
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nan
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TSMC's (NYSE: TSM) stock popped 4% on Oct. 19 after the chipmaking giant posted its third-quarter earnings report. Its revenue declined 15% year over year to $17.28 billion but exceeded analysts' expectations by $580 million. Its earnings per ADS slipped 28% in U.S. dollar terms to $1.29, but also cleared the consensus forecast by $0.13.
TSMC's slowdown wasn't surprising, since the semiconductor market has been stuck in the mud over the past year. But over the past 12 months TSMC's stock has rallied nearly 50% in anticipation of its eventual recovery. Will those tailwinds kick in over the next 12 months and drive TSMC's stock back toward its all-time highs?
Image source: TSMC.
Focus on the sequential improvements
As the world's largest and most advanced contract chipmaker, TSMC's growth generally follows the broader semiconductor market. Over the past year, the post-pandemic slowdown of the PC market, the cooling upgrade cycle in 5G smartphones, and other macro headwinds throttled the market's demand for new chips. Western export curbs on advanced chip sales to China exacerbated that cyclical slowdown.
That's why TSMC's revenue declined year over year for three consecutive quarters. But on a sequential basis, its revenue actually rose 10% in the third quarter. It expects its revenue to rise another 11.1% sequentially in the fourth quarter. That quarter-over-quarter growth suggests the semiconductor market is finally bottoming out.
METRIC
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Revenue Growth (QOQ)
11.4%
(1.5%)
(16.1%)
(6.2%)
10.2%
Revenue Growth (YOY)
35.9%
26.7%
(4.8%)
(13.7%)
(14.6%)
Data source: TSMC. USD terms. QOQ = Quarter-over-quarter. YOY = Year-over-year.
TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). But according to IDC, global smartphone shipments could rise 5.9% in 2024 -- compared to a 1.1% decline in 2023 -- as the macro environment improves.
TSMC also produces chips for high-performance computing (HPC) clients like Nvidia (NASDAQ: NVDA). That market accounted for 42% of its top line -- up three percentage points from a year ago -- as the AI market expanded.
Production of newer chips will squeeze margins
TSMC's gross margin expanded sequentially in the third quarter as higher utilization rates and favorable exchange rates offset the higher costs from its production of 3nm chips. However, higher R&D expenses from the development of its latest 3nm and 2nm chips still reduced its operating margin sequentially and year over year.
METRIC
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Gross Margin
60.4%
62.2%
56.3%
54.1%
54.3%
Operating Margin
50.6%
52%
45.5%
42%
41.7%
Data source: TSMC.
For the fourth quarter, TSMC expects its gross margin to dip to 51.5%-53.5% as its operating margin drops to 39.5%-41.5%. But that compression isn't surprising, since it needs to ramp up its spending to start mass producing 2nm chips by 2025.
TSMC remains ahead of Intel in the process race
One of the main threats to TSMC's market dominance is Intel (NASDAQ: INTC), which believes it can catch up to TSMC in the "process race" to manufacture smaller, denser, and more power-efficient chips by 2025. However, all of the latest developments suggest TSMC remains at least one full chip generation ahead of Intel.
TSMC started mass producing 3nm chips in late 2022, and generated 6% of its total revenue from those top-tier chips in the third quarter of 2023. Intel doesn't plan to launch its comparable "Intel 3" chips -- which are technically 5nm chips that provide transistor density and performance comparable to that of TSMC's 3nm node -- until 2024.
TSMC generated 37% of its revenue from its 5nm chips and another 16% from its 7nm chips during the third quarter. The remaining 41% came from its older and larger nodes.
Where will TSMC's stock be in a year?
TSMC's fourth-quarter guidance implies its revenue will dip about 9% in USD terms for the full year, compared to analysts' expectations for a 13% decline. Analysts are expecting its earnings per ADS to drop 25%.
But in 2024 they expect its revenue (based on TSMC's own full-year forecast) and earnings to grow 17% and 21%, respectively, as the semiconductor market warms up again. That's a bright outlook for a stock that trades at just 16 times forward earnings. Intel, which faces more headwinds than TSMC, has a forward multiple of 20.
Therefore, barring a major escalation of trade and military tensions between China and Taiwan, I believe TSMC's stock should head higher over the next 12 months. It faces some near-term challenges as it ramps up its development of 2nm chips, but it's still the "best in breed" play on the secular growth of the semiconductor sector.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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*Stock Advisor returns as of October 16, 2023
Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple, Nvidia, 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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TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Focus on the sequential improvements As the world's largest and most advanced contract chipmaker, TSMC's growth generally follows the broader semiconductor market. TSMC's fourth-quarter guidance implies its revenue will dip about 9% in USD terms for the full year, compared to analysts' expectations for a 13% decline.
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TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Revenue Growth (QOQ) 11.4% (1.5%) (16.1%) (6.2%) 10.2% Revenue Growth (YOY) 35.9% 26.7% (4.8%) (13.7%) (14.6%) Data source: TSMC. However, all of the latest developments suggest TSMC remains at least one full chip generation ahead of Intel.
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TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Production of newer chips will squeeze margins TSMC's gross margin expanded sequentially in the third quarter as higher utilization rates and favorable exchange rates offset the higher costs from its production of 3nm chips. TSMC remains ahead of Intel in the process race One of the main threats to TSMC's market dominance is Intel (NASDAQ: INTC), which believes it can catch up to TSMC in the "process race" to manufacture smaller, denser, and more power-efficient chips by 2025.
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TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Revenue Growth (QOQ) 11.4% (1.5%) (16.1%) (6.2%) 10.2% Revenue Growth (YOY) 35.9% 26.7% (4.8%) (13.7%) (14.6%) Data source: TSMC. However, all of the latest developments suggest TSMC remains at least one full chip generation ahead of Intel.
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13003.0
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2023-10-22 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-12
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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
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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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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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13004.0
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2023-10-22 00:00:00 UTC
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Is Elon Musk the Reason Warren Buffett Sold GM Stock?
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AAPL
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https://www.nasdaq.com/articles/is-elon-musk-the-reason-warren-buffett-sold-gm-stock
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nan
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nan
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Tesla (NASDAQ: TSLA) CEO Elon Musk and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett are two of the wealthiest people in the world, and titans of American business.
However, the two have dramatically different approaches to business. Buffett favors timeless business models and companies with wide economic moats. He loves the insurance industry. For example, Berkshire owns GEICO and a number of other insurance companies, and he favors big-brand stocks like Apple and Coca-Cola.
Elon Musk, on the other hand, sees innovation as the major point of differentiation in business, and is a big-thinking visionary with dreams of colonizing Mars and embedding microchips in people's brains. Musk even took a swipe at the concept of economic moats once, saying back in 2018, "Moats are lame."
"If your only defense against invading armies is a moat," he elaborated, "you will not last long. What matters is the pace of innovation -- that is the fundamental determinant of competitiveness."
These two captains of industry have traded barbs in the media over the years, but seemed to have developed a mutual respect, as Buffett praised Musk at Berkshire's shareholder meeting earlier this year.
One comment, in particular, stands out, and could inform Berkshire's trading activity. "We don't want to compete with Elon in a lot of things," Buffett said, a reference to Musk's dedication to innovation and his ability to sometimes do what had previously appeared impossible.
Perhaps, it was not a coincidence then that Berkshire sold 45% of its stake in General Motors (NYSE: GM) in the second quarter, the same period when Buffett made the remarks about not wanting to compete with Tesla. The electric vehicle (EV) leader's most recent report could give more credence to that theory.
Image source: The Motley Fool.
Tesla's price war
Tesla has lowered prices on its vehicles several times over the past year as Musk seems focused on gaining market share and winning the EV market by being the lowest-cost provider.
On last week's earnings call, Musk emphasized how crucial it was for the company to be competitive on price, blaming interest rates in part for putting pressure on car buyers and saying that was partly why it lowered prices. Management also said it was focused on "growing volumes in a very cost-efficient manner."
Musk argued that car buyers are highly price-sensitive, saying that no one would buy a Toyota RAV4 if the compact SUV cost the same as a Tesla.
Earlier this year, the Tesla chief argued that his company could sell its cars at cost and make profits on the software and services it sells the owners, such as full self-driving capabilities. That vision might seem farfetched, but the company's operating margin has significantly eroded this year, which seems at least partly by choice as it has aggressively lowered prices.
What all this means for GM stock
It's unclear if Musk's tactics are the reason Berkshire Hathaway sold nearly half its stake in GM this spring. The conglomerate has owned GM shares for more than a decade, and the stock has been a consistent laggard, which could also be the explanation.
However, GM stock is now dirt cheap despite the company's solid execution, sizable profit margins, and emerging strength in electric vehicles and autonomous vehicles through its Cruise subsidiary.
Competition from Tesla might be one reason why General Motors is trading at a price-to-earnings ratio of just 4, with its share price hovering above a 52-week low. The United Auto Workers strike is likely weighing on its valuation as well.
Musk may be a fierce competitor, but there isn't much evidence that Tesla is having a direct impact on the results of automakers like GM. In its second quarter, GM raised its full-year net income guidance to a range of $9.7 billion to $10.3 billion, and reported a 28% jump in adjusted earnings per share, in part related to the fact that it was lapping a prior-year period when its production was hindered by chip shortages.
In the third quarter, vehicle deliveries in the U.S. rose 21% to 674,336; we'll get the dollar figures in the full earnings report on Tuesday morning. Investors should be on the lookout for any signs in that report that the EV price war is having an impact on GM. In mid-November, when its 13F comes out, we'll learn if Berkshire has dumped any more of its GM stake.
For now, the stock looks like a steal at a dirt cheap price-to-earnings ratio of 4, even with the disruptions from the UAW strike.
10 stocks we like better than General Motors
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla. The Motley Fool recommends General Motors 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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Elon Musk, on the other hand, sees innovation as the major point of differentiation in business, and is a big-thinking visionary with dreams of colonizing Mars and embedding microchips in people's brains. "We don't want to compete with Elon in a lot of things," Buffett said, a reference to Musk's dedication to innovation and his ability to sometimes do what had previously appeared impossible. Perhaps, it was not a coincidence then that Berkshire sold 45% of its stake in General Motors (NYSE: GM) in the second quarter, the same period when Buffett made the remarks about not wanting to compete with Tesla.
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Tesla (NASDAQ: TSLA) CEO Elon Musk and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett are two of the wealthiest people in the world, and titans of American business. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and long January 2025 $25 calls on General Motors.
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Tesla (NASDAQ: TSLA) CEO Elon Musk and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett are two of the wealthiest people in the world, and titans of American business. Tesla's price war Tesla has lowered prices on its vehicles several times over the past year as Musk seems focused on gaining market share and winning the EV market by being the lowest-cost provider. What all this means for GM stock It's unclear if Musk's tactics are the reason Berkshire Hathaway sold nearly half its stake in GM this spring.
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Buffett favors timeless business models and companies with wide economic moats. Perhaps, it was not a coincidence then that Berkshire sold 45% of its stake in General Motors (NYSE: GM) in the second quarter, the same period when Buffett made the remarks about not wanting to compete with Tesla. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Tesla.
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13005.0
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2023-10-22 00:00:00 UTC
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Foxconn shares drop after report of China tax audit, land use probe
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AAPL
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https://www.nasdaq.com/articles/foxconn-shares-drop-after-report-of-china-tax-audit-land-use-probe
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nan
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nan
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Recasts, adds details
TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China.
China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere.
Foxconn said in a statement on Sunday that legal compliance was a "fundamental principle" of its operations everywhere, and that it would "actively cooperate with the relevant units on the related work and operations".
The Global Times did not give details of the tax or land use probes, which have not been officially announced by any Chinese government department.
The report comes less than three months before Taiwan votes in presidential and parliamentary elections.
Foxconn's billionaire founder Terry Gou, who no longer has a role in the company's day to day operations and stepped down as company chief in 2019, is running as an independent candidate though he is at the bottom of polls.
He has accused Taiwan's ruling Democratic Progressive Party of taking the island to the brink of war with China by its hostile policies and that only he, with his extensive business and personal contacts in China and the United States, can maintain peace.
(Reporting by Ben Blanchard; Editing by Jacqueline Wong and Edwina Gibbs)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. The Global Times did not give details of the tax or land use probes, which have not been officially announced by any Chinese government department. He has accused Taiwan's ruling Democratic Progressive Party of taking the island to the brink of war with China by its hostile policies and that only he, with his extensive business and personal contacts in China and the United States, can maintain peace.
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Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere. Foxconn's billionaire founder Terry Gou, who no longer has a role in the company's day to day operations and stepped down as company chief in 2019, is running as an independent candidate though he is at the bottom of polls.
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Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere. He has accused Taiwan's ruling Democratic Progressive Party of taking the island to the brink of war with China by its hostile policies and that only he, with his extensive business and personal contacts in China and the United States, can maintain peace.
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Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere. Foxconn said in a statement on Sunday that legal compliance was a "fundamental principle" of its operations everywhere, and that it would "actively cooperate with the relevant units on the related work and operations".
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13006.0
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2023-10-22 00:00:00 UTC
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With Stock Down 1% YTD, Will Lackluster IT Spending Impact IBM's Q3 Results?
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AAPL
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https://www.nasdaq.com/articles/with-stock-down-1-ytd-will-lackluster-it-spending-impact-ibms-q3-results
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nan
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nan
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Computing behemoth IBM (NYSE:IBM) is slated to report its Q3 2023 results on October 25 reporting on a quarter that is likely to have seen IT spending remain lackluster. We estimate that IBM’s revenue will come in at about $31.7 billion for the quarter, roughly in line with the consensus estimates. We estimate that earnings will stand at close to $2.05 per share, compared to a consensus of $2.03 per share. So, what are some of the trends that are likely to drive IBM’s earnings? See our analysis of IBM Earnings Preview for a closer look at what to expect from IBM’s results.
Amidst this financial backdrop, IBM stock has witnessed gains of 10% from levels of $125 in early January 2021 to around $140 now, vs. an increase of about 15% for the S&P 500 over this roughly 3-year period. However, the increase in IBM stock has been far from consistent. Returns for the stock were 6% in 2021, 5% in 2022, and -1% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 12% in 2023 (YTD) – indicating that IBM underperformed the S&P in 2021 and 2023. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, 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 IBM face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a strong jump?
We expect IBM’s core software operations to be one of the key drivers of growth for the second quarter. Software-related sales rose 7.2% in Q2, driven by higher sales of Red Hat products and Data & AI solutions. Red Hat, which was acquired in 2019, has been a key growth driver for IBM, given its large portfolio of open-source technology, its hybrid cloud platform, and its large developer community. While IBM’s consulting business had a mixed performance over Q2, with sales growing by just about 4%, it could benefit from higher demand for application-related consulting. It’s possible that the artificial intelligence side of the consulting business could also see some gains as companies look to increasingly deploy generative AI tools. The infrastructure business could continue to be mixed as big companies have been cutting back on IT spending amid high inflation and soft demand. This could hurt demand for IBM’s mainframe computers such as the z16 series, introduced last year.
We think IBM stock is likely to see some modest gains following its Q3 results. At the current market price of about $140 per share, IBM stock trades at 14.5x consensus 2023 earnings. We believe that this is a reasonable valuation, given that IBM is focusing on core areas such as cloud computing, AI, and automation after divesting its legacy business. IBM is also making mid-size acquisitions to bolster its portfolio of higher-margin software products. We value IBM stock at $142 per share, which is marginally ahead of the current market price. See our analysis IBM Valuation: Expensive or Cheap for more details on what’s driving our price estimate for IBM. Also, check out the analysis of IBM Revenue for more details on how IBM revenues are trending.
Returns Oct 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
IBM Return 0% -1% -16%
S&P 500 Return 1% 12% 93%
Trefis Reinforced Value Portfolio 0% 23% 533%
[1] Month-to-date and year-to-date as of 10/19/2023
[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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In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could IBM face a similar situation as it did in 2021 and 2023 and underperform the S&P over the next 12 months – or will it see a strong jump? The infrastructure business could continue to be mixed as big companies have been cutting back on IT spending amid high inflation and soft demand.
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In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. Red Hat, which was acquired in 2019, has been a key growth driver for IBM, given its large portfolio of open-source technology, its hybrid cloud platform, and its large developer community. At the current market price of about $140 per share, IBM stock trades at 14.5x consensus 2023 earnings.
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In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. See our analysis of IBM Earnings Preview for a closer look at what to expect from IBM’s results. See our analysis IBM Valuation: Expensive or Cheap for more details on what’s driving our price estimate for IBM.
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In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. Returns for the stock were 6% in 2021, 5% in 2022, and -1% in 2023 (YTD). It’s possible that the artificial intelligence side of the consulting business could also see some gains as companies look to increasingly deploy generative AI tools.
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13007.0
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2023-10-22 00:00:00 UTC
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Foxconn faces tax audit, land use probe - Chinese state media
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AAPL
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https://www.nasdaq.com/articles/foxconn-faces-tax-audit-land-use-probe-chinese-state-media
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nan
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nan
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Adds company comment, paragraph 3
BEIJING, Oct 22 (Reuters) - Taiwan's Foxconn 2317.TW, the largest supplier of Apple AAPL.O iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday.
China's natural resources department also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere, the nationalist tabloid the Global Times reported. It did not elaborate on the investigations or the timing of them.
"Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn)," the company said in a statement, without addressing the allegations. "We will actively cooperate with the relevant units on the related work and operations."
Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations.
"Foxconn's subsidiaries are obliged to actively cooperate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification," Zhang said.
(Reporting by Ethan Wang and Bernard Orr; Editing by Lincoln Feast and William Mallard)
((bernard.orr@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds company comment, paragraph 3 BEIJING, Oct 22 (Reuters) - Taiwan's Foxconn 2317.TW, the largest supplier of Apple AAPL.O iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday. China's natural resources department also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere, the nationalist tabloid the Global Times reported. Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations.
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Adds company comment, paragraph 3 BEIJING, Oct 22 (Reuters) - Taiwan's Foxconn 2317.TW, the largest supplier of Apple AAPL.O iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday. Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations. "Foxconn's subsidiaries are obliged to actively cooperate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification," Zhang said.
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Adds company comment, paragraph 3 BEIJING, Oct 22 (Reuters) - Taiwan's Foxconn 2317.TW, the largest supplier of Apple AAPL.O iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday. Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations. "Foxconn's subsidiaries are obliged to actively cooperate with audits and investigations, and if there are indeed violations of laws and regulations, they should admit mistakes and accept penalties and step up rectification," Zhang said.
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Adds company comment, paragraph 3 BEIJING, Oct 22 (Reuters) - Taiwan's Foxconn 2317.TW, the largest supplier of Apple AAPL.O iPhones, is the subject of tax audits in China at some of its key subsidiaries, suspected of violating laws and regulations, Chinese state media reported on Sunday. It did not elaborate on the investigations or the timing of them. Zhang Wensheng, deputy dean of the Taiwan Research Institute of Xiamen University, told the Global Times the audit and land use investigations was a normal procedure that would apply to any enterprise suspected of violating laws and regulations.
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13008.0
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2023-10-21 00:00:00 UTC
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3 Top Stocks To Buy Now and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-now-and-hold-forever-0
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nan
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nan
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It was a chaotic end to the trading week on Friday, as investors considered the latest round of troubling headlines. With geopolitical tensions flaring in the Middle East, trade rhetoric ramping up again between the U.S. and China, and hawkish comments from Fed Chair Jerome Powell all hitting the market, the 10-year yield soared over 5% for the first time since 2007, while “safe haven” gold futures (GCZ23) spiked above $2,000 an ounce on rising risk aversion.
While it may seem counterintuitive, buying top-quality stocks on market pullbacks is often one of the best strategies for investors with a long-term mindset. By seeking out companies with strong fundamentals, dominant market positions, and proven track records of navigating through various business cycles, investors can take advantage of the opportunity to snap up these blue chips at a relative discount.
In this piece, we'll highlight three top “forever” stocks with impressive histories of success, top analyst ratings, and solid dividends to help shore up your portfolio - now and indefinitely.
Apple
This Cupertino, Calif.-based tech behemoth hardly needs any introduction. Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong.
Along with its hardware, Apple's subscription-based services - like Apple Music, Apple TV, and Apple Arcade - have also gained huge popularity over the years. The most valuable publicly listed company in the world, Apple's market cap currently stands at a gigantic $2.74 trillion.
Apple stock, which offers a dividend yield of 0.54%, is up 33% on a YTD basis.
www.barchart.com
Although a slowdown in iPhone sales troubled investors last quarter, Apple's EPS still managed to beat expectations. The company reported earnings of $1.26, up 5% from the prior year, and better than the consensus estimate of $1.20. Net sales of $81.8 billion were down 14% from the prior year, but edged past the consensus forecast. Notably, the company's EPS has surpassed expectations in four out of the past five quarters.
Further, Apple continues to make strides in the buzzy generative artificial intelligence (AI) space, albeit in a lowkey manner. With 2 billion active devices worldwide, the iPhone presents a ready market for Apple's impending AI tools. Apple is apparently spending millions of dollars daily to develop a conversational AI model along the lines of Open AI's ChatGPT, and a Bloomberg report says the so-called Apple GPT is more powerful than OpenAI's GPT 3.5 model.
Analysts have a “Moderate Buy” rating on the stock with a mean target price of $206.03. This indicates an upside potential of roughly 18% from current levels. Out of 29 analysts covering the stock, 17 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 9 have a “Hold” rating.
www.barchart.com
Microsoft
We continue our list with another tech titan, the software giant Microsoft (MSFT). Microsoft, most popular for its Windows operating system for computers, has expanded its range of offerings over the years with productivity applications, business software, and video games. The company is also a major player in the enterprise cloud computing market with its Azure platform.
With a massive market cap of $2.46 trillion, Microsoft continues to dominate with its legacy product suite - and remains at the forefront of the tech revolution through its major investments in the exciting field of AI, as well.
Microsoft's share price has zoomed 37.1% so far in 2023. The stock also offers a dividend yield of 0.82%, and Microsoft recently raised its dividend by 10%.
www.barchart.com
In its fiscal Q4, Microsoft reported revenues of $56.2 billion - up 8% from the previous year on robust cloud revenues of $30.3 billion (up 21% YoY). EPS came in at $2.69, up 20.6% from the year-ago period. Just like Apple, Microsoft has topped analysts' EPS estimates in four out of the past five quarters, with its next quarterly release set for Oct. 24.
Microsoft's AI credentials are significant. Following its multi-billion dollar investment in ChatGPT maker OpenAI, Microsoft has been steadily integrating AI into its suite of Office 365 products. This is expected to increase business productivity substantially for the existing user base of 345 million. Plus, its search engine Bing's integration with OpenAI's ChatGPT could result in it becoming a serious challenger to Google in the search engine market in the upcoming years.
Analysts are unsurprisingly upbeat about MSFT, assigning it a “Strong Buy” rating with a mean target price of $384.71. This indicates an upside potential of roughly 17% from current levels. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
www.barchart.com
Visa
We wrap up our list with payments giant Visa (V). Founded in 1958, Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in over 200 countries and territories. It processes over 200 billion transactions annually and has a global network of over 80 million merchants. Its market cap currently stands at $435.31 billion.
Visa's share price is up nearly 13% on a YTD basis, and it offers a dividend yield of 0.77%.
www.barchart.com
Visa's fiscal Q3 revenues of $8.12 billion were up 12% from the prior year. Meanwhile, its EPS of $2.16 rose by 9% from the previous year, and managed to surpass the consensus estimate of $2.12. The company also reported 9% and 10% improvement in payment volume and processed transactions, respectively, for Q3 2023.
In fact, Visa's EPS has beaten expectations in each of the past five quarters, with the credit card issuer set to release its next quarterly results on Oct. 24.
Visa is a true market leader in the payments space, with a 61% share in issuing debit and credit cards in the U.S. Although a projected rise in credit card delinquencies due to rising debt has the potential to become a concern for the company, its strong liquidity position ($15.6 billion cash reserves) along with its industry-high gross margins leave Visa well-positioned to navigate the environment.
Meanwhile, Visa also recently launched a $100 million AI initiative that will invest in companies focused on developing generative AI technologies and applications to make the processing of payments easier for users.
Analysts have an overall rating of “Strong Buy” for Visa, with a mean target price of $260.85. This denotes an upside potential of roughly 11.8% from current levels. Out of 24 analysts covering the stock, 17 have a “Strong Buy” rating, 4 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
www.barchart.com
On the date of publication, Pathikrit Bose 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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Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. With geopolitical tensions flaring in the Middle East, trade rhetoric ramping up again between the U.S. and China, and hawkish comments from Fed Chair Jerome Powell all hitting the market, the 10-year yield soared over 5% for the first time since 2007, while “safe haven” gold futures (GCZ23) spiked above $2,000 an ounce on rising risk aversion. By seeking out companies with strong fundamentals, dominant market positions, and proven track records of navigating through various business cycles, investors can take advantage of the opportunity to snap up these blue chips at a relative discount.
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Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. Out of 29 analysts covering the stock, 17 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 9 have a “Hold” rating. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
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Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. Out of 29 analysts covering the stock, 17 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 9 have a “Hold” rating. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
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Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. www.barchart.com Although a slowdown in iPhone sales troubled investors last quarter, Apple's EPS still managed to beat expectations. www.barchart.com Visa We wrap up our list with payments giant Visa (V).
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13009.0
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2023-10-21 00:00:00 UTC
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3 Stocks That Turned $1,000 Into $1.1 Million (or More)
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-turned-%241000-into-%241.1-million-or-more
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nan
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nan
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Consumer products have proven themselves to be excellent long-term investment options. The track record goes as far back as the 19th century when companies like Coca-Cola and Procter & Gamble began to established decades-long track records of growth.
Virtually nobody alive today was around to benefit directly from those initial public offerings (IPOs), so their history of growth is less beneficial to today's investors. Fortunately, some of the consumer growth stories I found actually occurred during the lifetimes of many current investors.
Additionally, some of these stocks were priced at a point where an average investor might have been comfortable buying $1,000 worth of shares. Three of the best examples of this growth over the last 30 years are Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Monster Beverage (NASDAQ: MNST).
Apple
Apple may have launched its IPO in 1980, but a sustainable boom in the stock price didn't begin until Steve Jobs returned to the company in February 1997. Jobs sought to remake the Mac into a PC that could compete against Microsoft even as it partnered with that company to offer Mac-compatible versions of Microsoft's productivity tools. Apple also changed how consumers listened to music with the iPod.
However, it was the launch of the iPhone in 2007 that eventually turned Apple into the world's largest publicly traded company. The iPhone was so successful that it launched a new industry around smartphones, and that product drives the majority of the company's revenue to this day.
AAPL data by YCharts.
Moreover, it has expanded into wearables and has more recently seen its largest growth in Apple Services, which includes Apple TV, Apple Pay, and other service-related offerings.
Thanks to that success, a $1,000 investment in this tech stock when Steve Jobs took back his CEO title in 1997 rose to just over $1.2 million in October 2023. Today's investors shouldn't expect a 1,200-fold return. However, the enduring popularity of the iPhone and Apple's services business should keep the company on a long-term growth trajectory.
Amazon
Amazon was an e-commerce pioneer that sold little more than books when it launched its IPO in May 1997. Additionally, the stock was one of the more notable victims of the dot-com bust as it lost over 90% of its value between 1999 and 2002.
Nonetheless, the company changed significantly over time. By 1998, it had started to expand beyond books into other types of merchandise. It also ventured into tech in 2006, launching the cloud industry with the introduction of Amazon Web Services (AWS), which constitutes most of its operating income today.
AMZN data by YCharts.
Such expansions made it so successful that a $1,000 investment in its IPO would be worth more than $1.3 million today. It's highly unlikely Amazon will experience another 1,300-fold gain in our lifetime, and most of its future growth will likely come from the tech side of the business. Still, with AWS leading a secular move into the cloud, the company's growth is probably far from done.
Monster Beverage
Like Apple, Monster stock didn't experience sustained success until decades after its launch. It began as Hansen's in the 1930s, and a previous IPO ended in bankruptcy in 1988. It wasn't until April 2002 that Hansen's introduced its first energy drink.
Energy drinks contain large amounts of caffeine, sugar, and other legal stimulants. In recent years, many consumers have chosen such beverages over other caffeinated drinks, such as coffee and tea.
Image sources: IRI, Beverage Industry Magazine.
Although Red Bull came to market before Monster, the latter carved out a significant niche in this industry. The success of this product would eventually lead to Hansen's adopting Monster Beverage as its name in 2012 and selling its non-energy beverage lines to Coca-Cola.
As of 2022, it claims a 30% market share. Since a private company owns Red Bull, Monster is the largest accessible investment in this industry for stock traders.
MNST data by YCharts.
Moreover, if one invested $1,000 in the beverage stock when it offered its first energy drink in 2002, the position would be worth nearly $1.1 million today. Assuming Grand View Research's forecast of an 8% compound annual growth rate for the energy drink industry comes to pass, Monster's robust gains will likely not come to an end anytime soon.
10 stocks we like better than Apple
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*Stock Advisor returns as of October 16, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, and Monster Beverage. 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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Three of the best examples of this growth over the last 30 years are Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Monster Beverage (NASDAQ: MNST). AAPL data by YCharts. Thanks to that success, a $1,000 investment in this tech stock when Steve Jobs took back his CEO title in 1997 rose to just over $1.2 million in October 2023.
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Three of the best examples of this growth over the last 30 years are Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Monster Beverage (NASDAQ: MNST). AAPL data by YCharts. Apple Apple may have launched its IPO in 1980, but a sustainable boom in the stock price didn't begin until Steve Jobs returned to the company in February 1997.
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Three of the best examples of this growth over the last 30 years are Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Monster Beverage (NASDAQ: MNST). AAPL data by YCharts. Apple Apple may have launched its IPO in 1980, but a sustainable boom in the stock price didn't begin until Steve Jobs returned to the company in February 1997.
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Three of the best examples of this growth over the last 30 years are Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Monster Beverage (NASDAQ: MNST). AAPL data by YCharts. Monster Beverage Like Apple, Monster stock didn't experience sustained success until decades after its launch.
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13010.0
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2023-10-21 00:00:00 UTC
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Nearly $212 Billion of Warren Buffett's Portfolio Is Invested in These 3 Super-Reliable Dividend Stocks
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AAPL
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https://www.nasdaq.com/articles/nearly-%24212-billion-of-warren-buffetts-portfolio-is-invested-in-these-3-super-reliable
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What do dividend investors like almost as much as high yields? Consistency. They prefer stocks that regularly pay dividends quarter after quarter with no drama.
You might not think of Warren Buffett as a dividend investor. Most of the stocks owned by Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), though, do pay dividends. In fact, nearly $212 billion of Buffett's portfolio is invested in these three super-reliable dividend stocks.
1. Apple
Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock other than Berkshire itself. The conglomerate's stake in the tech giant currently stands at nearly $161.8 billion, making Apple the biggest position in the stock portfolio by far.
Sure, Apple's dividend yield of 0.55% isn't anything to get overly excited about. But what it lacks in yield, it makes up for in dividend growth. Apple has increased its payouts by more than 150% since it initiated its dividend program in 2012.
There's also no question about Apple's ability to keep the dividends flowing and growing. It generated operating cash flow of $26 billion in the fiscal quarter ending July 1 -- a staggering amount.
Of course, there are plenty of other things to like about Apple aside from its dividend. The company's services business continues to grow. Apple also has new products on the way, notably including its Vision Pro mixed-reality headset, which CEO Tim Cook says will begin "a new era for computing."
2. Bank of America
Berkshire is the single largest shareholder of Bank of America (NYSE: BAC). Its 13% stake in the big bank is worth nearly $28.3 billion right now, enough to make the stock Berkshire's second-biggest position after Apple.
Bank of America had to slash its dividend during the financial crisis of 2007 to 2009. Since then, though, the company has boosted it by more than 20 times. Its dividend yield currently tops 3.5%.
One reason why Bank of America's dividend yield is so high now is that its stock has fallen sharply this year. The regional banking crisis and a host of macroeconomic headwinds have taken their toll on its share price.
However, Bank of America remains strong financially and can easily cover its dividend. This share price pullback won't last indefinitely, either. This Buffett dividend stock is likely to rebound in a major way in the not-too-distant future.
3. Coca-Cola
Berkshire Hathaway has owned shares of Coca-Cola (NYSE: KO) for longer than it has held any other company currently in its portfolio. The conglomerate's stake in it is valued at close to $21.7 billion, making it Buffett's fourth-largest position.
Coca-Cola pays an attractive dividend yield of 3.4%. Even more impressive, though, is the company's dividend track record. It's a Dividend King with 61 consecutive years of payout increases.
The keys to its ability to keep that streak going are generating solid earnings and cash flow. Coca-Cola continues to do both. Its earnings per share soared 34% year over year in the second quarter of 2023. Operating cash flow increased by $83 million to $4.6 billion.
While Coca-Cola stock has been a huge winner in the past, it probably won't deliver jaw-dropping gains from here. However, its resilient business and solid dividend make it a good pick, especially for conservative investors with a long-term perspective.
10 stocks we like better than Coca-Cola
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 Coca-Cola 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock other than Berkshire itself. The conglomerate's stake in the tech giant currently stands at nearly $161.8 billion, making Apple the biggest position in the stock portfolio by far. Apple also has new products on the way, notably including its Vision Pro mixed-reality headset, which CEO Tim Cook says will begin "a new era for computing."
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Apple Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock other than Berkshire itself. Most of the stocks owned by Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), though, do pay dividends. Coca-Cola Berkshire Hathaway has owned shares of Coca-Cola (NYSE: KO) for longer than it has held any other company currently in its portfolio.
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Apple Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock other than Berkshire itself. Its 13% stake in the big bank is worth nearly $28.3 billion right now, enough to make the stock Berkshire's second-biggest position after Apple. One reason why Bank of America's dividend yield is so high now is that its stock has fallen sharply this year.
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Apple Apple (NASDAQ: AAPL) ranks as Buffett's favorite stock other than Berkshire itself. One reason why Bank of America's dividend yield is so high now is that its stock has fallen sharply this year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Coca-Cola wasn't one of them!
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13011.0
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2023-10-21 00:00:00 UTC
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This Stock-Split Stock Is Beating Both Apple and Microsoft in 2023 -- With No Artificial Intelligence (AI) Tailwind at All
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AAPL
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https://www.nasdaq.com/articles/this-stock-split-stock-is-beating-both-apple-and-microsoft-in-2023-with-no-artificial
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The two biggest stocks on the market have grown even bigger so far this year. Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%.
Investors' excitement about artificial intelligence (AI) has helped boost many tech stocks. However, you can find big winners outside of tech, too. This stock-split stock is beating both Apple and Microsoft -- with no AI tailwind at all.
Who needs AI when you've got Ozempic and Wegovy?
Sometimes, stock splits serve as key catalysts for stocks. That wasn't the case for Novo Nordisk (NYSE: NVO), though.
The big pharma stock jumped more than 40% year to date before Novo Nordisk's two-for-one stock split conducted on Sept. 20, 2023. Novo's shares declined a bit after the split before bouncing back.
Apple and Microsoft were easily outperforming Novo Nordisk throughout much of 2023. Things changed, however, after Novo Nordisk announced positive results on Aug. 8 for semaglutide in reducing the risk of major cardiovascular events in overweight or obese adults.
Two days later, Novo Nordisk reported its financial results for the first half of the year. Semaglutide was the big star.
The drug is marketed as Ozempic as a treatment for type 2 diabetes and as Wegovy in treating weight loss. Ozempic's sales soared 58% year over year in the first half of 2023, while Wegovy's sales skyrocketed 367%.
Even brighter days ahead for Novo Nordisk
It's likely that even brighter days lie ahead for Novo Nordisk. The company raised its full-year 2023 sales growth forecast by 5%, thanks to greater expectations for Ozempic and Wegovy.
Novo Nordisk's outlook could get even better. Earlier this month, the big drugmaker announced that it was stopping a kidney outcomes trial of semaglutide.
Halting a clinical study doesn't always mean good news, but it did this time. An interim analysis found that semaglutide was so effective in slowing the progression of renal impairment in patients with type 2 diabetes and chronic kidney disease that the trial didn't need to continue.
The success of Ozempic and Wegovy has given Novo Nordisk plenty of cash to fund the expansion of its pipeline. Over the last couple of months, the company has announced the acquisition of Inversago Pharma and the purchase of experimental hypertension drug ocedurenone from KBP Biosciences.
Although AI hasn't provided a tailwind for Novo Nordisk, it could play a more important role for the company in the future. In September, Novo announced that it would collaborate with Valo Health to use AI in drug discovery. The big drugmaker also licensed three preclinical drug discovery programs targeting cardiovascular diseases that Valo developed using its AI-powered Opal Computational Platform.
Is Novo Nordisk stock a buy now?
Wall Street analysts think that Novo Nordisk stock can go even higher. The consensus 12-month price target reflects an upside potential of more than 20%. However, I don't think Novo Nordisk stock is the best pick for investors right now.
For one thing, the stock's valuation is high. Shares currently trade at a forward earnings multiple of over 34.7x. Clearly, a lot of growth is already baked into the price of this pharma stock. I also expect that Eli Lilly's Mounjaro will vault past Ozempic and Wegovy if it wins U.S. approval as a weight-loss treatment.
While Novo Nordisk stock is beating Apple and Microsoft in 2023, its performance lagged well behind both tech stocks over the last 10 years. I suspect that history will repeat itself. In my view, AI is likely to provide a more durable long-term tailwind than Ozempic and Wegovy will.
10 stocks we like better than Novo Nordisk
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 Novo Nordisk 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
Keith Speights has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends Novo Nordisk. 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) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. Things changed, however, after Novo Nordisk announced positive results on Aug. 8 for semaglutide in reducing the risk of major cardiovascular events in overweight or obese adults. An interim analysis found that semaglutide was so effective in slowing the progression of renal impairment in patients with type 2 diabetes and chronic kidney disease that the trial didn't need to continue.
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Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. Ozempic's sales soared 58% year over year in the first half of 2023, while Wegovy's sales skyrocketed 367%. The big drugmaker also licensed three preclinical drug discovery programs targeting cardiovascular diseases that Valo developed using its AI-powered Opal Computational Platform.
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Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. The big pharma stock jumped more than 40% year to date before Novo Nordisk's two-for-one stock split conducted on Sept. 20, 2023. While Novo Nordisk stock is beating Apple and Microsoft in 2023, its performance lagged well behind both tech stocks over the last 10 years.
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Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. Who needs AI when you've got Ozempic and Wegovy? Is Novo Nordisk stock a buy now?
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13012.0
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2023-10-20 00:00:00 UTC
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Earnings Preview of "Magnificent Seven": ETFs in Focus
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AAPL
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https://www.nasdaq.com/articles/earnings-preview-of-magnificent-seven%3A-etfs-in-focus
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The "Magnificent Seven" typically refers to the 1960 Western film, but today’s stock market investors recognize the term as the set of seven big tech stocks, namely Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, Nvidia NVDA, Meta Platforms META and Tesla TSLA.
With the third-quarter earnings season underway, investors’ eyes will be glued to the "Magnificent Seven" earnings. While Tesla has already posted a weak Q3 earnings (missing estimates on both fronts), others are yet to report (read: Tesla Posts Weak Q3 Earnings: ETFs in Focus).
Investors should note that 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.
Earnings Whispers
Microsoft is expected to report on Oct 24. The stock has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). In the past 90 days, Microsoft’s earnings for the September quarter rose by 8 cents to $2.65 per share.
Alphabet is expected to report on Oct 24. The stock has an Earnings ESP of +0.89% and a Zacks Rank #3. In the past 90 days, Alphabet’s earnings for the September quarter rose by 11 cents to $1.45 per share.
Meta is expected to report on Oct 25. The stock has an Earnings ESP of +3.98% and a Zacks Rank #3. In the past 90 days, Meta’s earnings for the September quarter surged from $2.99 to $3.57 per share.
Amazon is expected to report on Oct 26. The stock has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). In the past 90 days, Amazon’s earnings for the September quarter surged from 39 cents to 58 cents per share.
Apple is expected to report on Nov 2. The stock has an Earnings ESP of 0.00% and a Zacks Rank #3. In the past 90 days, Apple’s earnings for the September quarter inched up by 2 cents $1.39 per share.
Nvidia is expected to report on Nov 15. The stock has an Earnings ESP of +6.93% and a Zacks Rank #1 (Strong Buy). In the past 90 days, Nvidia’s earnings for the October quarter jumped from $2.22 to $3.34 per share.
Inside the Valuation of Magnificent Seven
While the 'Magnificent Seven' hold industry-leading positions in areas such as Artificial Intelligence, cloud services, social networking, search engines, the metaverse, premium smartphones, and electric vehicles (which have enabled them to capture a hugeglobal marketshare), valuation remains equally important in influencing their stock performance in the near future.
In this respect, Meta, Alphabet and Microsoft have a lower P/E than the concerned industry Computer Software-Services Market’s P/E, Apple’s P/E is almost in-line with the concerned industry Computer-Office Equipment Market’s P/E. However, Amazon, Tesla and Nvidia are pricey.
ETFs in Focus
Since some of the stocks appear overvalued and some stocks have witnessed earnings estimate upgrade by a smaller margin, investors may turn to the ETF approach as the basket form lowers the company-specific risks.
Apple-Heavy ETFs: Technology Select Sector SPDR Fund XLK, Fidelity MSCI Information Technology Index ETF FTEC
Microsoft-Heavy ETFs: XLK, FTEC
Alphabet-Heavy ETFs: Fidelity MSCI Communication Services Index ETF FCOM, Communication Services Select Sector SPDR Fund XLC
Meta-Heavy ETFs: XLC, FCOM
Nvidia-Heavy ETFs: VanEck Semiconductor ETF SMH, AXS Esoterica NextG Economy ETF WUGI
Tesla-Heavy ETFs: Meet Kevin Pricing Power ETF PP, Consumer Discretionary Select Sector SPDR Fund XLY
Amazon-Heavy ETFs: ProShares Online Retail ETF ONLN, XLY
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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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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
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports
The Meet Kevin Pricing Power ETF (PP): ETF Research Reports
Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports
ProShares Online Retail ETF (ONLN): ETF Research Reports
AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The "Magnificent Seven" typically refers to the 1960 Western film, but today’s stock market investors recognize the term as the set of seven big tech stocks, namely Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, Nvidia NVDA, Meta Platforms META and Tesla TSLA. 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Inside the Valuation of Magnificent Seven While the 'Magnificent Seven' hold industry-leading positions in areas such as Artificial Intelligence, cloud services, social networking, search engines, the metaverse, premium smartphones, and electric vehicles (which have enabled them to capture a hugeglobal marketshare), valuation remains equally important in influencing their stock performance in the near future.
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The "Magnificent Seven" typically refers to the 1960 Western film, but today’s stock market investors recognize the term as the set of seven big tech stocks, namely Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, Nvidia NVDA, Meta Platforms META and Tesla TSLA. 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple-Heavy ETFs: Technology Select Sector SPDR Fund XLK, Fidelity MSCI Information Technology Index ETF FTEC Microsoft-Heavy ETFs: XLK, FTEC Alphabet-Heavy ETFs: Fidelity MSCI Communication Services Index ETF FCOM, Communication Services Select Sector SPDR Fund XLC Meta-Heavy ETFs: XLC, FCOM Nvidia-Heavy ETFs: VanEck Semiconductor ETF SMH, AXS Esoterica NextG Economy ETF WUGI Tesla-Heavy ETFs: Meet Kevin Pricing Power ETF PP, Consumer Discretionary Select Sector SPDR Fund XLY Amazon-Heavy ETFs: ProShares Online Retail ETF ONLN, XLY Want key ETF info delivered straight to your inbox?
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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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The "Magnificent Seven" typically refers to the 1960 Western film, but today’s stock market investors recognize the term as the set of seven big tech stocks, namely Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, Nvidia NVDA, Meta Platforms META and Tesla TSLA. While Tesla has already posted a weak Q3 earnings (missing estimates on both fronts), others are yet to report (read: Tesla Posts Weak Q3 Earnings: ETFs in Focus).
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The "Magnificent Seven" typically refers to the 1960 Western film, but today’s stock market investors recognize the term as the set of seven big tech stocks, namely Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, Nvidia NVDA, Meta Platforms META and Tesla TSLA. 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports The Meet Kevin Pricing Power ETF (PP): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The stock has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold).
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13013.0
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2023-10-20 00:00:00 UTC
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Q3 Earnings Should Provide Plenty of Opportunities in Big Tech
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AAPL
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https://www.nasdaq.com/articles/q3-earnings-should-provide-plenty-of-opportunities-in-big-tech
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nan
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Big tech has obviously been a major mover for the stock market in 2023. With third quarter earnings forthcoming, there should be plenty of opportunities for broad-based ETF as well as single-stock ETF plays.
Amid high inflation, interest rates, and geopolitical risk swirling the capital markets these days, investors can always turn to big tech for a dose of positivism in the markets.
"With the list of stock-market worries growing seemingly by the day, investors looking to earnings season for a dose of good news are hanging their hopes on a familiar group: Big Tech," Bloomberg noted.
That strategy is warranted given that the Nasdaq-100 is up almost 40% despite the recent pullback that's characteristic of an August and September slowdown. Fundamentally, big tech has pushed aside the post-pandemic slump and is reestablishing its market dominance again in 2023.
"After slashing thousands of jobs to cut costs, the biggest US technology and internet companies are pumping out profits similar to those generated two years ago when the pandemic sent sales of digital services and electronic devices soaring," Bloomberg added. "The expectation now is that they’ll help pick up the slack from industries like energy and health care that are still mired in an earnings slump."
Leverage Direxion ETFs for Big Tech Exposure
With trade opportunities abound in big tech, the Direxion Daily Technology Bull 3X ETF (TECL) can offer broad-based exposure. With its triple leverage, TECL is certainly not for the weak of heart, given that the fund seeks daily investment results equal to 300% of the daily performance of the Technology Select Sector Index. On the flip side, there's also the Direxion Daily Technology Bear 3X ETF (TECS) for when big tech pulls back.
Additionally, traders can parse the Nasdaq-100 and extract opportunities in single-stock ETFs. These products allow traders to get tactical exposure to stocks by playing the downside as well as getting extra leverage when their notions skew toward the upside.
Bearish traders can look at the heavy hitters in the Nasdaq-100 such as Amazon: AMZN, Google: GOOG, Microsoft: MSFT, and Apple: AAPL. Here are four single-stock ETF options for the bearish side of tech:
Direxion Daily AMZN Bear 1X Shares (AMZD)
Direxion Daily GOOGL Bear 1X Shares (GGLS)
Direxion Daily MSFT Bear 1X Shares (MSFD)
Direxion Daily AAPL Bear 1X Shares (AAPD)
Traders who sense that more upside could be ahead for the aforementioned names can get an additional 50% of stock exposure with the following ETFs:
Direxion Daily AMZN Bull 1.5X Shares (AMZU)
Direxion Daily GOOGL Bull 1.5X Shares (GGLL)
Direxion Daily MSFT Bull 1.5X Shares (MSFU)
Direxion Daily AAPL Bull 1.5X (AAPU)
For more news, information, and strategy, visit the Leveraged & Inverse 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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Bearish traders can look at the heavy hitters in the Nasdaq-100 such as Amazon: AMZN, Google: GOOG, Microsoft: MSFT, and Apple: AAPL. Here are four single-stock ETF options for the bearish side of tech: Direxion Daily AMZN Bear 1X Shares (AMZD) Direxion Daily GOOGL Bear 1X Shares (GGLS) Direxion Daily MSFT Bear 1X Shares (MSFD) Direxion Daily AAPL Bear 1X Shares (AAPD) Traders who sense that more upside could be ahead for the aforementioned names can get an additional 50% of stock exposure with the following ETFs: Direxion Daily AMZN Bull 1.5X Shares (AMZU) Direxion Daily GOOGL Bull 1.5X Shares (GGLL) Direxion Daily MSFT Bull 1.5X Shares (MSFU) Direxion Daily AAPL Bull 1.5X (AAPU) For more news, information, and strategy, visit the Leveraged & Inverse Channel. "With the list of stock-market worries growing seemingly by the day, investors looking to earnings season for a dose of good news are hanging their hopes on a familiar group: Big Tech," Bloomberg noted.
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Here are four single-stock ETF options for the bearish side of tech: Direxion Daily AMZN Bear 1X Shares (AMZD) Direxion Daily GOOGL Bear 1X Shares (GGLS) Direxion Daily MSFT Bear 1X Shares (MSFD) Direxion Daily AAPL Bear 1X Shares (AAPD) Traders who sense that more upside could be ahead for the aforementioned names can get an additional 50% of stock exposure with the following ETFs: Direxion Daily AMZN Bull 1.5X Shares (AMZU) Direxion Daily GOOGL Bull 1.5X Shares (GGLL) Direxion Daily MSFT Bull 1.5X Shares (MSFU) Direxion Daily AAPL Bull 1.5X (AAPU) For more news, information, and strategy, visit the Leveraged & Inverse Channel. Bearish traders can look at the heavy hitters in the Nasdaq-100 such as Amazon: AMZN, Google: GOOG, Microsoft: MSFT, and Apple: AAPL. Leverage Direxion ETFs for Big Tech Exposure With trade opportunities abound in big tech, the Direxion Daily Technology Bull 3X ETF (TECL) can offer broad-based exposure.
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Here are four single-stock ETF options for the bearish side of tech: Direxion Daily AMZN Bear 1X Shares (AMZD) Direxion Daily GOOGL Bear 1X Shares (GGLS) Direxion Daily MSFT Bear 1X Shares (MSFD) Direxion Daily AAPL Bear 1X Shares (AAPD) Traders who sense that more upside could be ahead for the aforementioned names can get an additional 50% of stock exposure with the following ETFs: Direxion Daily AMZN Bull 1.5X Shares (AMZU) Direxion Daily GOOGL Bull 1.5X Shares (GGLL) Direxion Daily MSFT Bull 1.5X Shares (MSFU) Direxion Daily AAPL Bull 1.5X (AAPU) For more news, information, and strategy, visit the Leveraged & Inverse Channel. Bearish traders can look at the heavy hitters in the Nasdaq-100 such as Amazon: AMZN, Google: GOOG, Microsoft: MSFT, and Apple: AAPL. Leverage Direxion ETFs for Big Tech Exposure With trade opportunities abound in big tech, the Direxion Daily Technology Bull 3X ETF (TECL) can offer broad-based exposure.
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Here are four single-stock ETF options for the bearish side of tech: Direxion Daily AMZN Bear 1X Shares (AMZD) Direxion Daily GOOGL Bear 1X Shares (GGLS) Direxion Daily MSFT Bear 1X Shares (MSFD) Direxion Daily AAPL Bear 1X Shares (AAPD) Traders who sense that more upside could be ahead for the aforementioned names can get an additional 50% of stock exposure with the following ETFs: Direxion Daily AMZN Bull 1.5X Shares (AMZU) Direxion Daily GOOGL Bull 1.5X Shares (GGLL) Direxion Daily MSFT Bull 1.5X Shares (MSFU) Direxion Daily AAPL Bull 1.5X (AAPU) For more news, information, and strategy, visit the Leveraged & Inverse Channel. Bearish traders can look at the heavy hitters in the Nasdaq-100 such as Amazon: AMZN, Google: GOOG, Microsoft: MSFT, and Apple: AAPL. Amid high inflation, interest rates, and geopolitical risk swirling the capital markets these days, investors can always turn to big tech for a dose of positivism in the markets.
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13014.0
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2023-10-20 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-4
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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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13015.0
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2023-10-20 00:00:00 UTC
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Warren Buffett Could Have Bought Any of 60 Nasdaq 100 Companies With $71 Billion. Instead, He Piled It All Into 1 Stock.
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-could-have-bought-any-of-60-nasdaq-100-companies-with-%2471-billion.-instead
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nan
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nan
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For nearly six decades as CEO of conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Warren Buffett has been dazzling Wall Street with his investing prowess. Although Buffett is fallible just like the rest of us, he's overseen a greater than 4,200,000% aggregate return in his company's Class A shares (BRK.A) since taking over Berkshire Hathaway in the mid-1960s. Meanwhile, the benchmark S&P 500 hasn't even reached a cumulative 30,000% total return, including dividends, over the same stretch.
Given the Oracle of Omaha's affinity for generating long-term profits, professional and everyday investors often track his buying and selling activity like hawks. Thankfully, Form 13 filings make mirroring Buffett's trades relatively simple.
A 13F is a required quarterly filing by money managers with at least $100 million in assets under management. It's effectively a snapshot that allows investors to see what Wall Street's smartest investors have been buying and selling in the most recent quarter.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett and his team have built up Berkshire's $344 billion portfolio over time
Although Warren Buffett and his investment lieutenants, Ted Weschler and Todd Combs, have been net sellers of equities since the beginning of October 2022, they've nevertheless been big-time buyers of stocks over longer periods. In fact, Buffett has stated on multiple occasions that he wouldn't "bet against America."
A quick look at Berkshire Hathaway's $344 billion investment portfolio shows that the Oracle of Omaha and his team have put big bucks to work in a number of top ideas.
For example, an estimated $36.3 billion has been invested in Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL), since the first quarter of 2016. The amount of capital deployed into Apple shouldn't be a surprise, given that Buffett has referred to the tech company as "a better business than any we own." It's a strong statement, considering that Berkshire owns a leading railroad (BNSF) and a mainstay insurance company (GEICO).
Aside from being viewed as the world's most valuable brand, Apple's biggest advantage is its innovation. The iPhone has been on the cutting edge of innovation since its debut in 2007. Since upgrading to 5G-capable iPhones in late 2020, Apple has controlled around half, if not more, of the U.S. smartphone market.
To boot, Apple's capital-return program is unmatched. It's set to return $15 billion to its shareholders as a dividend over the next 12 months. The company also has repurchased approximately $600 billion worth of its common stock since the start of 2013.
But Apple isn't the only big-name company that's generating a lot of attention from Warren Buffett and his investment lieutenants. Bank of America (NYSE: BAC) and Chevron (NYSE: CVX) have estimated cost bases of $26.5 billion and $15.6 billion, respectively, according to data from 13F aggregate WhaleWisdom.com.
The Oracle of Omaha absolutely loves the cyclical nature of bank stocks, which helps explain why more than $26 billion has been put to work in shares of Bank of America. Further, BofA is the most interest-rate sensitive of the U.S. money-center banks. With the Federal Reserve raising interest rates at the fastest clip in more than four decades, no large bank has benefited more (in the form of higher net-interest income) than Bank of America.
Meanwhile, Buffett's sizable bet on Chevron indicates his expectation that crude oil prices are likely to remain elevated. Although Chevron generates its highest margins from its drilling segment, it's an integrated energy company that can thrive in most economic climates. If the spot price for crude were to decline, Chevron could rely on the predictability of cash flow from its transmission pipelines, as well as its downstream segments (chemical plants and refineries), which typically benefit from lower input costs.
Image source: Getty Images.
Warren Buffett has piled more than $71 billion into one stock in just five years
Apple, Bank of America, and Chevron collectively accounted for almost 62% of Berkshire Hathaway's $344 billion in invested assets, as of the closing bell one week ago (Oct. 13, 2023). But you might be surprised to learn that none of these three stocks represents Warren Buffett's biggest investment.
Over the past five years, the Oracle of Omaha has bought more than $71 billion worth of a single stock -- and the kicker is, you won't find it listed on Berkshire Hathaway's quarterly 13F filings.
To put into context just how large this aggregate purchase is, consider what Buffett could have done with $71 billion in relation to the high-flying, innovation-driven Nasdaq 100. The Nasdaq 100 is comprised of the 100 largest non-financial companies that are listed on the Nasdaq exchange.
As of the closing bell on Oct. 13, 60 of these 100 companies had market caps of less than $71 billion. Warren Buffett and his team could have purchased any of these 60 potential outperformers but chose, instead, to pile more than $71 billion of Berkshire Hathaway's capital into a single stock.
This stock that has been purchased for 20 consecutive quarters by the Oracle of Omaha is (drumroll)... Berkshire Hathaway. That's right -- Buffett has OK'd more than $71 billion in share repurchases over a five-year stretch.
Prior to July 17, 2018, share buybacks were only allowed if Berkshire Hathaway's shares dipped to or below 120% of book value (i.e., no more than 20% above book value). For more than a half-decade prior to mid-2018, no share repurchases were completed because Berkshire's stock never fell to or below this predetermined mark.
On July 17, 2018, Berkshire Hathaway's board of directors enacted new share-repurchase rules designed to get their dynamic duo of Warren Buffett and Charlie Munger off the sidelines. As long as Berkshire has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet and Buffett and Munger feel shares of the company are intrinsically cheap, buybacks can continue with no ceiling.
Since Berkshire Hathaway doesn't pay a dividend, repurchases serve as the primary means to reward long-term shareholders -- in case a 19.8% annualized return for the company's Class A shares (BRK.A) over nearly six decades wasn't good enough. Reducing the outstanding share count through buybacks increases the ownership stakes of existing shareholders and can provide a healthy boost to Berkshire Hathaway's earnings per share.
To boot, buying back more than $71 billion worth of his own company's stock in just five years is a resounding endorsement by Warren Buffett of the company he and his team have built. Although Berkshire Hathaway does have down years from time to time, its portfolio and owned assets are heavily weighted toward cyclical businesses. Since recessions are considerably shorter than periods of economic expansion, Berkshire Hathaway is ideally positioned for long-term success.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, an estimated $36.3 billion has been invested in Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL), since the first quarter of 2016. A quick look at Berkshire Hathaway's $344 billion investment portfolio shows that the Oracle of Omaha and his team have put big bucks to work in a number of top ideas. If the spot price for crude were to decline, Chevron could rely on the predictability of cash flow from its transmission pipelines, as well as its downstream segments (chemical plants and refineries), which typically benefit from lower input costs.
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For example, an estimated $36.3 billion has been invested in Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL), since the first quarter of 2016. For nearly six decades as CEO of conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Warren Buffett has been dazzling Wall Street with his investing prowess. Warren Buffett and his team have built up Berkshire's $344 billion portfolio over time Although Warren Buffett and his investment lieutenants, Ted Weschler and Todd Combs, have been net sellers of equities since the beginning of October 2022, they've nevertheless been big-time buyers of stocks over longer periods.
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For example, an estimated $36.3 billion has been invested in Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL), since the first quarter of 2016. Warren Buffett and his team have built up Berkshire's $344 billion portfolio over time Although Warren Buffett and his investment lieutenants, Ted Weschler and Todd Combs, have been net sellers of equities since the beginning of October 2022, they've nevertheless been big-time buyers of stocks over longer periods. Warren Buffett has piled more than $71 billion into one stock in just five years Apple, Bank of America, and Chevron collectively accounted for almost 62% of Berkshire Hathaway's $344 billion in invested assets, as of the closing bell one week ago (Oct. 13, 2023).
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For example, an estimated $36.3 billion has been invested in Berkshire Hathaway's top holding, tech stock Apple (NASDAQ: AAPL), since the first quarter of 2016. Warren Buffett has piled more than $71 billion into one stock in just five years Apple, Bank of America, and Chevron collectively accounted for almost 62% of Berkshire Hathaway's $344 billion in invested assets, as of the closing bell one week ago (Oct. 13, 2023). Since Berkshire Hathaway doesn't pay a dividend, repurchases serve as the primary means to reward long-term shareholders -- in case a 19.8% annualized return for the company's Class A shares (BRK.A) over nearly six decades wasn't good enough.
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13016.0
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2023-10-20 00:00:00 UTC
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Picture This: AI Ignites Double-Digit Revenue Growth at Adobe
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AAPL
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https://www.nasdaq.com/articles/picture-this%3A-ai-ignites-double-digit-revenue-growth-at-adobe
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nan
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nan
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Shares of Adobe Inc. (NASDAQ: ADBE) are forming a flat base with a 13% correction beneath a September 8 high of $570.24.
While many stocks have tumbled as AI optimism is taking a breather, Adobe has held up. The S&P 500 component is outperforming the S&P 500 by a wide margin on both a three-month and year-to-date basis.
Adobe stock is up 7.30% in the past three months and up 66.43% year-to-date.
Adobe has been emphasizing the applications of generative AI in its software for design, photography, video editing and other content.
In the case of Adobe, it's easy to see how AI is being deployed in existing products. That plays a role in how investors are evaluating the company and its stock at this point.
Adobe Stock Remains Actionable
If you take a glance at the Adobe chart, you'll see that the stock actually cleared that base but retreated. Shares closed at $557.87 on October 18, meaning the stock is in the buy range, as it's trading just 2.2% below that prior high.
Adobe's revenue has grown at rates of 9% or 10% in each of the past four quarters. Earnings growth accelerated from 9% to 20% in the past four quarters.
Adobe repurchased approximately 2.1 million shares in the most recent quarter, adding to the stock's performance.
Business unit highlights included:
Digital Media revenue was $3.59 billion, 11% year-over-year growth.
Creative revenue grew to $2.91 billion, also representing 11% year-over-year growth.
Document Cloud revenue was $685 million, an increase of 13%.
Net new Digital Media annualized recurring revenue (ARR) was $464 million, ending the quarter with Digital Media ARR of $14.60 billion.
Creative annualized recurring revenue grew to $11.97 billion, and Document Cloud ARR grew to $2.63 billion.
Digital Experience segment revenue was $1.23 billion, 10% growth.
Digital Experience subscription revenue was $1.10 billion, an increase of 12%.
Several factors are driving this across-the-board performance. First, as you can see by those increases in annual recurring revenue, the company is successfully moving its design software, such as Photoshop and Illustrator, to a subscription-based model.
Also facilitating that move is a transition from packaged software to cloud-based software.
Rolled Out More Than 100 New AI Features
And don't overlook Adobe's focus on AI products.
AI-based products include Sensei, a tool for creating marketing graphics and Firefly, to create images, text and color palettes. Firefly, which was released in September, comes with copyright protection to compensate artists whose work is used illegally in the software.
In October, at a conference, the company rolled out over 100 new updates and features using AI in its software products, including Firefly, Photoshop, Lightroom, Premiere Pro, Illustrator and others.
Adobe's analyst ratings show a consensus view of "moderate buy" on the stock. The price target is $594.50, an upside of 6.57%.
Adobe is tracked within the Technology Select Sector SPDR Fund (NYSEARCA: XLK). Adobe stock has outperformed tech stocks as a whole in the past three months, as well as year-to-date.
Holding Up Better Than Other AI Stocks
The stock has not suffered the same fate as AI-related semiconductor stocks that got smacked due to more measured expectations about AI and heightened restrictions on chip exports to China.
Within the S&P 500 tech sector, Adobe's year-to-date performance lags only Nvidia Corp. (NASDAQ: NVDA) and cybersecurity specialist Palo Alto Networks Inc. (NASDAQ: PANW).
Adobe is the fifth most heavily weighted stock within the tech sector, behind Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Broadcom Inc. (NASDAQ: AVGO) and Nvidia. Adobe has a weighting of 3.12% within the sector, meaning that it's dwarfed by Microsoft and Apple and isn't likely to have much influence on performance all by itself.
Given the solid 2023 price performance, it shouldn't come as a surprise that big investors are jumping on board.
MarketBeat's Adobe institutional ownership data show 1,913 institutional buyers accounting for $260.90 billion in inflows in the past 12 months, versus 1,461 big sellers accounting for $14.51 billion in outflows. That's a sign that buyers are clearly in charge.
The article "Picture This: AI Ignites Double-Digit Revenue Growth at Adobe" 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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Adobe is the fifth most heavily weighted stock within the tech sector, behind Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Broadcom Inc. (NASDAQ: AVGO) and Nvidia. Shares of Adobe Inc. (NASDAQ: ADBE) are forming a flat base with a 13% correction beneath a September 8 high of $570.24. First, as you can see by those increases in annual recurring revenue, the company is successfully moving its design software, such as Photoshop and Illustrator, to a subscription-based model.
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Adobe is the fifth most heavily weighted stock within the tech sector, behind Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Broadcom Inc. (NASDAQ: AVGO) and Nvidia. Business unit highlights included: Digital Media revenue was $3.59 billion, 11% year-over-year growth. Net new Digital Media annualized recurring revenue (ARR) was $464 million, ending the quarter with Digital Media ARR of $14.60 billion.
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Adobe is the fifth most heavily weighted stock within the tech sector, behind Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Broadcom Inc. (NASDAQ: AVGO) and Nvidia. Adobe Stock Remains Actionable If you take a glance at the Adobe chart, you'll see that the stock actually cleared that base but retreated. Adobe stock has outperformed tech stocks as a whole in the past three months, as well as year-to-date.
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Adobe is the fifth most heavily weighted stock within the tech sector, behind Microsoft Corp. (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Broadcom Inc. (NASDAQ: AVGO) and Nvidia. Adobe stock is up 7.30% in the past three months and up 66.43% year-to-date. First, as you can see by those increases in annual recurring revenue, the company is successfully moving its design software, such as Photoshop and Illustrator, to a subscription-based model.
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13017.0
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2023-10-20 00:00:00 UTC
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Should WisdomTree U.S. Total Dividend ETF (DTD) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-total-dividend-etf-dtd-be-on-your-investing-radar-9
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nan
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nan
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.04 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies typically 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 are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.64%.
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 16.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.81% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 23.07% of total assets under management.
Performance and Risk
DTD seeks to match the performance of the WisdomTree U.S. Dividend Index before fees and expenses. The WisdomTree U.S. Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. equity market.
The ETF has added about 0.44% so far this year and is up about 8.03% in the last one year (as of 10/20/2023). In the past 52-week period, it has traded between $57.52 and $64.29.
The ETF has a beta of 0.91 and standard deviation of 14.70% for the trailing three-year period, making it a medium risk choice in the space. With about 818 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DTD is a sufficient option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard High Dividend Yield ETF (VYM) and the Vanguard Value ETF (VTV) track a similar index. While Vanguard High Dividend Yield ETF has $47.38 billion in assets, Vanguard Value ETF has $97.08 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.
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WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
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 3.81% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.81% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
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Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports 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 3.81% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Alternatives WisdomTree U.S. Total Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.81% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. Total Dividend ETF (DTD): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. Total Dividend ETF (DTD) is a passively managed exchange traded fund launched on 06/16/2006.
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13018.0
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2023-10-20 00:00:00 UTC
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Can These 3 Semiconductor Stocks Outpace Nvidia's Growth?
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https://www.nasdaq.com/articles/can-these-3-semiconductor-stocks-outpace-nvidias-growth
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Nvidia Corp. (NASDAQ: NVDA) has been the S&P 500’s big winner this year on the strength of its AI chips, but other chip stocks are also going along for the ride.
While stocks like Broadcom Inc. (NASDAQ: AVGO), Advanced Micro Devices Inc. (NASDAQ: AMD), Cadence Design Systems Inc. (NASDAQ: CDNS) and Lam Research Corp. (NASDAQ: LRCX) are also topping the S&P 500 charts, there are some chip stocks whose future growth is expected to rival Nvidia’s.
Those stocks include Micron Technology Inc. (NASDAQ: MU), Wolfspeed Inc. (NYSE: WOLF) and SiTime Corp. (NASDAQ: SITM).
One caveat with the chip industry: It’s notoriously volatile and cyclical, with periods of boom and bust driven by fluctuations in demand and economic conditions.
As we’ve seen, supply chain disruptions, geopolitical tensions, and trade conflicts can impact the industry's sales.
Chip Industry Highly Competitive
The industry is home to intense competition and innovation, as the recent boom in AI-related chips has shown. For example, Microsoft Corp. (NASDAQ: MSFT), which buys AI chips from Nvidia, is reportedly working on its own version of AI chips.
Here’s a look at three chip stocks expected to post fast growth in the coming years.
Micron Technology
Micron Technology specializes in semiconductor memory products.
Its biggest competitor in the space is Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF), which has seen a slowdown in its chip business, due to sluggish PC and smartphone sales.
Samsung recently inked deals to supply memory chips for customers including Alphabet Inc. (NASDAQ: GOOGL) prices 10% to 20% above previous contracts.
Analysts say that could benefit Micron. A look at MarketBeat’s Micron Technology analyst ratings shows a consensus view of “moderate buy” with a price target of $77.75, an upside of 15.13%.
Wall Street expects Micron’s revenue and earnings to bounce back, with the company reporting net income of $3.98 per share in 2025. Sales are expected to grow at a rate of 34.4%, which is approaching Nvidia’s expected growth rate of 35.2%.
Micron stock is up 39.03% year-to-date. A look at the Micron Technology chart shows the stock slicing through its 50-day average as the broad market closed lower on October 19.
Wolfspeed
Wolfspeed makes energy-efficient chip components used in applications such as electric vehicles, renewable energy systems, and fast 5G communication networks. It also sells chips into the aerospace industry.
The company specializes in silicon carbide technology, which is increasingly used in EVs. Wolfspeed chips are used by automakers including General Motors Co. (NYSE: GM), Stellantis N.V. (NYSE: STLA) and Tesla Inc. (NASDAQ: TSLA) among others.
In an October investors’ presentation, Wolfspeed said it anticipates a $5 billion opportunity in transportation applications by 2027, driven mostly by automotive. It also sees a $1 billion opportunity in other applications by 2027.
The Wolfspeed chart doesn’t exactly indicate that potential yet. Wolfspeed analyst ratings tell a more optimistic story, though. Analysts’ consensus view is “hold,” with a price target of $64, which represents an upside of 88.29%.
That’s some serious optimism, and it signals that analysts believe the company’s story about the potential for its silicon carbide chips.
Wolfspeed sales are expected to grow at a rate of 34.1%, although analysts don’t forecast profitability in the next two years.
SiTime
This isn’t as well known as some of the bigger chipmakers, both because it’s smaller and it focuses on a somewhat obscure niche within the semiconductor industry.
SiTime, with a market capitalization of $2.483 billion, specializes in manufacturing integrated circuits that provide precision timing solutions.
While it doesn't produce traditional microprocessors or memory chips, SiTime's oscillators and clock generators are essential semiconductor components used in various electronic devices, making the company a significant player in the broader semiconductor industry.
Its largest end customer is Apple Inc. (NASDAQ: AAPL), which the company said accounted for about 20% of its total revenue in 2022, down from 40% in 2020.
SiTime stock has been underperforming the iShares Semiconductor ETF (NYSEARCA: SOXX) as demand for end-user products has slowed. As is the case with other chipmakers, SiTime is facing weakening sales in the broadband industrial market, as well as in mobile devices, Internet of Things applications, and other consumer electronics gear.
The company’s management is forecasting the current slump in end-user sales will ding revenue, and Wall Street expects income of 16 cents a share this year, down 96%, which is a tremendous decline from 2022.
However, that’s expected to bounce back at a rate of 688% next year, to $1.26 per share.
This is a case of a company that’s currently in the doldrums but could be a good value if Wall Street’s forecasts of a two-year 30.7% sales rate are accurate.
The article "Can These 3 Semiconductor Stocks Outpace Nvidia's Growth?" 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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Its largest end customer is Apple Inc. (NASDAQ: AAPL), which the company said accounted for about 20% of its total revenue in 2022, down from 40% in 2020. Samsung recently inked deals to supply memory chips for customers including Alphabet Inc. (NASDAQ: GOOGL) prices 10% to 20% above previous contracts. As is the case with other chipmakers, SiTime is facing weakening sales in the broadband industrial market, as well as in mobile devices, Internet of Things applications, and other consumer electronics gear.
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Its largest end customer is Apple Inc. (NASDAQ: AAPL), which the company said accounted for about 20% of its total revenue in 2022, down from 40% in 2020. Those stocks include Micron Technology Inc. (NASDAQ: MU), Wolfspeed Inc. (NYSE: WOLF) and SiTime Corp. (NASDAQ: SITM). Micron Technology Micron Technology specializes in semiconductor memory products.
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Its largest end customer is Apple Inc. (NASDAQ: AAPL), which the company said accounted for about 20% of its total revenue in 2022, down from 40% in 2020. Nvidia Corp. (NASDAQ: NVDA) has been the S&P 500’s big winner this year on the strength of its AI chips, but other chip stocks are also going along for the ride. While stocks like Broadcom Inc. (NASDAQ: AVGO), Advanced Micro Devices Inc. (NASDAQ: AMD), Cadence Design Systems Inc. (NASDAQ: CDNS) and Lam Research Corp. (NASDAQ: LRCX) are also topping the S&P 500 charts, there are some chip stocks whose future growth is expected to rival Nvidia’s.
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Its largest end customer is Apple Inc. (NASDAQ: AAPL), which the company said accounted for about 20% of its total revenue in 2022, down from 40% in 2020. Those stocks include Micron Technology Inc. (NASDAQ: MU), Wolfspeed Inc. (NYSE: WOLF) and SiTime Corp. (NASDAQ: SITM). Micron Technology Micron Technology specializes in semiconductor memory products.
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13019.0
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2023-10-20 00:00:00 UTC
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China vice premier pushes for more Apple investment, cooperation
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AAPL
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https://www.nasdaq.com/articles/china-vice-premier-pushes-for-more-apple-investment-cooperation
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Updates throughout with details, background
BEIJING, Oct 20 (Reuters) - China's Vice Premier Ding Duexiang told Apple CEO Tim Cook the group was welcome to participate in developing China's digital economy, as Cook made a surprise visit to Beijing less than a month after the Chinese launch of its iPhone 15.
Cook's visit comes as competition between the U.S. tech giant and China's Huawei heats up in Apple's third-largest market, and as Beijing tightens oversight on security concerns.
Sales of iPhone 15 models in their first 17 days in China were down 4.5% compared to the iPhone 14, Counterpoint Research said, without providing specific figures.
China in September widened curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple handsets at work.
"China is willing to provide more opportunities for foreign-funded enterprises including Apple to develop in the country," Ding told Cook in a meeting on Thursday, according to Chinese state radio.
Cook said Apple was confident in the prospects of Chinese market, and was willing to strengthen cooperation with China in fields including high-end manufacturing and digital economy, the state radio reported.
(Reporting by Ethan Wang and Bernard Orr;)
((Ethan.Wang@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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Cook's visit comes as competition between the U.S. tech giant and China's Huawei heats up in Apple's third-largest market, and as Beijing tightens oversight on security concerns. "China is willing to provide more opportunities for foreign-funded enterprises including Apple to develop in the country," Ding told Cook in a meeting on Thursday, according to Chinese state radio. Cook said Apple was confident in the prospects of Chinese market, and was willing to strengthen cooperation with China in fields including high-end manufacturing and digital economy, the state radio reported.
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Updates throughout with details, background BEIJING, Oct 20 (Reuters) - China's Vice Premier Ding Duexiang told Apple CEO Tim Cook the group was welcome to participate in developing China's digital economy, as Cook made a surprise visit to Beijing less than a month after the Chinese launch of its iPhone 15. "China is willing to provide more opportunities for foreign-funded enterprises including Apple to develop in the country," Ding told Cook in a meeting on Thursday, according to Chinese state radio. Cook said Apple was confident in the prospects of Chinese market, and was willing to strengthen cooperation with China in fields including high-end manufacturing and digital economy, the state radio reported.
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Updates throughout with details, background BEIJING, Oct 20 (Reuters) - China's Vice Premier Ding Duexiang told Apple CEO Tim Cook the group was welcome to participate in developing China's digital economy, as Cook made a surprise visit to Beijing less than a month after the Chinese launch of its iPhone 15. "China is willing to provide more opportunities for foreign-funded enterprises including Apple to develop in the country," Ding told Cook in a meeting on Thursday, according to Chinese state radio. Cook said Apple was confident in the prospects of Chinese market, and was willing to strengthen cooperation with China in fields including high-end manufacturing and digital economy, the state radio reported.
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Cook's visit comes as competition between the U.S. tech giant and China's Huawei heats up in Apple's third-largest market, and as Beijing tightens oversight on security concerns. Sales of iPhone 15 models in their first 17 days in China were down 4.5% compared to the iPhone 14, Counterpoint Research said, without providing specific figures. "China is willing to provide more opportunities for foreign-funded enterprises including Apple to develop in the country," Ding told Cook in a meeting on Thursday, according to Chinese state radio.
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13020.0
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2023-10-20 00:00:00 UTC
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"Magnificent Seven" Earnings Underway: ETFs in Spotlight
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https://www.nasdaq.com/articles/magnificent-seven-earnings-underway%3A-etfs-in-spotlight
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We are in the thick of the third-quarter earnings season and the so-called "Magnificent Seven" are in focus. This is especially true as these have driven nearly all of the S&P 500’s 12% year-to-date gains because of their outsized weighting in the index. However, the seven stocks have stumbled in the third quarter as a surge in yields threatens to dull the allure of equities.
The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. Tesla came up with dismal results, pushing shares down by more than 9%. (read: Tesla Posts Weak Q3 Earnings: ETFs in Focus).
Among the remaining companies, some are expected to report next week and others thereafter.
Overall, the big seven companies are a big contributor to S&P earnings. Third-quarter earnings of this group of companies are expected to grow 34.9% from the same period last year on 11.2% higher revenues.
Microsoft and Alphabet are expected to release results on Oct 24 after market close, while Meta Platforms is expected to report on Oct 25. Amazon will report on Oct 26 and Apple on Nov 2. Nvidia is expected to come up with earnings on Nov 15 (see: all the Technology ETFs here).
Microsoft
Microsoft has an Earnings ESP of 0.00% 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.
Microsoft saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. Its earnings track is impressive, with the four-quarter earnings surprise being 5.27%, on average. The Zacks Consensus Estimate indicates earnings growth of 12.8% and modest revenue growth of 8.6% from the year-ago quarter. Microsoft belongs to a bottom-ranked Zacks industry (bottom 44%) and has shed 2.3% over the past three months. It has a solid Growth Score of B.
Alphabet
Alphabet has an Earnings ESP of +0.89% and Zacks Rank #3. It saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. The company’s earnings surprise track record over the past four quarters is not good, with the negative earnings surprise being 0.91%, on average. Earnings are expected to increase 36.8%, while revenues are expected to grow 10.2% from the year-ago quarter. Alphabet has a solid Growth Score of A and falls under a top-ranked Zacks industry (top 37%). The Internet behemoth has climbed 6.7% in the last three months.
Meta Platforms
Meta Platforms has an Earnings ESP of +3.98% and Zacks Rank #3. The social media giant saw positive earnings estimate revision of 4 cents for the to-be-reported quarter over the past 30 days. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock.
The current Zacks Consensus Estimate for the yet-to-be-reported quarter indicates massive year-over-year earnings growth of 117.7%. Revenues are also expected to increase 20.6%. Meta Platforms delivered an earnings surprise of 18.99%, on average, in the last four quarters. The stock has a solid Growth Score of A and belongs to a top-ranked Zacks industry (top 29%). Shares of META have surged about 6% over the past three months.
Amazon
Amazon has an Earnings ESP of 0.00% and a Zacks Rank #2. The stock saw no earnings estimate revision over the past 30 days for the third quarter. The Zacks Consensus Estimate indicates whopping year-over-year earnings growth of 190% and substantial revenue growth of 11.4% for the to-be-reported quarter. Additionally, Amazon’s earnings surprise history is impressive, with the four-quarter average surprise being 40.96%. The stock has a solid Growth Score of A but falls under a top-ranked Zacks industry (top 37%).
Apple
Apple has an Earnings ESP of 0.00% and a Zacks Rank #3. Apple saw no earnings estimate revision over the past 30 days for the fiscal fourth quarter. The iPhone maker has a strong track record of positive earnings surprise. It delivered an average earnings surprise of 2.6815% in the trailing four quarters. The Zacks Consensus Estimate indicates a modest year-over-year increase of 7.7% for earnings and a decrease of 1.3% for revenues. Apple belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of B.
Nvidia
Nvidia currently has an Earnings ESP of +6.93% and a Zacks Rank #1. This videogame-gear specialist saw a positive earnings estimate revision of a couple of cents over the past 30 days for the third quarter of fiscal 2024. Nvidia’s earnings surprise history is good as it delivered an earnings surprise of 9.79%, on average, in the last four quarters. Nvidia is expected to post earnings and revenue growth of 475.9% and 171.7%, respectively, for the to-be-reported quarter. The stock belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of A.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted some ETFs having the largest exposure to "Magnificent Seven."
Roundhill BIG Tech ETF (BIGT)
Roundhill BIG Tech ETF offers investors precise exposure to the “Magnificent Seven.” It has amassed $5.9 million in its asset base and charges 29 bps in fees per year. It trades in an average daily volume of 6,000 shares.
MicroSectors FANG+ ETN (FNGS)
This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of these seven stocks. MicroSectors FANG+ ETN has accumulated $133.3 million in its asset base and charges 58 bps in annual fees. It trades in a moderate volume of 178,000 shares a day on average and has a Zacks ETF Rank #3 (Hold) (read: 5 ETFs That Are Up More Than 40% So Far This Year).
Vanguard Mega Cap Growth ETF (MGK)
Vanguard Mega Cap Growth ETF tracks the CRSP US Mega Cap Growth Index. It holds 88 securities in its basket, with "Magnificent Seven" collectively accounting for 56.6% of the total assets. Vanguard Mega Cap Growth ETF charges 7 bps in annual fees and trades in a good volume of around 300,000 shares a day on average. The fund has AUM of $14.2 billion and a Zacks ETF Rank #2 (Buy).
Invesco S&P 500 Top 50 ETF (XLG)
Invesco S&P 500 Top 50 ETF follows the S&P 500 Top 50 ETF Index, which measures the cap-weighted performance of 50 of the largest companies on the S&P 500 Index, reflecting the performance of the U.S. mega-cap stocks. It holds 55 stocks in its basket and "Magnificent Seven" accounts for a combined 49.2% share. Invesco S&P 500 Top 50 ETF has been able to manage assets worth $2.5 billion but trades in a good volume of about 468,000 shares a day on average. XLG charges 20 bps in annual fees and has a Zacks ETF Rank #3.
iShares S&P 100 ETF (OEF)
iShares S&P 100 ETF offers exposure to 101 largest U.S. companies. "Magnificent Seven" accounts for a combined 41.1% share. iShares S&P 100 ETF has amassed $8.6 million in its asset base and charges 20 bps in annual fees. It trades in average daily volume of 185,000 shares and has a Zacks ETF Rank #3.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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
Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
iShares S&P 100 ETF (OEF): ETF Research Reports
MicroSectors FANG+ ETN (FNGS): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Roundhill BIG Tech ETF (BIGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. 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 Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. Roundhill BIG Tech ETF offers investors precise exposure to the “Magnificent Seven.” It has amassed $5.9 million in its asset base and charges 29 bps in fees per year.
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The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. 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 Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. Roundhill BIG Tech ETF offers investors precise exposure to the “Magnificent Seven.” It has amassed $5.9 million in its asset base and charges 29 bps in fees per year.
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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 Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. Apple belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of B. Nvidia Nvidia currently has an Earnings ESP of +6.93% and a Zacks Rank #1.
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The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. 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 Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. Shares of META have surged about 6% over the past three months.
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13021.0
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2023-10-20 00:00:00 UTC
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After Hours Most Active for Oct 20, 2023 : AAPL, AMD, QQQ, TMCI, VTRS, EOLS, KEY, XOM, T, BAC, PFE, VMW
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-20-2023-%3A-aapl-amd-qqq-tmci-vtrs-eols-key-xom-t-bac-pfe
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The NASDAQ 100 After Hours Indicator is down -3.55 to 14,557.33. The total After hours volume is currently 100,258,808 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.17 at $173.05, with 3,184,033 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is -0.08 at $101.73, with 2,854,220 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.18 at $354.42, with 2,815,697 shares traded. This represents a 36.8% increase from its 52 Week Low.
Treace Medical Concepts, Inc. (TMCI) is unchanged at $9.91, with 2,399,318 shares traded. As reported by Zacks, the current mean recommendation for TMCI is in the "buy range".
Viatris Inc. (VTRS) is unchanged at $9.30, with 2,202,555 shares traded. VTRS's current last sale is 74.4% of the target price of $12.5.
Evolus, Inc. (EOLS) is unchanged at $7.81, with 2,086,625 shares traded. As reported in the last short interest update the days to cover for EOLS is 10.961357; this calculation is based on the average trading volume of the stock.
KeyCorp (KEY) is +0.01 at $9.90, with 1,753,595 shares traded. KEY's current last sale is 76.15% of the target price of $13.
Exxon Mobil Corporation (XOM) is -0.08 at $111.00, with 1,743,920 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $2.38. XOM is scheduled to provide an earnings report on 10/27/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 2.38 per share, which represents a 445 percent increase over the EPS one Year Ago
AT&T Inc. (T) is unchanged at $15.38, with 1,743,399 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2024. The consensus EPS forecast is $0.62. T's current last sale is 76.9% of the target price of $20.
Bank of America Corporation (BAC) is unchanged at $26.31, with 1,738,877 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $0.83. BAC's current last sale is 77.38% of the target price of $34.
Pfizer, Inc. (PFE) is unchanged at $30.65, with 1,627,710 shares traded., following a 52-week high recorded in today's regular session.
Vmware, Inc. (VMW) is -0.13 at $150.78, with 1,609,658 shares traded. VMW's current last sale is 91.38% of the target price of $165.
The views and 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 +0.17 at $173.05, with 3,184,033 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for EOLS is 10.961357; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is +0.17 at $173.05, with 3,184,033 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 100,258,808 shares traded.
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Apple Inc. (AAPL) is +0.17 at $173.05, with 3,184,033 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 100,258,808 shares traded.
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Apple Inc. (AAPL) is +0.17 at $173.05, with 3,184,033 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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2023-10-20 00:00:00 UTC
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Should Fidelity Quality Factor ETF (FQAL) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-fidelity-quality-factor-etf-fqal-be-on-your-investing-radar
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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 Fidelity Quality Factor ETF (FQAL), a passively managed exchange traded fund launched on 09/12/2016.
The fund is sponsored by Fidelity. It has amassed assets over $313.75 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.39%.
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 26.60% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.69% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL).
The top 10 holdings account for about 31.41% of total assets under management.
Performance and Risk
FQAL seeks to match the performance of the Fidelity U.S. Quality Factor Index before fees and expenses. The Fidelity U.S. Quality Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies with a higher quality profile than the broader market.
The ETF has added about 12.54% so far this year and is up about 17.88% in the last one year (as of 10/20/2023). In the past 52-week period, it has traded between $42.92 and $52.31.
The ETF has a beta of 0.98 and standard deviation of 17.47% for the trailing three-year period. With about 129 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Quality Factor 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, FQAL 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 $344.36 billion in assets, SPDR S&P 500 ETF has $393.86 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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Fidelity Quality Factor ETF (FQAL): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.69% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Fidelity Quality Factor ETF (FQAL), a passively managed exchange traded fund launched on 09/12/2016.
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Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.69% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Fidelity Quality Factor ETF (FQAL), a passively managed exchange traded fund launched on 09/12/2016.
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Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.69% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Alternatives Fidelity Quality Factor 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 7.69% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Cl A (GOOGL). Click to get this free report Fidelity Quality Factor ETF (FQAL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Fidelity Quality Factor ETF (FQAL), a passively managed exchange traded fund launched on 09/12/2016.
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2023-10-20 00:00:00 UTC
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3 Mutual Funds to Invest in for Pro Management and Low Fees
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https://www.nasdaq.com/articles/3-mutual-funds-to-invest-in-for-pro-management-and-low-fees
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Mutual funds are a great investment vehicle for people who want a margin of safety and to have a professional money manager handle their capital. That helps explain why mutual funds continue to grow in popularity. Today, more than half (52%) of Americans are invested in mutual funds, up from less than 6% of people in 1980. Generally speaking, mutual funds provide investors with broad exposure to a basket of stocks selected by a professional and actively managed. Because of the actively managed nature of mutual funds, they tend to charge higher fees than more passively managed exchange-traded funds (ETFs).
While some investors and analysts grumble about the high fees charged by mutual funds, there are many funds that offer low fees and expert stock picking. Sourcing these types of mutual funds is advantageous and can help investors save for a comfortable future. Here are three mutual funds to invest in for pro-management and low fees.
Vanguard Information Technology Index Fund Admiral Shares (VITAX)
Source: Golden Dayz / Shutterstock.com
When it comes to mutual funds, Vanguard offers the lowest fees around. The company’s flagship technology-focused fund, the Vanguard Information Technology Index Fund Admiral Shares (NASDAQ:VITAX) charges a management fee of only 0.10%, which is rock bottom for the industry. For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few.
This fund, focused entirely on companies in the electronics and computing industries, has a strong track record of growth. So far in 2023, the VITAX mutual fund is up 33% as many of its tech holdings have seen their share prices surge with the market rebound from 2022’s downturn. The nice thing about this actively managed tech fund is it also pays a regular dividend to investors. Currently, Vanguard’s VITAX fund pays a quarterly distribution of 44 cents per share.
Schwab Core Equity Fund (SWANX)
Source: Shutterstock
For more diversity, there is the Schwab Core Equity Fund (NASDAQ:SWANX) from investment giant Charles Schwab (NYSE:SCHW). The fund also contains many tech stocks, including Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). However, its portfolio also includes energy companies such as Exxon Mobil (NYSE:XOM), healthcare companies like Johnson & Johnson (NYSE:JNJ) and even Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B).
In addition to its diversity, the SWANX fund is also more targeted, holding a total of 52 stocks. The expense ratio is higher at 0.73% but still reasonable for a mutual fund of its size. And it pays an annual dividend of $2.79 per unit held, giving it a yield of 1.26%. In terms of performance, the fund has returned 12% to investors so far in 2023. This fund is a good bet for investors wanting a targeted and diverse group of leading U.S. large-cap stocks.
Vanguard European Stock Index Fund Admiral Shares (VEUSX)
Source: Shutterstock
Investors wanting exposure to foreign stocks should consider the Vanguard European Stock Index Fund Admiral Shares (NASDAQ:VEUSX). This is a mutual fund offering broad exposure to the European market. It’s a big fund that holds more than 1,300 stocks that span the entire European region and all economic sectors. As with all Vanguard funds, the VEUSX mutual fund has a low management expense ratio of just 0.13%. However, note that the fund requires a minimum investment of $3,000.
Some of the major holdings in VEUSX include sizable European concerns such as food giant Nestle SA (OTCMKTS:NSRGY), drug maker Novo Nordisk (NYSE:NVO) and energy company Shell (NYSE:SHEL). Nearly 100% of the stocks in the fund are based on the European continent. Over the past year, the VEUSX fund has increased nearly 20%. Like nearly all Vanguard funds, this one pays a quarterly dividend of 32 cents. This investment is a great option for investors who want broad exposure to foreign markets.
On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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The post 3 Mutual Funds to Invest in for Pro Management and Low Fees appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. Generally speaking, mutual funds provide investors with broad exposure to a basket of stocks selected by a professional and actively managed.
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For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. The company’s flagship technology-focused fund, the Vanguard Information Technology Index Fund Admiral Shares (NASDAQ:VITAX) charges a management fee of only 0.10%, which is rock bottom for the industry.
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For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. While some investors and analysts grumble about the high fees charged by mutual funds, there are many funds that offer low fees and expert stock picking.
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For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. The company’s flagship technology-focused fund, the Vanguard Information Technology Index Fund Admiral Shares (NASDAQ:VITAX) charges a management fee of only 0.10%, which is rock bottom for the industry.
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2023-10-20 00:00:00 UTC
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Best Stocks To Invest In Right Now? 3 Tech Stocks To Watch
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https://www.nasdaq.com/articles/best-stocks-to-invest-in-right-now-3-tech-stocks-to-watch
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When we talk about the modern world and its driving forces, the tech sector stands out as a major player. This sector encompasses companies that create and sell electronic devices, software, computers, artificial intelligence, and other innovations that power our daily lives. These companies, from giants like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) to smaller startups, are continually pushing boundaries, creating products, and offering services that redefine how we live, work, and play.
Investing in tech stocks means buying a piece of these companies. For many investors, this is an attractive proposition because of the sector’s reputation for rapid growth and its history of game-changing innovations.
However, like all investments, tech stocks come with their own set of risks, often characterized by their volatility. While there’s potential for high rewards, it’s essential to understand the unique challenges of the tech world before diving in. That said, here are three tech stocks to check out in the stock market now.
Tech Stocks To Buy [Or Avoid] Right Now
Microsoft Corporation (NASDAQ: MSFT)
Netflix Inc. (NASDAQ: NFLX)
Palantir Technologies Inc. (NYSE: PLTR)
Microsoft (MSFT Stock)
First off, Microsoft Corporation (MSFT) is a global technology giant known for its software products. This includes the Windows operating system and the Office suite of productivity tools. Additionally, Microsoft offers a range of hardware, cloud services, and other innovative solutions that cater to both individual consumers and businesses of all sizes.
Last month, Microsoft announced a 10% increase in its quarterly dividend, raising it by 7 cents to $0.75 per share. This dividend will be payable on December 14, 2023, to shareholders who are on record as of November 16, 2023, with the ex-dividend date set for November 15, 2023. Additionally, Microsoft confirmed that the 2023 Annual Shareholders Meeting is scheduled for December 7, 2023.
In the last six months of trading, shares of Microsoft stock have traded higher by 14.13%. Meanwhile, during Friday’s late-morning trading session, MSFT stock is trading lower on the day so far by 1.51% at $326.31 per share.
Source: TD Ameritrade TOS
[Read More] 2 Dow Jones Industrial Average Stocks For Your Mid-October 2023 Watchlist
Netflix (NFLX Stock)
Second, Netflix Inc. (NFLX) is a pioneering streaming service that offers a vast library of films, television shows, and original content. With a presence in numerous countries worldwide, Netflix has transformed the way audiences consume entertainment, providing on-demand access to a diverse range of genres and languages.
Earlier this week, Netflix reported a beat for its third quarter 2023 financial results. In detail, Netflix notched in earnings of $3.73 per share, on revenue of $8.54 billion for Q3 2023. This is versus Wall Street’s estimates for the quarter which were an EPS of $3.46 and revenue estimates of $8.43 billion. Additionally, revenue increased by 7.77% compared to the same period, the previous year.
Moreover, in the previous six months of trading action, Netflix stock has surged by 23.20%. While, during Friday’s late-morning trading session, shares of NFLX stock are trading modestly lower on the day so far by 0.39% at $400.20 a share.
Source: TD Ameritrade TOS
[Read More] 3 Defense Stocks For Your October 2023 Watchlist
Palantir Technologies (PLTR Stock)
Last but not least, Palantir Technologies Inc. (PLTR) specializes in creating software platforms for data integration, information management, and analytics. Catering primarily to government, defense, and intelligence agencies, as well as commercial sectors, Palantir’s platforms assist organizations in making informed decisions by analyzing vast amounts of data.
Earlier this month, Palantir Technologies announced that it had secured a contract from the Army to offer enhanced capabilities in support of the Combatant Commands (COCOMs), Armed Services, Intelligence Community, and Special Forces. This contract, aimed at furthering the testing, utilization, and scaling of artificial intelligence (AI) and machine learning (ML) capabilities, is valued at up to $250 million and spans through 2026.
Looking at the past six months of trading, shares of PLTR stock have increased by 96.99%. Additionally, during Friday morning’s trading session, Palantir Technologies stock has dropped by 6.04% on the day so far, trading at $16.03 a share.
Source: TD Ameritrade TOS
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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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These companies, from giants like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) to smaller startups, are continually pushing boundaries, creating products, and offering services that redefine how we live, work, and play. Catering primarily to government, defense, and intelligence agencies, as well as commercial sectors, Palantir’s platforms assist organizations in making informed decisions by analyzing vast amounts of data. Earlier this month, Palantir Technologies announced that it had secured a contract from the Army to offer enhanced capabilities in support of the Combatant Commands (COCOMs), Armed Services, Intelligence Community, and Special Forces.
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These companies, from giants like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) to smaller startups, are continually pushing boundaries, creating products, and offering services that redefine how we live, work, and play. Tech Stocks To Buy [Or Avoid] Right Now Microsoft Corporation (NASDAQ: MSFT) Netflix Inc. (NASDAQ: NFLX) Palantir Technologies Inc. (NYSE: PLTR) Microsoft (MSFT Stock) First off, Microsoft Corporation (MSFT) is a global technology giant known for its software products. While, during Friday’s late-morning trading session, shares of NFLX stock are trading modestly lower on the day so far by 0.39% at $400.20 a share.
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These companies, from giants like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) to smaller startups, are continually pushing boundaries, creating products, and offering services that redefine how we live, work, and play. Tech Stocks To Buy [Or Avoid] Right Now Microsoft Corporation (NASDAQ: MSFT) Netflix Inc. (NASDAQ: NFLX) Palantir Technologies Inc. (NYSE: PLTR) Microsoft (MSFT Stock) First off, Microsoft Corporation (MSFT) is a global technology giant known for its software products. Source: TD Ameritrade TOS [Read More] 2 Dow Jones Industrial Average Stocks For Your Mid-October 2023 Watchlist Netflix (NFLX Stock) Second, Netflix Inc. (NFLX) is a pioneering streaming service that offers a vast library of films, television shows, and original content.
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These companies, from giants like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) to smaller startups, are continually pushing boundaries, creating products, and offering services that redefine how we live, work, and play. Tech Stocks To Buy [Or Avoid] Right Now Microsoft Corporation (NASDAQ: MSFT) Netflix Inc. (NASDAQ: NFLX) Palantir Technologies Inc. (NYSE: PLTR) Microsoft (MSFT Stock) First off, Microsoft Corporation (MSFT) is a global technology giant known for its software products. Source: TD Ameritrade TOS [Read More] 3 Defense Stocks For Your October 2023 Watchlist Palantir Technologies (PLTR Stock) Last but not least, Palantir Technologies Inc. (PLTR) specializes in creating software platforms for data integration, information management, and analytics.
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2023-10-20 00:00:00 UTC
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Top Stock Reports for Apple, Amgen & Becton, Dickinson
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https://www.nasdaq.com/articles/top-stock-reports-for-apple-amgen-becton-dickinson
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Friday, October 20, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Amgen Inc. (AMGN) and Becton, Dickinson and Company (BDX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have outperformed the broader market this year (+34% vs. +12.8% for the S&P 500 index) and roughly matched the Zacks Tech sector (+34% vs. +34.8%). The company expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter.
Apple launched four new iPhone models at its product launch event on Sep 12. Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available.
Apple is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth.
However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
(You can read the full research report on Apple here >>>)
Shares of Amgen have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+9.7% vs. -20.4%). The company expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters.
The recently completed acquisition of Horizon Therapeutics is expected to enhance Amgen’s growth prospects. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months.
However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds. Estimate movements have been mixed ahead of Q3 results.
(You can read the full research report on Amgen here >>>)
Shares of Becton, Dickinson have gained +2.4% over the year-to-date period against the Zacks Medical - Dental Supplies industry’s gain of +12.2%. The company continued focus on research and development (R&D) and its progress toward meeting its BD 2025 strategy raises optimism.
The company’s divestiture of its surgical instruments platform to support the achievement of its BD 2025 financial goals and further advance the BD Interventional segment’s focus on high-growth end markets looks promising.
Regulatory approvals and product launches over the past few months are also encouraging. Yet, BD’s operation in a significantly consolidated and competitive medical technology industry is worrying. Lower COVID-only testing revenues are discouraging from a business perspective. Forex volatility prevails.
(You can read the full research report on Becton, Dickinson here >>>)
Other noteworthy reports we are featuring today include UnitedHealth Group (UNH), MPLX LP (MPLX) and Verisk Analytics (VRSK).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfoliou, Services Strength to Benefit Apple (AAPL)
Amgen (AMGN) Makes Rapid Progress on Solid Pipeline
Continued Focus on R&D Aids BD (BDX) Amid Stiff Competition
Featured Reports
Solid Membership Drives UnitedHealth (UNH), High Costs Hurt
Per the Zacks analyst, sustained membership growth in its UnitedHealthcare business and expansion of care services will fuel UnitedHealth's top-line growth. However, high operating expenses are a woe.
Verisk (VRSK) to Gain From Opta Buyout, Low Liquidity Ail
Per the Zacks analyst, the Opta acquisition is expected to expand Verisk's footprint in the Canadian market. Security breaches may expose the company to operational risks.
Sysco's (SYY) Focus on Recipe For Growth Program Bodes Well
Per the Zacks analyst, Sysco is on track with Recipe for Growth program to drive growth. The program will enable the company to grow 1.5 times faster than the market by FY24's end.
Discover Financial (DFS) Aided by Rising Interest Income
Per the Zacks Analyst, growth in net interest income and non-interest income has contributed to the company's top line. Its robust capital position remains a key catalyst.
Strategic Acquisitions Aid Builders FirstSource (BLDR)
Per the Zacks analyst, Builders FirstSource is benefiting from strategic acquisitions and cost synergies. Also, strong value-added product portfolio bodes well.
New Upgrades
MPLX's Stable Fee-Based Revenue From Long-Term Contracts Aid
Per the Zacks analyst, MPLX boasts stable revenues from diverse midstream energy assets via long-term contracts. The partnership is also committed to returning capital to shareholders.
Strong Sales for Nerlynx Aid Puma Biotech's (PBYI) Revenues
Per the Zacks analyst, Puma Biotech's cancer drug, Nerlynx, is witnessing consistent sales growth in the United States. The acquisition of alisertib also holds promise as it possess huge potential
New Downgrades
J&J (JNJ) Talc Litigation Uncertainty Still Looms
The Zacks analyst believes that though J&J has taken meaningful steps to resolve its talc and opioid litigation, uncertainty exists regarding the talc litigations.
Supply Chain Issues and Rising Cost Hit SolarEdge
Per the Zacks analyst, constraints in the global transportation system may continue to disrupt SolarEdge's logistics supply chain that tend to increase its ocean freight cost and hamper its earnings
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
MPLX LP (MPLX) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfoliou, Services Strength to Benefit Apple (AAPL) Amgen (AMGN) Makes Rapid Progress on Solid Pipeline Continued Focus on R&D Aids BD (BDX) Amid Stiff Competition Featured Reports Solid Membership Drives UnitedHealth (UNH), High Costs Hurt Per the Zacks analyst, sustained membership growth in its UnitedHealthcare business and expansion of care services will fuel UnitedHealth's top-line growth. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Amgen Inc. (AMGN) and Becton, Dickinson and Company (BDX). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report MPLX LP (MPLX) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Amgen Inc. (AMGN) and Becton, Dickinson and Company (BDX). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfoliou, Services Strength to Benefit Apple (AAPL) Amgen (AMGN) Makes Rapid Progress on Solid Pipeline Continued Focus on R&D Aids BD (BDX) Amid Stiff Competition Featured Reports Solid Membership Drives UnitedHealth (UNH), High Costs Hurt Per the Zacks analyst, sustained membership growth in its UnitedHealthcare business and expansion of care services will fuel UnitedHealth's top-line growth. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report MPLX LP (MPLX) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Amgen Inc. (AMGN) and Becton, Dickinson and Company (BDX). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfoliou, Services Strength to Benefit Apple (AAPL) Amgen (AMGN) Makes Rapid Progress on Solid Pipeline Continued Focus on R&D Aids BD (BDX) Amid Stiff Competition Featured Reports Solid Membership Drives UnitedHealth (UNH), High Costs Hurt Per the Zacks analyst, sustained membership growth in its UnitedHealthcare business and expansion of care services will fuel UnitedHealth's top-line growth. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report MPLX LP (MPLX) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Amgen Inc. (AMGN) and Becton, Dickinson and Company (BDX). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfoliou, Services Strength to Benefit Apple (AAPL) Amgen (AMGN) Makes Rapid Progress on Solid Pipeline Continued Focus on R&D Aids BD (BDX) Amid Stiff Competition Featured Reports Solid Membership Drives UnitedHealth (UNH), High Costs Hurt Per the Zacks analyst, sustained membership growth in its UnitedHealthcare business and expansion of care services will fuel UnitedHealth's top-line growth. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report MPLX LP (MPLX) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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13026.0
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2023-10-20 00:00:00 UTC
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This Low-Priced Warren Buffett Stock Has 57% Upside Potential
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AAPL
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https://www.nasdaq.com/articles/this-low-priced-warren-buffett-stock-has-57-upside-potential
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nan
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nan
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Warren Buffett, the legendary value investor, is all about the long game. He loves picking top-notch companies that are trading at a discount, then reaping the rewards over time. While most investors are familiar with big-name Buffett stocks like Apple (AAPL) and Coca-Cola (KO), one relatively under-the-radar company that has more recently earned Oracle of Omaha's approval is StoneCo Ltd (STNE), a fintech firm focused on the Brazilian market.
The booming Brazilian payments industry is expected to grow by 16.5% annually to hit $200 billion in transactions by 2027. But while the long-term forecasts are encouraging, it hasn't been smooth sailing since Buffett's Berkshire Hathaway (BRK.B) added STNE to its legendary portfolio during the October 2018 IPO.
Since then, a combination of economic challenges in Brazil, regulatory challenges, and rising competition have knocked the stock down by over 68% from its debut pricing - and STNE is off 89% from its all-time highs. As a result, the Brazilian fintech firm has pulled back considerably from those highs around $95, set in February 2021. Now, the shares are up 6.5% on a year-to-date basis, to linger just above $10.
www.barchart.com
That said, there's something uniquely appealing about scooping up a stock with major growth potential at an even better price than Warren Buffett himself. So, should you consider buying STNE at current levels? Let's take a look.
Why Has STNE Been Falling?
StoneCo provides payment solutions and software for merchants, with a particular focus on small and medium-sized businesses in Latin America. As of the most recent regulatory filings available, Berkshire Hathaway has a 3.4% stake in STNE.
As a fintech player in an emerging market, StoneCo faces some tough challenges. Brazil's economy is on shaky ground, with sluggish GDP growth, double-digit interest rates, and inflation over 5%. This means people might not be spending as much, and growth in payments could falter. On top of that, StoneCo has got some feisty competition to deal with as rival Cielo continues to gun for its customers.
However, unlike their U.S. counterparts, central bankers in Brazil have started to cut rates - which could bode well for finance firms with exposure to the market. Since the start of August, Brazil's key lending rate is down by a full percentage point after two aggressive half-point cuts, and the country's policymakers could continue to ease as inflationary pressures subside.
StoneCo: Strong Earnings Performance
With a market cap of $3.16 billion, StoneCo boasts superior technology, lower fees, and higher take rates than its rivals. STNE has also expanded into new segments, including micro-merchants, small and medium-sized businesses (SMBs), and software-as-a-service (SaaS).
In Q2 2023, STNE reported a 39.4% year-over-year increase in total payment volume (TPV) to $17.6 billion, 50% year-over-year growth in active clients to 1.1 million, $2.76 billion in revenue (up 28.4% YoY), and a net income of $305.4 million (up 162.7% YoY). The company's adjusted EBITDA margin also improved to 50.7% in Q2.
STNE has consistently beaten Wall Street's bottom-line expectations over the past year. Looking ahead, analysts expect earnings growth of 203% in fiscal 2023, followed by 27.8% in fiscal 2024.
www.barchart.com
STNE Looks Like a Bargain at Current Prices
STNE is trading at bargain prices, based on some key valuation metrics. The price/earnings-to-growth (PEG) ratio of 0.23, price/book (P/B) ratio of 1.16, price/sales (P/S) ratio of 1.43, and price/cash flow (P/CF) ratio of 6.83 are all well below the median sector readings, suggesting the stock is more than fairly priced at current levels.
Analysts are also giving STNE a nod of approval. The shares have an average rating of “moderate buy” from 10 analysts, including 5 “strong buy” and 5 “hold” ratings.
And here's the kicker: the average price target of $15.82 suggests that STNE could offer a solid 57% upside potential from its current price. So, for the long-term investor hunting for a value-priced stock with outsized growth potential, STNE seems like a solid pick.
www.barchart.com
Takeaway
While the underperformance in STNE might seem like an unusual misstep from Warren Buffett, the stock still seems to check a lot of the investor's usual boxes. He likes companies with strong earnings and balance sheets, impressive growth potential, and attractive valuations.
Despite lingering macroeconomic hurdles, StoneCo's got a strong hand to play, with solid fundamentals and a growth outlook that could outperform. Plus, Buffett's backing is a powerful stamp of approval, and it could draw more eyes to StoneCo's potential.
Overall, the Brazilian fintech looks well-positioned to ride the wave of the growing payments industry, particularly as monetary policy in the nation eases up. So, if you're looking for a low-priced Buffett stock with promise, StoneCo's worth keeping an eye on.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While most investors are familiar with big-name Buffett stocks like Apple (AAPL) and Coca-Cola (KO), one relatively under-the-radar company that has more recently earned Oracle of Omaha's approval is StoneCo Ltd (STNE), a fintech firm focused on the Brazilian market. But while the long-term forecasts are encouraging, it hasn't been smooth sailing since Buffett's Berkshire Hathaway (BRK.B) added STNE to its legendary portfolio during the October 2018 IPO. Since the start of August, Brazil's key lending rate is down by a full percentage point after two aggressive half-point cuts, and the country's policymakers could continue to ease as inflationary pressures subside.
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While most investors are familiar with big-name Buffett stocks like Apple (AAPL) and Coca-Cola (KO), one relatively under-the-radar company that has more recently earned Oracle of Omaha's approval is StoneCo Ltd (STNE), a fintech firm focused on the Brazilian market. Looking ahead, analysts expect earnings growth of 203% in fiscal 2023, followed by 27.8% in fiscal 2024. www.barchart.com STNE Looks Like a Bargain at Current Prices STNE is trading at bargain prices, based on some key valuation metrics. The shares have an average rating of “moderate buy” from 10 analysts, including 5 “strong buy” and 5 “hold” ratings.
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While most investors are familiar with big-name Buffett stocks like Apple (AAPL) and Coca-Cola (KO), one relatively under-the-radar company that has more recently earned Oracle of Omaha's approval is StoneCo Ltd (STNE), a fintech firm focused on the Brazilian market. Looking ahead, analysts expect earnings growth of 203% in fiscal 2023, followed by 27.8% in fiscal 2024. www.barchart.com STNE Looks Like a Bargain at Current Prices STNE is trading at bargain prices, based on some key valuation metrics. So, for the long-term investor hunting for a value-priced stock with outsized growth potential, STNE seems like a solid pick.
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While most investors are familiar with big-name Buffett stocks like Apple (AAPL) and Coca-Cola (KO), one relatively under-the-radar company that has more recently earned Oracle of Omaha's approval is StoneCo Ltd (STNE), a fintech firm focused on the Brazilian market. So, for the long-term investor hunting for a value-priced stock with outsized growth potential, STNE seems like a solid pick. Plus, Buffett's backing is a powerful stamp of approval, and it could draw more eyes to StoneCo's potential.
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13027.0
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2023-10-20 00:00:00 UTC
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Apple Stock Price Prediction for 2025: Will It Still Be the World’s Largest Company?
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AAPL
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https://www.nasdaq.com/articles/apple-stock-price-prediction-for-2025%3A-will-it-still-be-the-worlds-largest-company
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nan
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nan
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With a market cap of over $2.7 trillion, Apple (AAPL) is the world’s largest company. If it were to be a country, Apple would be the world’s eighth biggest nation, based on 2022 nominal GDP. But can the Tim Cook-led company maintain its humongous valuation and keep its status as the world’s biggest company, even through 2025?
Here’s my analysis of what could drive Apple stock over the next couple of years, along with the rivals that could realistically threaten its status as the world’s largest company.
Apple Became the World’s Largest Company in 2011
Apple became the world’s most valuable company in 2011, when it surpassed energy giant ExxonMobil (XOM), which was then holding the title. Since then, the iPhone maker has held on to the position as the world’s largest company for the most part, aside from a few brief incursions.
www.barchart.com
For instance, in October 2021, Microsoft (MSFT) briefly became the world’s largest company, and in May 2022, energy giant Saudi Aramco claimed the title amid soaring oil prices. However, these have proven to be aberrations, as Apple quickly reclaimed the crown.
Apple has several similarly impressive achievements to its name. In July 2023, the company became the first ever to have a closing market cap of over $3 trillion – adding a new milestone for the Cupertino-based company, which previously set benchmarks as the first company ever to have a market cap of $1 trillion and $2 trillion.
Incidentally, Apple is the biggest holding for Berkshire Hathaway (BRK.B), whose chairman Warren Buffett started buying the shares in the first quarter of 2016. Apple is now the biggest holding for Berkshire - and with a nearly 5.9% stake, the conglomerate is the second biggest Apple shareholder behind Vanguard.
Apple Stock Price Prediction 2025: Key Drivers to Watch
Unless we see a serious global macro shock over the next couple of years, I expect Apple stock to trade higher than current levels by the end of 2025. Wall Street analysts likewise expect the stock to rise to $205.84 over the next 12 months, while the Street-high target price is $240.
www.barchart.com
Here are the key factors that could drive the stock’s performance over the next few years:
1. U.S.-China Tensions and Demand for Apple Products in China
The growing U.S.-China tensions are a risk for Apple, considering it’s the second biggest market for the company. Jefferies analysts believe that Huawei – whose operations suffered a near-death blow after restrictions by the U.S. – has bounced back and dethroned Apple from the top position in the Chinese smartphone market. If the demand for Apple products wanes in China amid the country’s growing rivalry with the U.S., it could threaten Apple's position as the most valuable company.
2. The Opportunity in India
Earlier this year, Apple opened its first two retail stores in India and the country has now become a top-five market for iPhones. Strong demand in India – which overtook China to become the world’s most populous country, and boasts of a growing and aspirational middle class – could help Apple increase its iPhone shipments. Currently, Android devices account for 95% of the Indian smartphone market, which is the second-largest globally after China. That makes it an attractive market for Apple to increase iPhone penetration levels.
3. Higher Monetization of Existing Apple User Base
One of the key long-term drivers for Apple is its burgeoning user base and ecosystem. It now boasts an installed base of over 2 billion devices, along with the prospect of recurring revenues from 1 billion paid subscriptions.
This vast user base is a captive market for Apple as it diversifies into multiple other industries - including financial services and healthcare. In 2024, Apple will also start delivering its augmented reality headsets, which should further increase its target market.
4. Electric and Autonomous Cars
For years now, Apple has been rumored to be working on electric and autonomous cars under a project that’s codenamed “Titan.” So far, any details about the project have been reported through industry grapevines - but real progress on the project could help drive Apple shares higher, as the total addressable market for electric and autonomous cars is much higher than the smartphone market.
5. Apple Could Also Be an AI Play
While the term “artificial intelligence” hasn’t featured prominently during Apple’s earnings calls, as it does in that of other tech giants, Apple is also an AI play. In response to an analyst question during the fiscal Q3 2023 earnings call on why Apple does not talk much about its AI investments, Cook responded by saying “we view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build.” He added that AI is “absolutely critical to us” and emphasized that Apple has “been doing research across a wide range of AI technologies, including generative AI for years.”
These Companies Might Surpass Apple in Size
Meanwhile, even though I believe that Apple should be able to protect its crown as the most valuable company until 2025, here are the other companies that are strong contenders for the top spot:
Microsoft: The Windows-maker has been expanding its total addressable market through both organic and inorganic strategies – the most recent examples of the latter being its acquisition of Activision-Blizzard and investments in ChatGPT’s parent company OpenAI. Microsoft (MSFT) is currently the second-largest company globally, and is a strong contender for the top spot.
Tesla: Tesla (TSLA) CEO Elon Musk believes that the company’s market cap could surpass the combined market cap of Apple and Saudi Aramco. Its market cap is already the highest among automakers, and progress towards full autonomy of its cars - coupled with continued buying interest from retail investors - could help catapult TSLA toward “most valued company” status.
Amazon: While Amazon's (AMZN) stock has underperformed its tech peers over the last couple of years, it is among the contenders to become the world’s biggest company, considering its strong position in industries like e-commerce, cloud, streaming, and digital advertising.
On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , BRK.B , MSFT . 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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With a market cap of over $2.7 trillion, Apple (AAPL) is the world’s largest company. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , BRK.B , MSFT . www.barchart.com For instance, in October 2021, Microsoft (MSFT) briefly became the world’s largest company, and in May 2022, energy giant Saudi Aramco claimed the title amid soaring oil prices.
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With a market cap of over $2.7 trillion, Apple (AAPL) is the world’s largest company. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , BRK.B , MSFT . Apple Became the World’s Largest Company in 2011 Apple became the world’s most valuable company in 2011, when it surpassed energy giant ExxonMobil (XOM), which was then holding the title.
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With a market cap of over $2.7 trillion, Apple (AAPL) is the world’s largest company. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , BRK.B , MSFT . Apple Became the World’s Largest Company in 2011 Apple became the world’s most valuable company in 2011, when it surpassed energy giant ExxonMobil (XOM), which was then holding the title.
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With a market cap of over $2.7 trillion, Apple (AAPL) is the world’s largest company. On the date of publication, Mohit Oberoi had a position in: AAPL , AMZN , BRK.B , MSFT . Here’s my analysis of what could drive Apple stock over the next couple of years, along with the rivals that could realistically threaten its status as the world’s largest company.
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13028.0
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2023-10-19 00:00:00 UTC
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Google to manufacture smartphones in India starting with Pixel 8
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AAPL
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https://www.nasdaq.com/articles/google-to-manufacture-smartphones-in-india-starting-with-pixel-8
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nan
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nan
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Adds quote in paragraph 3, context from paragraph 4
NEW DELHI, Oct 19 (Reuters) - Alphabet Inc GOOGL.O will start manufacturing in India and will partner with international and domestic manufacturers to produce its Pixel smartphones locally, starting with Pixel 8, an executive said on Thursday.
The devices are expected to be rolled out in 2024, Rick Osterloh, senior vice president of devices and services, said at a Google event.
"India is a priority market for Pixel smartphones, and we’re committed to bringing the best of our hardware and underlying built-in software capabilities to people across the country," Osterloh said.
India is aiming to become a manufacturing powerhouse, amid a greater push for Prime Minister Narendra Modi's "Make in India" initiative.
Apple AAPL.O, which has been touting India as its next big growth driver, is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint.
U.S. memory chip firm Micron Technology MU.O recently announced plans to set up its first semiconductor plant in the country.
(Reporting by Tanvi Mehta and Blassy Boben; Editing by Muralikumar Anantharaman)
((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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Apple AAPL.O, which has been touting India as its next big growth driver, is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint. "India is a priority market for Pixel smartphones, and we’re committed to bringing the best of our hardware and underlying built-in software capabilities to people across the country," Osterloh said. U.S. memory chip firm Micron Technology MU.O recently announced plans to set up its first semiconductor plant in the country.
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Apple AAPL.O, which has been touting India as its next big growth driver, is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint. Adds quote in paragraph 3, context from paragraph 4 NEW DELHI, Oct 19 (Reuters) - Alphabet Inc GOOGL.O will start manufacturing in India and will partner with international and domestic manufacturers to produce its Pixel smartphones locally, starting with Pixel 8, an executive said on Thursday. "India is a priority market for Pixel smartphones, and we’re committed to bringing the best of our hardware and underlying built-in software capabilities to people across the country," Osterloh said.
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Apple AAPL.O, which has been touting India as its next big growth driver, is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint. Adds quote in paragraph 3, context from paragraph 4 NEW DELHI, Oct 19 (Reuters) - Alphabet Inc GOOGL.O will start manufacturing in India and will partner with international and domestic manufacturers to produce its Pixel smartphones locally, starting with Pixel 8, an executive said on Thursday. "India is a priority market for Pixel smartphones, and we’re committed to bringing the best of our hardware and underlying built-in software capabilities to people across the country," Osterloh said.
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Apple AAPL.O, which has been touting India as its next big growth driver, is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint. Adds quote in paragraph 3, context from paragraph 4 NEW DELHI, Oct 19 (Reuters) - Alphabet Inc GOOGL.O will start manufacturing in India and will partner with international and domestic manufacturers to produce its Pixel smartphones locally, starting with Pixel 8, an executive said on Thursday. The devices are expected to be rolled out in 2024, Rick Osterloh, senior vice president of devices and services, said at a Google event.
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13029.0
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2023-10-19 00:00:00 UTC
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TSMC Q3 profit falls 24.9%, beats market forecasts
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AAPL
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https://www.nasdaq.com/articles/tsmc-q3-profit-falls-24.9-beats-market-forecasts
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nan
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nan
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Q3 profit T$211 bln vs T$195.5 bln analyst view
Q3 revenue down 14.6% on year at $17.3 bln
Q3 capex $7.1 bln vs Q2 $8.17 bln
Adds details and share prices in paragraphs 4-7
TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier.
The profit beat a T$195.5 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.
TSMC, Asia's most valuable listed company, said third-quarter revenue dropped 14.6% to $17.3 billion, in line with the company's previous forecast of $16.7 billion to $17.5 billion.
Capital expenditure in the third quarter was $7.1 billion, TSMC said, compared with $8.17 billion in the previous quarter.
As the biggest maker of advanced chips, TSMC must navigate an uncertain industry outlook and a U.S.-China chip spat that could make it vulnerable.
TSMC's Taipei-listed shares fell 27.1% in 2022, but are up around 22% so far this year, giving the chipmaker a market value of $432.3 billion. The stock rose 1.1% on Thursday versus a flat benchmark index .TWII.
(Reporting by Sarah Wu and Yimou Lee; Editing by Muralikumar Anantharaman and Jacqueline Wong)
((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 Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. The profit beat a T$195.5 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate. TSMC's Taipei-listed shares fell 27.1% in 2022, but are up around 22% so far this year, giving the chipmaker a market value of $432.3 billion.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. Q3 profit T$211 bln vs T$195.5 bln analyst view Q3 revenue down 14.6% on year at $17.3 bln Q3 capex $7.1 bln vs Q2 $8.17 bln Adds details and share prices in paragraphs 4-7 TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year. TSMC, Asia's most valuable listed company, said third-quarter revenue dropped 14.6% to $17.3 billion, in line with the company's previous forecast of $16.7 billion to $17.5 billion.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. Q3 profit T$211 bln vs T$195.5 bln analyst view Q3 revenue down 14.6% on year at $17.3 bln Q3 capex $7.1 bln vs Q2 $8.17 bln Adds details and share prices in paragraphs 4-7 TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year. TSMC, Asia's most valuable listed company, said third-quarter revenue dropped 14.6% to $17.3 billion, in line with the company's previous forecast of $16.7 billion to $17.5 billion.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. Q3 profit T$211 bln vs T$195.5 bln analyst view Q3 revenue down 14.6% on year at $17.3 bln Q3 capex $7.1 bln vs Q2 $8.17 bln Adds details and share prices in paragraphs 4-7 TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year. The profit beat a T$195.5 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.
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13030.0
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2023-10-19 00:00:00 UTC
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Why These 3 Equal-Weighted ETFs Deserve a Portfolio Spot
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AAPL
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https://www.nasdaq.com/articles/why-these-3-equal-weighted-etfs-deserve-a-portfolio-spot
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nan
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nan
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In the investing world, not all exchange-traded funds (ETFs) are created equal. Quite literally, most aren’t.
Most ETFs use a market capitalization weighting scheme to determine how much gets invested in each security. For simplicity, let’s say an equity fund is comprised of three stocks with the following market caps:
stock A - $10 billion;
stock B - $5 billion;
stock C - $1 billion.
A market cap weighted ETF would invest proportionately. Stock A accounts for $10 billion of the $16 billion total market cap, so it would represent 62.5% of the ETF. Along the same lines, stocks B and C would get 31.25% and 6.25% weightings, respectively.
An alternative approach is equal weight investing. This assigns the same weight to each stock regardless of its size. Using the above example, stocks A, B and C would each account for 33.33% of an ETF.
What’s the difference?
There are advantages and disadvantages to investing in equally-weighted ETFs. When larger companies such as those in the mega cap technology sector do relatively well, an equally-weighted fund will underperform. Conversely, when smaller companies do relatively well, they will outperform.
In other words, traditional market cap weighted ETFs have a size bias. The removal of this bias is one of the attractions of equally-weighted ETFs. Equal weight investors sleep better knowing that no single stock or group of stocks will dictate performance. Stock A could be one negative headline away from crushing a market weighted portfolio, but if equally weighted, the damage would be lessened.
With this in mind, let’s look at three equally-weighted ETFs that have offered superior diversification and risk adjusted returns.
#1 - EQWL
The Invesco S&P 100 Equal Weight ETF (NYSEARCA: EQWL) invests at least 90% of its assets in the S&P 100 Equal Weight Index. As the name suggests, the index is an equally-weighted subset of the biggest 100 companies in the S&P 500. As such, the fund inherently has a mega cap bias, but it offsets this by giving the same importance to each stock.
Over the last 10 years, EQWL has produced an 11.0% total return, placing it in the top spot among more than 800 U.S. large cap funds. Even more impressive, it has generated this performance while taking on average risk relative to its peers. This has earned it the coveted five-star rating from Morningstar.
After long being considered a large cap blend fund, EQWL has drifted into the large cap value style box in recent years. This is reflected in its 14x forward price/earnings (P/E) ratio, 2.1% dividend yield and exposure to financials and healthcare. A low 0.25% expense ratio is the icing on the cake.
#2 - QQEW
The First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ: QQEW) also invests in 100 stocks but is based on the Nasdaq-100 index. It is an equally weighted alternative to the popular Invesco QQQ Trust, which has had a strong run in 2023. While Apple, Microsoft and Alphabet are a combined 27% of QQQ, they represent just 4% of QQEW.
How has QQEW stacked up? With mega cap tech names like Nvidia, Meta Platforms and Tesla up big year-to-date, QQEW (up 18%) is significantly lagging QQQ (up 38%). Over a 10-year period, the annualized performance gap closes to approximately 5% in favor of QQQ.
So why invest in QQEW if it has historically underperformed QQQ? Because QQEW has enjoyed pockets of outperformance, particularly after mega cap names have had a big run. Since the Nasdaq-100’s July 19th peak, smaller companies like PDD Holdings, Amgen and Constellation Energy have been the best performers. This could signal that investors are pulling money out of the big winners — and that an equally-weighted Nasdaq portfolio may be on the brink of outperformance.
#3 - RSPN
Equally-weighted funds are also available at the sector level. The Invesco S&P 500 Equal Weight Industrials ETF (NYSEARCA: RSPN) is a prime example. The fund invests in the 78 industrial sector representatives in the S&P 500 on an equally-weighted basis.
Keep in mind that individual stock weightings deviate from being identical because of daily market movements. Fund managers periodically rebalance though, typically on a monthly or quarterly basis. This is why, for instance, a recent winner like Northrop Grumman currently has a 1.6% weighting and United Airlines has only a 1.1% weighting.
The main draw for RSPN is that it offers diversified exposure to a range of industries from aerospace and defense to construction and machinery. As the decade progresses, U.S. infrastructure spending and industrial automation are poised to be among the sector's biggest growth drivers. The five-star RSPN ETF has these areas well-covered and then some. Over the last 10 years, the fund has an 11.5% annualized return — which puts it in the top decile of U.S. industrials funds.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With mega cap tech names like Nvidia, Meta Platforms and Tesla up big year-to-date, QQEW (up 18%) is significantly lagging QQQ (up 38%). The main draw for RSPN is that it offers diversified exposure to a range of industries from aerospace and defense to construction and machinery. As the decade progresses, U.S. infrastructure spending and industrial automation are poised to be among the sector's biggest growth drivers.
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The Invesco S&P 100 Equal Weight ETF (NYSEARCA: EQWL) invests at least 90% of its assets in the S&P 100 Equal Weight Index. The First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ: QQEW) also invests in 100 stocks but is based on the Nasdaq-100 index. The Invesco S&P 500 Equal Weight Industrials ETF (NYSEARCA: RSPN) is a prime example.
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For simplicity, let’s say an equity fund is comprised of three stocks with the following market caps: stock A - $10 billion; stock B - $5 billion; stock C - $1 billion. The Invesco S&P 100 Equal Weight ETF (NYSEARCA: EQWL) invests at least 90% of its assets in the S&P 100 Equal Weight Index. The First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ: QQEW) also invests in 100 stocks but is based on the Nasdaq-100 index.
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A market cap weighted ETF would invest proportionately. The First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ: QQEW) also invests in 100 stocks but is based on the Nasdaq-100 index. The fund invests in the 78 industrial sector representatives in the S&P 500 on an equally-weighted basis.
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13031.0
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2023-10-19 00:00:00 UTC
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Is Apple Stock a Buy Ahead of Earnings?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-ahead-of-earnings
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nan
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nan
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Tech giant Apple (NASDAQ: AAPL) will report results for its fiscal fourth quarter on Nov. 3. Ahead of the report, many investors are likely wondering whether or not the tech stock is a buy. After all, shares have pulled back recently.
Specifically, the stock is down 9% since Aug. 1. So is the stock a buy, now that shares are trading at a discount to where they were this summer?
A review of Apple's underlying business, its growth opportunities, and the stock's valuation show that the stock does, indeed, look like a compelling buy today. Here's why investors may want to add shares of the iPhone maker to their portfolios.
A healthy business
One aspect of Apple stock that may often be overlooked is just how strong the company's financials are. Sure, a market capitalization of nearly $2.8 trillion may seem ridiculous to people unfamiliar with the company's underlying financials. But consider that Apple's business, which boasts a loyal and growing customer base with over 2 billion active devices, throws off more than $100 billion of free cash flow annually.
Then there's the company's extraordinary balance sheet. Apple wrapped up its most recent quarter with $166 billion in cash and marketable securities. Net of its debt, it boasted $57 billion of cash.
With a balance sheet and cash flow like this, Apple can return cash to shareholders (both directly and indirectly) in huge sums. Indeed, Apple paid out more than $24 billion in combined dividends and share repurchases in its most recent quarter alone.
Catalysts
Some investors may be concerned about Apple's recent growth profile. Its revenue fell 1% year over year in fiscal Q3. To be fair, the company faced a foreign-exchange headwind that negatively impacted its revenue growth rate by about 4 percentage points. Still, even when revenue growth is adjusted for this figure, it's still anemic.
Fortunately, a few areas could help Apple's top-line growth accelerate. While investors can't rule out a possible reacceleration in Apple's core iPhone business, the company may not need meaningfully better performance from the iPhone to do well.
One area for Apple that consistently grows at robust rates is its services segment, where the company records revenue from services like AppleCare, app store transactions and subscriptions, Apple Pay, and Apple TV+. This business grew 8% year over year in fiscal Q3. Of course, growth would have been better if it weren't for that foreign-exchange headwind.
Then there are emerging markets. Apple said in its fiscal third-quarterearnings callthat it saw record revenue in emerging markets. For instance, revenue in India during fiscal Q3 grew at a rate that was a "strong" double-digit number, Apple CEO Tim Cook said.
As services and emerging markets grow as a percentage of total revenue, they could help Apple's revenue reaccelerate.
A reasonable valuation
Considering Apple's healthy balance sheet, strong cash flow, and robust growth in services and emerging markets, the stock's current valuation of less than 30x earnings is a reasonable price to pay for shares. Sure, the stock isn't a bargain at this level. But it's cheap enough to likely reward investors who buy today and hold for the long haul.
As a bonus, those investors will receive a dividend that will likely grow over the years, too. The company has plenty of cash to go around and has a long history of being a good steward of shareholder capital.
Apple will report its fiscal fourth-quarter results after market close on Thursday, Nov. 2.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech giant Apple (NASDAQ: AAPL) will report results for its fiscal fourth quarter on Nov. 3. To be fair, the company faced a foreign-exchange headwind that negatively impacted its revenue growth rate by about 4 percentage points. For instance, revenue in India during fiscal Q3 grew at a rate that was a "strong" double-digit number, Apple CEO Tim Cook said.
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Tech giant Apple (NASDAQ: AAPL) will report results for its fiscal fourth quarter on Nov. 3. With a balance sheet and cash flow like this, Apple can return cash to shareholders (both directly and indirectly) in huge sums. One area for Apple that consistently grows at robust rates is its services segment, where the company records revenue from services like AppleCare, app store transactions and subscriptions, Apple Pay, and Apple TV+.
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Tech giant Apple (NASDAQ: AAPL) will report results for its fiscal fourth quarter on Nov. 3. A review of Apple's underlying business, its growth opportunities, and the stock's valuation show that the stock does, indeed, look like a compelling buy today. One area for Apple that consistently grows at robust rates is its services segment, where the company records revenue from services like AppleCare, app store transactions and subscriptions, Apple Pay, and Apple TV+.
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Tech giant Apple (NASDAQ: AAPL) will report results for its fiscal fourth quarter on Nov. 3. A review of Apple's underlying business, its growth opportunities, and the stock's valuation show that the stock does, indeed, look like a compelling buy today. Apple wrapped up its most recent quarter with $166 billion in cash and marketable securities.
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13032.0
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2023-10-19 00:00:00 UTC
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1 Reason to Buy This "Magnificent Seven" Stock, and 1 Reason to Avoid It Like the Plague
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AAPL
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https://www.nasdaq.com/articles/1-reason-to-buy-this-magnificent-seven-stock-and-1-reason-to-avoid-it-like-the-plague
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nan
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nan
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The so-called "Magnificent Seven" stocks, a list that includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla (NASDAQ: TSLA), have led the market higher in 2023. And as a result, they continue to be on every investor's watch list.
But there's one company here that might have more potential than the rest. I'm talking about Tesla in particular. Its founder and CEO, Elon Musk, has huge ambitions. But before rushing to invest, it's best to understand both a bull and bear argument.
Let's take a closer look at one clear reason investors should buy this top electric vehicle (EV) stock, while also considering why it's a good idea to avoid it like the plague.
Autonomous ambitions
Tesla shares are an obvious buy for investors who are bullish on the company's ability to introduce full self-driving (FSD) capabilities. This is the ultimate goal for Musk and the business. Bringing EVs to more consumers gets the attention now, but introducing autonomous vehicles (AV) is the true north.
It's not hard to see why. Musk wants to one day launch a global robotaxi service with FSD cars. In this scenario, he says Tesla would experience "quasi-infinite demand" and generate huge margins that will make the current financial numbers look "silly." Shareholders have been concerned that Tesla's margins have been shrinking in recent quarters, as it engages in price wars to maintain its market share. But these worries won't matter if this long-term vision plays out.
So, Musk's grand plan is to operate an Uber-like service with its own cars, as well as what I'd assume is its own internally developed mobile app. Again, the revenue and profit potential could be enormous, simply because there would be no need for drivers, which are the highest expense item in a typical ride-hailing trip. That's why the business is investing heavily in Dojo, its supercomputer that utilizes artificial intelligence to help analyze all the driving and traffic data Tesla collects from its vehicles.
But while Tesla might be a leader in the EV race, a massive market opportunity will naturally invite stiff competition. And this is certainly the case here. Alphabet's Waymo is a formidable opponent that has the resources from both a financial and talent perspective to introduce this technology to the masses.
There's also Cruise, a majority-owned subsidiary of General Motors. The leadership team has set a goal of having 1 million robotaxis on roads by 2030.
Nonetheless, it's always difficult to bet against Elon Musk. I think his robotaxi focus is the right strategy. Those investors who agree will find the stock to be a smart buy.
How much upside is there?
As of this writing, Tesla's market cap sits at a whopping $792 billion. With shares catapulting nearly 2,000% in the past decade, it's no surprise that this is now one of the most valuable enterprises in the world.
Investors can't ignore the law of large numbers in this situation. I don't think it's reasonable to assume that Tesla can post the same revenue growth in the decade ahead as it did in the past. And with a market cap already so high, how much more valuable can this business become? These are the right questions to ask.
Musk has done a wonderful job of building excitement and enthusiasm for Tesla from the investment community. And the stock shows it. Shares currently trade at a trailing price-to-earnings ratio of 71.7. That is no doubt expensive.
But the stock's huge market cap and valuation might mean that the optimism is fully priced in and then some. Investors who have set more realistic expectations about the direction of this company will find this enough of a reason to avoid the stock right now.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Uber Technologies. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The so-called "Magnificent Seven" stocks, a list that includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla (NASDAQ: TSLA), have led the market higher in 2023. Autonomous ambitions Tesla shares are an obvious buy for investors who are bullish on the company's ability to introduce full self-driving (FSD) capabilities. That's why the business is investing heavily in Dojo, its supercomputer that utilizes artificial intelligence to help analyze all the driving and traffic data Tesla collects from its vehicles.
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The so-called "Magnificent Seven" stocks, a list that includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla (NASDAQ: TSLA), have led the market higher in 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 Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Uber Technologies.
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The so-called "Magnificent Seven" stocks, a list that includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla (NASDAQ: TSLA), have led the market higher in 2023. Autonomous ambitions Tesla shares are an obvious buy for investors who are bullish on the company's ability to introduce full self-driving (FSD) capabilities. Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market.
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Autonomous ambitions Tesla shares are an obvious buy for investors who are bullish on the company's ability to introduce full self-driving (FSD) capabilities. This is the ultimate goal for Musk and the business. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Uber Technologies.
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13033.0
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2023-10-19 00:00:00 UTC
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ANALYSIS-Wall Street's 'Magnificent Seven' face moment of truth as earnings season arrives
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AAPL
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https://www.nasdaq.com/articles/analysis-wall-streets-magnificent-seven-face-moment-of-truth-as-earnings-season-arrives
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nan
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nan
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By Lewis Krauskopf
NEW YORK, Oct 19 (Reuters) - High noon is approaching for the market's biggest stocks, as pressure grows on richly valued technology and growth companies to deliver robust earnings at a time when sky-high bond yields threaten to dull the allure of equities.
Huge rallies for the so-called "Magnificent Seven" stocks – Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O – have driven nearly all of the S&P 500’s 12% year-to-gain because of their outsized weighting in the index.
That stellar performance has also raised the stakes in the upcoming earnings season. Valuations have swelled, with the Magnificent Seven trading at an average forward price-to-earnings ratio of 33.5, compared with the S&P 500's P/E of 18.3.
At the same time, Treasury yields at 16-year highs are providing investment competition to stocks. With U.S. government bonds now offering risk-free yields of around 5% or more, investors may be less forgiving of companies which are unable to deliver strong results.
That appeared to be the case for Tesla, the first of the megacaps to report results this period. Shares of Tesla were down 7% on Thursday morning after the electric vehicle maker missed Wall Street estimates on third-quarter gross margin, profit and revenue.
“Everybody knows these guys are going to make money," said Sameer Samana, seniorglobal marketstrategist at the Wells Fargo Investment Institute (WFII), referring to the Magnificent Seven. "The only question is how fast is that earnings growth, and have investors overpaid for it."
The Wells Fargo Investment Institute in June downgraded its rating on the information technology sector -- which includes Apple, Microsoft and Nvidia -- to "neutral" from "favorable.”
Results from Microsoft, Google-parent Alphabet, Amazon and Facebook-parent Meta are expected next week, while Apple and Nvidia are set to report next month.
In aggregate, the megacap companies are expected to post a 32.8% gain in earnings in 2023, while the rest of the S&P 500 sees a 2.3% decline, according to Tajinder Dhillon, senior research analyst at LSEG.
Complicating the outlook is the relentless climb in interest rates and Treasury yields, which has been driven by a mix of Federal Reserve hawkishness in the face of a strong economy and worries over the U.S. fiscal picture.
Growth and tech companies are seen as being 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.
The yield on the benchmark 10-year Treasury recently stood at 4.94%, its highest since July 2007.
CapWealth holds Microsoft shares and below-benchmark positions in Apple and Amazon, Pagliara said.
The megacaps' outperformance this year means their market heft has also grown. The seven companies' combined market capitalization topped 30% of the S&P 500's overall market value earlier this month, according to LSEG Datastream.
More than a third of fund managers named "long big tech" as the most crowded trade, according to BofA Global Research's monthly survey published this week.
"Returns this year in the S&P 500 have been driven entirely by returns in the seven biggest stocks, and these seven stocks have become more and more overvalued," Torsten Slok, chief economist at Apollo Global Management, said in a note.
Of course, betting against the market’s champions has proven an unprofitable endeavor. The 10-stock NYSE FANG+ index .NYFANG, which includes the Magnificent Seven, has gained 140% since the end of 2019 before the pandemic, versus a 33% gain for the S&P 500.
Some investors are also drawing distinctions among the seven stocks. Brandywine Global holds shares of Alphabet and Meta, which generate significant cash and are cheaper than megacap peers, said Patrick Kaser, a portfolio manager at the investment firm.
"They are all growth stories," Kaser said. "But where that growth comes from, how steady it is supposed to be, and how much is in their control, really differs a lot among the seven."
Magnificent 7 megacap stocks market cap as perentage of S&P 500 https://tmsnrt.rs/3s5yuYV
Tesla CEO Musk raises alarm on interest rates, hesitates on Mexico factory
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Jonathan Oatis)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Huge rallies for the so-called "Magnificent Seven" stocks – Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O – have driven nearly all of the S&P 500’s 12% year-to-gain because of their outsized weighting in the index. By Lewis Krauskopf NEW YORK, Oct 19 (Reuters) - High noon is approaching for the market's biggest stocks, as pressure grows on richly valued technology and growth companies to deliver robust earnings at a time when sky-high bond yields threaten to dull the allure of equities. Complicating the outlook is the relentless climb in interest rates and Treasury yields, which has been driven by a mix of Federal Reserve hawkishness in the face of a strong economy and worries over the U.S. fiscal picture.
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Huge rallies for the so-called "Magnificent Seven" stocks – Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O – have driven nearly all of the S&P 500’s 12% year-to-gain because of their outsized weighting in the index. By Lewis Krauskopf NEW YORK, Oct 19 (Reuters) - High noon is approaching for the market's biggest stocks, as pressure grows on richly valued technology and growth companies to deliver robust earnings at a time when sky-high bond yields threaten to dull the allure of equities. The Wells Fargo Investment Institute in June downgraded its rating on the information technology sector -- which includes Apple, Microsoft and Nvidia -- to "neutral" from "favorable.” Results from Microsoft, Google-parent Alphabet, Amazon and Facebook-parent Meta are expected next week, while Apple and Nvidia are set to report next month.
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Huge rallies for the so-called "Magnificent Seven" stocks – Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O – have driven nearly all of the S&P 500’s 12% year-to-gain because of their outsized weighting in the index. By Lewis Krauskopf NEW YORK, Oct 19 (Reuters) - High noon is approaching for the market's biggest stocks, as pressure grows on richly valued technology and growth companies to deliver robust earnings at a time when sky-high bond yields threaten to dull the allure of equities. The Wells Fargo Investment Institute in June downgraded its rating on the information technology sector -- which includes Apple, Microsoft and Nvidia -- to "neutral" from "favorable.” Results from Microsoft, Google-parent Alphabet, Amazon and Facebook-parent Meta are expected next week, while Apple and Nvidia are set to report next month.
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Huge rallies for the so-called "Magnificent Seven" stocks – Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O – have driven nearly all of the S&P 500’s 12% year-to-gain because of their outsized weighting in the index. Growth and tech companies are seen as being 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. The seven companies' combined market capitalization topped 30% of the S&P 500's overall market value earlier this month, according to LSEG Datastream.
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13034.0
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2023-10-19 00:00:00 UTC
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TSMC Q3 profit falls 24.9%, beats market expectations
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AAPL
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https://www.nasdaq.com/articles/tsmc-q3-profit-falls-24.9-beats-market-expectations
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nan
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nan
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TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier.
The profit beat a T$195.5 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.
(Reporting by Sarah Wu and Yimou Lee; Editing by Muralikumar Anantharaman)
((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 Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year. The profit beat a T$195.5 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year. (Reporting by Sarah Wu and Yimou Lee; Editing by Muralikumar Anantharaman) ((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 Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year. (Reporting by Sarah Wu and Yimou Lee; Editing by Muralikumar Anantharaman) ((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 Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw July-September net profit fall to T$211 billion from T$280.9 billion a year earlier. TAIPEI, Oct 19 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 24.9% fall in third-quarter net profit on Thursday as global economic woes hit demand for chips used in applications from cars to cellphones and servers and coming off a high base last year. The profit beat a T$195.5 billion LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.
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13035.0
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2023-10-19 00:00:00 UTC
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After Hours Most Active for Oct 19, 2023 : FND, XOM, AAPL, VICR, AGNC, KVUE, APLD, VMW, QQQ, VGIT, COTY, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-19-2023-%3A-fnd-xom-aapl-vicr-agnc-kvue-apld-vmw-qqq-vgit
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -37.67 to 14,745.46. The total After hours volume is currently 80,321,298 shares traded.
The following are the most active stocks for the after hours session:
Floor & Decor Holdings, Inc. (FND) is unchanged at $84.29, with 5,092,238 shares traded. FND's current last sale is 84.29% of the target price of $100.
Exxon Mobil Corporation (XOM) is -0.14 at $112.88, with 2,602,775 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $2.35. XOM's current last sale is 86.17% of the target price of $131.
Apple Inc. (AAPL) is -0.25 at $175.21, with 2,475,379 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Vicor Corporation (VICR) is unchanged at $53.64, with 2,179,008 shares traded. As reported in the last short interest update the days to cover for VICR is 12.674571; this calculation is based on the average trading volume of the stock.
AGNC Investment Corp. (AGNC) is +0.03 at $8.29, with 2,077,111 shares traded. As reported by Zacks, the current mean recommendation for AGNC is in the "buy range".
Kenvue Inc. (KVUE) is unchanged at $19.84, with 2,054,864 shares traded.KVUE is scheduled to provide an earnings report on 10/26/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.3 per share, which represents a 99,900 percent increase over the EPS one Year Ago
Applied Digital Corporation (APLD) is -0.0897 at $4.92, with 2,045,815 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range".
Vmware, Inc. (VMW) is unchanged at $150.31, with 2,032,936 shares traded. VMW's current last sale is 91.1% of the target price of $165.
Invesco QQQ Trust, Series 1 (QQQ) is -0.82 at $359.15, with 1,935,332 shares traded. This represents a 38.63% increase from its 52 Week Low.
Vanguard Intermediate-Term Treasury ETF (VGIT) is unchanged at $56.15, with 1,726,377 shares traded., following a 52-week high recorded in today's regular session.
Coty Inc. (COTY) is unchanged at $9.63, with 1,272,148 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.17. COTY's current last sale is 80.25% of the target price of $12.
Bank of America Corporation (BAC) is -0.04 at $26.92, with 1,220,151 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $0.83. BAC's current last sale is 78.03% of the target price of $34.5.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.25 at $175.21, with 2,475,379 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for VICR is 12.674571; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is -0.25 at $175.21, with 2,475,379 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 80,321,298 shares traded.
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Apple Inc. (AAPL) is -0.25 at $175.21, with 2,475,379 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Kenvue Inc. (KVUE) is unchanged at $19.84, with 2,054,864 shares traded.KVUE is scheduled to provide an earnings report on 10/26/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.25 at $175.21, with 2,475,379 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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13036.0
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2023-10-19 00:00:00 UTC
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Why META Is a Millionaire-Maker Stock to Buy Now
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AAPL
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https://www.nasdaq.com/articles/why-meta-is-a-millionaire-maker-stock-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Meta Platforms (NASDAQ:META) isn’t a company that’s all about the metaverse, no matter what the company’s brass would have you believe about its name change and shift in identity. Rather, this is still a social media juggernaut, that happens to be a major player in generative AI. The metaverse, or the world of virtual and mixed reality, is certainly one area the company sees itself leading. But it’s the view of many long-term investors that META stock remains worth acquiring at current levels, due to the strength of its cash-flow producing business, and its long-term growth prospects.
Sure, the company might be burning billions on its quest to dominate the metaverse. And in many respects, I do think there’s something there.
Btu there’s also a reason why many long-term investors have stuck with this name through thick and thin. Here are a few reasons why I personally continue to hold the stock, and believe in its long-term growth prospects.
Meta Platforms and Generative AI
In Q4 2023, Meta Platforms’ competitors will feel the heat as Meta advances in generative AI. The company has just launched generative AI tools for Facebook and Instagram advertisers, enabling varied content creation.
Meta’s Ad Manager software now hosts generative AI tools, saving advertisers 5+ hours weekly. This technology is aimed at empowering content producers to create fresh or enhance existing content, a potential game-changer in the ad-supported social media market.
Mark Zuckerberg’s pivot to the metaverse has incurred significant costs, with a $21 billion operating loss since 2022. Yet, Meta aims to excel in the AI era, enhancing consumer connections, offering chat assistants, and refining image editing. For advertisers, Advantage+ tools boost targeting and optimize spending.
The King of the Digital Ad Business
Owning Facebook, Instagram, WhatsApp, and Messenger, Meta wields unmatched user influence. In the last quarter, the company reported 3.07 billion daily active users, essentially meaning 38% of the world’s population is on one of the company’s platforms every day. This scale drives a lucrative ad business, ranking second only to Alphabet (NASDAQ:GOOG) in the U.S. and globally.
Despite macro challenges, Meta’s ad revenue surged 11.8% year-over-year to $31.7 billion with a 41% operating margin. I think these numbers could see vast improvement, if and when the company’s significant investments pay off, or Meta simply stops the bleeding and focuses on its core business.
Digital ads will remain vital for Meta Platforms, but the company has stated its intention to diversify its revenue streams with ad-free, subscription-based memberships for Facebook and Instagram. Initially, this service will roll out in Europe, due to a much different regulatory environment in that market.
META Boasts Excellent Valuations
Despite this year’s substantial share price surge, META stock remains reasonably priced. Currently, it boasts a forward price-earnings ratio of 24.2-times, notably lower than the Nasdaq 100 Index average of 26.1-times. When compared to tech giants like Alphabet, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT), Meta has the most attractive forward price-earnings ratio.
According to consensus estimates, Meta is poised for impressive growth, with an expected 11% revenue increase and 23.7% diluted earnings per share growth between 2022 and 2027. This makes the current valuation quite appealing.
Investing in the stock is warranted due to its social media and digital advertising dominance, even if the metaverse push proves fruitless.
Meta’s outlook is promising, priced at 24-times next year’s earnings and 5-times next year’s sales. Anticipated double-digit growth in sales and earnings through 2024 makes this valuation attractive. The digital advertising market’s rebound is underway, and Meta’s free AI offerings may draw more advertisers.
META Stock Remains a Strong Buy
Meta Platforms is a pioneering force in social media tech, introducing generative AI in 2023. The company has shown its intention to reduce its reliance on ad revenue, and diversify its business model, all while creating efficiencies within its core business. With these results now showing up in its numbers, there’s little reason to look at any other mega-cap tech stocks right now, in my view.
On the date of publication, Chris MacDonald has a LONG position in META 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 Why META Is a Millionaire-Maker Stock to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When compared to tech giants like Alphabet, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT), Meta has the most attractive forward price-earnings ratio. I think these numbers could see vast improvement, if and when the company’s significant investments pay off, or Meta simply stops the bleeding and focuses on its core business. Digital ads will remain vital for Meta Platforms, but the company has stated its intention to diversify its revenue streams with ad-free, subscription-based memberships for Facebook and Instagram.
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When compared to tech giants like Alphabet, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT), Meta has the most attractive forward price-earnings ratio. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meta Platforms (NASDAQ:META) isn’t a company that’s all about the metaverse, no matter what the company’s brass would have you believe about its name change and shift in identity. META Boasts Excellent Valuations Despite this year’s substantial share price surge, META stock remains reasonably priced.
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When compared to tech giants like Alphabet, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT), Meta has the most attractive forward price-earnings ratio. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meta Platforms (NASDAQ:META) isn’t a company that’s all about the metaverse, no matter what the company’s brass would have you believe about its name change and shift in identity. Meta Platforms and Generative AI In Q4 2023, Meta Platforms’ competitors will feel the heat as Meta advances in generative AI.
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When compared to tech giants like Alphabet, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT), Meta has the most attractive forward price-earnings ratio. But it’s the view of many long-term investors that META stock remains worth acquiring at current levels, due to the strength of its cash-flow producing business, and its long-term growth prospects. The company has just launched generative AI tools for Facebook and Instagram advertisers, enabling varied content creation.
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13037.0
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2023-10-19 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-11
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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13038.0
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2023-10-19 00:00:00 UTC
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Apple Stock: Buy, Sell, or Hold?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-sell-or-hold-2
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nan
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nan
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Apple (NASDAQ: AAPL) has been one of the top-performing stocks over the past 20 years, as it's transformed from being a small PC maker to the iconic smartphone leader. But the position the company is in today is very different from what it was even a decade ago.
iPhone sales growth has slowed, and product refresh times have lengthened for the iconic product. Apple's growth is now mainly in services and accessories that augment the iPhone. Despite the slowing growth, Apple stock has risen and is now trading at about 30 times trailing earnings. Is that too expensive for such a big company?
Beyond the iPhone's glory days
The iPhone proliferated in the market faster than almost any tech product before it and, while its sales these days are massive and generally considered successful, its year-over-year growth has slowed as the market became saturated.
In the last seven years, iPhone sales volume has leveled off at around 210 million to 230 million units per year, and the segment's revenue is only up 41% over that stretch of time. Revenue is up largely because the price of the iPhone has increased with each new iteration. This isn't necessarily bad for Apple, but it shows that this is a cash flow product, not a growth product, in 2023.
The growth engine for Apple
Today, Apple's overall growth is driven more by services and accessories like AirPods. Services revenue grew at a 19.8% compound rate over the last seven years, and accessories grew at a 19.1% rate over that time.
It's logical to try to monetize the success of the iPhone with digital products like services, including Alphabet's multibillion-dollar annual payment to be the default search engine. But there are questions now arising about how much more this business can grow.
It also doesn't help that government regulators are looking at how much control Apple has over the App Store and the 30% fee it charges developers. Some developers have also gotten around the App Store by having customers go directly to the website.
On the accessories side, AirPods were a smash hit for Apple, but that success has been difficult to repeat. The soon-to-be-released Apple Vision Pro has the potential to be a compelling virtual reality headset, but is there a demand for VR on a scale that will actually make an impact on Apple's financials? The Apple Watch would be a hit for most companies, but it doesn't have a huge impact on Apple's financials. The same goes for HomePods, which Apple thought could be a central hub for controlling the home.
Growth opportunities at Apple just aren't as easy to come by at the company's immense scale as they once were, and that's why the valuation is so difficult to assess.
Apple's valuation challenge
A decade ago, Apple was a growth stock with a low valuation, at a 12 price-to-earnings multiple. But today, growth has slowed and multiples have expanded. Shares are currently trading for 30 times trailing earnings.
AAPL PE Ratio data by YCharts
That's an expensive multiple for a company growing in excess of 20%, but if Apple's growth is going to be in the single digits, it could be a prohibitive price to pay.
I think Apple is holding up well in the market because of its stalwart status, which commands a premium from investors, but that doesn't mean this is going to be another performance star over the next decade. That's why I think this can be a core holding in any portfolio, but it's a stock I would hold or sell, not buy, today.
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 16, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has been one of the top-performing stocks over the past 20 years, as it's transformed from being a small PC maker to the iconic smartphone leader. AAPL PE Ratio data by YCharts That's an expensive multiple for a company growing in excess of 20%, but if Apple's growth is going to be in the single digits, it could be a prohibitive price to pay. It's logical to try to monetize the success of the iPhone with digital products like services, including Alphabet's multibillion-dollar annual payment to be the default search engine.
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Apple (NASDAQ: AAPL) has been one of the top-performing stocks over the past 20 years, as it's transformed from being a small PC maker to the iconic smartphone leader. AAPL PE Ratio data by YCharts That's an expensive multiple for a company growing in excess of 20%, but if Apple's growth is going to be in the single digits, it could be a prohibitive price to pay. iPhone sales growth has slowed, and product refresh times have lengthened for the iconic product.
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Apple (NASDAQ: AAPL) has been one of the top-performing stocks over the past 20 years, as it's transformed from being a small PC maker to the iconic smartphone leader. AAPL PE Ratio data by YCharts That's an expensive multiple for a company growing in excess of 20%, but if Apple's growth is going to be in the single digits, it could be a prohibitive price to pay. Despite the slowing growth, Apple stock has risen and is now trading at about 30 times trailing earnings.
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Apple (NASDAQ: AAPL) has been one of the top-performing stocks over the past 20 years, as it's transformed from being a small PC maker to the iconic smartphone leader. AAPL PE Ratio data by YCharts That's an expensive multiple for a company growing in excess of 20%, but if Apple's growth is going to be in the single digits, it could be a prohibitive price to pay. But the position the company is in today is very different from what it was even a decade ago.
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13039.0
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2023-10-19 00:00:00 UTC
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2 Tech Stocks You Can Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/2-tech-stocks-you-can-buy-and-hold-for-the-next-decade-11
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nan
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nan
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The ever-expanding and innovative nature of the tech market makes it an excellent place to find solid long-term investment options. Many tech companies have histories of delivering reliable financial growth, benefiting from consistent demand for upgraded products and software features.
Famous investors like Warren Buffett have massively profited from the sector's growth over the years. The stock portfolio of Buffett's conglomerate, Berkshire Hathaway, now has almost 50% of its value in tech stocks. Meanwhile, that portfolio has enjoyed a 9% compound annual return over the last 30 years, and is now valued at $346 billion.
Macroeconomic headwinds recently triggered a slight sell-off in the tech sector, as Wall Street is again growing increasingly concerned about the possibility that a U.S. recession may be coming. Despite their solid long-term outlooks, shares of Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) declined by 9% and 10%, respectively, since the start of August. Those dips present attractive buying opportunities for patient investors.
Apple: Expanding into highly profitable markets
As the world's most valuable company by market cap, Apple has a long history of providing its shareholders with consistent gains. The company's shares have risen by 573% since Berkshire Hathaway first invested in it in 2016. Apple's business has hit record heights, dominating the consumer tech market thanks to the immense success of devices such as the iPhone and iPad.
However, its relatively recent expansion outside of products is diversifying its earnings and strengthening its long-term outlook. Since 2019, the company has made significant pushes into digital services, artificial intelligence (AI), and fintech. Each of these industries has significant growth potential and will decrease Apple's dependency on product sales, which have proven vulnerable to macroeconomic headwinds.
Apple's services segment includes its App Store and subscription-based platforms like Apple TV, Apple Music, and iCloud. That segment has become one of the most lucrative areas for the company, with profit margins regularly hitting 70%. Meanwhile, its revenue grew by 14% in the company's fiscal 2022 and by 8% year over year in its fiscal Q3 2023 (which ended July 1).
Moreover, Apple is steadily expanding in the rapidly growing AI market. The company has reportedly developed its own large language model chatbot, dubbed Apple GPT, to compete with OpenAI's ChatGPT.
The tech giant is using its technology to bring AI upgrades to products across its lineup, enhancing the user experience. Apple might not be the biggest name in AI yet, but its potent brand and history of success when entering new markets suggests it could one day be a major player.
Apple shares have soared by 220% over the last five years. Its solid growth history and expansions into new markets make its stock an attractive option to buy now and hold for many years.
Advanced Micro Devices: Powering the future with its hardware
The tech market is booming after advances in critical areas such as AI, cloud computing, and virtual/augmented reality. All of these technologies have massive potential in the coming years. And all of them are highly dependent on powerful chips. Given that, it wouldn't be a bad idea to add a chip stock like AMD to your portfolio so that you can profit from the increasing demand for its hardware.
The chipmaker has attracted much attention this year with its growing prospects in AI. AMD's stock climbed 62% since Jan. 1 as Wall Street grew increasingly bullish over its potential in that high-growth area.
AMD is gearing up to make a big splash in AI in 2024 with the launch of a new graphics processing unit (GPU). The chip should make it more competitive against market leader Nvidia and help it grow its market share in an industry that Grand View Research projects expand at a compound annual rate of 37% through 2030.
Moreover, the success of AMD's chips allowed it to achieve strong positions in several other areas of tech. Its hardware can be found powering popular game consoles such as Sony's PlayStation 5 and Microsoft's Xbox Series X|S, as well as cloud platforms, laptops, and custom-built PCs.
AMD has faced challenges in 2023 alongside a strained tech market and macroeconomic turbulence. However, it remains a leading chipmaker with an excellent long-term outlook. Its chips give stockholders the opportunity to invest in multiple emerging markets, with AMD shares a compelling buy to hold for the next decade.
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 16, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway, 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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Despite their solid long-term outlooks, shares of Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) declined by 9% and 10%, respectively, since the start of August. Macroeconomic headwinds recently triggered a slight sell-off in the tech sector, as Wall Street is again growing increasingly concerned about the possibility that a U.S. recession may be coming. Its hardware can be found powering popular game consoles such as Sony's PlayStation 5 and Microsoft's Xbox Series X|S, as well as cloud platforms, laptops, and custom-built PCs.
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Despite their solid long-term outlooks, shares of Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) declined by 9% and 10%, respectively, since the start of August. Its solid growth history and expansions into new markets make its stock an attractive option to buy now and hold for many years. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway, Microsoft, and Nvidia.
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Despite their solid long-term outlooks, shares of Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) declined by 9% and 10%, respectively, since the start of August. Apple: Expanding into highly profitable markets As the world's most valuable company by market cap, Apple has a long history of providing its shareholders with consistent gains. Its solid growth history and expansions into new markets make its stock an attractive option to buy now and hold for many years.
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Despite their solid long-term outlooks, shares of Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) declined by 9% and 10%, respectively, since the start of August. Its solid growth history and expansions into new markets make its stock an attractive option to buy now and hold for many years. All of these technologies have massive potential in the coming years.
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13040.0
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2023-10-19 00:00:00 UTC
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Is Franklin U.S. Equity Index ETF (USPX) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-franklin-u.s.-equity-index-etf-uspx-a-strong-etf-right-now
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nan
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nan
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Making its debut on 06/01/2016, smart beta exchange traded fund Franklin U.S. Equity Index ETF (USPX) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $838.48 million, making it one of the larger ETFs in the Style Box - All Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the MORNINGSTAR US TARGET MARKET EXPOSURE ID.
The Morningstar US Target Market Exposure Index targets large and mid-capitalization U.S. stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.03% for USPX, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.44%.
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.
Representing 28.30% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
Its top 10 holdings account for approximately 29.52% of USPX's total assets under management.
Performance and Risk
Year-to-date, the Franklin U.S. Equity Index ETF has gained about 14.23% so far, and was up about 18.10% over the last 12 months (as of 10/19/2023). USPX has traded between $31.87 and $40.02 in this past 52-week period.
USPX has a beta of 0.86 and standard deviation of 18.69% for the trailing three-year period. With about 609 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Equity Index 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 Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $43.82 billion in assets, Vanguard Total Stock Market ETF has $305.18 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
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
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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Franklin U.S. Equity Index ETF (USPX): 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
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): 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 7.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Franklin U.S. Equity Index ETF (USPX): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 06/01/2016, smart beta exchange traded fund Franklin U.S. Equity Index ETF (USPX) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
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Click to get this free report Franklin U.S. Equity Index ETF (USPX): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Click to get this free report Franklin U.S. Equity Index ETF (USPX): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.05% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Franklin U.S. Equity Index ETF (USPX): 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 Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 06/01/2016, smart beta exchange traded fund Franklin U.S. Equity Index ETF (USPX) provides investors broad exposure to the Style Box - All Cap Blend category of the market.
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2023-10-19 00:00:00 UTC
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Should SoFi Select 500 ETF (SFY) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-sofi-select-500-etf-sfy-be-on-your-investing-radar
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the SoFi Select 500 ETF (SFY) is a passively managed exchange traded fund launched on 04/11/2019.
The fund is sponsored by Sofi. It has amassed assets over $511.92 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
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%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.50%.
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 26.60% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 29.56% of total assets under management.
Performance and Risk
SFY seeks to match the performance of the SOLACTIVE SOFI US 500 GROWTH INDEX before fees and expenses. The Solactive SoFi US 500 Growth Index follows a rules-based methodology that tracks the performance of 500 of the largest U.S.-listed companies weighted based on a proprietary mix of their market capitalization and fundamental factors.
The ETF has gained about 16.37% so far this year and is up roughly 18.48% in the last one year (as of 10/19/2023). In the past 52-week period, it has traded between $12.97 and $16.24.
The ETF has a beta of 1.02 and standard deviation of 18.94% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
SoFi Select 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SFY is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $90.59 billion in assets, Invesco QQQ has $202.94 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SoFi Select 500 ETF (SFY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the SoFi Select 500 ETF (SFY) is a passively managed exchange traded fund launched on 04/11/2019.
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Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the SoFi Select 500 ETF (SFY) is a passively managed exchange traded fund launched on 04/11/2019.
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Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives SoFi Select 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 6.47% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report SoFi Select 500 ETF (SFY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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2023-10-19 00:00:00 UTC
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These 2 Magnificent Warren Buffett Stocks Might Just Be the Best Businesses in the World
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https://www.nasdaq.com/articles/these-2-magnificent-warren-buffett-stocks-might-just-be-the-best-businesses-in-the-world
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Berkshire Hathaway owns a lot of stocks in its huge $347 billion portfolio. The average investor could peek at this list of holdings to find potential investment opportunities to allocate some cash to.
Among some of the relatively smaller positions that Warren Buffett owns, investors will find Visa (NYSE: V) and Mastercard (NYSE: MA). Both stocks have crushed the broader market in the past decade.
It's worth learning more about these incredibly lucrative card payments giants, which just might be two of the best businesses in the world.
Outstanding financials
When looking at stocks to buy, Buffett certainly seems to prioritize financially sound companies. Apple, representing 47% of the overall portfolio, is one of the most profitable and cash-rich businesses on the face of the planet. When it comes to the financial picture, Visa and Mastercard are in the same category as the iPhone maker. In fact, they just might be better.
In the three-month period ended June 30, Visa and Mastercard posted operating margins of 61.8% and 58.3%, respectively. I'm sure it would take you a long time to find businesses that can match this level of profitability.
These companies generate lots of free cash flow (FCF), too. Visa made $17.9 billion in FCF in its last fiscal year, which represented a whopping 61% of overall revenue. Mastercard produced $10.1 billion in FCF in 2022, or 45% of total sales. This has allowed both businesses to pay steadily rising dividends over the years, while also repurchasing shares. Buffett definitely appreciates these capital-allocation moves.
Economic moat
There's no doubt that Buffett seeks out companies that possess an economic moat, a term that is usually associated with him. As a long-term investor, finding businesses with this competitive advantage helps raise the chances that they will still be leading their respective industries and generating strong profits well into the future.
Visa and Mastercard both benefit from having a network effect, which could arguably be the strongest type of economic moat. Each company has billions of its branded cards in circulation that are accepted at tens of millions of merchant locations around the world. These companies operate a two-sided model that gets more powerful as it gets bigger. More merchant acceptance points mean there are more places to shop for cardholders. And more cardholders translates to a larger potential customer base for merchants.
In the U.S., Visa and Mastercard combined control about 87% of the market for card payments, having essentially a duopoly position in the industry. By processing trillions of dollars each on a quarterly basis, it's virtually impossible that these two payments networks get disrupted. The barriers to entry are insurmountable. If someone wanted to start a competing payments platform from scratch, it would be extremely difficult to bring on consumers without any merchants, and vice versa.
And while popular fintech companies, particularly PayPal and Block, get a lot of attention for their disruptive potential, a valid argument can be made that they actually benefit Visa and Mastercard by propelling adoption of digital payments.
Look at the thousands of stocks out there, and it would be a tall task finding a business that has a stronger competitive position than Visa or Mastercard.
Looking at the valuations
Although the impressive financials and powerful economic moats are definitely some factors to get excited about, it's also worth pointing out that these stocks are expensive. Visa and Mastercard trade at a price-to-earnings (P/E) ratio of 30 and 37, respectively. To be fair, these are cheaper than their trailing-five-year average P/E multiples, but they represent a significant premium to the overall S&P 500.
Investors who care more about paying the right price when buying stocks could wait for a potentially better entry point. However, I also think it's a reasonable course of action to decide to pay up for these two fantastic companies.
10 stocks we like better than Visa
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Visa wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 16, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Block, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short December 2023 $67.50 puts on PayPal, 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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As a long-term investor, finding businesses with this competitive advantage helps raise the chances that they will still be leading their respective industries and generating strong profits well into the future. If someone wanted to start a competing payments platform from scratch, it would be extremely difficult to bring on consumers without any merchants, and vice versa. And while popular fintech companies, particularly PayPal and Block, get a lot of attention for their disruptive potential, a valid argument can be made that they actually benefit Visa and Mastercard by propelling adoption of digital payments.
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Among some of the relatively smaller positions that Warren Buffett owns, investors will find Visa (NYSE: V) and Mastercard (NYSE: MA). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Block, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short December 2023 $67.50 puts on PayPal, and short January 2025 $380 calls on Mastercard.
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And while popular fintech companies, particularly PayPal and Block, get a lot of attention for their disruptive potential, a valid argument can be made that they actually benefit Visa and Mastercard by propelling adoption of digital payments. Look at the thousands of stocks out there, and it would be a tall task finding a business that has a stronger competitive position than Visa or Mastercard. See the 10 stocks *Stock Advisor returns as of October 16, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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Outstanding financials When looking at stocks to buy, Buffett certainly seems to prioritize financially sound companies. Investors who care more about paying the right price when buying stocks could wait for a potentially better entry point. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Block, Mastercard, PayPal, and Visa.
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13043.0
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2023-10-19 00:00:00 UTC
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3 Stocks To Consider With Strong Balance Sheets as the 10-Year Yield Nears 5%
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https://www.nasdaq.com/articles/3-stocks-to-consider-with-strong-balance-sheets-as-the-10-year-yield-nears-5
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U.S. Treasury yields continue to rise, with investors worried about the Fed's next move against a backdrop of elevated inflation and robust economic data. The yield on the 10-year Treasury (V2Y00) is lingering near a new multi-year high of 4.98% today, its loftiest level since 2007.
The uptick in yields follows this week's economic data, featuring stronger than expected reports on both retail sales for September and weekly jobless claims, which just fell to their lowest level since January. The Federal Reserve has hiked interest rates repeatedly since the start of 2022 to reduce the money supply in the economy and rein in inflation - but the labor market remains surprisingly resilient, suggesting interest rates may yet move higher in the near term.
In an interview with CNBC, noted investor Ray Dalio said there's a risk the 10-year Treasury yield could top the closely watched 5% mark. Other high-profile investment moguls, including Larry Fink and Bill Gross, are also calling for 5% yields - making Wall Street extremely nervous, and scrambling to find “safe havens” for their capital in this environment.
Where Should You Invest Amid Rising Bond Yields?
When interest rates rise, the cost of debt increases for individuals and corporations alike. That's because of higher interest expenses - which narrows the profit margins for companies. Comparatively, for individuals, it lowers consumer spending, while driving down demand for auto, mortgage, and personal loans.
In light of this, it's easy to see why the stock market sell-off in 2022 coincided with the start of the Fed's rate hike campaign, and drove down valuations of companies across sectors - particularly growth names that are heavily dependent on debt.
Now, with rates still high and bond yields surging, the investment appeal of equities is further diminished as the return on Treasuries soars.
In this market, it's particularly important to identify companies with strong balance sheets, stable cash flows, and low debt levels - all essential to riding out a challenging macro environment. Here are three top stocks armed with strong balance sheets you can consider buying as 10-year yields creep closer and closer to 5%.
Berkshire Hathaway
A business conglomerate valued at a market cap of $740 billion, Berkshire Hathaway (BRK.B) operates in multiple sectors, ranging from insurance, retail, transportation, energy, and manufacturing. Its portfolio of brands includes Geico, Dairy Queen, and BNSF Railway, which help Berkshire earn steady cash flows that are used to reinvest in growth projects or buy back shares.
www.barchart.com
Moreover, Berkshire Hathaway - led by legendary value investor Warren Buffett - has significant equity exposure via a portfolio of stocks that includes Apple (AAPL), Coca-Cola (KO), and American Express (AXP). The portfolio helps Berkshire earn millions of dollars in dividends each year, pushing earnings higher.
Berkshire Hathaway ended Q2 of 2023 with $147.4 billion in cash and cash equivalents, providing the company with the flexibility to invest in undervalued businesses or assets. For instance, during the financial crisis of 2008, Berkshire Hathaway went bottom fishing and invested in struggling bank stocks such as Goldman Sachs (GS).
Priced at 21x forward earnings, Berkshire stock is reasonably priced, and the B shares trade at a discount of 21% to consensus price target estimates.
UnitedHealth Group
Valued at $496.5 billion by market cap, UnitedHealth (UNH) is among the largest companies in the world. It is a U.S.-based insurance giant that is growing at a fast clip, allowing UNH to return over 800% to shareholders in the past decade, after adjusting for dividends.
UnitedHealth continues to gain traction and enter new markets on the back of accretive acquisitions. In early 2023, it acquired LHC Group for $5.4 billion, and bought Change Healthcare for $13 billion in 2022.
These acquisitions should allow United Health to increase earnings between 13% and 16% each year in the upcoming decade. Additionally, the company’s free cash flow totaled $38.2 billion in the last four quarters and continues to grow, enabling it to not only pay down debt, but also support dividend hikes.
UNH currently pays shareholders an annual dividend of $7.06 per share, indicating a yield of 1.32%. These payouts have more than doubled in the last five years and could rise higher, given UNH has a payout ratio of just 30%.
Out of the 20 analysts covering UNH, 16 recommend “strong buy,” two recommend “moderate buy,” and two recommend “hold.” Priced at 21.5x forward earnings, UNH trades at a discount of 7.7% to Wall Street's average price target estimate.
www.barchart.com
Visa
The final stock on my list is Visa (V), valued at $442.13 billion by market cap. Visa has created massive wealth for shareholders, rising about 408% in the last 10 years and 1,770% since its IPO in 2008.
Visa is a financial behemoth, but it is relatively insulated from credit risk compared to other financial firms of its size, thanks to its business model. It operates a communication network that connects banks all over the world, and charges a fee for this service. Visa enjoys a wide economic moat due to its entrenched position in the payments processing segment, and is poised to increase earnings by 14.2% in the next five years.
Despite its massive size, Visa increased sales from $21.8 billion in fiscal 2020 (ended in June) to $31.8 billion in the last 12 months. In the past decade, Visa has increased revenue by 10.4%, while net income has grown by more than 13% annually. Its asset-light model allows Visa to enjoy free cash flow margins of over 60%, which is quite exceptional.
Visa pays shareholders an annual dividend of $1.80 per share, indicating a yield of 0.76%. These payouts have risen by 20% annually in the last 15 years.
Out of the 24 analysts covering Visa stock, 17 recommend “strong buy,” four recommend “moderate buy,” and three recommend “hold.” Priced at 24.6x forward earnings, Visa stock trades at a discount of 10% to its average target price estimates.
www.barchart.com
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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www.barchart.com Moreover, Berkshire Hathaway - led by legendary value investor Warren Buffett - has significant equity exposure via a portfolio of stocks that includes Apple (AAPL), Coca-Cola (KO), and American Express (AXP). Other high-profile investment moguls, including Larry Fink and Bill Gross, are also calling for 5% yields - making Wall Street extremely nervous, and scrambling to find “safe havens” for their capital in this environment. In light of this, it's easy to see why the stock market sell-off in 2022 coincided with the start of the Fed's rate hike campaign, and drove down valuations of companies across sectors - particularly growth names that are heavily dependent on debt.
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www.barchart.com Moreover, Berkshire Hathaway - led by legendary value investor Warren Buffett - has significant equity exposure via a portfolio of stocks that includes Apple (AAPL), Coca-Cola (KO), and American Express (AXP). Berkshire Hathaway A business conglomerate valued at a market cap of $740 billion, Berkshire Hathaway (BRK.B) operates in multiple sectors, ranging from insurance, retail, transportation, energy, and manufacturing. Out of the 20 analysts covering UNH, 16 recommend “strong buy,” two recommend “moderate buy,” and two recommend “hold.” Priced at 21.5x forward earnings, UNH trades at a discount of 7.7% to Wall Street's average price target estimate.
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www.barchart.com Moreover, Berkshire Hathaway - led by legendary value investor Warren Buffett - has significant equity exposure via a portfolio of stocks that includes Apple (AAPL), Coca-Cola (KO), and American Express (AXP). Berkshire Hathaway A business conglomerate valued at a market cap of $740 billion, Berkshire Hathaway (BRK.B) operates in multiple sectors, ranging from insurance, retail, transportation, energy, and manufacturing. Out of the 20 analysts covering UNH, 16 recommend “strong buy,” two recommend “moderate buy,” and two recommend “hold.” Priced at 21.5x forward earnings, UNH trades at a discount of 7.7% to Wall Street's average price target estimate.
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www.barchart.com Moreover, Berkshire Hathaway - led by legendary value investor Warren Buffett - has significant equity exposure via a portfolio of stocks that includes Apple (AAPL), Coca-Cola (KO), and American Express (AXP). U.S. Treasury yields continue to rise, with investors worried about the Fed's next move against a backdrop of elevated inflation and robust economic data. Berkshire Hathaway A business conglomerate valued at a market cap of $740 billion, Berkshire Hathaway (BRK.B) operates in multiple sectors, ranging from insurance, retail, transportation, energy, and manufacturing.
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13044.0
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2023-10-19 00:00:00 UTC
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2 ‘Magnificent 7’ Stocks to Buy and One to Skip This October
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https://www.nasdaq.com/articles/2-magnificent-7-stocks-to-buy-and-one-to-skip-this-october
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market’s volatility this year is nothing new. Over the past three years investors saw the S&P 500 hit new all-time highs, partially thanks to the “Magnificent 7 stocks,” only to tumble sharply afterwards. Heck, since just the beginning of last year the benchmark index has dipped into bear market territory on three separate occasions.
Earlier this year Bank of America chief investment strategist Michael Hartnett coined the term Magnificent 7 stocks, a group of stocks that were almost wholly responsible for the market’s gains this year. Without their outsized performance, the S&P 500 would be flat.
Many of the original so-called FAANG stocks – Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) – made the cut of the Magnificent 7. Added to the list were Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
Yet where the FAANG group were stocks to buy, Hartnett was issuing a word of caution about the Magnificent 7. He warned they were the result of a “baby bubble” that could pop at any time because of interest rate hikes.
Since his investor note, however, most of the stocks continue outperforming the index. It’s possible they will fall flat now, but here are two Magnificent 7 stocks you should add to your portfolio this month and one you should avoid.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
Social media platform leader Meta is still one of the market darlings since Hartnett’s call. Shares are up 31% since May compared to a 3% gain by the index. In fact, the stock is up over 155% since the start of the year. That’s a stark reversal from the complete collapse it experienced last year.
Investors view Meta’s cost-cutting initiatives positively. After years of shoveling money everywhere, the owner of Facebook, Instagram, WhatsApp and Messenger finally realized that targeted spending was needed. With those apps having a combined 3.9 billion monthly active users, it is reaching about 60% of the global online population. Few companies have such reach and selectively going after them can yield tremendous results.
Despite Meta Platforms’ torrid growth in 2023, the stock is still relatively cheap. It trades at just 18 times next year’s earnings estimates, by far the lowest of any of the other Magnificent 7 stocks and equal to the S&P 500 as a whole. Wall Street also forecasts Meta will grow earnings at a 31% compounded annual rate for the next five years.
There is no reason to think the social media platform won’t continue on this long, upward trajectory it is traveling.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Alphabet is another cheap stock in the group with forward estimates of 20 times earnings. With expectations for profits to expand 18% annually long term, there’s plenty of growth on its plate, too.
Combined with Meta, Alphabet’s Google accounts for nearly half of the global ad spend online. The search engine still has the largest slice of the ad market with a 26% share worldwide. Just as important, Google remains the go-to search engine, owning internet search with a 91.6% share. With analysts debating whether we’re heading into a recession soon, Google’s market share superiority will allow it to maintain pricing power. An economic slowdown might not dig as deeply into Google’s revenue as believed.
Moreover, Alphabet is developing alternative revenue sources as well. Google Cloud, for example, is the third largest cloud services business after Amazon (NASDAQ:AMZN) Web Services and Microsoft’s (NASDAQ:MSFT) Azure. It turned profitable for the first time in three years earlier this year and is among the fastest growing cloud service providers.
Netflix (NFLX)
Source: izzuanroslan / Shutterstock.com
Streaming platform Netflix is the laggard of the seven. Its stock has lost a quarter of its value from recent highs. Despite trying to shore up its revenues with price increases, password-sharing crackdowns and removing its cheapest ad-free subscription tier, growth is still an issue.
Although not endemic to Netflix, the premise behind cable TV cord-cutting is being undermined. No longer can you avoid commercials as virtually every streaming service added ad-supported tiers, Netflix included. Yet subscription costs are quickly approaching cable fee levels. Netflix’s cheapest ad-free tier is now over $15 a month. And to get a well-rounded movie lineup these days, subscribing to competing services will double or triple your cost.
Netflix is also branching out into curious, and arguably mistaken directions. Bloomberg reports the streamer will be opening branded stores and restaurants. “Netflix House” will be a permanently fixed retail spot where the streamer will sell merchandise based on its programs, offer dining options from its food shows, show live events and even have art shows. I’m not convinced Netflix is a lifestyle brand. The stores will begin opening in 2025 and seem like an unnecessary diversion of limited resources.
Wall Street forecasts earnings will grow 25% annually for the next five years. That’s half the rate they grew for the past five years. I expect this slowdown will show up in a further decline in its stock price. Investors would do well to swear off Netflix stock for the foreseeable future.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post 2 ‘Magnificent 7’ Stocks to Buy and One to Skip This October 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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Many of the original so-called FAANG stocks – Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) – made the cut of the Magnificent 7. Despite trying to shore up its revenues with price increases, password-sharing crackdowns and removing its cheapest ad-free subscription tier, growth is still an issue. 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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Many of the original so-called FAANG stocks – Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) – made the cut of the Magnificent 7. Meta Platforms (META) Source: Ascannio / Shutterstock.com Social media platform leader Meta is still one of the market darlings since Hartnett’s call. Alphabet (GOOG, GOOGL) Source: IgorGolovniov / Shutterstock.com Alphabet is another cheap stock in the group with forward estimates of 20 times earnings.
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Many of the original so-called FAANG stocks – Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) – made the cut of the Magnificent 7. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market’s volatility this year is nothing new. Earlier this year Bank of America chief investment strategist Michael Hartnett coined the term Magnificent 7 stocks, a group of stocks that were almost wholly responsible for the market’s gains this year.
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Many of the original so-called FAANG stocks – Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) – made the cut of the Magnificent 7. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market’s volatility this year is nothing new. Over the past three years investors saw the S&P 500 hit new all-time highs, partially thanks to the “Magnificent 7 stocks,” only to tumble sharply afterwards.
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13045.0
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2023-10-19 00:00:00 UTC
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Have We Passed Peak Nvidia? Time to Cash Out or Double Down?
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https://www.nasdaq.com/articles/have-we-passed-peak-nvidia-time-to-cash-out-or-double-down
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Business is great at Nvidia (NASDAQ:NVDA), but NVDA stock is looking just a bit ragged. For the first time in years, a move up didn’t hit the old high.
The August peak of $493/share was followed by an October peak of $469. But even that looks far off from the $429/share it was trading at early on October 17. The long-term trend remains bullish. But is it time to bail?
Why Sell NVDA Stock?
The short-term reason for the latest sell-off is China. Tightening China’s access to high-end AI chips means cutting sales to Nvidia.
Beyond that, Nvidia depends on the Cloud Czars for its profits. Some $6.2 billion of the July quarter’s $13.5 billion in revenue became net income. That’s 46 cents, on every dollar, hitting the bottom line. I can’t remember any company ever doing so well.
Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Amazon.Com (NASDAQ:AMZN) all will reduce their dependence on Nvidia with their own chips. That won’t be great for NVDA stock.
Providers using the cheapest possible hardware and free software marked the first decade of the cloud era. High-priced Nvidia hardware defines this decade.
That’s why growth in the number of data centers has leveled off, according to Synergy Research, while growth in computing capacity keeps exploding, thanks to AI.
This means there’s a big incentive to reduce Nvidia’s control of the cloud market, and there’s lots of cash available with which to do it. That may be why “tech whisperer” Cathie Wood recently cut her funds’ stake in NVDA stock, selling at $458 per share.
Why Not Sell NVDA Stock?
The Czars’ bigger problem is the software stack Nvidia has laid over its chips. The company’s isn’t just the Intel (NASDAQ:INTC) of the AI age. It’s also the Microsoft of the AI age. Control of the software that lies under applications gives you control over the application space. Right now, Nvidia has it.
Advanced Micro Devices (NASDAQ:AMD) hopes the open source approach used in the last decade by the Czars’ themselves can help cut that advantage. It wants to buy Noda.AI, an open source AI software firm.
But a software lead is harder to break than a hardware lead. Once people are trained on a software stack, they stick with it.
Infosys (NYSE:INFY) alone is training 50,000 people on the Nvidia software stack. Other Indian outsourcers are making similar moves, and even Alphabet is having to expand its partnership with Nvidia.
What’s This Worth?
The question for investors remains, what is all this worth?
The average analyst estimates Nvidia’s earnings for the 2024 fiscal year, which ends in January, at $10.79 per share. The average for fiscal 2025, which ends just over 15 months from now, is $17.06. At $430 per share, you’re still paying 25 times those earnings.
But software control tends to abide. The AI era is just getting started. Apple (NASDAQ:AAPL) and Microsoft, which defined the PC era from its earliest days, still control that business 40 years later.
The Bottom Line
Right now, investors are buying NVDA stock on every dip. I started writing this with Nvidia below $430. A few hours later the shares were at $443 and headed higher. They trade today closer to $420.
There’s just very little to buy these days except the “magnificent seven,” which is what you get what you add Nvidia to the Cloud Czars, along with Tesla (NASDAQ:TSLA).
But I can see selling NVDA stock on its next upswing. With bonds paying 5%, there’s a roof on stock prices, and it’s something below 25 times forward earnings. Even for Nvidia.
As of this writing, Dana Blankenhorn held LONG positions in GOOGL, NVDA, MSFT, AAPL, INTC, AMD and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The post Have We Passed Peak Nvidia? Time to Cash Out or Double Down? 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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As of this writing, Dana Blankenhorn held LONG positions in GOOGL, NVDA, MSFT, AAPL, INTC, AMD and AMZN. Apple (NASDAQ:AAPL) and Microsoft, which defined the PC era from its earliest days, still control that business 40 years later. Advanced Micro Devices (NASDAQ:AMD) hopes the open source approach used in the last decade by the Czars’ themselves can help cut that advantage.
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As of this writing, Dana Blankenhorn held LONG positions in GOOGL, NVDA, MSFT, AAPL, INTC, AMD and AMZN. Apple (NASDAQ:AAPL) and Microsoft, which defined the PC era from its earliest days, still control that business 40 years later. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Business is great at Nvidia (NASDAQ:NVDA), but NVDA stock is looking just a bit ragged.
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Apple (NASDAQ:AAPL) and Microsoft, which defined the PC era from its earliest days, still control that business 40 years later. As of this writing, Dana Blankenhorn held LONG positions in GOOGL, NVDA, MSFT, AAPL, INTC, AMD and AMZN. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Business is great at Nvidia (NASDAQ:NVDA), but NVDA stock is looking just a bit ragged.
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Apple (NASDAQ:AAPL) and Microsoft, which defined the PC era from its earliest days, still control that business 40 years later. As of this writing, Dana Blankenhorn held LONG positions in GOOGL, NVDA, MSFT, AAPL, INTC, AMD and AMZN. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Business is great at Nvidia (NASDAQ:NVDA), but NVDA stock is looking just a bit ragged.
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13046.0
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2023-10-19 00:00:00 UTC
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Netflix (NFLX) Q3 Earnings Beat, Revenues Rise Y/Y on User Gain
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https://www.nasdaq.com/articles/netflix-nflx-q3-earnings-beat-revenues-rise-y-y-on-user-gain
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Netflix NFLX reported third-quarter 2023 earnings of $3.73 per share, which beat the Zacks Consensus Estimate by 7.8% and increased 20.3% year over year.
Revenues of $8.54 billion increased 7.8% year over year and beat the consensus mark by 0.11%.
The streaming giant gained 8.76 million paid subscribers globally, thanks to the rollout of paid sharing, strong and steady programming and the ongoing expansion of streaming globally. It gained 2.41 million paid subscribers in the year-ago quarter.
Ad-supported plan membership increased almost 70% quarter-over-quarter.
ARM decreased 1% year over year, both on a reported basis and a foreign-exchange neutral basis in the third quarter. ARM declined due to a higher mix of membership growth from lower ARM countries and limited price increases over the past 18 months.
At the end of the third quarter, Netflix had 247.15 million paid subscribers globally, up 10.8% year over year.
Although the company is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter.
Hit shows like season 1 of One Piece, season 3 of The Witcher and Top Boy, Sex Education season 4, Love at First Sight, and local language shows like Dear Child (Germany), Sintonia season 4 (Brazil), Guns & Gulaabs season 1 (India) and Class Act (France) helped Netflix win subscribers.
Netflix, Inc. Price, Consensus and EPS Surprise
Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote
Shares of this Zacks Rank #3 (Hold) company have gained almost 13.38% in pre-market trading. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s shares have underperformed Amazon and Apple year to date but outperformed Disney. While Netflix shares have gained 17.4%, Amazon and Apple returned 52.5% and 35.3%, respectively. Disney shares have declined 2.5% year to date.
Netflix’s Segmental Revenue Details
The United States and Canada (“UCAN") reported revenues of $3.74 billion, which rose 3.7% year over year and accounted for 43.7% of total revenues. The figure missed our model estimate of $3.82 billion, primarily due to lower ARPU.
ARPU declined 0.5% from the year-ago quarter. On a foreign-exchange neutral basis, ARPU was unchanged year over year.
The paid subscriber base for UCAN increased 5.4% from the year-ago quarter to 77.32 million. The company gained 1.75 million paid subscribers compared with the year-ago quarter’s gain of 0.1 million.
Europe, Middle East & Africa (“EMEA”) reported revenues of $2.69 billion, which increased 13.3% year over year and accounted for 31.5% of total revenues. The figure beat our model estimate of $2.56 billion. ARPU increased 2% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for EMEA increased 13.9% from the year-ago quarter to 83.76 million. Netflix gained 3.95 million paid subscribers compared with the year-ago quarter’s net gain of 0.57 million.
Latin America’s (“LATAM”) revenues of $1.14 billion increased 11.6% year over year, contributing 13.4% of total revenues. The figure beat our model estimate of $1.08 billion.
ARPU increased 8% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for LATAM rose 9.3% from the year-ago quarter to 43.65 million. It gained 1.18 million paid subscribers in the reported quarter.
Asia Pacific’s (“APAC”) revenues of $948 million increased 6.6% year over year and accounted for 11.1% of total revenues. The figure beat our model estimate of $919.3 million.
ARPU decreased 6% year over year on a foreign-exchange neutral basis.
The paid subscriber base for APAC jumped 17.1% from the year-ago quarter to 42.43 million. The company added 1.88 million paid subscribers in the quarter.
Operating Details
Marketing expenses decreased 1.6% year over year to $558.7 million. As a percentage of revenues, marketing expenses decreased 60 basis points (bps) to 6.5%.
Operating income increased 25% year over year to $1.92 billion. Operating margin expanded 310 bps on a year-over-year basis to 22.4%.
Balance Sheet & Free Cash Flow
Netflix had $7.87 billion of cash and cash equivalents as of Sep 30, 2023 compared with $8.58 billion as of Jun 30, 2023.
Total debt was $14.3 billion as of Sep 30, 2023 compared with $14.47 billion as of Jun 30, 2023.
Streaming content obligations were $19.65 billion as of Sep 30, 2023 compared with $20.90 billion as of Jun 30, 2023.
Netflix reported a free cash flow of $1.89 billion compared with a free cash flow of $1.34 billion in the previous quarter.
It repurchased $2.5 billion worth of shares in the reported quarter.
Guidance
For the fourth quarter of 2023, Netflix forecasts earnings of $3.73 per share, indicating an almost 20.3% increase from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the same is pegged at $2.24 per share, currently lower than the company’s expectation.
Total revenues are anticipated to be $8.69 billion, suggesting growth of 10.7% year over year or 12% on a foreign-exchange neutral basis. The consensus mark for revenues stands at $8.76 billion, higher than the company’s expectation and indicating 11.59% growth from the figure reported in the year-ago quarter.
The quarterly operating margin is projected at 13.3% compared with the 19.3% reported in the year-ago quarter.
Netflix expects paid net additions to be similar to third-quarter 2023. Global ARM in the fourth quarter is expected to be roughly flat year over year, primarily due to limited price increases over the last 18 months.
For 2023, the company expects the operating margin to be 20%. It expects to generate a free cash flow of at least $6.5 billion, higher than its previous guidance of $5 billion.
Netflix increased its share repurchase authorization to $10 billion.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s 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
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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Although the company is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. It’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.
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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. Although the company is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. Netflix NFLX reported third-quarter 2023 earnings of $3.73 per share, which beat the Zacks Consensus Estimate by 7.8% and increased 20.3% 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. Although the company is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. At the end of the third quarter, Netflix had 247.15 million paid subscribers globally, up 10.8% year over year.
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Although the company is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, it benefited from a strong content portfolio in the reported quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix NFLX reported third-quarter 2023 earnings of $3.73 per share, which beat the Zacks Consensus Estimate by 7.8% and increased 20.3% year over year.
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13047.0
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2023-10-19 00:00:00 UTC
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Meta Platforms (META) to Report Q3 Earnings: What to Expect
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https://www.nasdaq.com/articles/meta-platforms-meta-to-report-q3-earnings%3A-what-to-expect-0
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Meta Platforms META is set to report its third-quarter 2023 results on Oct 25.
The company expects total revenues between $32 billion and $34.5 billion for the third quarter of 2023. Favorable forex is expected to aid year-over-year top-line growth by roughly 3%.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $33.43 billion, indicating an increase of 20.62% from the year-ago quarter’s reported figure.
The consensus mark for earnings stands at $3.57 per share, up by 1.13% over the past 30 days, suggesting growth of 117.68% from the figure reported in the year-ago quarter.
Meta’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 18.99%.
Meta Platforms, Inc. Price and EPS Surprise
Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Meta’s third-quarter top line is expected to have benefited from Facebook’s expanding user base (more than 3.03 billion daily active users) and growing adoption of reels. Higher engagement level is helping to steady its user growth across all regions, particularly Asia Pacific.
Our model estimate for Asia Pacific Daily Active Users (DAUs) in the third quarter is pegged at 894 million, indicating 5.8% year-over-year growth, the fastest among the regions followed by the Rest of World, which we expect to grow 4.1% to 664 million DAUs.
Regarding Monthly Active Users (MAUs), our estimate for Asia Pacific is pegged at 1.347 billion, suggesting 2.7% year-over-year growth. The Rest of World MAUs are expected to grow 3.4% to 1.004 billion MAUs.
Increased engagement for Meta’s offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. Effective usage of artificial intelligence has been helping the company keep its users engaged.
Our model estimate for Meta’s worldwide DAU is pegged at 2.060 billion, indicating 3.8% growth year over year. MAU is pegged at 3.021 billion, indicating a 2.1% year-over-year increase.
Nevertheless, Meta’s top line is expected to reflect the negative impact of the challenging macroeconomic environment and high inflation that is anticipated to have kept ad spending budgets under pressure. This is likely to have weighed on ad revenues in the to-be-reported quarter.
The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. However, measuring these outcomes is tough.
In the second quarter of 2023, Meta’s ad revenues represented 99.3% of total revenues, which increased 11.9% year over year to $31.5 billion.
Our estimate for third-quarter 2023 ad revenues is pegged at $32.37 billion, indicating 18.8% year-over-year growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.
Meta has an Earnings ESP of +3.98% and currently has a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
GoDaddy GDDY has an Earnings ESP of +14.09% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GoDaddy shares have gained 0.2% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Pinterest PINS has an Earnings ESP of +4.76% and a Zacks Rank #1.
Pinterest shares have gained 16.8% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
GoDaddy Inc. (GDDY) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoDaddy Inc. (GDDY) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, Meta’s top line is expected to reflect the negative impact of the challenging macroeconomic environment and high inflation that is anticipated to have kept ad spending budgets under pressure.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoDaddy Inc. (GDDY) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Our model estimate for Asia Pacific Daily Active Users (DAUs) in the third quarter is pegged at 894 million, indicating 5.8% year-over-year growth, the fastest among the regions followed by the Rest of World, which we expect to grow 4.1% to 664 million DAUs.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoDaddy Inc. (GDDY) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. The Zacks Consensus Estimate for third-quarter revenues is pegged at $33.43 billion, indicating an increase of 20.62% from the year-ago quarter’s reported figure.
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The company’s ad revenue business is facing a decline in growth due to ad targeting-related headwinds created by Apple’s AAPL iOS changes. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report GoDaddy Inc. (GDDY) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Regarding Monthly Active Users (MAUs), our estimate for Asia Pacific is pegged at 1.347 billion, suggesting 2.7% year-over-year growth.
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13048.0
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2023-10-19 00:00:00 UTC
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Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-fidelity-nasdaq-composite-index-etf-oneq-be-on-your-investing-radar-8
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Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003.
The fund is sponsored by Fidelity. It has amassed assets over $4.85 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that 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.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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 0.21%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.82%.
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 47% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 54.01% of total assets under management.
Performance and Risk
ONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The NASDAQ Composite TR USD is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange.
The ETF has added roughly 28.66% so far this year and is up about 25.15% in the last one year (as of 10/19/2023). In the past 52-week period, it has traded between $40.02 and $56.43.
The ETF has a beta of 1.12 and standard deviation of 23.22% for the trailing three-year period, making it a medium risk choice in the space. With about 1200 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Nasdaq Composite Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ONEQ is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $90.59 billion in assets, Invesco QQQ has $202.94 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003.
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Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Fidelity Nasdaq Composite Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003.
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13049.0
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2023-10-19 00:00:00 UTC
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India launches new 'authorisation' plan for imports of laptops, tablets
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AAPL
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https://www.nasdaq.com/articles/india-launches-new-authorisation-plan-for-imports-of-laptops-tablets
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nan
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nan
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By Shivangi Acharya
NEW DELHI, Oct 19 (Reuters) - India is launching a new system of "authorisation" for imports of laptops, tablets and personal computers, aiming to monitor shipments of such hardware without hurting market supply, government officials said on Thursday.
The new "import management system" takes effect from Nov. 1 and requires companies to register the quantity and value of imports, but the government will not reject any import requests and will use the data for monitoring, the officials said.
Its purpose is "to ensure that all this provides us with the kind of data and information we need to make sure that we have a completely trusted digital system," said S. Krishnan, the top bureaucrat in the electronics and infotech ministry.
The decision spells relief for global laptop makers such as Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK, which had been unnerved by the abrupt announcement of a licensing regime in August.
On Aug. 3, India imposed a licensing regime on laptops and tablet imports, but quickly deferred the decision following criticism from industry and Washington.
That plan would have allowed the government to reject import requests while requiring a licence for every shipment.
Further measures could be taken after September 2024 on the basis of the data collected, Krishnan added, speaking at a press conference.
(Reporting by Shivangi Acharya; Writing by Sakshi Dayal; Editing by Kim Coghill and Clarence Fernandez)
((Sakshi.Dayal@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The decision spells relief for global laptop makers such as Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK, which had been unnerved by the abrupt announcement of a licensing regime in August. By Shivangi Acharya NEW DELHI, Oct 19 (Reuters) - India is launching a new system of "authorisation" for imports of laptops, tablets and personal computers, aiming to monitor shipments of such hardware without hurting market supply, government officials said on Thursday. Its purpose is "to ensure that all this provides us with the kind of data and information we need to make sure that we have a completely trusted digital system," said S. Krishnan, the top bureaucrat in the electronics and infotech ministry.
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The decision spells relief for global laptop makers such as Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK, which had been unnerved by the abrupt announcement of a licensing regime in August. The new "import management system" takes effect from Nov. 1 and requires companies to register the quantity and value of imports, but the government will not reject any import requests and will use the data for monitoring, the officials said. On Aug. 3, India imposed a licensing regime on laptops and tablet imports, but quickly deferred the decision following criticism from industry and Washington.
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The decision spells relief for global laptop makers such as Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK, which had been unnerved by the abrupt announcement of a licensing regime in August. By Shivangi Acharya NEW DELHI, Oct 19 (Reuters) - India is launching a new system of "authorisation" for imports of laptops, tablets and personal computers, aiming to monitor shipments of such hardware without hurting market supply, government officials said on Thursday. The new "import management system" takes effect from Nov. 1 and requires companies to register the quantity and value of imports, but the government will not reject any import requests and will use the data for monitoring, the officials said.
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The decision spells relief for global laptop makers such as Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK, which had been unnerved by the abrupt announcement of a licensing regime in August. By Shivangi Acharya NEW DELHI, Oct 19 (Reuters) - India is launching a new system of "authorisation" for imports of laptops, tablets and personal computers, aiming to monitor shipments of such hardware without hurting market supply, government officials said on Thursday. The new "import management system" takes effect from Nov. 1 and requires companies to register the quantity and value of imports, but the government will not reject any import requests and will use the data for monitoring, the officials said.
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13050.0
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2023-10-19 00:00:00 UTC
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2 Green Flags for Apple's Future
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AAPL
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https://www.nasdaq.com/articles/2-green-flags-for-apples-future
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nan
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nan
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Apple's (NASDAQ: AAPL) business has come under scrutiny this year, with macroeconomic headwinds leading to repeated revenue declines. Then, on Oct. 16, Counterpoint Research revealed Apple is losing to Huawei in the Chinese smartphone market, with iPhone 15 sales down 4.5% in the country compared to last year's model.
Counterpoint partially attributed the sales slump to China's burdened economy, which is still struggling to rebound after COVID-19. However, the rise of Huawei and recent sanctions by the Chinese government could see Apple continue to lose market share in the country. Conversely, the iPhone 15 is looking like a massive success in the U.S., with analysts projecting double-digit year-over-year sales growth.
Apple's recent challenges in products are why it's crucial to keep a long-term perspective with tech stocks. The company remains the biggest name in consumer tech and is home to a highly profitable services business. The tech giant is unlikely to lose that dominance over the long term and has much to gain once economic headwinds subside, making now an excellent time to consider investing in its stock.
Here are two green flags for Apple's future.
1. Apple is more than iPhone sales
About 50% of Apple's total revenue is owed to its iPhone segment, so stockholders slightly panicked when the company reported a 2% year-over-year decline in smartphone sales in the third quarter of 2023. The tech giant's stock tumbled 9% since its earnings release at the start of August. However, Apple has become much more than its iPhone business and is steadily diversifying its revenue streams to lean less on product sales over the long term.
In 2019, the company made a major push into digital services, launching subscription-based platforms Apple TV+, Fitness+, Arcade, and News+, all in the same year. The success of these platforms has made Apple's services segment the second highest-earning part of its business, after the iPhone. Meanwhile, its rapid growth suggests it could overtake the company's smartphone segment one day.
In fiscal 2022, services revenue growth hit 14% year over year, double the iPhone's growth. Then in Q3 2023, services delivered an 8% rise in net sales, compared to the iPhone's decline of 2%.
Apple's larger focus on services is promising, considering the business' attractive profit margins. The digital platforms segment regularly hit profit margins of 70%, with the same metric for products hovering around 35%.
Alongside services, Apple has expanding ventures in artificial intelligence, virtual/augmented reality, and fintech, which all have the potential to lessen the company's dependency on the iPhone. Apple is on a promising growth trajectory, making the recent dip in its stock an attractive investment option.
2. Immense loyalty from consumers
Apple's expansion into more digital forms of business is gradually making it less vulnerable to economic headwinds. However, the company owes much of its dominance in tech to the massive popularity of its products and the loyalty they have garnered from consumers. Apple holds leading market shares in smartphones, headphones, tablets, and smartwatches, suggesting it has much to gain once the market rebounds.
The tech giant has strategically created an interconnected ecosystem for its devices, which promotes ease of use and makes consumers less likely to try out competing products. The advanced connectivity means an iPhone user is far more likely to buy a MacBook when shopping for a computer or an Apple Watch when in search of a smartwatch.
Connectivity and consistent quality have granted Apple almost unrivaled brand loyalty among shoppers. Consumer preference for its offerings has been most prevalent during an economic downturn, when the entire tech market suffered from reductions in spending.
In Q2 2023, U.S. smartphone shipments fell 24% year over year, with Samsung sales tumbling 37%. However, the same period saw Apple report a more moderate sales decline of 6%, which allowed its market share to grow from 52% to 55%.
Apple has amassed a substantial user base on a global level, which is unlikely to dissipate any time soon. The company's iPhone business could lose out to Huawei in China in the coming years.
However, multiple emerging markets reported record revenue in Q3 2023. iPhone sales hit new highs in India, Indonesia, Mexico, the Philippines, Poland, Saudi Arabia, Turkey and the UAE. Meanwhile, more established markets such as France, the Netherlands, and Austria enjoyed record sales for the June quarter.
I wouldn't bet against Apple over the long term, despite recent economic hurdles. Its expansion outside of products has bolstered its earnings potential, with the popularity of its products likely to continue offering significant gains for many years.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (NASDAQ: AAPL) business has come under scrutiny this year, with macroeconomic headwinds leading to repeated revenue declines. Then, on Oct. 16, Counterpoint Research revealed Apple is losing to Huawei in the Chinese smartphone market, with iPhone 15 sales down 4.5% in the country compared to last year's model. The tech giant is unlikely to lose that dominance over the long term and has much to gain once economic headwinds subside, making now an excellent time to consider investing in its stock.
|
Apple's (NASDAQ: AAPL) business has come under scrutiny this year, with macroeconomic headwinds leading to repeated revenue declines. Then, on Oct. 16, Counterpoint Research revealed Apple is losing to Huawei in the Chinese smartphone market, with iPhone 15 sales down 4.5% in the country compared to last year's model. In fiscal 2022, services revenue growth hit 14% year over year, double the iPhone's growth.
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Apple's (NASDAQ: AAPL) business has come under scrutiny this year, with macroeconomic headwinds leading to repeated revenue declines. Then, on Oct. 16, Counterpoint Research revealed Apple is losing to Huawei in the Chinese smartphone market, with iPhone 15 sales down 4.5% in the country compared to last year's model. Apple is more than iPhone sales About 50% of Apple's total revenue is owed to its iPhone segment, so stockholders slightly panicked when the company reported a 2% year-over-year decline in smartphone sales in the third quarter of 2023.
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Apple's (NASDAQ: AAPL) business has come under scrutiny this year, with macroeconomic headwinds leading to repeated revenue declines. Apple is more than iPhone sales About 50% of Apple's total revenue is owed to its iPhone segment, so stockholders slightly panicked when the company reported a 2% year-over-year decline in smartphone sales in the third quarter of 2023. In fiscal 2022, services revenue growth hit 14% year over year, double the iPhone's growth.
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13051.0
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2023-10-19 00:00:00 UTC
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Zacks Earnings Trends Highlights: Microsoft, Apple, Alphabet, Nvidia and Tesla
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AAPL
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https://www.nasdaq.com/articles/zacks-earnings-trends-highlights%3A-microsoft-apple-alphabet-nvidia-and-tesla
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nan
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nan
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For Immediate Release
Chicago, IL – October 19, 2023 – Zacks Director of Research Sheraz Mian says, "We are off to a positive start to the Q3 earnings season, with most companies not only beating estimates but also providing reassuring guidance for the coming periods."
Q3 Earnings Season Kicks Off Positively
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
We are off to a positive start to the Q3 earnings season, with most companies not only beating estimates but also providing reassuring guidance for the coming periods.
For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% beating revenue estimates.
At this stage in the reporting cycle, the EPS beats percentage of 84.9% is tracking above other recent periods and the 20-quarter average of 79.7% for this group of companies.
Looking at Q3 as a whole, total S&P 500 earnings are currently expected to be down -1.1% from the same period last year on +0.8% higher revenues, the 4th back-to-back quarter of declining earnings for the index.
We are off to a good start in the Q3 earnings season, though the focus at this early stage has been largely on the Finance sector. Most of the big banks came out with better-than-expected Q3 results and described ongoing business trends in relatively reassuring and favorable terms.
This has to count as a big positive for the group, given the all-around negative views on the sector.
Beyond the Finance sector, looking at Q3 expectations as a whole, total S&P 500 earnings are expected to be down -1.1% from the same period last year on +0.8% higher revenues.
One key sector whose earnings outlook has been steadily improving lately is the Technology sector, whose members will be coming out with Q3 results in the next few days. The sector has been operating in a constrained growth environment since 2021 Q4, but this is on track to change starting with the group’s Q3 results.
A significant source of growth for the group is the 7 mega-cap stocks, most of which are from the Tech sector. We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA and others.
Q3 earnings for this group of companies are expected to grow by +34.9% from the same period last year on +11.2% higher revenues.
The ‘Big 7 Tech Players’ are a big contributor to overall index earnings now and going forward. Excluding the earnings contribution from the ‘Big 7’, S&P 500 earnings for the rest of the index would be down -6.4% (down -1.1% otherwise).
Given the emerging consensus on the ‘soft-landing’ outlook for the economy, one can expect this favorable turn in the overall earnings picture to strengthen further as companies report Q3 results and share trends in underlying business.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s 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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Apple Inc. (AAPL) : Free Stock Analysis Report
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA and others. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – October 19, 2023 – Zacks Director of Research Sheraz Mian says, "We are off to a positive start to the Q3 earnings season, with most companies not only beating estimates but also providing reassuring guidance for the coming periods."
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We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA and others. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% beating revenue estimates.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA and others. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: We are off to a positive start to the Q3 earnings season, with most companies not only beating estimates but also providing reassuring guidance for the coming periods.
|
We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA and others. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – October 19, 2023 – Zacks Director of Research Sheraz Mian says, "We are off to a positive start to the Q3 earnings season, with most companies not only beating estimates but also providing reassuring guidance for the coming periods."
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13052.0
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2023-10-19 00:00:00 UTC
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Apple's $20 Billion Cash Cow Is Under Threat From the Department of Justice
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AAPL
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https://www.nasdaq.com/articles/apples-%2420-billion-cash-cow-is-under-threat-from-the-department-of-justice
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nan
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nan
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Apple (NASDAQ: AAPL) could face a big setback if the Department of Justice succeeds in its lawsuit against Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
The DOJ's trial against Google began last month. The Justice Department alleges Google engages in anticompetitive practices. In particular, the lawyers cite Google's agreements with browser and smartphone partners to make its internet search service part of the default software on their various products.
By some estimates, Google pays Apple $20 billion per year to be the default search engine on the Safari browser across Apple devices. If the DOJ deems those payments illegal, it could be a serious blow to Apple's bottom line.
A massive cash cow
Even for a company generating nearly $400 billion per year, $20 billion is a lot. But it's a lot more when you consider the impact on Apple's bottom line.
The profit margin on Google's traffic acquisition payments is about as high as possible. With a couple of lines of code, Apple can make the default search engine in Safari whatever it chooses. The cost is basically whatever it takes to pay someone to negotiate the deal. In other words, it's all profit.
Viewed that way, $20 billion is almost 18% of Apple's trailing 12-month operating profits.
It's an even bigger percentage of Apple's services segment, which is driving growth for the company. Gross profits for the segment over the last four quarters totaled $58 billion. That means Google's payments may have been more than one-third of the segment's profits.
There should be no doubt that a ruling against Google in the DOJ's case would be a major setback for Apple. But investors shouldn't worry too much.
Apple can protect itself from the negative consequences
Even in the worst-case scenario where the court rules against Google, Apple is well-positioned to withstand the negative consequences. In fact, it could emerge even better off over the long run.
First, investors shouldn't expect a ruling in the case until next year. Even then, there could be a lengthy appeals process. That's on top of the fact that the practice has been under regulatory scrutiny for some time, and the DOJ launched its case at the start of the year. That is to say, Apple has a long time to develop a contingency plan.
And it's been working on that plan for a while. It's made massive strides in its own ad business by improving ad technology and sales over the last few years. Apple could put that ad technology and sales team to work in its own search engine if it has to. In fact, it was revealed during the trial that Apple discussed buying Microsoft's Bing way back in 2018, so it's likely at least exploring the idea of running its own internet search engine.
Second, it's important to consider the court's ruling would only apply to the United States. And while the U.S. is by far the most lucrative digital advertising market, marketers outside the country still spend a large and growing amount of money. About 40% of search ad spend stems from outside the U.S. That said, Apple dominates the U.S. smartphone market, while its international market share is much smaller.
Finally, even if Apple can't accept payments from Google anymore, the ruling wouldn't necessarily disallow it from collecting payments from another search engine. And while Google is much better at converting internet searches into advertising dollars, Apple could still receive a significant sum from a competitor like Microsoft.
Apple has a massive competitive advantage
Apple's biggest competitive advantage is that it's the dominant platform provider. It's worked constantly over the past decade to leverage that position and push the economics in its favor. I have no doubt it can continue to do so, regardless of what the regulatory environment throws its way.
While Apple shares trade at a premium to the market and other big tech companies based on its forward PE ratio of 27, the shares may still be worth it. The share price is supported by its massive cash balance, as well as the $100 billion or so it spins off in free cash flow each year. Both give it room to continue buying back shares, which will make future earnings per share much higher.
Considering the massive competitive advantages Apple holds protecting itself against potential negative outcomes like the Google case, investors should consider buying shares of the company at today's price. And if the stock goes down in the future from a ruling against Google, it could present an even better buying opportunity. But there's no guarantee for how things will play out.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Levy has positions in Alphabet, Apple, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) could face a big setback if the Department of Justice succeeds in its lawsuit against Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). In particular, the lawyers cite Google's agreements with browser and smartphone partners to make its internet search service part of the default software on their various products. In fact, it was revealed during the trial that Apple discussed buying Microsoft's Bing way back in 2018, so it's likely at least exploring the idea of running its own internet search engine.
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Apple (NASDAQ: AAPL) could face a big setback if the Department of Justice succeeds in its lawsuit against Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). By some estimates, Google pays Apple $20 billion per year to be the default search engine on the Safari browser across Apple devices. Apple has a massive competitive advantage Apple's biggest competitive advantage is that it's the dominant platform provider.
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Apple (NASDAQ: AAPL) could face a big setback if the Department of Justice succeeds in its lawsuit against Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). By some estimates, Google pays Apple $20 billion per year to be the default search engine on the Safari browser across Apple devices. Apple can protect itself from the negative consequences Even in the worst-case scenario where the court rules against Google, Apple is well-positioned to withstand the negative consequences.
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Apple (NASDAQ: AAPL) could face a big setback if the Department of Justice succeeds in its lawsuit against Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). By some estimates, Google pays Apple $20 billion per year to be the default search engine on the Safari browser across Apple devices. Considering the massive competitive advantages Apple holds protecting itself against potential negative outcomes like the Google case, investors should consider buying shares of the company at today's price.
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13053.0
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2023-10-19 00:00:00 UTC
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China's Huawei sells 1.6 mln Mate 60 Pro handsets in six weeks - research firm
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AAPL
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https://www.nasdaq.com/articles/chinas-huawei-sells-1.6-mln-mate-60-pro-handsets-in-six-weeks-research-firm
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nan
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nan
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SHENZHEN, China, Oct 19 (Reuters) - Huawei Technologies HWT.UL has sold 1.6 million of its Mate 60 Pro handsets in six weeks, a research firm said, as the Chinese technology giant defies a smartphone slowdown to enjoy strong demand in its high-end smartphone renaissance.
Of those sales, more than 400,000 units were in the last two weeks, the period in which Apple AAPL.O launched the iPhone 15 on the mainland, Counterpoint Research said.
In its first 17 days, iPhone 15 sales were down 4.5% compared to the iPhone 14, Counterpoint said, without providing specific figures.
Huawei did not immediately respond to a request for comment.
Huawei made a surprise launch of its premium Mate 60 Pro phone in late August, which many analysts say uses a domestically made chip and marks a breakthrough in the face of years of U.S. technology sanctions against the company.
The handset has been in high demand, with available stock swiftly being bought up as soon as it arrives, "creating the appearance of perpetual unavailability," said Counterpoint senior analyst Ivan Lam.
The overall global smartphone market contracted by 8% to its lowest third-quarter level in a decade on subdued demand for major brands.
Huawei, its former unit Honor, and Transsion Group were the only brands to record year on year growth in that period.
In China August smartphone shipments remained largely flat, rising 0.03% year on year to 18.99 million handsets, according to the China Academy of Information and Communications (CAICT).
(Reporting by David Kirton, editing by Deborah Kyvrikosaios)
((David.Kirton@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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Of those sales, more than 400,000 units were in the last two weeks, the period in which Apple AAPL.O launched the iPhone 15 on the mainland, Counterpoint Research said. SHENZHEN, China, Oct 19 (Reuters) - Huawei Technologies HWT.UL has sold 1.6 million of its Mate 60 Pro handsets in six weeks, a research firm said, as the Chinese technology giant defies a smartphone slowdown to enjoy strong demand in its high-end smartphone renaissance. The handset has been in high demand, with available stock swiftly being bought up as soon as it arrives, "creating the appearance of perpetual unavailability," said Counterpoint senior analyst Ivan Lam.
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Of those sales, more than 400,000 units were in the last two weeks, the period in which Apple AAPL.O launched the iPhone 15 on the mainland, Counterpoint Research said. SHENZHEN, China, Oct 19 (Reuters) - Huawei Technologies HWT.UL has sold 1.6 million of its Mate 60 Pro handsets in six weeks, a research firm said, as the Chinese technology giant defies a smartphone slowdown to enjoy strong demand in its high-end smartphone renaissance. Huawei made a surprise launch of its premium Mate 60 Pro phone in late August, which many analysts say uses a domestically made chip and marks a breakthrough in the face of years of U.S. technology sanctions against the company.
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Of those sales, more than 400,000 units were in the last two weeks, the period in which Apple AAPL.O launched the iPhone 15 on the mainland, Counterpoint Research said. SHENZHEN, China, Oct 19 (Reuters) - Huawei Technologies HWT.UL has sold 1.6 million of its Mate 60 Pro handsets in six weeks, a research firm said, as the Chinese technology giant defies a smartphone slowdown to enjoy strong demand in its high-end smartphone renaissance. Huawei made a surprise launch of its premium Mate 60 Pro phone in late August, which many analysts say uses a domestically made chip and marks a breakthrough in the face of years of U.S. technology sanctions against the company.
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Of those sales, more than 400,000 units were in the last two weeks, the period in which Apple AAPL.O launched the iPhone 15 on the mainland, Counterpoint Research said. SHENZHEN, China, Oct 19 (Reuters) - Huawei Technologies HWT.UL has sold 1.6 million of its Mate 60 Pro handsets in six weeks, a research firm said, as the Chinese technology giant defies a smartphone slowdown to enjoy strong demand in its high-end smartphone renaissance. Huawei did not immediately respond to a request for comment.
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13054.0
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2023-10-19 00:00:00 UTC
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3 Things You Need to Know If You Buy Berkshire Hathaway Today
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AAPL
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https://www.nasdaq.com/articles/3-things-you-need-to-know-if-you-buy-berkshire-hathaway-today
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nan
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nan
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In the past 40 years, shares of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have soared 6,140%. This gain trounces that of the S&P 500, even if we include dividends.
As a result of this outsized performance, especially over such an extended period of time, investors might be looking at the conglomerate, which is headed by legendary capital allocator Warren Buffett, as a worthy stock to buy for the long haul.
But before doing that, it's a smart idea to learn more about the business. Here are three things you need to know about Berkshire Hathaway.
Key business segments
Berkshire went from a textile manufacturer to now being one of the most diverse and valuable corporations on Earth. These days, the company has its hands in insurance, most notably with GEICO. With Burlington Northern Santa Fe, it has exposure in the railroad industry. Additionally, there are holdings in energy and utilities, real estate brokerages, industrial and building products, consumer products, apparel, and various retail operations, like Pilot Travel Centers and Dairy Queen.
You could make a valid argument that Berkshire is simply a microcosm of the U.S. economy. However, the difference is that Berkshire is focused on what Buffett believes are great businesses. Even though these key operating segments might seem boring, they generate lots of cash, an attractive trait that has kept shareholders happy over the years.
Besides those wholly owned subsidiaries, Berkshire has a gargantuan public equities portfolio as well. As of this writing, its market value is a whopping $343 billion, which equates to 46% of the entire company's market capitalization.
While there are numerous stocks, Apple is by far the biggest, representing 47% of the portfolio. This means that about 22% of Berkshire's market value is derived from the FAANG stock. Investors can't ignore this reality.
Other large holdings include Bank of America, American Express, and Coca-Cola.
Buffett's philosophy
Berkshire's 40-year (and even longer) track record of returns is certainly impressive, but it hasn't been as spectacular in more recent times. In just the past decade, Berkshire's stock has climbed 196%, a gain that actually lags the S&P 500's total return.
Some naysayers might point to Berkshire's huge size as a hindrance to future returns. Others might call out Buffett as having lost his magic touch.
If we look at the last three years only, Berkshire's return has doubled the total return of the broader index. So, we can alter the time frame and get totally different results.
Nonetheless, I think it's worthwhile to understand Buffett's overall investing philosophy. He's in the value camp, searching for competitively advantaged businesses that sell at attractive prices, practicing intense patience to wait for the right opportunity.
One other important thing people quickly realize is that Buffett won't chase what's hot at the moment. For example, he and Charlie Munger think cryptocurrencies are worthless. This perspective means sticking to what has worked, not being dragged into the hype.
Capital allocation strategy
As of June 30, Berkshire had $147 billion combined of cash, cash equivalents, and short-term investments on its balance sheet. That's a massive war chest that is definitely dragging down Berkshire's overall returns.
As I just noted, Buffett is extremely patient. He's not going to lower his bar when it comes to the quality of a potential investment just to make a move and close a deal. When something comes along that piques his interest and checks all the boxes, I'm sure a transaction will be done.
In the meantime, Berkshire will continue using its cash to repurchase stock. To be clear, this setup is unique because both Buffett and Munger have complete control over when to buy back shares, doing so only when the market price is below what they believe to be the estimated intrinsic value.
Of course, Berkshire is well known for not paying a dividend, something that likely won't happen anytime soon. The belief is that there are better uses of cash, like reinvesting into existing holdings or buying new companies.
After learning about these three important aspects of Berkshire's business, investors should be better informed to make smarter decisions with the stock.
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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. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a result of this outsized performance, especially over such an extended period of time, investors might be looking at the conglomerate, which is headed by legendary capital allocator Warren Buffett, as a worthy stock to buy for the long haul. He's in the value camp, searching for competitively advantaged businesses that sell at attractive prices, practicing intense patience to wait for the right opportunity. To be clear, this setup is unique because both Buffett and Munger have complete control over when to buy back shares, doing so only when the market price is below what they believe to be the estimated intrinsic value.
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In the past 40 years, shares of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have soared 6,140%. See the 10 stocks *Stock Advisor returns as of October 16, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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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. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! See the 10 stocks *Stock Advisor returns as of October 16, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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If we look at the last three years only, Berkshire's return has doubled the total return of the broader index. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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13055.0
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2023-10-18 00:00:00 UTC
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Beyond Nvidia: Avoid These At-Risk Chip Stocks as U.S.-China Tensions Rise
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AAPL
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https://www.nasdaq.com/articles/beyond-nvidia%3A-avoid-these-at-risk-chip-stocks-as-u.s.-china-tensions-rise
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nan
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The U.S. Commerce Department this week has expanded its restrictions on chip exports to China. Unsurprisingly, many large-cap semiconductor stocks fell yesterday, considering their high revenue exposure to the world’s second-largest economy.
While Nvidia (NVDA) is getting outsized attention on this news – which is justified, given its trillion-dollar market cap and status as the bellwether of artificial intelligence (AI) chip demand – there are other chip stocks investors should also look to avoid if you expect the ongoing tensions between the world’s two largest economies to result in deeper and broader export curbs going forward.
www.barchart.com
U.S.-China Tensions Are On the Rise
U.S.-China relations have been on the decline for years now. In 2018, former President Donald Trump took on China over the burgeoning trade deficit, and imposed tariffs on billions of dollars of imports from China. While the actual positive impact of these tariffs on the U.S. economy and job markets is debatable (and polarizing) – it nonetheless raised important questions about the lopsided trade relations between the two countries.
Unlike the Trump administration - which more or less went for the carpet-bombing approach in trying to address the U.S. trade imbalance, and imposed tariffs on not only China, but many strategic allies as well - the Biden administration has taken a more focused approach, and has been trying to support on-shoring through legislation like the Inflation Reduction Act and the CHIPS and Science Act, with the latter intended to boost U.S. chip manufacturing capacity and reduce reliance on imports.
U.S. Restricts Sales of AI Chips to China
Another pillar of the current administration’s strategy has been to limit exports of high-end chips and other cutting-edge technology to China. Last year, the Commerce Department imposed restrictions on exports of some high-end chips, like Nvidia’s A100 and H100 processors – to which Nvidia responded by coming up with A800 and H800 chips, which were designed specifically for China.
The current regulations impose a ban on these two chips, and are also expected to impact sales of AI chips from chipmakers like Intel (INTC) and Advanced Micro Devices (AMD). Also, any new set of chips with processing power just below what’s currently restricted would need prior approval for exports to China – effectively closing a loophole that had previously provided a workaround to chipmakers.
Generally speaking, it would be reasonable to expect further escalation in U.S.-China tensions - no matter whether you term it as the “new Cold War,” “trade war,” “tech war,” or “AI war.”
Which Chip Stocks Have the Highest Exposure to China?
Data compiled by Kearney shows that while names like Nvidia, AMD, and Intel get roughly a quarter of their revenues from China, the number is much higher for Qualcomm (QCOM) and Texas Instruments (TXN) - both of which derive over half of their revenues from the nation. Monolithic Power (MPWR) is another chip company that gets over half of its revenues from China.
Looking at the YTD price action, there is a wide disparity among chipmakers. Nvidia is, of course, not only outperforming chip stocks, but it's also the best-performing S&P 500 Index ($SPX) stock of the year, with gains of roughly 190%. AMD is up over 59%, while Intel has gained 37% YTD.
However, Texas Instruments stock is in the red for 2023, while Qualcomm is up just about 2.5% to underperform the broader markets by a wide margin.
In terms of valuation, Texas Instruments trades at a price-to-sales multiple of 6.9x which is higher than both Intel and Qualcomm; however, the stock has historically traded at a premium due to its higher profit margins and better return on assets.
www.barchart.com
Nvidia - which in the past has tried to play down the export ban on China, citing strong demand for AI chips elsewhere - said in its SEC filing yesterday, “The licensing requirement may impact the Company's ability to complete development of products in a timely manner, support existing customers of covered products, or supply customers of covered products outside the impacted regions, and may require the Company to transition certain operations out of one or more of the identified countries.” It listed the chips that would be impacted by the export ban, and apart from A800 and H800, sales of L40, L40S, and RTX 4090 would also be barred under the new rules.
Rising China Tensions Spell Trouble for Many U.S. Companies
Meanwhile, rising U.S.-China tensions spell trouble not only for chip companies, but also for other companies that have significant exposure to China – Apple (AAPL) and Nike (NKE), for instance. Incidentally, amid reports of sluggish iPhone 15 sales in China, Apple CEO Tim Cook made a surprise visit to the country – his second for this year.
Jefferies analysts believe that Huawei – whose operations suffered a near-death blow after restrictions by the U.S. – has bounced back and dethroned Apple from the top position in the Chinese smartphone market. While Cook has in the past downplayed any boycott threats in China, reports of Apple losing market share in the country to homegrown Huawei tell a somewhat different story.
Meanwhile, it will be crucial to watch how China reacts to the new set of export restrictions by the U.S. In the past, China has retaliated against U.S. actions – most recently when it banned sales of some Micron (MU) products over “national security concerns.” While Nvidia currently seems to be the most significantly impacted by the chip export restrictions, many more companies - including those not in the chip business - would be drawn into the line of fire if U.S.-China tensions continue to flare up.
On the date of publication, Mohit Oberoi had a position in: AAPL , NKE , NVDA , INTC . 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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Rising China Tensions Spell Trouble for Many U.S. Companies Meanwhile, rising U.S.-China tensions spell trouble not only for chip companies, but also for other companies that have significant exposure to China – Apple (AAPL) and Nike (NKE), for instance. On the date of publication, Mohit Oberoi had a position in: AAPL , NKE , NVDA , INTC . While the actual positive impact of these tariffs on the U.S. economy and job markets is debatable (and polarizing) – it nonetheless raised important questions about the lopsided trade relations between the two countries.
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Rising China Tensions Spell Trouble for Many U.S. Companies Meanwhile, rising U.S.-China tensions spell trouble not only for chip companies, but also for other companies that have significant exposure to China – Apple (AAPL) and Nike (NKE), for instance. On the date of publication, Mohit Oberoi had a position in: AAPL , NKE , NVDA , INTC . Last year, the Commerce Department imposed restrictions on exports of some high-end chips, like Nvidia’s A100 and H100 processors – to which Nvidia responded by coming up with A800 and H800 chips, which were designed specifically for China.
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Rising China Tensions Spell Trouble for Many U.S. Companies Meanwhile, rising U.S.-China tensions spell trouble not only for chip companies, but also for other companies that have significant exposure to China – Apple (AAPL) and Nike (NKE), for instance. On the date of publication, Mohit Oberoi had a position in: AAPL , NKE , NVDA , INTC . www.barchart.com Nvidia - which in the past has tried to play down the export ban on China, citing strong demand for AI chips elsewhere - said in its SEC filing yesterday, “The licensing requirement may impact the Company's ability to complete development of products in a timely manner, support existing customers of covered products, or supply customers of covered products outside the impacted regions, and may require the Company to transition certain operations out of one or more of the identified countries.” It listed the chips that would be impacted by the export ban, and apart from A800 and H800, sales of L40, L40S, and RTX 4090 would also be barred under the new rules.
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Rising China Tensions Spell Trouble for Many U.S. Companies Meanwhile, rising U.S.-China tensions spell trouble not only for chip companies, but also for other companies that have significant exposure to China – Apple (AAPL) and Nike (NKE), for instance. On the date of publication, Mohit Oberoi had a position in: AAPL , NKE , NVDA , INTC . However, Texas Instruments stock is in the red for 2023, while Qualcomm is up just about 2.5% to underperform the broader markets by a wide margin.
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13056.0
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2023-10-18 00:00:00 UTC
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3 Things the Smartest Investors Know About Berkshire Hathaway
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AAPL
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https://www.nasdaq.com/articles/3-things-the-smartest-investors-know-about-berkshire-hathaway
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nan
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nan
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Warren Buffett has displayed an impressive ability to buy quality companies and hold on to their winners for the long haul. Since Buffett assumed the role as chief executive officer at Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, the stock has returned investors nearly 20% annually. In other words, a $100 investment in the company when Buffett took over would be worth $2.4 million today!
Berkshire Hathaway has become one of the world's largest companies today, partly because of its significant investment portfolio and Buffett's stock-picking prowess. However, there are some things you may not know about the business. Here are three that the smartest investors know about Berkshire Hathaway.
Image source: Getty Images.
1. It's highly diversified across public and private businesses
The most recognizable part of Berkshire Hathaway is its $353 billion investment portfolio. Every quarter, investors review the company's 13-F regulatory filing to see which stocks it added to and removed from its portfolio. Apple is by far Berkshire's largest publicly held investment and makes up nearly 50% of its portfolio.
Berkshire also owns a wide array of closely held companies in industries such as insurance, railroads, energy, and manufacturing. These subsidiaries provide solid cash flows and have been a significant part of Berkshire's long-term success.
Some of its most significant acquisitions in the last couple of decades include Precision Castparts Corporation ($37 billion), BNSF Railway Company ($34 billion), and Alleghany Corporation ($11.6 billion).
2. Insurance investments play a crucial role in generating cash flow
When Buffett took over Berkshire Hathaway, it was a failing textile business with a bleak future. However, things changed in 1967 when it acquired National Indemnity. The acquisition shifted Berkshire away from textile operations to insurance and other businesses. Berkshire has expanded its insurance operations and owns GEICO, General Re, Berkshire Hathaway Reinsurance, and Alleghany.
Insurance investments are appealing due to their steady cash flows and their business model. Insurers receive premium payments upfront and pay claims later, which Buffett calls a "collect-now, pay-later" model. As a result, Berkshire Hathaway holds a large amount of cash, called float, which it can invest for its benefit. As policies and claims come and go, the amount of float remains relatively stable as long as an insurance company writes profitable policies.
Berkshire's float has grown significantly, from $19 million in 1957 to more than $164 billion, representing an 863,636% increase. Berkshire's insurance investments have been vital to the company's long-term success. Thanks to the consistent cash flows from these businesses, Berkshire consistently has a gigantic cash stockpile to invest as it sees fit.
Data source: Berkshire Hathaway. Chart by author.
3. It is sitting on a cash pile of $147 billion
Berkshire Hathaway has an enormous pile of cash on hand. Its float is an excellent source of money, and the company also earns billions of dollars in dividends annually from its stock holdings.
At the end of the second quarter, the conglomerate had over $147 billion in cash, cash equivalents, and short-term investments. This cash pile gives Berkshire the flexibility to acquire companies without needing additional financing. It also allows the company to capitalize on today's high-interest-rate environment by investing in short-term Treasury bills.
Investor takeaway
Berkshire Hathaway has a long track record of success under Buffett's leadership. Its diversified closely held investments provide consistent cash flows that help Berkshire grow its cash stockpile. These cash flows and Buffett's ability to identify and hold quality companies for the long haul have produced market-beating returns.
If you're looking for a resilient stock that can perform across market cycles, Berkshire Hathaway is an excellent choice.
10 stocks we like better than Berkshire Hathaway
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 Berkshire Hathaway 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
Courtney Carlsen has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire Hathaway has become one of the world's largest companies today, partly because of its significant investment portfolio and Buffett's stock-picking prowess. Insurance investments play a crucial role in generating cash flow When Buffett took over Berkshire Hathaway, it was a failing textile business with a bleak future. These cash flows and Buffett's ability to identify and hold quality companies for the long haul have produced market-beating returns.
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Since Buffett assumed the role as chief executive officer at Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, the stock has returned investors nearly 20% annually. Thanks to the consistent cash flows from these businesses, Berkshire consistently has a gigantic cash stockpile to invest as it sees fit. Its diversified closely held investments provide consistent cash flows that help Berkshire grow its cash stockpile.
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Berkshire Hathaway has become one of the world's largest companies today, partly because of its significant investment portfolio and Buffett's stock-picking prowess. Insurance investments play a crucial role in generating cash flow When Buffett took over Berkshire Hathaway, it was a failing textile business with a bleak future. Thanks to the consistent cash flows from these businesses, Berkshire consistently has a gigantic cash stockpile to invest as it sees fit.
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Insurance investments are appealing due to their steady cash flows and their business model. Its float is an excellent source of money, and the company also earns billions of dollars in dividends annually from its stock holdings. Its diversified closely held investments provide consistent cash flows that help Berkshire grow its cash stockpile.
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13057.0
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2023-10-18 00:00:00 UTC
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The Q3 Earnings Season Kicks Off Positively
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AAPL
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https://www.nasdaq.com/articles/the-q3-earnings-season-kicks-off-positively
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nan
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nan
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Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
We are off to a positive start to the Q3 earnings season, with most companies not only beating estimates but also providing reassuring guidance for the coming periods.
For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% beating revenue estimates.
At this stage in the reporting cycle, the EPS beats percentage of 84.9% is tracking above other recent periods and the 20-quarter average of 79.7% for this group of companies.
Looking at Q3 as a whole, total S&P 500 earnings are currently expected to be down -1.1% from the same period last year on +0.8% higher revenues, the 4th back-to-back quarter of declining earnings for the index.
We are off to a good start in the Q3 earnings season, though the focus at this early stage has been largely on the Finance sector. Most of the big banks came out with better-than-expected Q3 results and described ongoing business trends in relatively reassuring and favorable terms.
This has to count as a big positive for the group, given the all-around negative views on the sector.
The chart below shows the Q3 EPS and revenue beats percentages in a historical context for the 38.1% of the sector’s market capitalization in the S&P 500 index that have already reported results.
Image Source: Zacks Investment Research
Beyond the Finance sector, looking at Q3 expectations as a whole, total S&P 500 earnings are expected to be down -1.1% from the same period last year on +0.8% higher revenues.
The chart below shows the overall earnings picture on a quarterly basis.
Image Source: Zacks Investment Research
As you can see from these quarterly earnings-growth expectations, the long-feared recession doesn’t show up in this near-term earnings outlook.
One key sector whose earnings outlook has been steadily improving lately is the Technology sector, whose members will be coming out with Q3 results in the next few days. The sector has been operating in a constrained growth environment since 2021 Q4, but this is on track to change starting with the group’s Q3 results, as you can see in the chart below.
Image Source: Zacks Investment Research
A significant source of growth for the group is the 7 mega-cap stocks, most of which are from the Tech sector. We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN.
Q3 earnings for this group of companies are expected to grow by +34.9% from the same period last year on +11.2% higher revenues.
Image Source: Zacks Investment Research
The ‘Big 7 Tech Players’ are a big contributor to overall index earnings now and going forward. Excluding the earnings contribution from the ‘Big 7’, S&P 500 earnings for the rest of the index would be down -6.4% (down -1.1% otherwise).
We show below the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
This big-picture view of corporate profitability doesn’t leave much room for that development either, as shown in the chart above.
Given the emerging consensus on the ‘soft-landing’ outlook for the economy, one can expect this favorable turn in the overall earnings picture to strengthen further as companies report Q3 results and share trends in underlying business.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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.
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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We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. 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. Image Source: Zacks Investment Research As you can see from these quarterly earnings-growth expectations, the long-feared recession doesn’t show up in this near-term earnings outlook.
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We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. 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. For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% 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 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. We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% beating revenue estimates.
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We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. 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. Looking at Q3 as a whole, total S&P 500 earnings are currently expected to be down -1.1% from the same period last year on +0.8% higher revenues, the 4th back-to-back quarter of declining earnings for the index.
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13058.0
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2023-10-18 00:00:00 UTC
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The Next Trillion-Dollar Companies: 3 Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/the-next-trillion-dollar-companies%3A-3-stocks-to-buy-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The hunt for the next trillion-dollar companies invariably ignites investor excitement. Moreover, the AI-led excitement in equities this year pushed tech stocks to new highs while others reversed the losses from the past year. Notably, some stocks have even doubled since their 2023 lows, demonstrating strong resilience. This trend has investors actively searching, hoping to find peers for the likes of Apple, Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG). Hence, with the market’s renewed enthusiasm, attention turns to these three potential front-runners who have a blend of innovation, strategy, and market potential essential for hitting that trillion-dollar milestone.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
Current Market Capitalization: $829 billion
Meta Platforms (NASDAQ: META) has unequivocally positioned itself as a powerhouse in the tech landscape this year with an impressive comeback. Recently, the company’s most recent quarter saw it delivering an astounding $32 billion in revenue, a figure complemented by an impressive net income of $7.79 billion. This is underscoring its robust and unshakable financial stability.
Moreover, Meta’s hefty investments in Reality Labs highlight its commitment to the growing metaverse, which is anticipated to disrupt various aspects of life. This vision, combined with its continuous technological innovation, as shown in projects like AI Code Llama, helps the company maintain its position at the forefront of technological advancement.
Furthermore, Meta’s stock value has soared by an astonishing 141.7% year-to-date, reaching an impressive $322. With only a 19.46% bump, the company could potentially reach a monumental $1 trillion market capitalization. Considering Meta’s current trajectory and the resounding confidence echoed by TipRanks, which rates it as a strong buy with an anticipated 17% upside, this upcoming chapter in Meta’s narrative is highly anticipated.
Eli Lilly (LLY)
Source: Jonathan Weiss / Shutterstock.com
Current Market Capitalization: $574 billion
Eli Lilly (NYSE: LLY) is making significant strides at the dynamic nexus of biotech and artificial intelligence (AI). Its recent decision to invest $250 million in XtalPi, a cutting-edge AI-driven drug discovery company, highlights its ambitious trajectory. Additionally, by partnering with Yseop, a leader in natural language processing, Lilly is further cementing its commitment to AI innovation.
Moreover, its second-quarter revenue of $8.31 billion, marking a remarkable 28.11% year-over-year increase, surpassed expectations by an impressive $700.8 million. This substantial top-line growth, combined with an 85% boost in net income, jumping from $953 million to $1.763 billion, demonstrates LLY’s strong positioning while also painting a more promising future.
Furthermore, with a stock price of $607.31, Eli Lilly has delivered a 434% return over the past five years, indicative of ongoing investor trust. Looking ahead, though, it will take some doing for the stock to get to a coveted trillion-dollar market valuation, its solid financial positioning, and attractive long-term prospects.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Current Market Capitalization: $500 billion
As a global payment leader, Visa (NYSE: V) stands strong with a $500 billion valuation, halfway to the coveted trillion-dollar mark. Its recent quarter results are certainly illuminating, with an 11.66% rise in revenue to $8.12 billion and a 22% surge in net income, reaching $4.16 billion. Additionally, operating income also climbed by 13% to hit $5.48 billion, showcasing its enduring prowess.
Moreover, the current 63% operating margin is impressive, yet there’s potential for further expansion. This operational efficiency, combined with around 10% expected annual revenue growth, suggests Visa could see its bottom line grow by almost 15% annually. This pace positions it to potentially double earnings in five years, a trajectory that distinctly sets Visa apart.
Furthermore, having risen 375% in the past decade, Visa’s shares demonstrate sustained strength. This impressive track record suggests that a calculated 120% increase from its current position at $241.15 could potentially catapult its market capitalization to an astonishing $1 trillion.
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 The Next Trillion-Dollar Companies: 3 Stocks to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This substantial top-line growth, combined with an 85% boost in net income, jumping from $953 million to $1.763 billion, demonstrates LLY’s strong positioning while also painting a more promising future. This impressive track record suggests that a calculated 120% increase from its current position at $241.15 could potentially catapult its market capitalization to an astonishing $1 trillion. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The Next Trillion-Dollar Companies: 3 Stocks to Buy Now appeared first on InvestorPlace.
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Meta Platforms (META) Source: Ascannio / Shutterstock.com Current Market Capitalization: $829 billion Meta Platforms (NASDAQ: META) has unequivocally positioned itself as a powerhouse in the tech landscape this year with an impressive comeback. Eli Lilly (LLY) Source: Jonathan Weiss / Shutterstock.com Current Market Capitalization: $574 billion Eli Lilly (NYSE: LLY) is making significant strides at the dynamic nexus of biotech and artificial intelligence (AI). This operational efficiency, combined with around 10% expected annual revenue growth, suggests Visa could see its bottom line grow by almost 15% annually.
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Meta Platforms (META) Source: Ascannio / Shutterstock.com Current Market Capitalization: $829 billion Meta Platforms (NASDAQ: META) has unequivocally positioned itself as a powerhouse in the tech landscape this year with an impressive comeback. Recently, the company’s most recent quarter saw it delivering an astounding $32 billion in revenue, a figure complemented by an impressive net income of $7.79 billion. Visa (V) Source: Kikinunchi / Shutterstock.com Current Market Capitalization: $500 billion As a global payment leader, Visa (NYSE: V) stands strong with a $500 billion valuation, halfway to the coveted trillion-dollar mark.
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Moreover, the AI-led excitement in equities this year pushed tech stocks to new highs while others reversed the losses from the past year. Meta Platforms (META) Source: Ascannio / Shutterstock.com Current Market Capitalization: $829 billion Meta Platforms (NASDAQ: META) has unequivocally positioned itself as a powerhouse in the tech landscape this year with an impressive comeback. Eli Lilly (LLY) Source: Jonathan Weiss / Shutterstock.com Current Market Capitalization: $574 billion Eli Lilly (NYSE: LLY) is making significant strides at the dynamic nexus of biotech and artificial intelligence (AI).
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13059.0
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2023-10-18 00:00:00 UTC
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The Q3 Earnings Season Kicks Off Positively
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AAPL
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https://www.nasdaq.com/articles/the-q3-earnings-season-kicks-off-positively-0
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nan
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nan
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Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
We are off to a positive start to the Q3 earnings season, with most companies not only beating estimates but also providing reassuring guidance for the coming periods.
For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% beating revenue estimates.
At this stage in the reporting cycle, the EPS beats percentage of 84.9% is tracking above other recent periods and the 20-quarter average of 79.7% for this group of companies.
Looking at Q3 as a whole, total S&P 500 earnings are currently expected to be down -1.1% from the same period last year on +0.8% higher revenues, the 4th back-to-back quarter of declining earnings for the index.
We are off to a good start in the Q3 earnings season, though the focus at this early stage has been largely on the Finance sector. Most of the big banks came out with better-than-expected Q3 results and described ongoing business trends in relatively reassuring and favorable terms.
This has to count as a big positive for the group, given the all-around negative views on the sector.
The chart below shows the Q3 EPS and revenue beats percentages in a historical context for the 38.1% of the sector’s market capitalization in the S&P 500 index that have already reported results.
Image Source: Zacks Investment Research
Beyond the Finance sector, looking at Q3 expectations as a whole, total S&P 500 earnings are expected to be down -1.1% from the same period last year on +0.8% higher revenues.
The chart below shows the overall earnings picture on a quarterly basis.
Image Source: Zacks Investment Research
As you can see from these quarterly earnings-growth expectations, the long-feared recession doesn’t show up in this near-term earnings outlook.
One key sector whose earnings outlook has been steadily improving lately is the Technology sector, whose members will be coming out with Q3 results in the next few days. The sector has been operating in a constrained growth environment since 2021 Q4, but this is on track to change starting with the group’s Q3 results, as you can see in the chart below.
Image Source: Zacks Investment Research
A significant source of growth for the group is the 7 mega-cap stocks, most of which are from the Tech sector. We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN.
Q3 earnings for this group of companies are expected to grow by +34.9% from the same period last year on +11.2% higher revenues.
Image Source: Zacks Investment Research
The ‘Big 7 Tech Players’ are a big contributor to overall index earnings now and going forward. Excluding the earnings contribution from the ‘Big 7’, S&P 500 earnings for the rest of the index would be down -6.4% (down -1.1% otherwise).
We show below the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
This big-picture view of corporate profitability doesn’t leave much room for that development either, as shown in the chart above.
Given the emerging consensus on the ‘soft-landing’ outlook for the economy, one can expect this favorable turn in the overall earnings picture to strengthen further as companies report Q3 results and share trends in underlying business.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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.
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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We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. 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. Image Source: Zacks Investment Research As you can see from these quarterly earnings-growth expectations, the long-feared recession doesn’t show up in this near-term earnings outlook.
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We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. 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. For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% 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 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. We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. For the 53 S&P 500 companies that have reported Q3 results, total earnings are up +6% from the same period last year on +6.6% higher revenues, with 84.9% beating EPS estimates and 67.9% beating revenue estimates.
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We call this group the ‘Big 7 Tech Players’, which includes Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Nvidia NVDA, Tesla TSLA, Meta META, and Amazon AMZN. 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. Looking at Q3 as a whole, total S&P 500 earnings are currently expected to be down -1.1% from the same period last year on +0.8% higher revenues, the 4th back-to-back quarter of declining earnings for the index.
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13060.0
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2023-10-18 00:00:00 UTC
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Notable Wednesday Option Activity: AAPL, TMO, ENPH
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AAPL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aapl-tmo-enph
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares. That amounts to about 125.4% of AAPL's average daily trading volume over the past month of 53.8 million shares. Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange:
Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $560 strike put option expiring January 19, 2024, with 3,760 contracts trading so far today, representing approximately 376,000 underlying shares of TMO. Below is a chart showing TMO's trailing twelve month trading history, with the $560 strike highlighted in orange:
And Enphase Energy Inc. (Symbol: ENPH) options are showing a volume of 40,272 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 112.5% of ENPH's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $134 strike call option expiring October 20, 2023, with 2,052 contracts trading so far today, representing approximately 205,200 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $134 strike highlighted in orange:
For the various different available expirations for AAPL options, TMO options, or ENPH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Consumer Services Dividend Stocks
TXMD Stock Predictions
MNDY YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares. That amounts to about 125.4% of AAPL's average daily trading volume over the past month of 53.8 million shares.
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Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares. Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares.
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Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing ENPH's trailing twelve month trading history, with the $134 strike highlighted in orange: For the various different available expirations for AAPL options, TMO options, or ENPH options, visit StockOptionsChannel.com.
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13061.0
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2023-10-18 00:00:00 UTC
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Top AI Stocks To Watch as Wedbush Predicts Eye-Opening Q3 Earnings
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AAPL
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https://www.nasdaq.com/articles/top-ai-stocks-to-watch-as-wedbush-predicts-eye-opening-q3-earnings
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nan
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nan
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Although macroeconomic factors and geopolitical tensions are weighing on investor sentiment today, the stock market typically gains momentum after the start of earnings season. Wedbush analyst Dan Ives, for one, predicts that tech earnings this month will boost the sector by 12% to 15% for the remainder of the year.
Smart investors generally take advantage of a distressed market to buy high-quality growth stocks at a dip. The majority of the tech stocks that Wedbush analyst currently favors are the ones that have so far fueled the market's huge gain in 2023 amid the artificial intelligence (AI) boom. Crowdstrike Holdings (CRWD), Meta Platforms (META), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) have stood out this year with their AI-driven efforts to gain a competitive edge in this fast-paced niche - and that's reflected in their stock returns, as follows:
Crowdstrike is up 78.8%
Meta Platforms is up 165%
Amazon is up 53%
Microsoft is up 39%
Alphabet is up 56%
Additionally, the tech sector-dominated Nasdaq Composite ($NASX) has risen year-to-date by 27.8%.
AI Could Transform Cybersecurity and Cloud Platforms
Wedbush's Ives thinks Wall Street is likely underestimating the profound growth that AI could bring to cloud and cybersecurity in the upcoming year.
Cybersecurity firm Crowdstrike is already experiencing phenomenal growth, thanks to its AI-powered Falcon platform - which enables businesses to react quickly to cyber threats and breaches. Its revenue has jumped at a rapid rate from $481 million in fiscal 2020 to $2.24 billion in fiscal 2023.
With its strong fundamentals, the company has the potential to cash in on AI-driven opportunities in the cybersecurity market – which could be worth $266 billion by 2027.
Analysts' Estimate for CRWD: For Q3 fiscal 2024, revenue could be around $777.3 million, a 34% year-over-year increase. For the full fiscal year, revenue could increase to $3.04 billion, a 36% year-over-year increase.
Furthermore, Q3 FY 2024 EPS could be $0.09, versus a loss of $0.24 per share in the prior quarter. Full-year EPS is expected at $0.32, compared to a loss of $0.79 per share in FY 2023.
Analysts rate CRWD a “strong buy.” However, its average price target of $190.65 is only 1% above its current trading price.
www.barchart.com
The Big Players of Cloud Platforms Could Get Bigger
Turning to the cloud platform, Amazon, Microsoft and Google are the three big players in the global cloud computing market, holding around 65% of the market share.
Alphabet has been using AI in its products since long before the current hype started. Though Google Search contributes the most to its revenue, Google's cloud platform has substantial growth opportunities. Cloud brought in $8 billion in sales in Q2, up 27% year-over-year, with an operating profit of $395 million for the second consecutive quarter.
Alphabet’s CEO Sundar Pichai discussed in the Q2 earnings call, “Our AI-optimized infrastructure is a leading platform for training and serving generative AI models. More than 70% of gen AI unicorns are Google Cloud customers, including Cohere, Jasper, Typeface, and many more.”
Analysts' Estimate for GOOGL: Wall Street foresees Alphabet’s Q3 EPS to jump by 37% to $1.45, while 2023 EPS could be around $5.68, up 25% from 2022. Total revenue for Q3 is expected to jump by 9.4% to $75.7 billion, while 2023 revenue could be around $304.4 billion, up 8% from 2022.
GOOGL has a “strong buy” rating, with a target price of $149.18, representing implied upside of only 7.7% from current levels.
www.barchart.com
As for Microsoft, it's well-known for adapting to the ever-evolving tech industry. It made a considerable investment in Open AI in 2019. Since then, it has upgraded its flagship Office products and enterprise cloud platform Azure with AI. In its fiscal 2023 (ended June 30), cloud services revenue grew by 19% year-over-year, led by Azure.
Talking about the results, Microsoft’s management stated, “We have great momentum across Azure OpenAI Service. More than 11,000 organizations across industries, including Ikea, Volvo Group, Zurich Insurance, as well as digital natives like Flipkart, Humane, Kahoot, Miro, and Typeface, use the service."
What’s more, the company also launched its AI-powered Bing and the Edge browser this year.
Analysts' Estimate for MSFT: For its upcoming Q1 fiscal 2024, revenue could grow by 9% to $54.5 billion, and EPS by 13% to $2.65.
MSFT has a “strong buy” rating, with the average target price of $384.71 representing expected upside of 16% from current levels.
www.barchart.com
Meanwhile, Amazon has already integrated AI into its AWS (Amazon Web Service) platform and its voice assistant Alexa to provide its customers with more advanced technologies. The company plans to invest $4 billion in a collaboration with the AI start-up Anthropic to integrate more AI tools into its products and services.
Analysts' Estimate for AMZN: Amazon’s revenue for Q3 could increase by 11.3% to $141.5 billion with an EPS of $0.58. For 2023, revenue could increase to $570 billion from $514 billion last year, with an annual profit of $2.23 per share, compared to a loss of $0.27 per share the prior year.
The Street rates AMZN a “strong buy,” with the mean target price of $168.21 representing expected growth of nearly 31% from current levels.
www.barchart.com
The global computing market could grow at a compound annual growth rate of 20% between 2023 and 2030, ultimately reaching $2.4 trillion. With AI integration, GOOGL, MSFT, and AMZN can all benefit from this massive expansion. These three big tech players are reporting their earnings next week.
A Good Bet for The Long Haul
Wedbush is also bullish on Meta Platforms, which is betting big on AI. Overall, Meta has a “strong buy” rating from analysts, with a target price of $366.08, implying a 14% upside from current levels.
Dan Ives’ other favorite tech stocks also include Apple (AAPL), Palo Alto (PANW), Palantir (PLTR), and a few more.
All in all, Ives believes, “The macro story is overshadowing the biggest technology revolution in the last 30 years with AI a ‘1995 Moment’ and we believe the fundamental tech growth stories/use cases are accelerating and will be front and center in 3Q earnings season over the coming weeks.”
With expectations for the AI market to be a multi-trillion dollar market in less than a decade, these top tech titans could be the AI era's frontrunners. All of them are trading below their 52-week highs, making it a good opportunity to consider these excellent growth stocks now.
On the date of publication, Sushree Mohanty 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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Dan Ives’ other favorite tech stocks also include Apple (AAPL), Palo Alto (PANW), Palantir (PLTR), and a few more. Although macroeconomic factors and geopolitical tensions are weighing on investor sentiment today, the stock market typically gains momentum after the start of earnings season. The majority of the tech stocks that Wedbush analyst currently favors are the ones that have so far fueled the market's huge gain in 2023 amid the artificial intelligence (AI) boom.
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Dan Ives’ other favorite tech stocks also include Apple (AAPL), Palo Alto (PANW), Palantir (PLTR), and a few more. Crowdstrike Holdings (CRWD), Meta Platforms (META), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) have stood out this year with their AI-driven efforts to gain a competitive edge in this fast-paced niche - and that's reflected in their stock returns, as follows: Crowdstrike is up 78.8% Meta Platforms is up 165% Amazon is up 53% Microsoft is up 39% Alphabet is up 56% Additionally, the tech sector-dominated Nasdaq Composite ($NASX) has risen year-to-date by 27.8%. www.barchart.com The Big Players of Cloud Platforms Could Get Bigger Turning to the cloud platform, Amazon, Microsoft and Google are the three big players in the global cloud computing market, holding around 65% of the market share.
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Dan Ives’ other favorite tech stocks also include Apple (AAPL), Palo Alto (PANW), Palantir (PLTR), and a few more. Crowdstrike Holdings (CRWD), Meta Platforms (META), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL) have stood out this year with their AI-driven efforts to gain a competitive edge in this fast-paced niche - and that's reflected in their stock returns, as follows: Crowdstrike is up 78.8% Meta Platforms is up 165% Amazon is up 53% Microsoft is up 39% Alphabet is up 56% Additionally, the tech sector-dominated Nasdaq Composite ($NASX) has risen year-to-date by 27.8%. www.barchart.com The Big Players of Cloud Platforms Could Get Bigger Turning to the cloud platform, Amazon, Microsoft and Google are the three big players in the global cloud computing market, holding around 65% of the market share.
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Dan Ives’ other favorite tech stocks also include Apple (AAPL), Palo Alto (PANW), Palantir (PLTR), and a few more. AI Could Transform Cybersecurity and Cloud Platforms Wedbush's Ives thinks Wall Street is likely underestimating the profound growth that AI could bring to cloud and cybersecurity in the upcoming year. www.barchart.com The Big Players of Cloud Platforms Could Get Bigger Turning to the cloud platform, Amazon, Microsoft and Google are the three big players in the global cloud computing market, holding around 65% of the market share.
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2023-10-18 00:00:00 UTC
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3 Stocks to Buy for the Next 25 Years
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-buy-for-the-next-25-years
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Over the past 25 years, certain stocks to buy have topped the charts and had undeniably incredible gains. Monster Beverage’s (NASDAQ:MNST) and Apple’s (NASDAQ:AAPL) gains have been a direct result of adapting their business to meet changing consumer choices. This can be seen in Apple’s yearly technological developments or Monster’s recent release of alcoholic beverages.
It’s conceivable that either one of these could be the top stocks to buy for the next 25 years.
However, while I love both businesses, selecting three other stocks to buy that look to achieve market-beating returns over the next 25 years makes sense.
Here are my choices.
Celsius Holdings (CELH)
Source: The Image Party / Shutterstock
Celsius Holdings (NASDAQ:CELH) is the modern version of Monster Beverage. In November 2020, I suggested that the functional drink maker was a micro-cap stock to buy and hold for the next 10 years. It’s up 432% in the three years since.
In my article, I pointed out that the company’s gross margins were 45.8%, about 15 percentage points less than Coca-Cola (NYSE:KO). However, I expected them to improve as they gained scale in the U.S. and elsewhere.
Celsius’s gross margins in Q2 2023 were 48.8%, 1,030 basis points higher than a year earlier. Coca-Cola’s Q2 2023 gross margins were 59.4%, closing the gap by 360 basis points. I expect the gap to continue to shrink over the next three years.
In the first six months of 2023, the company’s revenues were $585.8 million, 104% higher year-over-year. It will undoubtedly exceed $1 billion in annual sales by the end of 2023. More importantly, its net margin in the second quarter was 12.5%, up considerably from 6.0% a year ago.
And let’s not forget the investment and distribution partnership PepsiCo (NASDAQ:PEP) signed with Celsius in August 2022. Pepsi invested $550 million in the company and became its official U.S. distributor.
This has Monster success written all over it.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
My biggest concern with picking Nvidia (NASDAQ:NVDA) is that CEO and co-founder Jensen Huang won’t be around for 25 years. He’s easily one of America’s best CEOs.
In September 2021, I said that Huang was America’s most influential CEO, pointing out that a $10,000 investment in the chip designer in its January 1999 IPO was worth $8.5 million. Fast forward to 2023, and it’s more than doubled to approximately $17 million.
The company’s push into artificial intelligence (AI) hit a bit of a speed bump recently when the U.S. federal government announced new restrictions on American firms exporting AI chips to China.
Nvidia’s slower versions of the H800 and A800 chips were added to the list of restricted exports. On October 17, CNBC reported that U.S. Commerce Secretary Gina Raimondo’s commented: reporters on October 17.
“The updates are specifically designed to control access to computing power, which will significantly slow the PRC’s development of next-generation frontier model, and could be leveraged in ways that threaten the U.S. and our allies, especially because they could be used for military uses and modernization.”
As a result, NVDA shares dropped on the company’s admission that sales would fall in the long term. Frankly, it will be a blip on the radar, given Nvidia’s dominance in AI-related chips.
It’s going to be just fine.
Procore Technologies (PCOR)
Source: monticello / Shutterstock.com
Procore Technologies (NYSE:PCOR) is a leading provider of construction management software. The company’s software has helped complete more than $1 trillion in construction projects.
With $14 trillion in construction spending estimated in 2025, the company has a significant opportunity to capture a big chunk of this spending.
Like most software businesses, AI is a big part of the selling proposition. On September 19, Procore announced the launch of Procore Copilot, which uses AI to enable its customers to automate processes on the Procore platform. CEO Tooey Courtemanche stated in the press release:
“By leveraging artificial intelligence, we’re able to reflect this data back to our customers in the form of valuable insights to not only help them solve issues quickly, but to anticipate them before they happen.”
According to its press release, 18% of project time is spent searching for data, dramatically reducing efficiency.
As its September Investor Presentation highlights, the company has over 15,700 customers using its software platform, with more than a million monthly web users. That’s growing dramatically.
In Q2 2023, Procore added 615 net new organic customers, generating revenue of $229 million, 33% higher than Q2 2022. For 2023, it expects revenue of at least $921 million, 28% higher than in 2022. While it will lose money in 2023, look for it to become profitable in 2024 and beyond.
Although PCOR stock is up 40% year-to-date, it’s sideways from its May 2021 IPO price of $67, so you still have time to get on board this option in stocks to buy.
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 Stocks to Buy for the Next 25 Years appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Monster Beverage’s (NASDAQ:MNST) and Apple’s (NASDAQ:AAPL) gains have been a direct result of adapting their business to meet changing consumer choices. In September 2021, I said that Huang was America’s most influential CEO, pointing out that a $10,000 investment in the chip designer in its January 1999 IPO was worth $8.5 million. “The updates are specifically designed to control access to computing power, which will significantly slow the PRC’s development of next-generation frontier model, and could be leveraged in ways that threaten the U.S. and our allies, especially because they could be used for military uses and modernization.” As a result, NVDA shares dropped on the company’s admission that sales would fall in the long term.
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Monster Beverage’s (NASDAQ:MNST) and Apple’s (NASDAQ:AAPL) gains have been a direct result of adapting their business to meet changing consumer choices. This can be seen in Apple’s yearly technological developments or Monster’s recent release of alcoholic beverages. Celsius Holdings (CELH) Source: The Image Party / Shutterstock Celsius Holdings (NASDAQ:CELH) is the modern version of Monster Beverage.
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Monster Beverage’s (NASDAQ:MNST) and Apple’s (NASDAQ:AAPL) gains have been a direct result of adapting their business to meet changing consumer choices. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Over the past 25 years, certain stocks to buy have topped the charts and had undeniably incredible gains. Nvidia (NVDA) Source: Evolf / Shutterstock.com My biggest concern with picking Nvidia (NASDAQ:NVDA) is that CEO and co-founder Jensen Huang won’t be around for 25 years.
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Monster Beverage’s (NASDAQ:MNST) and Apple’s (NASDAQ:AAPL) gains have been a direct result of adapting their business to meet changing consumer choices. It’s up 432% in the three years since. The company’s software has helped complete more than $1 trillion in construction projects.
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2023-10-18 00:00:00 UTC
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Apple Inc. (AAPL) is Attracting Investor Attention: Here is What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-attracting-investor-attention%3A-here-is-what-you-should-know-8
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned -1.1% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 1.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.39 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.05 points to a change of -1% from the prior year. Over the last 30 days, this estimate has changed -0.4%.
For the next fiscal year, the consensus earnings estimate of $6.56 indicates a change of +8.5% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $88.93 billion indicates a year-over-year change of -1.3%. For the current and next fiscal years, $382.72 billion and $404.82 billion estimates indicate -2.9% and +5.8% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $81.8 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $1.26 for the same period compares with $1.20 a year ago.
Compared to the Zacks Consensus Estimate of $81.36 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +5.88%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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2023-10-18 00:00:00 UTC
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AAPL Factor-Based Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-4
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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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2023-10-18 00:00:00 UTC
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Is American Century U.S. Quality Value ETF (VALQ) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-american-century-u.s.-quality-value-etf-valq-a-strong-etf-right-now
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nan
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nan
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Launched on 01/11/2018, the American Century U.S. Quality Value ETF (VALQ) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by American Century Investments, VALQ has amassed assets over $207.65 million, making it one of the larger ETFs in the Style Box - All Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the AMERICAN CENTURY U.S. QUALITY VALUE INDX.
The American Century U.S. Quality Value Index seeks to select securities of large and mid-capitalization companies that are undervalued or have sustainable income.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.29%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.11%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For VALQ, it has heaviest allocation in the Information Technology sector --about 17.50% of the portfolio --while Healthcare and Industrials round out the top three.
Taking into account individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 2.56% of the fund's total assets, followed by Johnson + Johnson W/d Common Stock Usd1.0 (JNJ) and Gilead Sciences Inc Common Stock Usd.001 (GILD).
The top 10 holdings account for about 21.21% of total assets under management.
Performance and Risk
Year-to-date, the American Century U.S. Quality Value ETF return is roughly 5.49% so far, and is up about 15.25% over the last 12 months (as of 10/18/2023). VALQ has traded between $43.74 and $50.93 in this past 52-week period.
The fund has a beta of 0.94 and standard deviation of 15.70% for the trailing three-year period. With about 225 holdings, it effectively diversifies company-specific risk.
Alternatives
American Century U.S. Quality Value ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $8.25 billion in assets, iShares Core S&P U.S. Value ETF has $13.53 billion. DFAT has an expense ratio of 0.28% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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American Century U.S. Quality Value ETF (VALQ): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports
Dimensional U.S. Targeted Value ETF (DFAT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 2.56% of the fund's total assets, followed by Johnson + Johnson W/d Common Stock Usd1.0 (JNJ) and Gilead Sciences Inc Common Stock Usd.001 (GILD). Click to get this free report American Century U.S. Quality Value ETF (VALQ): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Launched on 01/11/2018, the American Century U.S. Quality Value ETF (VALQ) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 2.56% of the fund's total assets, followed by Johnson + Johnson W/d Common Stock Usd1.0 (JNJ) and Gilead Sciences Inc Common Stock Usd.001 (GILD). Click to get this free report American Century U.S. Quality Value ETF (VALQ): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Launched on 01/11/2018, the American Century U.S. Quality Value ETF (VALQ) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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Click to get this free report American Century U.S. Quality Value ETF (VALQ): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Taking into account individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 2.56% of the fund's total assets, followed by Johnson + Johnson W/d Common Stock Usd1.0 (JNJ) and Gilead Sciences Inc Common Stock Usd.001 (GILD). Launched on 01/11/2018, the American Century U.S. Quality Value ETF (VALQ) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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Taking into account individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 2.56% of the fund's total assets, followed by Johnson + Johnson W/d Common Stock Usd1.0 (JNJ) and Gilead Sciences Inc Common Stock Usd.001 (GILD). Click to get this free report American Century U.S. Quality Value ETF (VALQ): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Launched on 01/11/2018, the American Century U.S. Quality Value ETF (VALQ) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
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2023-10-18 00:00:00 UTC
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Should SPDR S&P 500 ETF (SPY) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-spdr-sp-500-etf-spy-be-on-your-investing-radar-9
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Launched on 01/29/1993, the SPDR S&P 500 ETF (SPY) 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 State Street Global Advisors. It has amassed assets over $401.59 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 31.42% of total assets under management.
Performance and Risk
SPY seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups.
The ETF has added roughly 15.25% so far this year and it's up approximately 20.64% in the last one year (as of 10/18/2023). In the past 52-week period, it has traded between $365.41 and $457.79.
The ETF has a beta of 1 and standard deviation of 17.75% for the trailing three-year period, making it a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 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, SPY 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 Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) track the same index. While Vanguard S&P 500 ETF has $329.47 billion in assets, iShares Core S&P 500 ETF has $352.02 billion. VOO has an expense ratio of 0.03% and IVV charges 0.03%.
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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SPDR S&P 500 ETF (SPY): 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
Vanguard S&P 500 ETF (VOO): 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 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 01/29/1993, the SPDR S&P 500 ETF (SPY) 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 SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): 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 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise.
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Click to get this free report SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): 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 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives SPDR S&P 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 7.24% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR S&P 500 ETF (SPY): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
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2023-10-18 00:00:00 UTC
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1 Magnificent Warren Buffett Stock to Buy Hand Over Fist Right Now
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https://www.nasdaq.com/articles/1-magnificent-warren-buffett-stock-to-buy-hand-over-fist-right-now
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Berkshire Hathaway, headed by legendary investor Warren Buffett, isn't known for being especially keen on tech stocks, at least not before it purchased its first shares in Apple in early 2016. That's why it might be a surprise to many that the conglomerate has a tiny stake in none other than Amazon (NASDAQ: AMZN), which is worth $1.4 billion as of this writing.
I think the smart move would be for individual investors to follow in Buffett's footsteps and buy shares of the e-commerce and cloud computing FAANG stock. Here are three reasons why.
Strong growth prospects
Amazon is unique in that despite its massive size -- it posted trailing-12-month sales of $538 billion -- it still has ample growth opportunities.
Investors know that the e-commerce operations are the company's bread and butter. After all, Amazon helped spearhead the growth of online shopping. And today, nearly $4 out of every $10 spent online in the U.S. happens on Amazon's website. That's certainly a clear indicator of the company's dominance. But due to the fact that 85% of shopping still happens in person in this country, there's a lot of growth runway.
Amazon also has the leading cloud services platform, called Amazon Web Services (AWS). Its Q2 2023 revenue of $22.1 billion was up just 12% year over year, continuing a notable slowdown from previous years. But AWS has a 32% market share on a global level, which is well ahead of the next-largest rival. And according to Grand View Research, the industry is estimated to be worth $1.6 trillion by 2030. If Amazon simply maintains its position, revenue is set to soar.
Thanks to AWS having an operating margin that averaged 24.7% in the past four quarters, as this segment becomes a more important part of the overall business, Amazon's profitability will increase.
With Prime Video, which commanded 3.4% of TV viewing time in the U.S. in the month of August, the company has a serious contender to continue benefiting from the rise of streaming entertainment. Amazon purchased MGM Studios early last year, giving it a boost in content production.
Another secular trend helping Amazon is digital advertising. Many investors probably don't know that the company generated almost $11 billion in ad revenue last quarter, up 22% year over year.
All of these growth pillars give me confidence in the trajectory of Amazon's operations looking ahead.
Wide economic moat
Amazon's competitive positioning is bolstered by the presence of a wide economic moat. This company has favorable traits that should keep it dominating the tech sector for a long time.
Amazon has one of the most valuable and widely recognized brands on the planet, thanks largely to its customer base of millions of consumers and businesses. And by operating various internet properties, the amount of data the business collects has created another advantage in the form of an intangible asset that is almost impossible to replicate.
Amazon's massive e-commerce marketplace has a strong network effect. As more buyers and sellers join, it immediately increases the value proposition to existing and new users. This creates a virtuous cycle that becomes unstoppable.
And by having a cost advantage, Amazon is able to serve up products and services at better costs than peers. For example, a huge logistics footprint consisting of warehouses, trucks, and drivers helps push down shipping costs due to how much volume Amazon has. For companies that sell far fewer products, it might not be as financially sound to focus on fast and free delivery. Amazon's sheer volume gives it the upper hand.
Attractive valuation
This business has been one of the best-performing stocks in the past, rising 768% in the last decade and 58% this year alone (as of Oct. 16). Despite these huge gains, shares appear reasonably priced right now, trading at a price-to-sales multiple of 2.5. Compared to the trailing-five-year average of 3.4, the current valuation looks like a bargain.
It's rare that investors are presented with the opportunity to buy such a dominant business with strong growth prospects. Plus, it has a wide economic moat and sports an attractive valuation. Perhaps it's best to copy Berkshire and add Amazon to your portfolio now.
10 stocks we like better than Amazon.com
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com 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 16, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire Hathaway, headed by legendary investor Warren Buffett, isn't known for being especially keen on tech stocks, at least not before it purchased its first shares in Apple in early 2016. I think the smart move would be for individual investors to follow in Buffett's footsteps and buy shares of the e-commerce and cloud computing FAANG stock. With Prime Video, which commanded 3.4% of TV viewing time in the U.S. in the month of August, the company has a serious contender to continue benefiting from the rise of streaming entertainment.
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Strong growth prospects Amazon is unique in that despite its massive size -- it posted trailing-12-month sales of $538 billion -- it still has ample growth opportunities. Wide economic moat Amazon's competitive positioning is bolstered by the presence of a wide economic moat. It's rare that investors are presented with the opportunity to buy such a dominant business with strong growth prospects.
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Amazon also has the leading cloud services platform, called Amazon Web Services (AWS). Wide economic moat Amazon's competitive positioning is bolstered by the presence of a wide economic moat. See the 10 stocks *Stock Advisor returns as of October 16, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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After all, Amazon helped spearhead the growth of online shopping. Attractive valuation This business has been one of the best-performing stocks in the past, rising 768% in the last decade and 58% this year alone (as of Oct. 16). The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway.
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2023-10-18 00:00:00 UTC
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53.7% of Warren Buffett's $344 Billion Berkshire Hathaway Portfolio Is Invested in These 2 Dividend Stocks
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AAPL
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https://www.nasdaq.com/articles/53.7-of-warren-buffetts-%24344-billion-berkshire-hathaway-portfolio-is-invested-in-these-2
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Berkshire Hathaway CEO Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." According to analysis from Dow Jones Market Data, Berkshire is on track to generate more than $5.7 billion in dividend income this year alone. Not too shabby for cash that the Oracle of Omaha's company is earning while its key executives and analysts are catching some shuteye.
While Berkshire Hathaway itself doesn't pay a dividend, the investment conglomerate is heavily invested in companies that regularly return cash to shareholders in the form of cash payouts. Read on for a look at two dividend-paying companies that account for roughly 53.7% of Buffett's company's stock portfolio.
Buffett's biggest bet generates major income for Berkshire
Keith Noonan: Based on the Berkshire Hathaway's most recent public disclosures, Apple (NASDAQ: AAPL) accounts for roughly 47.6% of the investment conglomerate's total stock portfolio. With Apple paying an annual dividend of roughly $0.96 per share, Buffett's company is on track to score big income from its holdings. Given that Buffett's company owns roughly 915.56 million shares of the tech giant's stock, Berkshire is on track to generate at least $879 million in dividend income over the next year.
On the other hand, it's fair to say that Apple's current payout probably won't delight investors who are seeking big dividend yield right off the bat. The company's stock yield just over 0.5% at current prices. Even though Apple boasts a relatively small yield at current prices, the stock remains one of Berkshire's biggest income generators. Buffett's company is also getting a much better yield on its holdings than Apple's current share price might imply.
Apple has increased its dividend every year since it initiated a payout in 2012, and Berkshire first purchased shares in the first quarter of 2016. The company has increased its dividend roughly 31% over the last five years, and 120% over the last decade. With macroeconomic pressures hitting and the company investing to lay the foundations for future growth initiatives, dividend growth has been slower lately. But there's a good chance the tech giant will eventually return to more aggressive payout growth somewhere down the line.
In addition to being the world's most valuable company, Apple is also in the uppermost echelons when it comes to profitability. The company's dominance in the mobile hardware market and contributions from its software businesses and other products allow the tech giant to serve up incredible earnings, and it's likely that strong earnings will continue paving the way for more dividend growth.
The Oracle of Omaha is a fan of Coca-Cola
Parkev Tatevosian: Warren Buffet owns a whopping 400 million shares of Coca-Cola (NYSE: KO) stock in his Berkshire Hathaway portfolio. That sum makes up 6.1% of the overall portfolio. Can you blame the Oracle of Omaha for investing in this excellent dividend stock? Coca-Cola is one of the most recognizable brands in the world, and it pays passive income investors a healthy dividend.
Indeed, between 2013 and 2022, Coca-Cola's dividend per share increased from $1.12 to $1.76. More importantly, in its most recent year, Coca-Cola's dividend per share of 1.76 was below its earnings per share of $2.19. That's critical because, much like a household, a company can't support a dividend payment above its earnings in the long run. Sure, it can compromise in the short term by borrowing money or using savings to pay dividends above earnings, but eventually, savings will run out, and it will exhaust borrowing capacity.
KO PE Ratio (Forward 1y) data by YCharts
Of course, Buffet, being the expert investor he is, understands this. It's undoubtedly one of the reasons he remains willing to hold 400 million Coca-Cola shares and collect the $1.76 dividend per share. Given that Coca-Cola's stock price is not expensive at a forward price-to-earnings ratio of 18.88, it might not be a bad idea for investors to own a few shares of Coca-Cola stock.
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 13, 2023
Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buffett's biggest bet generates major income for Berkshire Keith Noonan: Based on the Berkshire Hathaway's most recent public disclosures, Apple (NASDAQ: AAPL) accounts for roughly 47.6% of the investment conglomerate's total stock portfolio. Berkshire Hathaway CEO Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." With Apple paying an annual dividend of roughly $0.96 per share, Buffett's company is on track to score big income from its holdings.
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Buffett's biggest bet generates major income for Berkshire Keith Noonan: Based on the Berkshire Hathaway's most recent public disclosures, Apple (NASDAQ: AAPL) accounts for roughly 47.6% of the investment conglomerate's total stock portfolio. Given that Buffett's company owns roughly 915.56 million shares of the tech giant's stock, Berkshire is on track to generate at least $879 million in dividend income over the next year. The Oracle of Omaha is a fan of Coca-Cola Parkev Tatevosian: Warren Buffet owns a whopping 400 million shares of Coca-Cola (NYSE: KO) stock in his Berkshire Hathaway portfolio.
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Buffett's biggest bet generates major income for Berkshire Keith Noonan: Based on the Berkshire Hathaway's most recent public disclosures, Apple (NASDAQ: AAPL) accounts for roughly 47.6% of the investment conglomerate's total stock portfolio. Given that Buffett's company owns roughly 915.56 million shares of the tech giant's stock, Berkshire is on track to generate at least $879 million in dividend income over the next year. The Oracle of Omaha is a fan of Coca-Cola Parkev Tatevosian: Warren Buffet owns a whopping 400 million shares of Coca-Cola (NYSE: KO) stock in his Berkshire Hathaway portfolio.
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Buffett's biggest bet generates major income for Berkshire Keith Noonan: Based on the Berkshire Hathaway's most recent public disclosures, Apple (NASDAQ: AAPL) accounts for roughly 47.6% of the investment conglomerate's total stock portfolio. Given that Buffett's company owns roughly 915.56 million shares of the tech giant's stock, Berkshire is on track to generate at least $879 million in dividend income over the next year. The Oracle of Omaha is a fan of Coca-Cola Parkev Tatevosian: Warren Buffet owns a whopping 400 million shares of Coca-Cola (NYSE: KO) stock in his Berkshire Hathaway portfolio.
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13069.0
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2023-10-18 00:00:00 UTC
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Looking for Growth? These 2 Stocks are No-Brainer Buys Before a New Bull Market
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AAPL
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https://www.nasdaq.com/articles/looking-for-growth-these-2-stocks-are-no-brainer-buys-before-a-new-bull-market
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Now would be a great moment to add a few growth stocks to your portfolio. Why? Because we're heading toward a bull market, and that type of economic environment tends to favor these sorts of players. We're not there yet, but, since historically, every U.S. market correction or bear has eventually been followed by a bull, there's reason to be optimistic about the future in this case. And smart investments now could lead to big rewards later.
Speaking of smart buys, today, you can pick up some top growth stocks for reasonable prices -- and two in particular would make no-brainer additions to any growth portfolio. I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Their growth stories are far from over, and they could truly take off in an economic environment that favors expansion.
Apple
Apple has won over the world with practical yet innovative products such as iPhones and Apple Watches. The company's brand strength offers it both pricing power (the ability to raise prices without losing customers) and a significant moat (i.e., a competitive advantage).
The bottom line is most Apple fans love its products so much that they'll pay a premium for them -- and generally aren't tempted to switch to another brand. In 2023, for the second straight year, Apple topped consulting company Kantar's list of most valuable global brands.
But even when a tough economic environment puts a brake on consumer discretionary spending, and therefore puts pressure on sales of Apple products, the company still can win. That's because it also sells a wide variety of services -- from iCloud data storage to digital content. In its fiscal third quarter, thanks to more than one billion paid subscriptions, the company's services revenue reached a record high.
Over time, Apple has increased its net income and other important measures. For example, growth in return on invested capital shows Apple has used its cash wisely -- and is benefiting from its investments.
AAPL Revenue (Annual) data by YCharts.
And consider its valuation. Even after the stock gained more than 35% this year, recovering from its 2022 slide, it still trades for only 27 times forward earnings estimates. That looks like an absolute steal for a company with Apple's track record, competitive advantages, and prospects.
Amazon
Amazon is a leader in two markets that are growing at double-digit percentage rates -- e-commerce and cloud computing -- and there's reason to believe the company can maintain its dominance in both. In e-commerce, the youngest generation of shoppers favors Amazon, which bodes well for its revenues down the road. More than half of teens in Piper Sandler's latest teen survey say Amazon is their favorite shopping website.
And to keep customers happy, Amazon continues to make its deliveries faster. That's an important point because Amazon has noted customers are more likely to order an item if estimated delivery times are speedy.
As for cloud computing, Amazon Web Services (AWS) has maintained global leadership for years. This is key because AWS generally drives profits at Amazon.
Amazon also has demonstrated its ability to manage during tough times. Last year, Amazon reported its first annual loss in almost a decade as economic headwinds weighed on the business. But Amazon quickly and efficiently turned things around, revamping its cost structure and pouring investment into high-growth areas such as technology infrastructure.
As a result, the company reported a doubling of operating income in the most recent quarter, and it switched to an inflow of cash versus an outflow in the year-earlier period.
Considering Amazon's strengths in two high-growth markets, its valuation of 61 times forward earnings estimates wouldn't scare me away. This company has what it takes to continue thriving -- especially in the next bull market.
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 16, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. The bottom line is most Apple fans love its products so much that they'll pay a premium for them -- and generally aren't tempted to switch to another brand.
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I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. As for cloud computing, Amazon Web Services (AWS) has maintained global leadership for years.
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I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. Amazon Amazon is a leader in two markets that are growing at double-digit percentage rates -- e-commerce and cloud computing -- and there's reason to believe the company can maintain its dominance in both.
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I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. That's an important point because Amazon has noted customers are more likely to order an item if estimated delivery times are speedy.
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13070.0
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2023-10-18 00:00:00 UTC
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3 Stocks Poised to Become Trillion-Dollar Giants
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AAPL
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https://www.nasdaq.com/articles/3-stocks-poised-to-become-trillion-dollar-giants
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In 2018, Apple (NASDAQ:AAPL) became the first trillion-dollar company. Also, in June, Apple made financial history as the first $3 trillion company. AAPL stock has been a massive value creator and will continue to trend higher in the coming years. Of the potential trillion-dollar stocks, the smallest company has a current market valuation of $200 billion. Over the next five years, these stocks can deliver 2x to 5x returns—conservative estimates, in my view. The screening criteria for the trillion-dollar stocks include a strong balance sheet, a big addressable market, a focus on innovation, and favorable industry tailwinds.
Let’s discuss the reasons to be bullish on these potential trillion-dollar companies.
Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
In general, technology stocks seem to be the favorites when we look at potential trillion-dollar stocks. I would, however, start with a promising oil and gas stock that can be a massive value creator.
Even with the shift toward renewable energy, the oil demand will likely remain strong through the decade. With geopolitical tensions, I will not be surprised if oil at $100 per barrel is the new normal.
Chevron (NYSE:CVX) is a potential trillion-dollar stock in the next five years. Chevron has an investment-grade balance sheet and assets with an attractive break-even. Considering the potential operating and free cash flow, I expect significant value creation.
To put things into perspective, Brent oil averaged $100.9 per barrel last year. Chevron reported operating cash flow of $47.5 billion for 2022. Given the cash flow potential, value creation will come through dividends and share repurchases.
Additionally, there is ample headroom to make big capital investments to ensure steady earnings growth. Chevron is targeting an annual investment of $14 to $16 billion for the next few years.
Taiwan Semiconductor (TSM)
Source: Sundry Photography / Shutterstock.com
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is another name poised to join the list of trillion-dollar stocks in the next five years. The manufacturer of integrated circuits and other semiconductor devices trades at an attractive forward price-earnings ratio of 18.4.
It’s worth noting that Taiwan Semiconductor is an innovator and commands a leading market share. Taiwan Semiconductor is credited for developing 7-nanometer foundry technology. With ambitious expansion overseas plans, the company is targeting revenue growth at a compound annual growth (CAGR) of 15% to 20% through 2026.
Taiwan Semiconductor is positioned to benefit from the rapid growth of artificial intelligence. The company wants to invest in an advanced chip packaging plant to cater to the incremental demand. TSM is already building a $40 billion chip factory in Arizona, and there are speculations that the advanced chip packing factory is likely. These investments ensure the company meets its revenue growth target.
Salesforce (CRM)
Source: IgorGolovniov / Shutterstock.com
Salesforce (NYSE:CRM) stock has witnessed a healthy upside of 55% year-to-date. I believe this potential trillion-dollar stock’s positive momentum will likely be sustained. In the next five years, CRM stock seems poised for five-bagger returns.
The first point to note is that Salesforce has a large addressable market. By 2026, the company estimates a market size worth $290 billion. If this holds true, there is visibility for sustained growth and cash flow upside.
It’s also worth noting that Salesforce has been pursuing aggressive international expansion. As of FY 2023, the company derived 37% of its revenue from international markets. Geographic expansion is another growth catalyst.
Revenue growth has translated into operating leverage, which implies robust cash flow visibility. For Q2 2024, Salesforce reported a free cash flow of $628 million. This would imply an annualized FCF potential of $2.5 billion, likely to impact valuations positively.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post 3 Stocks Poised to Become Trillion-Dollar Giants appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips In 2018, Apple (NASDAQ:AAPL) became the first trillion-dollar company. AAPL stock has been a massive value creator and will continue to trend higher in the coming years. The screening criteria for the trillion-dollar stocks include a strong balance sheet, a big addressable market, a focus on innovation, and favorable industry tailwinds.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips In 2018, Apple (NASDAQ:AAPL) became the first trillion-dollar company. AAPL stock has been a massive value creator and will continue to trend higher in the coming years. The screening criteria for the trillion-dollar stocks include a strong balance sheet, a big addressable market, a focus on innovation, and favorable industry tailwinds.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips In 2018, Apple (NASDAQ:AAPL) became the first trillion-dollar company. AAPL stock has been a massive value creator and will continue to trend higher in the coming years. Chevron (CVX) Source: Sundry Photography / Shutterstock.com In general, technology stocks seem to be the favorites when we look at potential trillion-dollar stocks.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips In 2018, Apple (NASDAQ:AAPL) became the first trillion-dollar company. AAPL stock has been a massive value creator and will continue to trend higher in the coming years. Chevron is targeting an annual investment of $14 to $16 billion for the next few years.
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13071.0
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2023-10-18 00:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-10
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nan
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nan
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
The fund is sponsored by Vanguard. It has amassed assets over $329.47 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.55%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 30.44% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added roughly 15.31% so far this year and was up about 20.71% in the last one year (as of 10/18/2023). In the past 52-week period, it has traded between $335.83 and $420.68.
The ETF has a beta of 1 and standard deviation of 17.70% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track the same index. While iShares Core S&P 500 ETF has $352.02 billion in assets, SPDR S&P 500 ETF has $401.59 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
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Vanguard S&P 500 ETF (VOO): 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 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
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Click to get this free report Vanguard S&P 500 ETF (VOO): 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 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
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Click to get this free report Vanguard S&P 500 ETF (VOO): 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 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.53% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
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13072.0
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2023-10-18 00:00:00 UTC
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Is FlexShares Quality Dividend ETF (QDF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-flexshares-quality-dividend-etf-qdf-a-strong-etf-right-now
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nan
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nan
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Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Flexshares, QDF has amassed assets over $1.55 billion, making it one of the larger ETFs in the Style Box - All Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the Northern Trust Quality Dividend Index.
The Northern Trust Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only U.S. equity securities, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust 1250 Index and the Index are selected based on expected dividend payment and fundamental factors.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.37%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.25%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For QDF, it has heaviest allocation in the Information Technology sector --about 30.50% of the portfolio --while Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 9.45% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG).
The top 10 holdings account for about 34.12% of total assets under management.
Performance and Risk
Year-to-date, the FlexShares Quality Dividend ETF return is roughly 9.97% so far, and is up about 18.31% over the last 12 months (as of 10/18/2023). QDF has traded between $48.75 and $60.11 in this past 52-week period.
The fund has a beta of 0.98 and standard deviation of 16.18% for the trailing three-year period, which makes QDF a medium risk choice in this particular space. With about 143 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares Quality Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index. IShares Core S&P Total U.S. Stock Market ETF has $44.45 billion in assets, Vanguard Total Stock Market ETF has $309.77 billion. ITOT has an expense ratio of 0.03% and VTI charges 0.03%.
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
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
FlexShares Quality Dividend ETF (QDF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Procter & Gamble Company (The) (PG) : Free Stock Analysis Report
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 9.45% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 9.45% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 9.45% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). IShares Core S&P Total U.S. Stock Market ETF (ITOT) tracks S&P Total Market Index and the Vanguard Total Stock Market ETF (VTI) tracks CRSP US Total Market Index.
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Taking into account individual holdings, Apple Inc (AAPL) accounts for about 9.45% of the fund's total assets, followed by Microsoft Corp Common Stock Usd 0.00000625 (MSFT) and Procter &no.38; Gamble Co/the Common Stock Usd 0 (PG). Click to get this free report FlexShares Quality Dividend ETF (QDF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Vanguard Total Stock Market ETF (VTI): ETF Research Reports iShares Core S&P Total U.S. Stock Market ETF (ITOT): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/14/2012, the FlexShares Quality Dividend ETF (QDF) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Blend category of the market.
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13073.0
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2023-10-17 00:00:00 UTC
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Dow Movers: INTC, BA
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-intc-ba-3
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nan
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nan
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In early trading on Tuesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. Year to date, Boeing has lost about 1.6% of its value.
And the worst performing Dow component thus far on the day is Intel, trading down 3.4%. Intel is showing a gain of 33.7% looking at the year to date performance.
Two other components making moves today are Apple, trading down 2.0%, and Chevron, trading up 0.9% on the day.
VIDEO: Dow Movers: INTC, BA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Tuesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. And the worst performing Dow component thus far on the day is Intel, trading down 3.4%. Intel is showing a gain of 33.7% looking at the year to date performance.
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In early trading on Tuesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. Year to date, Boeing has lost about 1.6% of its value. And the worst performing Dow component thus far on the day is Intel, trading down 3.4%.
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In early trading on Tuesday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. And the worst performing Dow component thus far on the day is Intel, trading down 3.4%. Two other components making moves today are Apple, trading down 2.0%, and Chevron, trading up 0.9% on the day.
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And the worst performing Dow component thus far on the day is Intel, trading down 3.4%. Intel is showing a gain of 33.7% looking at the year to date performance. VIDEO: Dow Movers: INTC, BA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13074.0
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2023-10-17 00:00:00 UTC
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The "Magnificent Seven" Have Made the S&P 500 More Concentrated Than Ever. Historically, That's Bad News for Stocks.
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AAPL
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https://www.nasdaq.com/articles/the-magnificent-seven-have-made-the-sp-500-more-concentrated-than-ever.-historically-thats
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nan
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nan
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When examined over multidecade periods, Wall Street's three major stock indexes -- the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) -- are undeniable moneymakers. But when explored over shorter spans, the performance of these indexes becomes unpredictable.
Since this decade began, the major stock indexes have teetered between bull and bear markets on a number of occasions. While 2023 has been a relatively good year for the benchmark S&P 500 and growth stock-fueled Nasdaq Composite, a number of potential warning flags have emerged. Perhaps none is waving more frantically than the steadily increasing concentration of the S&P 500.
Image source: Getty Images.
The Magnificent Seven are responsible for nearly all the S&P 500's gains in 2023
The S&P 500 is widely viewed as the best benchmark of Wall Street's "health." It's a market cap-weighted index comprised of 500 generally profitable, time-tested companies, a few of which have multiple classes of shares. All told, the S&P 500 has 503 components, with representation from all sectors and most industries.
You'd think that a 500-company index would be fairly diverse and act as an accurate barometer for Wall Street, but this simply isn't the case, thanks to the rise of the Magnificent Seven.
In order of largest to smallest market cap, as of Oct. 13, the Magnificent Seven stocks are:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Meta Platforms (NASDAQ: META)
Tesla (NASDAQ: TSLA)
The Magnificent Seven bring two attributes to the table that make them irresistible to many investors. First, they're industry leaders with relatively sustained moats and/or competitive edges:
Apple accounts for a little over half of all U.S. smartphone market share and has the most robust capital-return program among publicly traded companies in the U.S.
Microsoft is enjoying a blend of the old with the new. Its legacy Windows operating system still dominates on desktops, while its cloud infrastructure service, Azure, ranks second inglobal marketshare.
Alphabet's Google has tallied at least 90% of worldwide monthly internet search share for over eight years. Alphabet also owns YouTube, the second-most-visited social site on the planet.
Amazon's e-commerce marketplace has more than five times the share of online retail sales as the next-closest competitor in the United States. Further, Amazon Web Services is the global No. 1 in cloud infrastructure services.
Nvidia is leading the charge for the artificial intelligence (AI) revolution. Around 90% of the graphics processing units (GPUs) used in AI-accelerated data centers derive from Nvidia.
Meta Platforms owns the prime social media "real estate," including Facebook, Instagram, WhatsApp, Facebook Messenger, and Threads. Meta attracted nearly 3.9 billion monthly active users in the June-ended quarter.
Tesla is North America's leading electric-vehicle (EV) manufacturer, as well as the only pure-play EV producer to achieve recurring profitability.
AAPL data by YCharts.
The other reason investors flock to the Magnificent Seven is their outperformance. While the S&P 500 is higher by nearly 13% on a year-to-date basis, as of this past weekend (ended Oct. 13), the equal-weighted S&P 500 is down by almost 1% for the year. In other words, the Magnificent Seven have been almost entirely responsible for pulling the benchmark S&P 500 higher this year.
Is the S&P 500 a house of cards waiting to topple?
In one respect, investors can be thankful for the sustained outperformance of the Magnificent Seven. Businesses with well-defined competitive advantages and long growth runways should be rewarded, as well as have greater influence over the S&P 500 if they're becoming larger over time.
However, history hasn't been kind to the S&P 500 when it's become overly reliant on an increasingly smaller percentage of its components. As pointed out this past week by Bank of America Global Research, the Magnificent Seven now comprise 29.6% of the market cap of the S&P 500. That's higher than the previous concentration peak of 29.1%, which preceded the S&P 500 losing more than a quarter of its value during the 2022 bear market.
The Magnificent 7 now account for 29.6% of the total S&P 500 market cap, the highest level on record pic.twitter.com/TyIlSgjtkI
-- Barchart (@Barchart) October 14, 2023
According to a research report from Morgan Stanley, the 10 largest components of the S&P 500 have comprised around 20% of the index's weighting over the past 35 years. During the dot-com bubble, the concentration of the 10 largest components jumped to around 25%. As of this past weekend, the 10 largest components accounted for almost 32% of the S&P 500's weighting. It's an ominously high figure, given what's transpired the last couple of times the benchmark index became concentrated in an increasingly smaller number of companies.
Keep in mind that I'm not suggesting the S&P 500, and stocks in general, are in trouble solely because of poor market breadth. Rather, I'm pointing out that previous periods of high concentration for the S&P 500 left the stock market prone to significant downside if one or more of the index's more heavily weighted components failed to live up to lofty expectations.
While some Magnificent Seven components remain historically inexpensive relative to forecast cash flow, such as Meta, Alphabet, and even Amazon, other components appear priced for perfection.
For instance, while most auto stocks are valued at a single-digit price-to-earnings multiple, Tesla is trading at nearly 75 times forecast earnings this year. Tech stock Apple is also near the high end of its valuation multiple, despite its sales and profits modestly shrinking in fiscal 2023. Whereas a well-diversified stock index wouldn't be reliant on a single component for its success, the S&P 500 could topple like a house of cards if just a few heavily weighted components lose their luster.
Image source: Getty Images.
When in doubt, pan out
However, investors' perspective can change drastically depending on their investment horizon. While a highly concentrated S&P 500 is less than ideal in the short run, it's not a particularly big concern if you're an investor with a long-term mindset.
For example, the S&P 500 has endured 39 instances since the beginning of 1950 where it's declined by a double-digit percentage. This includes the dot-com bubble and 2022 bear market, both of which featured instances of higher-than-normal concentration for the S&P 500 in a handful of its largest components.
But except for the 2022 bear market, every double-digit dive in the benchmark index since its inception has, eventually, been cleared away by a bull market rally. Although we're never going to be able to predict with 100% accuracy when downturns will occur, how long they'll last, or where the bottom will be, history pretty conclusively shows that the S&P 500, along with the Dow and Nasdaq Composite, increase in value over extended periods.
To add to the above, it generally pays to be optimistic. Four months ago, Bespoke Investment Group unveiled data showing that the average bear market in the S&P 500 since September 1929 has lasted 286 calendar days (about 9.5 months). By comparison, the 27 bull markets over the past 94 years have lasted an average of 1,011 calendar days. That's more than 3.5 times the length of the typical bear market since the Great Depression.
So no matter how stacked the deck may appear against Wall Street in the short term, meaningful declines in the major indexes always represent a buying opportunity for patient investors.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, Bank of America, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, 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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In order of largest to smallest market cap, as of Oct. 13, the Magnificent Seven stocks are: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) The Magnificent Seven bring two attributes to the table that make them irresistible to many investors. AAPL data by YCharts. When examined over multidecade periods, Wall Street's three major stock indexes -- the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) -- are undeniable moneymakers.
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In order of largest to smallest market cap, as of Oct. 13, the Magnificent Seven stocks are: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) The Magnificent Seven bring two attributes to the table that make them irresistible to many investors. AAPL data by YCharts. When examined over multidecade periods, Wall Street's three major stock indexes -- the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) -- are undeniable moneymakers.
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In order of largest to smallest market cap, as of Oct. 13, the Magnificent Seven stocks are: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) The Magnificent Seven bring two attributes to the table that make them irresistible to many investors. AAPL data by YCharts. The Magnificent 7 now account for 29.6% of the total S&P 500 market cap, the highest level on record pic.twitter.com/TyIlSgjtkI -- Barchart (@Barchart) October 14, 2023 According to a research report from Morgan Stanley, the 10 largest components of the S&P 500 have comprised around 20% of the index's weighting over the past 35 years.
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In order of largest to smallest market cap, as of Oct. 13, the Magnificent Seven stocks are: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) The Magnificent Seven bring two attributes to the table that make them irresistible to many investors. AAPL data by YCharts. As of this past weekend, the 10 largest components accounted for almost 32% of the S&P 500's weighting.
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13075.0
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2023-10-17 00:00:00 UTC
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Should Vanguard Mega Cap ETF (MGC) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-etf-mgc-be-on-your-investing-radar-10
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nan
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nan
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Launched on 12/17/2007, the Vanguard Mega Cap ETF (MGC) 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 Vanguard. It has amassed assets over $4.14 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.43%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 30.70% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 35.15% of total assets under management.
Performance and Risk
MGC seeks to match the performance of the CRSP US Mega Cap Index before fees and expenses. The CRSP U.S. Mega Cap Index includes the largest U.S. companies, with a target of including the top 70% of investable market capitalization. The index includes securities traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF return is roughly 18.61% so far this year and it's up approximately 26.32% in the last one year (as of 10/17/2023). In the past 52-week period, it has traded between $127.80 and $161.80.
The ETF has a beta of 0.99 and standard deviation of 17.99% for the trailing three-year period, making it a medium risk choice in the space. With about 231 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega 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, MGC is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $351.76 billion in assets, SPDR S&P 500 ETF has $402.65 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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Vanguard Mega Cap ETF (MGC): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $4.14 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 12/17/2007, the Vanguard Mega Cap ETF (MGC) 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 Vanguard Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Alternatives Vanguard Mega 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 Mega Cap ETF (MGC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 8.90% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 12/17/2007, the Vanguard Mega Cap ETF (MGC) 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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13076.0
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2023-10-17 00:00:00 UTC
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US STOCKS-Wall St set to open lower on worries over retail sales data, Middle East
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-on-worries-over-retail-sales-data-middle-east
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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.
US retail sales beat expectations in September
Dollar Tree up on brokerage rating upgrade
BofA profit rises, Goldman Sachs profit plunges in Q3
Johnson & Johnson raises 2023 profit forecast
Futures down: Dow 0.23%, S&P 0.49%, Nasdaq 0.78%
Updated at 8:41 a.m. ET/ 1241 GMT
By Ankika Biswas and Shashwat Chauhan
Oct 17 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as hotter-than-expected retail sales data stoked worries U.S. interest rates could stay higher for longer, with the Middle East conflict further denting sentiment.
Iran's Supreme Leader Ayatollah Ali Khamenei said Israel's "genocide" of Palestinians in the Gaza Strip should stop immediately, state TV reported, sparking concerns the conflict could escalate.
U.S. President Joe Biden is set to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans
U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note.
"This is a persistent story ... you can never bet against the U.S. consumer, and this is evidence of it," said Thomas Hayes, chairman at Great Hill Capital.
Long-dated U.S. Treasury yields extended their advance after the data, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O and Amazon.com AMZN.O down between 0.6% and 1.2% in premarket trading.
On the earnings front, Bank of AmericaBAC.N gained 1.6% as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.
Goldman SachsGS.N third-quarter profit dropped less than expected as a nascent recovery in dealmaking offset its $864 million writedown related to GreenSky fintech business and investments in real estate. Its shares inched up 0.2%.
All three major U.S. stock indexes had advanced in the previous session on optimism over corporate earnings.
"People continue to underestimate the strength of the economy, they continue to underestimate the strength of the consumer and there's nowhere better to reflect that than in bank earnings which have just been off the charts," Hayes added.
Third-quarter earnings for S&P 500 companies are expected to increase 2.2% year-on-year, compared with a 1.3% rise expected a week earlier, as per LSEG data.
Several Federal Reserve officials are set to speak during the day, including New York's John Williams, Richmond's Thomas Barkin, Minneapolis' Neel Kashkari and Board Governor Michelle Bowman.
At 8:53 a.m. ET, Dow e-minis 1YMcv1 were down 77 points, or 0.23%, S&P 500 e-minis EScv1 had lost 21.5 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 had fallen 118.5 points, or 0.78%.
Nvida NVDA.O dipped over 3% after the Biden administration said it plans to halt shipments of advanced artificial intelligence chips to China.
Chipmakers Advanced Micro Devices AMD.O, Marvell Technology MRVL.O, Qualcomm QCOM.O and Arm Holdings ARM.O fell between 1.5% and 2.4%
Pharmaceutical giant Johnson & JohnsonJNJ.N added 0.6% after raising its 2023 profit forecast.
NetScout Systems NTCT.Odropped 21.3% after the enterprise software firm lowered its 2024 revenue and profit forecasts.
Dollar Tree DLTR.O rose 2.1% after Goldman Sachs upgraded the discount retail chain's stock to "buy" from "neutral".
Bank of New York MellonBK.N edged up 0.7% after beating third-quarter profit estimates.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by 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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Long-dated U.S. Treasury yields extended their advance after the data, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O and Amazon.com AMZN.O down between 0.6% and 1.2% in premarket trading. Iran's Supreme Leader Ayatollah Ali Khamenei said Israel's "genocide" of Palestinians in the Gaza Strip should stop immediately, state TV reported, sparking concerns the conflict could escalate. U.S. President Joe Biden is set to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note.
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Long-dated U.S. Treasury yields extended their advance after the data, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O and Amazon.com AMZN.O down between 0.6% and 1.2% in premarket trading. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Johnson & Johnson raises 2023 profit forecast Futures down: Dow 0.23%, S&P 0.49%, Nasdaq 0.78% Updated at 8:41 a.m. ET/ 1241 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as hotter-than-expected retail sales data stoked worries U.S. interest rates could stay higher for longer, with the Middle East conflict further denting sentiment. U.S. President Joe Biden is set to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note.
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Long-dated U.S. Treasury yields extended their advance after the data, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O and Amazon.com AMZN.O down between 0.6% and 1.2% in premarket trading. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Johnson & Johnson raises 2023 profit forecast Futures down: Dow 0.23%, S&P 0.49%, Nasdaq 0.78% Updated at 8:41 a.m. ET/ 1241 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as hotter-than-expected retail sales data stoked worries U.S. interest rates could stay higher for longer, with the Middle East conflict further denting sentiment. U.S. President Joe Biden is set to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note.
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Long-dated U.S. Treasury yields extended their advance after the data, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O and Amazon.com AMZN.O down between 0.6% and 1.2% in premarket trading. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Johnson & Johnson raises 2023 profit forecast Futures down: Dow 0.23%, S&P 0.49%, Nasdaq 0.78% Updated at 8:41 a.m. ET/ 1241 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes were set to open lower on Tuesday as hotter-than-expected retail sales data stoked worries U.S. interest rates could stay higher for longer, with the Middle East conflict further denting sentiment. On the earnings front, Bank of AmericaBAC.N gained 1.6% as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.
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13077.0
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2023-10-17 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): Be Careful as Reality Starts to Set In
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-be-careful-as-reality-starts-to-set-in
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nan
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nan
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Overeager traders might have assumed that Apple (NASDAQ:AAPL) stock would only go up in 2023. Now is the time to be careful, though, as reality dawns on the market and Apple faces unforeseen challenges in the fourth quarter. All in all, I am neutral on AAPL stock and wouldn't dare to short-sell it, but I'm not buying right now.
Apple is a world-famous manufacturer of smartphones, computers, wearables, and accessories. The company also offers streaming and other services. Apple's market cap is fairly close to $3 trillion, and the company is one of the "Magnificent Seven" technology titans.
Yet, it's a mistake to assume that Apple is invincible and unstoppable. I fully understand why AAPL stock might be considered a "forever stock." Nevertheless, investors should time their entries carefully, and Apple is vulnerable to global economic headwinds just like any other company is.
Apple's Epic Run Comes to a Standstill
Apple stock is one of the Magnificent Seven stocks that roared ahead earlier this year, but nothing in the financial markets can just go up forever without taking a break. Just look at the chart, and you'll see that the buyers are exhausted, and Apple's investors are probably getting frustrated.
Also, Apple doesn't pay much of a dividend, and the company has an earnings event coming up fairly soon, on November 2. So, maybe Apple stock isn't such a "magnificent" Buy right now.
Don't get the wrong idea here. Short-selling Apple shares is almost always a bad idea. Just be aware of Apple's issues and challenges before making any buying decisions. For example, Apple plans to release a cheaper version of its $3,500 Vision Pro virtual/augmented reality headset.
It might be $2,500, which is still quite expensive and unaffordable for many people. Moreover, if Apple is preparing to offer lower-priced headsets, it's probably a sign that the company's pricy headsets didn't grab enough attention. It just goes to show that even a "magnificent" company like Apple can falter sometimes.
Apple's Smartphone Sales Might Disappoint Investors
As I mentioned earlier, Apple has an earnings event coming up soon. We don't know whether the company will report strong global smartphone sales figures or not. That's important, as iPhone sales are crucial to Apple's bottom line.
There are already potential signs of trouble, though. According to a Reuters report, data from Counterpoint Research indicates that "the global smartphone market contracted by 8% to its lowest third-quarter level in a decade" due to "subdued demand for major brands" such as Apple.
Furthermore, Apple's smartphone shipments declined by 8% in the third quarter of 2023. Hence, this is Apple's problem just as much as any other global smartphone company's. Plus, Apple is apparently having trouble selling its smartphones in one highly-populated region.
Here's the rundown. A Bloomberg report states that Apple's "new iPhone 15 is selling far worse in China than its predecessor." More specifically, during its first 17 days of availability in China, iPhone 15 sales were down 4.5% compared to iPhone 14 sales.
If Apple can't sell many of its pricy Vision Pro headsets, and its iPhone sales seem to be slumping in China, the company's upcoming earnings report might be lackluster or even a big miss. Now, let's take a look at what analysts expect from Apple stock.
Is Apple Stock a Buy, According to Analysts?
On TipRanks, AAPL comes in as a Moderate Buy based on 20 Buys and nine Hold ratings assigned by analysts in the past three months. The average Apple stock price target is $207.51, implying 16.9% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell AAPL stock, the most accurate analyst covering the stock (on a one-year timeframe) is Krish Sankar of TD Cowen, with an average return of 47.5% per rating and a 93% success rate. Click on the image below to learn more.
Conclusion: Should You Consider AAPL Stock?
Analysts seem to be moderately optimistic about Apple -- but not overwhelmingly so. Surely, they realize that Apple isn't perfect and has its share of challenges and problems to deal with.
At the very least, investors might choose to wait until Apple discloses its third-quarter financial report before making any decisions. When all is said and done, I still like Apple, but I'm staying neutral on AAPL stock for the time being.
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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Overeager traders might have assumed that Apple (NASDAQ:AAPL) stock would only go up in 2023. All in all, I am neutral on AAPL stock and wouldn't dare to short-sell it, but I'm not buying right now. I fully understand why AAPL stock might be considered a "forever stock."
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Overeager traders might have assumed that Apple (NASDAQ:AAPL) stock would only go up in 2023. All in all, I am neutral on AAPL stock and wouldn't dare to short-sell it, but I'm not buying right now. I fully understand why AAPL stock might be considered a "forever stock."
|
Overeager traders might have assumed that Apple (NASDAQ:AAPL) stock would only go up in 2023. All in all, I am neutral on AAPL stock and wouldn't dare to short-sell it, but I'm not buying right now. I fully understand why AAPL stock might be considered a "forever stock."
|
Overeager traders might have assumed that Apple (NASDAQ:AAPL) stock would only go up in 2023. All in all, I am neutral on AAPL stock and wouldn't dare to short-sell it, but I'm not buying right now. I fully understand why AAPL stock might be considered a "forever stock."
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13078.0
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2023-10-17 00:00:00 UTC
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US STOCKS-Wall Street advances on upbeat earnings; higher yields pressure megacaps
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-advances-on-upbeat-earnings-higher-yields-pressure-megacaps
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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.
US retail sales beat expectations in September
Dollar Tree up on brokerage rating upgrade
BofA profit rises, Goldman Sachs profit plunges in Q3
Biden administration to halt China AI chip shipments
Indexes up: Dow 0.33%, S&P 0.31%, Nasdaq 0.08%
Updated at 12:07 p.m. ET/ 1607 GMT
By Ankika Biswas and Shashwat Chauhan
Oct 17 (Reuters) - Wall Street reversed course to rise on Tuesday as upbeat earnings and signs of resilience in the U.S. economy buoyed investor sentiment, even as a spike in Treasury yields pressured megacaps.
U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, while a separate reading showed production at U.S. factories increased more than expected in September.
A rise in U.S. Treasury yields, with the 10-year US10YT=RR yields up at 4.813%, pressured megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dragging them down between 0.1% and 0.5%.
"While almost nobody expects a November hike, it's becoming more of a coin toss whether the Fed will raise rates in December," said Sam Stovall, chief investment strategist at CFRA Research.
Federal Reserve Bank of Richmond President Thomas Barkin, however, said anecdotal information points to an economy that's slowing amid a cooling trend in inflation, adding that the U.S. central bank has time to decide on its next interest rate move.
Bank of AmericaBAC.N gained 3.1%, boosting the S&P 500 .SPX as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.
Goldman SachsGS.N third-quarter profit dropped less than expected as a nascent recovery in dealmaking offset its $864 million writedown related to GreenSky fintech business and investments in real estate. Its shares were down 0.2%.
Nvida NVDA.O dipped 3.5% after the Biden administration said it plans to halt shipments of advanced artificial intelligence chips to China.
The Philadelphia SE Semiconductor index .SOX fell 0.3% hitting a near two-week low intraday.
Economy-sensitive energy .SPNY and materials stocks .SPLRCM led gains amongst the major S&P 500 sectors, while information technology .SPLRCT lagged behind.
At 12:07 p.m. ET, the Dow Jones Industrial Average .DJI was up 112.24 points, or 0.33%, at 34,096.78, the S&P 500 .SPX was up 13.49 points, or 0.31%, at 4,387.12, and the Nasdaq Composite .IXIC was up 11.09 points, or 0.08%, at 13,579.07.
Separately, U.S. President Joe Biden is set to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans.
Among individual stocks, defense contractor Lockheed MartinLMT.N rose 0.8% after beating third quarter revenue and profit expectations.
Dollar Tree DLTR.O rose 4.4% after Goldman Sachs upgraded the discount retail chain's shares to "buy" from "neutral".
Cloud computing firm VMwareVMW.N fell 6.2% as traders cited China approval uncertainty for Broadcom's AVGO.O $61 billion cash-and-stock deal for the company.
Advancing issues outnumbered decliners by a 2.07-to-1 ratio on the NYSE and by a 2.39-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and 6 new lows, while the Nasdaq recorded 39 new highs and 101 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by 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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A rise in U.S. Treasury yields, with the 10-year US10YT=RR yields up at 4.813%, pressured megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dragging them down between 0.1% and 0.5%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes up: Dow 0.33%, S&P 0.31%, Nasdaq 0.08% Updated at 12:07 p.m. ET/ 1607 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street reversed course to rise on Tuesday as upbeat earnings and signs of resilience in the U.S. economy buoyed investor sentiment, even as a spike in Treasury yields pressured megacaps. Goldman SachsGS.N third-quarter profit dropped less than expected as a nascent recovery in dealmaking offset its $864 million writedown related to GreenSky fintech business and investments in real estate.
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A rise in U.S. Treasury yields, with the 10-year US10YT=RR yields up at 4.813%, pressured megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dragging them down between 0.1% and 0.5%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes up: Dow 0.33%, S&P 0.31%, Nasdaq 0.08% Updated at 12:07 p.m. ET/ 1607 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street reversed course to rise on Tuesday as upbeat earnings and signs of resilience in the U.S. economy buoyed investor sentiment, even as a spike in Treasury yields pressured megacaps. Dollar Tree DLTR.O rose 4.4% after Goldman Sachs upgraded the discount retail chain's shares to "buy" from "neutral".
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A rise in U.S. Treasury yields, with the 10-year US10YT=RR yields up at 4.813%, pressured megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dragging them down between 0.1% and 0.5%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes up: Dow 0.33%, S&P 0.31%, Nasdaq 0.08% Updated at 12:07 p.m. ET/ 1607 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street reversed course to rise on Tuesday as upbeat earnings and signs of resilience in the U.S. economy buoyed investor sentiment, even as a spike in Treasury yields pressured megacaps. U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, while a separate reading showed production at U.S. factories increased more than expected in September.
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A rise in U.S. Treasury yields, with the 10-year US10YT=RR yields up at 4.813%, pressured megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dragging them down between 0.1% and 0.5%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes up: Dow 0.33%, S&P 0.31%, Nasdaq 0.08% Updated at 12:07 p.m. ET/ 1607 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street reversed course to rise on Tuesday as upbeat earnings and signs of resilience in the U.S. economy buoyed investor sentiment, even as a spike in Treasury yields pressured megacaps. Federal Reserve Bank of Richmond President Thomas Barkin, however, said anecdotal information points to an economy that's slowing amid a cooling trend in inflation, adding that the U.S. central bank has time to decide on its next interest rate move.
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13079.0
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2023-10-17 00:00:00 UTC
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Magnificent 7 Earnings Charts Ranked
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AAPL
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https://www.nasdaq.com/articles/magnificent-7-earnings-charts-ranked
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nan
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nan
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For the first time in several years, there is no more FAANG or FANGMAN to talk about during the earnings season. It has been retired from the lexicon and has been replaced with the “Magnificent 7.”
While some of the players remain the same, it includes some new names that never fit into the FANGMAN grouping, mainly Tesla. It also gets rid of Netflix, which had been the best performing S&P 500 stock from 2010 to 2020.
Being An Earnings All-Star
It’s not easy to beat every quarter, or nearly every quarter for 5 years, or more. It takes great communication by management to the analysts.
Even among the Magnificent 7 companies, not all are interested in playing the earnings surprise game. Jeff Bezos famously didn’t even attend the earnings conference calls towards the end of his tenure as CEO of Amazon.
But the earnings surprise track record is just another tool that traders, and investors, can look to with a stock. During earnings season, it, obviously, takes on extra importance.
Which of the Magnificent 7 companies have the best, and the worst, earnings surprise track records?
Which Are the Best, and Worst, of the Magnificent 7?
1. Amazon.com, Inc. (AMZN)
Amazon has beat 3 out of the last 4 quarters. It has missed 7 times in the last 5 years but 3 of those were in 2022, which is when Amazon also did a big round of layoffs.
The average surprise over the last four quarters, however, is a whopping 41%, the highest average among the Magnificent 7. Amazon has put together three big beats in a row. For the third quarter, 2 estimates are higher in the last 60 days but none have been raising this week.
Will analysts be behind the curve again on Amazon this quarter?
2. Alphabet Inc. (GOOGL)
Alphabet has beat just 2 quarters in a row. Prior to those beats, it missed 4 quarters in a row in both 2022 and early 2023.
It’s not a surprise, with all those misses in the mix, that Alphabet’s average surprise over the last 4 quarters is in the red by 0.9%.
However, the analysts are bullish on Alphabet heading into the report. 1 estimate is higher, and none are lower, in the last week. The Zacks Consensus has risen to $1.45 from $1.34 in the last 90 days.
Will Alphabet keep its earnings surprise momentum for a third quarter in a row?
3. Tesla, Inc. (TSLA)
Tesla has put together an impressive earnings surprise track record. It has beat 10 quarters in a row. Tesla’s last earnings miss was in early 2021.
Tesla has an average surprise over the last 4 quarters of 7.9%. But despite beating 10 quarters in a row, analysts are bearish heading into this report. 1 estimate has been cut on Tesla in the last week. The Zacks Consensus for the quarter has fallen to $0.73 from $0.86 in the last 3 months.
Will Tesla still make it 11 quarters in a row this week?
4. Apple Inc. (AAPL)
Apple has only missed one time in the last 5 years. That’s extremely impressive given the pandemic and supply chain issues during that time. That miss was in early 2023 however, so it is impacting the average surprise, which is just 2.8%, over the last 4 quarters.
Prior to the miss in 2023, the last miss was all the way back in 2016. Analysts are not bearish going into this report. 1 estimate has been cut, and 2 have been raised, for the quarter over the last 60 days. There haven’t been any changes made to estimates over the last week.
Is Apple sure to beat again?
5. Microsoft Corp. (MSFT)
Microsoft also has a fantastic earnings surprise track record. It also has just one miss in the last 5 years, but it was in mid-2022, so it isn’t still impacting the average surprise data which covers the last 4 quarters. Microsoft’s average surprise was 5.3% during that time.
Prior to the 2022 miss, Microsoft’s last miss was, like Apple’s, also in 2016. But the analysts aren’t betting against Microsoft this quarter. There haven’t been any changes to the quarterly estimates over the last 60 days, neither up or down.
Will another earnings beat send Microsoft’s shares to new all-time highs?
Tune into the video to find out where each company ranks. Who is the king of earnings season in the Magnificent 7?
[In full disclosure, Tracey owns shares of AMZN, GOOGL and MSFT in her personal portfolio.]
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been retired from the lexicon and has been replaced with the “Magnificent 7.” While some of the players remain the same, it includes some new names that never fit into the FANGMAN grouping, mainly Tesla.
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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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. Which of the Magnificent 7 companies have the best, and the worst, earnings surprise track records?
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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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. Being An Earnings All-Star It’s not easy to beat every quarter, or nearly every quarter for 5 years, or more.
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Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Will Alphabet keep its earnings surprise momentum for a third quarter in a row?
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13080.0
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2023-10-17 00:00:00 UTC
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Notable ETF Inflow Detected - IVV, AAPL, MSFT, AMZN
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AAPL
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-ivv-aapl-msft-amzn
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.6 billion dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 797,650,000 to 803,650,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.3%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $365.10 per share, with $461.88 as the 52 week high point — that compares with a last trade of $436.62. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
IIB Videos
Funds Holding LPHI
Funds Holding SJIU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.3%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.3%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $365.10 per share, with $461.88 as the 52 week high point — that compares with a last trade of $436.62. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.6 billion dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 797,650,000 to 803,650,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $365.10 per share, with $461.88 as the 52 week high point — that compares with a last trade of $436.62.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 1.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.5%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.6 billion dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 797,650,000 to 803,650,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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13081.0
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2023-10-17 00:00:00 UTC
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Netflix (NFLX) Expands Cloud Gaming Beta Test to US Users
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-expands-cloud-gaming-beta-test-to-us-users
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nan
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nan
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Netflix NFLX is expanding its presence in the gaming industry by testing its cloud gaming service in the United States, following initial trials in Canada and the U.K. This move is an expansion of NFLX’s mobile gaming efforts, which began in 2021.
The company has been acquiring gaming studios and licensing titles from individual developers, with the goal of making gaming a significant part of its business.
Netflix’s cloud gaming service allows its members to play games on smart TVs and TV-connected devices, such as Amazon Fire TV Streaming Media Players, Chromecast, LG TVs, Nvidia Shield, Roku devices, Samsung Smart TVs and Walmart ONN. The company plans to support more devices over time.
Players use their mobile phones as controllers. NFLX has a dedicated app for iPhone users to use as a game controller, making it easier to play games on their TVs. Games can also be played on Macs and PCs with a keyboard and mouse.
Netflix intends to refine its game-streaming technology and enhance the user experience during the trials as it extends its testing in the United States.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix Boosts Gaming Efforts to Push Subscriber Growth
Netflix's approach to gaming differs from traditional gaming consoles. The company is not positioning itself as a console replacement but rather as a value addition to its existing streaming service.
NFLX now expects revenue growth to accelerate in the second half of 2023, driven by the launch of the paid sharing initiative and an expanding content offering.
For the third quarter of 2023, Netflix now forecasts earnings of $3.52 per share, indicating an almost 10% increase from the figure reported in the year-ago quarter. Total revenues are anticipated to be $8.52 billion, suggesting growth of 7% year over year and on a forex-neutral basis.
The Zacks Consensus Estimate for the company's third-quarter revenues is pegged at $8.53 billion, indicating 7.59% year-over-year growth. The consensus mark for earnings increased by a penny over the past 30 days to $3.49 per share.
Netflix has been steadily growing its games library and offerings as a way to offer more benefits to subscribers. Its games portfolio now includes roughly 70 titles.
The company offers its games as part of a Netflix subscription, with many titles based on its popular shows like Squid Game, Wednesday, Black Mirror and more. It has also discussed plans to license games, such as Grand Theft Auto from Take-Two Interactive.
Last month, the streaming giant launched four new games, including Netflix Stories: Love is Blind, Storyteller, Ghost Detective and Vikings Valhalla.
This Zacks Rank #3 (Hold) company has been actively acquiring gaming studios and establishing its own internal game studios to bolster its gaming business. Notable acquisitions include Boss Fight Entertainment, Night School Studio and Next Games. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix's cloud gaming service competes with other cloud gaming services like Microsoft's Xbox Cloud Gaming, Nvidia GeForce Now, PlayStation Plus and Amazon Luna.
Shares of NFLX have returned 20.6% compared with the Zacks Consumer Discretionary sector’s increase of 3% year to date. The outperformance can be attributed to an expanding subscriber base and robust content offerings.
It is leveraging games to keep users engaged on its platform amid intensifying competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Shares of Disney have declined 2.9% year to date. Shares of Amazon and Apple have returned 54.5% and 37.7%, respectively, on a year-to-date basis.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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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It is leveraging games to keep users engaged on its platform amid intensifying competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. 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. Last month, the streaming giant launched four new games, including Netflix Stories: Love is Blind, Storyteller, Ghost Detective and Vikings Valhalla.
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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. It is leveraging games to keep users engaged on its platform amid intensifying competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Netflix’s cloud gaming service allows its members to play games on smart TVs and TV-connected devices, such as Amazon Fire TV Streaming Media Players, Chromecast, LG TVs, Nvidia Shield, Roku devices, Samsung Smart TVs and Walmart ONN.
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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. It is leveraging games to keep users engaged on its platform amid intensifying competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Boosts Gaming Efforts to Push Subscriber Growth Netflix's approach to gaming differs from traditional gaming consoles.
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It is leveraging games to keep users engaged on its platform amid intensifying competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. 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. NFLX has a dedicated app for iPhone users to use as a game controller, making it easier to play games on their TVs.
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13082.0
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2023-10-17 00:00:00 UTC
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META, AMZN, or AAPL: Which Mega-Cap Tech Stock Do Analysts Find the Most Attractive?
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AAPL
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https://www.nasdaq.com/articles/meta-amzn-or-aapl%3A-which-mega-cap-tech-stock-do-analysts-find-the-most-attractive
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nan
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nan
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Stock markets are bracing for more volatility due to high interest rates, rising oil prices, stubborn inflation, and geopolitical tensions. Given these uncertain times, it could be a good idea to focus on mega-cap stocks (stocks of large companies with at least $200 billion in market capitalization) that have the ability to thrive even during uncertain times and have promising long-term growth potential. Using TipRanks’ Stock Comparison Tool, we placed Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts.
Meta Platforms (NASDAQ:META)
Social media giant Meta Platforms has impressed investors with a solid comeback this year after being under pressure for a couple of quarters due to weakness in digital ad spending and the adverse impact of Apple’s iOS privacy policy changes, which limited its ad-targeting capabilities.
Meta’s revenue grew 11% in Q2 2023 and the company guided for Q3 revenue in the range of $32 billion to $34.5 billion, which indicates year-over-year growth of at least 15%. CEO Mark Zuckerberg is optimistic about the road ahead, backed by strong engagement across Meta's apps, traction in Threads and Reels, and the company’s artificial intelligence (AI) pursuits. Zuckerberg is also focused on improving Meta’s profitability through efficiency measures.
Is Meta a Buy, Sell, or Hold?
Meta is scheduled to announce its third-quarter results on October 25. Heading into the Q3 results, Mizuho analyst James Lee reiterated a Buy rating on Meta stock last week, with a price target of $400. The analyst highlighted that agency checks indicate that Meta’s advertising revenue growth is tracking ahead of the Street’s consensus. Lee also expects further operating leverage from Meta’s increased efficiency.
The analyst contends that with an estimated exit rate of 20% plus revenue growth, the 2024 growth consensus estimate of 13% seems conservative, given positive leading indicators from improved pricing.
Lee said that while investors are concerned that Meta’s 2024 operating expense guidance could be elevated at 20% year-over-year growth, the possibility of such an outlook seems low due to the narrow product roadmap of Metaverse and a lower possibility of any significant rise in headcount.
With 41 Buys and two Holds, Wall Street has a Strong Buy consensus rating on Meta Platforms stock. The average price target of $376.03 implies 17.1% upside potential. Meta shares have rallied more than 167% year-to-date.
Amazon (NASDAQ:AMZN)
Despite a tough macro backdrop, e-commerce and cloud computing behemoth Amazon impressed investors with its second-quarter performance. The company returned to double-digit sales growth in the second quarter. Moreover, its cost-cutting efforts helped in boosting its earnings.
While sales growth of the company’s Amazon Web Services (AWS) cloud business slowed down to 12%, it beat analysts’ expectations. The AWS business is more profitable than Amazon’s retail business. The company is confident about AWS’s growth potential and believes that it is “poised to be customers' long-term partner of choice in generative AI.” AMZN is also upbeat about its advertising business, which posted sales growth of 22% in Q2 2023.
What is the Target Price for Amazon Stock?
Ahead of Amazon’s third-quarter results on October 26, Goldman Sachs analyst Eric Sheridan reiterated a Buy rating on AMZN stock last week but lowered the price target to $175 from $180 to reflect higher capital expenditure. The analyst stated that cloud computing industry checks through September indicate that AWS revenue remained largely stable.
He expects stable AWS revenue growth in Q3 2023 over Q2 (at 12% year-over-year) and reacceleration in Q4 (more than 14% year-over-year), driven by easier comparisons, lower pace of spending optimization by enterprises, and growth in new workloads.
Looking beyond the quarterly results, the analyst believes that Prime Video ads could be a nearly $2 billion revenue opportunity for Amazon in 2025, with about a $700 million contribution to consolidated EBIT.
Wall Street has a Strong Buy consensus rating on AMZN stock based on 40 Buys versus one Hold rating. At $176.18, the average price target implies 36% upside potential. Shares have risen about 58% so far this year.
Apple (NASDAQ:AAPL)
Persistent macro uncertainty and high interest rates are weighing on consumer spending on discretionary items, especially big-ticket purchases. Apple’s results in the recent quarters clearly reflect the impact of weak consumer spending on its key products. In particular, revenue from iPhone, Mac, and iPad declined on a year-over-year basis in the fiscal third quarter (ended July 1, 2023). However, an 8% growth in Apple’s Services business helped offset the weakness in product sales to some extent.
Aside from macro pressures, reports on issues related to iPhone 15 and growing competition are also impacting investor sentiment for AAPL stock.
Is Apple a Buy or Sell Right Now?
Apple is scheduled to announce its fiscal fourth-quarter results on November 2. Morgan Stanley analyst Erik Woodring expects Apple to report "a relatively in-line" September quarter, specifying that his revenue estimate of $89.9 billion and EPS forecast of $1.39 are within 1% of the Street’s estimates.
However, Woodring's December quarter revenue and EPS estimates of $123.8 billion and $2.13 are 5% and 9% lower than his previous forecast, respectively, but are still marginally above consensus revenue and EPS forecasts of $123.2 billion and $2.11, respectively. He expects the December quarter to be impacted by iPhone supply shortages and a stronger U.S. dollar.
The analyst does not expect Apple’s upcoming earnings to be a material catalyst for the stock. He lowered his price target for AAPL stock to $210 from $215 on Monday but maintained a Buy rating.
Including Woodring, 20 analysts are bullish on AAPL stock, while nine have a Hold recommendation, bringing the consensus rating to a Moderate Buy. The average price target of $207.51 implies 16.1% upside potential. Shares have advanced 38% year-to-date.
Conclusion
Wall Street is highly bullish on Meta Platforms and Amazon, while it is cautiously optimistic about Apple. Currently, analysts see higher upside potential in AMZN stock than the other two mega-cap tech stocks. Amazon’s dominance in e-commerce and cloud computing, its prospects in AI, and growing advertising revenue are expected to drive continued growth in the years ahead.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) Persistent macro uncertainty and high interest rates are weighing on consumer spending on discretionary items, especially big-ticket purchases. Using TipRanks’ Stock Comparison Tool, we placed Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Aside from macro pressures, reports on issues related to iPhone 15 and growing competition are also impacting investor sentiment for AAPL stock.
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Using TipRanks’ Stock Comparison Tool, we placed Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Apple (NASDAQ:AAPL) Persistent macro uncertainty and high interest rates are weighing on consumer spending on discretionary items, especially big-ticket purchases. Aside from macro pressures, reports on issues related to iPhone 15 and growing competition are also impacting investor sentiment for AAPL stock.
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Using TipRanks’ Stock Comparison Tool, we placed Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Apple (NASDAQ:AAPL) Persistent macro uncertainty and high interest rates are weighing on consumer spending on discretionary items, especially big-ticket purchases. Aside from macro pressures, reports on issues related to iPhone 15 and growing competition are also impacting investor sentiment for AAPL stock.
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Using TipRanks’ Stock Comparison Tool, we placed Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Apple (NASDAQ:AAPL) Persistent macro uncertainty and high interest rates are weighing on consumer spending on discretionary items, especially big-ticket purchases. Aside from macro pressures, reports on issues related to iPhone 15 and growing competition are also impacting investor sentiment for AAPL stock.
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13083.0
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2023-10-17 00:00:00 UTC
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AAPL Quantitative Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-2
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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 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
Financial Planning Podcast
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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13084.0
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2023-10-17 00:00:00 UTC
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US STOCKS-Futures fall on Middle East worries; earnings, data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-on-middle-east-worries-earnings-data-in-focus
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Oct 17 (Reuters) - Futures for Wall Street's main indexes fell on Tuesday as investors assessed diplomatic efforts to contain the Middle East conflict, while awaiting a slew of corporate earnings and data to gauge the state of the U.S. economy.
U.S. President Joe Biden will visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans.
Iran's Supreme Leader Ayatollah Ali Khamenei said Israel's "genocide" of Palestinians in the Gaza Strip should stop immediately, state TV reported, sparking concerns the conflict could escalate.
"Markets fear a ground offensive by Israel could ignite a larger and more complicated regional conflict that risks regional supply chains, energy output, economic growth and financial stability," said Kyle Rodda, senior market analyst at Capital.com.
Long-dated U.S. Treasury yields rose on Tuesday, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O down between 0.4% - 0.7% in premarket trading.
Bank of America's BAC.N profit rose in the third quarter as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected. Its shares were trading flat.
Pharmaceutical giant Johnson & JohnsonJNJ.N added 1.3% after raising its 2023 profit forecast.
Investors now await quarterly earnings from Goldman Sachs GS.N, due before market open, after some major U.S. banks on Friday said higher interest rates had boosted profits amid a slowing economy and cautious consumer behavior.
U.S. weapons maker Lockheed Martin LMT.N will also report quarterly earnings before the opening bell.
All three major U.S. stock indexes rose in the previous session on optimism over corporate earnings.
"We believe the profits recession is over and the U.S. economy is on track for a soft-ish landing following healthy consumer activity, cooling inflation, and solid growth," said UBS Global Wealth Management's chief investment officer, Mark Haefele.
Third-quarter earnings for S&P 500 companies are expected to increase 2.2% year-on-year, compared with 1.3% rise expected a week earlier, as per LSEG data.
Investors are also awaiting economic data including retail sales and industrial production for September, due at 08:30 a.m. ET and 09:15 a.m. ET, respectively.
Several Federal Reserve officials are set to speak during the day, including New York's John Williams, Richmond's Thomas Barkin, Minneapolis' Neel Kashkari and Board Governor Michelle Bowman.
At 6:49 a.m. ET, Dow e-minis 1YMcv1 were down 67 points, or 0.2%, S&P 500 e-minis EScv1 were down 11 points, or 0.25%, and Nasdaq 100 e-minis NQcv1 were down 43.75 points, or 0.29%.
Among individual stocks, NetScout Systems NTCT.Odropped 23.2% after the enterprise software firm lowered its 2024 revenue and profit forecasts.
Dollar Tree DLTR.O rose 2.8% after a report said Goldman Sachs had upgraded the discount retail chain's stock to "buy" from "neutral".
Bank of New York MellonBK.N added 2.1% after beating third-quarter profit estimates.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Rashmi Aich 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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Long-dated U.S. Treasury yields rose on Tuesday, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O down between 0.4% - 0.7% in premarket trading. By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Futures for Wall Street's main indexes fell on Tuesday as investors assessed diplomatic efforts to contain the Middle East conflict, while awaiting a slew of corporate earnings and data to gauge the state of the U.S. economy. Investors now await quarterly earnings from Goldman Sachs GS.N, due before market open, after some major U.S. banks on Friday said higher interest rates had boosted profits amid a slowing economy and cautious consumer behavior.
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Long-dated U.S. Treasury yields rose on Tuesday, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O down between 0.4% - 0.7% in premarket trading. Investors now await quarterly earnings from Goldman Sachs GS.N, due before market open, after some major U.S. banks on Friday said higher interest rates had boosted profits amid a slowing economy and cautious consumer behavior. All three major U.S. stock indexes rose in the previous session on optimism over corporate earnings.
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Long-dated U.S. Treasury yields rose on Tuesday, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O down between 0.4% - 0.7% in premarket trading. By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Futures for Wall Street's main indexes fell on Tuesday as investors assessed diplomatic efforts to contain the Middle East conflict, while awaiting a slew of corporate earnings and data to gauge the state of the U.S. economy. Bank of America's BAC.N profit rose in the third quarter as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.
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Long-dated U.S. Treasury yields rose on Tuesday, pushing megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O down between 0.4% - 0.7% in premarket trading. By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Futures for Wall Street's main indexes fell on Tuesday as investors assessed diplomatic efforts to contain the Middle East conflict, while awaiting a slew of corporate earnings and data to gauge the state of the U.S. economy. Bank of America's BAC.N profit rose in the third quarter as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.
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13085.0
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2023-10-17 00:00:00 UTC
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Should Vanguard S&P 500 Growth ETF (VOOG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-growth-etf-voog-be-on-your-investing-radar-9
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nan
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nan
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The Vanguard S&P 500 Growth ETF (VOOG) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $7.98 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Further, growth stocks have a higher level of volatility associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.07%.
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 36% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
The top 10 holdings account for about 45.56% of total assets under management.
Performance and Risk
VOOG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of large-capitalization growth stocks.
The ETF has added roughly 21.46% so far this year and was up about 25.53% in the last one year (as of 10/17/2023). In the past 52-week period, it has traded between $204.69 and $261.87.
The ETF has a beta of 1.05 and standard deviation of 21.85% for the trailing three-year period, making it a medium risk choice in the space. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOOG is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $92.30 billion in assets, Invesco QQQ has $205.78 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $7.98 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. The Vanguard S&P 500 Growth ETF (VOOG) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). The Vanguard S&P 500 Growth ETF (VOOG) was launched on 09/09/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.91% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
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13086.0
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2023-10-17 00:00:00 UTC
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Should iShares Russell Top 200 Growth ETF (IWY) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-russell-top-200-growth-etf-iwy-be-on-your-investing-radar-10
|
nan
|
nan
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Launched on 09/22/2009, the iShares Russell Top 200 Growth ETF (IWY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $6.80 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.69%.
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 45.60% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 58.74% of total assets under management.
Performance and Risk
IWY seeks to match the performance of the Russell Top 200 Growth Index before fees and expenses. The Russell Top 200 Growth Index is a style factor weighted index that measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth, which measures the performance of the largest capitalization sector of the U.S. equity market.
The ETF has added about 33.31% so far this year and is up roughly 36.94% in the last one year (as of 10/17/2023). In the past 52-week period, it has traded between $117.74 and $164.44.
The ETF has a beta of 1.07 and standard deviation of 22.40% for the trailing three-year period, making it a medium risk choice in the space. With about 116 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell Top 200 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWY is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $92.30 billion in assets, Invesco QQQ has $205.78 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $6.80 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 09/22/2009, the iShares Russell Top 200 Growth ETF (IWY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 09/22/2009, the iShares Russell Top 200 Growth ETF (IWY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 14.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Russell Top 200 Growth ETF (IWY): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/22/2009, the iShares Russell Top 200 Growth ETF (IWY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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13087.0
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2023-10-17 00:00:00 UTC
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Should iShares Core S&P 500 ETF (IVV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-core-sp-500-etf-ivv-be-on-your-investing-radar-8
|
nan
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nan
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Launched on 05/15/2000, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $351.76 billion, making it the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.53%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.30% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 30.21% of total assets under management.
Performance and Risk
IVV seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added roughly 15.27% so far this year and it's up approximately 23.82% in the last one year (as of 10/17/2023). In the past 52-week period, it has traded between $366.95 and $460.18.
The ETF has a beta of 1 and standard deviation of 17.75% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IVV is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track the same index. While Vanguard S&P 500 ETF has $329.42 billion in assets, SPDR S&P 500 ETF has $402.65 billion. VOO 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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The views and 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 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Launched on 05/15/2000, the iShares Core S&P 500 ETF (IVV) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise.
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Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares Core S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares Core S&P 500 ETF (IVV): 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 Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
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13088.0
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2023-10-17 00:00:00 UTC
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US STOCKS-Wall St falls as Treasury yields rise after strong sales data, chipmakers slide
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https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-treasury-yields-rise-after-strong-sales-data-chipmakers-slide
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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.
US retail sales beat expectations in September
Dollar Tree up on brokerage rating upgrade
BofA profit rises, Goldman Sachs profit plunges in Q3
Biden administration to halt China AI chip shipments
Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30%
Updated at 9:48 a.m. ET/ 1348 GMT
By Ankika Biswas and Shashwat Chauhan
Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China.
U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note.
"This is a persistent story ... you can never bet against the U.S. consumer, and this is evidence of it," said Thomas Hayes, chairman at Great Hill Capital.
U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%.
Nvida NVDA.O dipped 6.8% after the Biden administration said it plans to halt shipments of advanced artificial intelligence chips to China.
Other chip stocks Advanced Micro Devices AMD.O, Marvell Technology MRVL.O, Qualcomm QCOM.O and Arm Holdings ARM.O fell between 1.5% and 3.8%.
The Philadelphia SE Semiconductor index .SOX dropped 3% to hit a near two-week low.
On the earnings front, Bank of AmericaBAC.N gained 0.5% as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.
Goldman SachsGS.N third-quarter profit dropped less than expected as a nascent recovery in dealmaking offset its $864 million writedown related to GreenSky fintech business and investments in real estate.
"People continue to underestimate the strength of the economy, they continue to underestimate the strength of the consumer and there's nowhere better to reflect that than in bank earnings which have just been off the charts," Hayes added.
Investors also kept tabs on the conflict in the Middle East as Iran's Supreme Leader Ayatollah Ali Khamenei said Israel's "genocide" of Palestinians in the Gaza Strip should stop immediately, state TV reported, sparking concerns the conflict could escalate.
U.S. President Joe Biden is set to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans.
Several Federal Reserve officials are set to speak during the day, including New York's John Williams, Richmond's Thomas Barkin, and Minneapolis' Neel Kashkari.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 44.46 points, or 0.13%, at 33,940.08, the S&P 500 .SPX was down 30.78 points, or 0.70%, at 4,342.85, and the Nasdaq Composite .IXIC was down 176.28 points, or 1.30%, at 13,391.71.
Information technology .SPLRCT and consumer discretionary .SPLRCD led declines amongst the major S&P 500 sectors, while energy .SPNY and materials .SPLRCM advanced.
Among individual stocks, Dollar Tree DLTR.O rose 2.5% after Goldman Sachs upgraded the discount retail chain's shares to "buy" from "neutral".
Cloud computing firm VMwareVMW.N fell 8.8% as traders cited China approval uncertainty for Broadcom's AVGO.O $61 billion cash-and-stock deal for the company.
Declining issues outnumbered advancers by a 1.00-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.49-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and five new lows, while the Nasdaq recorded 15 new highs and 70 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by 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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U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China. U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note.
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U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China. "People continue to underestimate the strength of the economy, they continue to underestimate the strength of the consumer and there's nowhere better to reflect that than in bank earnings which have just been off the charts," Hayes added.
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U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China. Nvida NVDA.O dipped 6.8% after the Biden administration said it plans to halt shipments of advanced artificial intelligence chips to China.
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U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China.
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13089.0
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2023-10-17 00:00:00 UTC
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2 Unstoppable Warren Buffett Stocks That Can Turn Sitting Cash into Growing Wealth
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https://www.nasdaq.com/articles/2-unstoppable-warren-buffett-stocks-that-can-turn-sitting-cash-into-growing-wealth-4
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Warren Buffett is often called the most successful investor of all time. His conglomerate, Berkshire Hathaway, has grown into the world's ninth-biggest company by market capitalization, among a top 10 that also includes names like Alphabet, Microsoft, and Nvidia. Meanwhile, the total value of its stock portfolio has hit $345 billion.
Given that portfolio's record of growth, it's not a bad place to seek inspiration when looking for new candidates to add to your portfolio. Buffett and his lieutenants have filled it with solid growth stocks and companies with long histories of providing investors with consistent gains.
Two of the most attractive stocks in Berkshire's portfolio now are Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Both have hit record heights in their respective industries, achieving dominance that will likely continue to offer steady boosts to earnings over the long term. Their stocks are excellent options for those looking to grow a pot of savings into serious money.
The case for buying Apple now
Apple is by far Berkshire Hathaway's biggest stock holding, accounting for 48% of the value of its equity portfolio. For reference, its second-largest holding is Bank of America, which accounts for 8% of the portfolio's value. Warren Buffett has become a huge proponent of Apple over the years, often praising its market dominance, brand recognition, and the loyalty it enjoys from consumers.
Apple's stock has risen by 589% since Berkshire Hathaway first invested in 2016, and it has continued to add to its stake in the tech giant over the years -- even as recently as January, when it purchased about 20 million shares.
One of the most attractive aspects of Apple's business is its nearly unrivaled dominance in consumer tech. The immense popularity of the iPhone has allowed Apple to gain leading market shares in many of its other product categories. The company has strategically designed an interconnected ecosystem for its devices, software, and services that encourages iPhone users to stick with Apple when shopping for computers, tablets, smartwatches, or headphones rather than straying to its rivals' products.
Apple has further cashed in on consumer preference for its products by venturing energetically into digital services. Platforms like Apple TV+, Music, iCloud, Fitness+, and more have diversified its revenue streams and allowed it to profit from the attractive profit margins that subscription services offer.
Over the last five years, Apple's annual revenue has soared by 52%, with operating income up 87%. The company has faced challenges this year due to macroeconomic headwinds. However, its dominance in tech means it could profit significantly during the next recovery. Meanwhile, recent expansions into high-growth sectors like artificial intelligence (AI) and virtual reality only strengthen its long-term prospects and make it an attractive investment.
The case for buying Amazon now
Berkshire Hathaway has dedicated 0.4% of its portfolio to Amazon. While that might not sound like a lot, it represents well over 10 million shares worth about $1.4 billion.
Amazon has been a big winner on Wall Street this year, with its stock climbing 57% since Jan. 1. However, that gain came in the wake of an even steeper plunge in 2022. At this point, it's still down more than 30% from its late 2021 peak, and off by about 24% from Jan. 1, 2022. Still, investors have regained their appreciation for the company as it has returned its e-commerce business to profitability while making heavy investments in the AI market. As the biggest name in online retail and the cloud market, Amazon has massive growth potential over the long term.
According to Statista, the e-commerce market is projected to hit $5.5 trillion by 2027, expanding at a compound annual rate of 11%. Amazon holds leading market shares in multiple countries, meaning it is well positioned to profit considerably as that sector develops.
The company's retail business proved vulnerable to economic headwinds last year, with reductions in consumer discretionary spending causing steep profit declines in its e-commerce segments. However, Amazon has made a solid comeback in the space this year, with its North American segment hitting over $3 trillion in operating income in the second quarter of 2023 after reporting $627 million in losses a year ago.
Moreover, the company's cloud platform, Amazon Web Services (AWS), has made promising inroads in AI. AWS is rapidly expanding its library of AI services and recently announced a venture into chip development. Additionally, news broke last month that Amazon will invest up to $4 billion into Anthropic, a rival to ChatGPT developer OpenAI. The partnership will help Amazon combat intensifying competition from Microsoft, which holds a substantial stake in OpenAI.
Amazon hasn't had it easy amid the complex macroeconomic headwinds of the past couple of years. However, the impressive turnaround it has executed in its e-commerce business illustrates the strength of its management team, as does its aggressive expansion into AI. With all that in mind, this Buffet stock would be an excellent option for anyone looking to turn idle cash into growing wealth.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, 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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Two of the most attractive stocks in Berkshire's portfolio now are Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Apple's stock has risen by 589% since Berkshire Hathaway first invested in 2016, and it has continued to add to its stake in the tech giant over the years -- even as recently as January, when it purchased about 20 million shares. The company has strategically designed an interconnected ecosystem for its devices, software, and services that encourages iPhone users to stick with Apple when shopping for computers, tablets, smartwatches, or headphones rather than straying to its rivals' products.
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Two of the most attractive stocks in Berkshire's portfolio now are Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). The case for buying Apple now Apple is by far Berkshire Hathaway's biggest stock holding, accounting for 48% of the value of its equity portfolio. The immense popularity of the iPhone has allowed Apple to gain leading market shares in many of its other product categories.
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Two of the most attractive stocks in Berkshire's portfolio now are Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). The case for buying Apple now Apple is by far Berkshire Hathaway's biggest stock holding, accounting for 48% of the value of its equity portfolio. Apple's stock has risen by 589% since Berkshire Hathaway first invested in 2016, and it has continued to add to its stake in the tech giant over the years -- even as recently as January, when it purchased about 20 million shares.
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Two of the most attractive stocks in Berkshire's portfolio now are Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Meanwhile, the total value of its stock portfolio has hit $345 billion. The case for buying Apple now Apple is by far Berkshire Hathaway's biggest stock holding, accounting for 48% of the value of its equity portfolio.
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13090.0
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2023-10-16 00:00:00 UTC
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US STOCKS-Wall St jumps 1% to kick-start earnings and data-heavy week, megacaps rise
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https://www.nasdaq.com/articles/us-stocks-wall-st-jumps-1-to-kick-start-earnings-and-data-heavy-week-megacaps-rise
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By Ankika Biswas and Shashwat Chauhan
Oct 16 (Reuters) - Wall Street's main indexes jumped more than 1% on Monday as megacaps rose to kick-start a week packed with corporate earnings and economic data, while investors also monitored the Israel-Hamas conflict.
The Dow touched a near four-week high and was on course for its best day in more than two months, while the S&P 500 and the Nasdaq were headed for their best days in nearly two weeks.
Megacaps Microsoft MSFT.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O rose between 1% and 2%.
Consumer discretionary .SPLRCD and materials .SPLRCM led the gains across major S&P 500 sectors, while utilities .SPLRCU and energy stocks .SPNY lagged behind.
"There's a little bit of risk-on sentiment coming from a pretty solid start to their earnings season," said Ross Mayfield, investment strategy analyst at Baird.
"It says that what the economic data is also saying, which is that the economy is stronger than we were giving it credit for at the year's start, certainly not recessionary."
Results from large banks Goldman Sachs GS.N, Bank of America BAC.N, Morgan Stanley MS.N, pharmaceutical giant Johnson & Johnson JNJ.N, EV maker Tesla TSLA.O and video-streaming pioneer Netflix NFLX.O are due this week.
Third-quarter earnings for S&P 500 companies are estimated to grow 2.2% year-on-year, LSEG data showed on Friday.
Long-dated Treasury yields rose amid increased U.S. government debt issuance while a possible Israeli ground offensive in Gaza has led to uncertainty in the bond market.
Investors also await economic data including retail sales for September and the Philly Fed Business Index for October later this week.
Latest data showed the NY Fed's "Empire State" index, a gauge of manufacturing activity in New York State, fell to -4.60 in October, against expectations of a drop to -7.
The Dow Jones Transport Average index .DJT, seen as an indicator of economic prosperity, was on track for its best day in nearly three months.
Investors are focused on Federal Reserve Chair Jerome Powell's comments on Thursday, before Fed officials enter a blackout period starting Oct. 21 ahead of their policy meeting.
Philadelphia Fed President Patrick Harker reiterated his view from Friday that the U.S. central bank was likely done with its rate-hike cycle.
Among stocks, Apple AAPL.O bucked the trend among its growth peers, dipping 0.1% on a report the company's iPhones were off to a disappointing start in China.
Lululemon AthleticaLULU.O added 9.6% as the sportswear apparel maker is set to join the S&P 500 index this week, replacing Activision Blizzard ATVI.O.
ModernaMRNA.O reaffirmed its forecast of $6 billion to $8 billion in COVID vaccine sales for the year. The company's shares fell 5.0%.
Charles SchwabSCHW.N jumped 4.8% as the brokerage posted a smaller-than-expected drop in quarterly profit.
Advancing issues outnumbered decliners by a 3.06-to-1 ratio on the NYSE and a 2.30-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and six new lows, while the Nasdaq recorded 29 new highs and 148 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan 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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Among stocks, Apple AAPL.O bucked the trend among its growth peers, dipping 0.1% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes jumped more than 1% on Monday as megacaps rose to kick-start a week packed with corporate earnings and economic data, while investors also monitored the Israel-Hamas conflict. Long-dated Treasury yields rose amid increased U.S. government debt issuance while a possible Israeli ground offensive in Gaza has led to uncertainty in the bond market.
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Among stocks, Apple AAPL.O bucked the trend among its growth peers, dipping 0.1% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes jumped more than 1% on Monday as megacaps rose to kick-start a week packed with corporate earnings and economic data, while investors also monitored the Israel-Hamas conflict. The S&P index recorded nine new 52-week highs and six new lows, while the Nasdaq recorded 29 new highs and 148 new lows.
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Among stocks, Apple AAPL.O bucked the trend among its growth peers, dipping 0.1% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes jumped more than 1% on Monday as megacaps rose to kick-start a week packed with corporate earnings and economic data, while investors also monitored the Israel-Hamas conflict. Investors also await economic data including retail sales for September and the Philly Fed Business Index for October later this week.
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Among stocks, Apple AAPL.O bucked the trend among its growth peers, dipping 0.1% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes jumped more than 1% on Monday as megacaps rose to kick-start a week packed with corporate earnings and economic data, while investors also monitored the Israel-Hamas conflict. The Dow touched a near four-week high and was on course for its best day in more than two months, while the S&P 500 and the Nasdaq were headed for their best days in nearly two weeks.
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13091.0
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2023-10-16 00:00:00 UTC
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Will Big Tech Earnings Results Boost Market Sentiment?
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https://www.nasdaq.com/articles/will-big-tech-earnings-results-boost-market-sentiment
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With the list of headwinds for the stock market, from high interest rates to geopolitical concerns in the Middle East, investors hope that soon-to-be-released third-quarter earnings results from the mega-cap technology companies will boost market sentiment. The biggest U.S technology companies have slashed thousands of jobs and reduced costs, and investors hope the cost-cutting measures will begin to show up in earnings results, giving the overall market a much-needed boost.
The five biggest technology companies in the S&P 500 Stock Index ($SPX) (SPY) include Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA), which account for about 25% of the index’s market capitalization. According to Bloomberg Intelligence, their earnings are projected to jump +34% from a year earlier on average. However, earnings from the S&P 500 are expected to be down -5% without the earnings from the big-five technology company, and roughly unchanged including those tech companies.
Soaring interest rates have weighed on technology stocks this month, with the 10-year T-note yield climbing to its highest in 16 years. The surge in interest rates has sparked fears about a potential recession that has only been heightened by the conflict in the Middle East. However, some analysts expect earnings of the big technology companies to lift the market from its doldrums. Hodges Capital Management said, “It’s very important for the big tech stocks to deliver. The Street expects earnings to be good across the board, and the mega-cap technology stocks have whatever it takes to lead the market in the final quarter of the year.”
Despite the headwinds facing stocks, the technology sector has outperformed the overall market. The five big-tech companies account for most of the S&P 500’s 13% advance this year. FBB Capital Partners said after robust Q2 earnings results, “we need to see more of the same in third-quarter results.” Given the weightings of the big five technology stocks, “you can bet that the rest of the market will play follow the leader as big tech earnings unfold this quarter,” and we see “fairly low odds of a tech earnings wreck this quarter.”
One potential roadblock to an earnings-fueled rally is concern that a lot of the anticipated good news may already be priced into the stocks. Nvidia’s share tripled this year, Alphabet and Amazon.com have gained more than 50%, and Apple and Microsoft have risen nearly 40%. Also, big tech stock valuations are still elevated. Apple and Microsoft are priced at 27- and 29-times estimated earnings, respectively, well above their 10-year averages. Expensive share prices put pressure on companies to deliver strong earnings, and Bokeh Capital Partners said, “Somebody needs to keep buying, and these rich valuations need to be justified.”
More Stock Market News from Barchart
Here's What Analysts Expect from Netflix Ahead of Wednesday's Earnings
Stocks Gain on Diplomatic Efforts to Contain the Israeli-Hamas Conflict
Are These 2 Beaten-Down REITs Worth Buying for Their High Dividend Yields?
Markets Today: Stocks Edge Higher on Hopes Israeli-Hamas Conflict Can Be Contained
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The five biggest technology companies in the S&P 500 Stock Index ($SPX) (SPY) include Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA), which account for about 25% of the index’s market capitalization. The biggest U.S technology companies have slashed thousands of jobs and reduced costs, and investors hope the cost-cutting measures will begin to show up in earnings results, giving the overall market a much-needed boost. Expensive share prices put pressure on companies to deliver strong earnings, and Bokeh Capital Partners said, “Somebody needs to keep buying, and these rich valuations need to be justified.” More Stock Market News from Barchart Here's What Analysts Expect from Netflix Ahead of Wednesday's Earnings Stocks Gain on Diplomatic Efforts to Contain the Israeli-Hamas Conflict Are These 2 Beaten-Down REITs Worth Buying for Their High Dividend Yields?
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The five biggest technology companies in the S&P 500 Stock Index ($SPX) (SPY) include Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA), which account for about 25% of the index’s market capitalization. With the list of headwinds for the stock market, from high interest rates to geopolitical concerns in the Middle East, investors hope that soon-to-be-released third-quarter earnings results from the mega-cap technology companies will boost market sentiment. However, some analysts expect earnings of the big technology companies to lift the market from its doldrums.
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The five biggest technology companies in the S&P 500 Stock Index ($SPX) (SPY) include Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA), which account for about 25% of the index’s market capitalization. With the list of headwinds for the stock market, from high interest rates to geopolitical concerns in the Middle East, investors hope that soon-to-be-released third-quarter earnings results from the mega-cap technology companies will boost market sentiment. FBB Capital Partners said after robust Q2 earnings results, “we need to see more of the same in third-quarter results.” Given the weightings of the big five technology stocks, “you can bet that the rest of the market will play follow the leader as big tech earnings unfold this quarter,” and we see “fairly low odds of a tech earnings wreck this quarter.” One potential roadblock to an earnings-fueled rally is concern that a lot of the anticipated good news may already be priced into the stocks.
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The five biggest technology companies in the S&P 500 Stock Index ($SPX) (SPY) include Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA), which account for about 25% of the index’s market capitalization. With the list of headwinds for the stock market, from high interest rates to geopolitical concerns in the Middle East, investors hope that soon-to-be-released third-quarter earnings results from the mega-cap technology companies will boost market sentiment. FBB Capital Partners said after robust Q2 earnings results, “we need to see more of the same in third-quarter results.” Given the weightings of the big five technology stocks, “you can bet that the rest of the market will play follow the leader as big tech earnings unfold this quarter,” and we see “fairly low odds of a tech earnings wreck this quarter.” One potential roadblock to an earnings-fueled rally is concern that a lot of the anticipated good news may already be priced into the stocks.
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13092.0
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2023-10-16 00:00:00 UTC
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Focus on Fintech: Why Institutions Are Betting Big on PayPal Stock
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AAPL
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https://www.nasdaq.com/articles/focus-on-fintech%3A-why-institutions-are-betting-big-on-paypal-stock
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Even while the “Magnificent Seven” stocks carry the market higher, not every technology stock is loved on Wall Street. Indeed, PayPal (NASDAQ:PYPL) stock can’t seem to catch a bid in 2023. This presents a terrific opportunity for enterprising investors.
PayPal is a premier fintech business that’s not afraid to try new ventures in leading-edge tech fields, such as the blockchain. However, it seems that some retail investors aren’t on board with PayPal’s innovative spirit this year.
But then, winning investors, not amateurs, follow the smart money. If big-money financiers see something special about PayPal now, maybe it’s time to follow the whales and embark on a dip-buying expedition with PYPL stock.
Institutional Investors Love PYPL Stock
I’ve been pounding the table about PayPal’s low valuation for a while. Currently, the company has a trailing 12-month price-to-earnings (P/E) ratio of 15.62x. That’s quite reasonable for a large-cap technology firm in 2023.
Unlike the “Magnificent Seven” firms, PayPal isn’t a darling of the financial markets right now. However, in early October it was reported that institutions own a whopping 72% of PYPL stock shares.
I dug deeper and discovered that current and/or recent institutional PayPal shareholders include financial whales like Vanguard and BlackRock (NYSE:BLK). This, by itself, isn’t a buy signal, but it’s certainly a good sign.
Thus, the smart money isn’t fazed by PayPal’s CEO transition or PYPL’s decline. I suspect that they’re buying what the amateurs are panic-selling at discount prices. After all, that’s what smart-money investors do.
PayPal’s Stablecoin Venture and Team-up With Apple
Additionally, I imagine that big-money investors want exposure to the fintech trends of the future. PayPal is definitely a future-facing business that’s willing to be first in fields that are untested today but have exciting growth potential.
For instance, you may have heard about PayPal’s new stablecoin, known as PayPal USD or PYUSD. This is a cryptocurrency token that’s “stable” because it’s backed by the U.S. dollar as well as government bonds.
Amateur traders might not be forward-looking enough to see the future growth of this stablecoin. Yet, PayPal USD is reportedly already available on popular cryptocurrency exchanges like Coinbase Global’s (NASDAQ:COIN), Coinbase, Kraken, Bitstamp and Crypto.com.
Furthermore, PayPal now has a value-added tie-in with Apple (NASDAQ:AAPL). Specifically, PayPal’s customers can “add their eligible PayPal and Venmo credit or debit cards to Apple Wallet“. It’s a win-win scenario as these customers can conveniently make payments with via an iPhone or Apple Watch.
PYPL Stock Is Cheap and Poised for a Comeback
Some retail stock traders might not be willing to wait for PayPal’s stablecoin to gain traction. Or, maybe they can’t envision legions of Apple iPhone and Watch users using PayPal/Venmo credit and debit cards.
Their lack of patience and vision can be your opportunity. Clearly, institutional investors are happy to hold PYPL stock while the amateurs are selling it. Therefore, I invite you to join the smart-money set and avoid the panicky crowds, and hold a few PayPal shares of your own.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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The post Focus on Fintech: Why Institutions Are Betting Big on PayPal Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, PayPal now has a value-added tie-in with Apple (NASDAQ:AAPL). I dug deeper and discovered that current and/or recent institutional PayPal shareholders include financial whales like Vanguard and BlackRock (NYSE:BLK). David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com.
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Furthermore, PayPal now has a value-added tie-in with Apple (NASDAQ:AAPL). Indeed, PayPal (NASDAQ:PYPL) stock can’t seem to catch a bid in 2023. Institutional Investors Love PYPL Stock I’ve been pounding the table about PayPal’s low valuation for a while.
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Furthermore, PayPal now has a value-added tie-in with Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Even while the “Magnificent Seven” stocks carry the market higher, not every technology stock is loved on Wall Street. Institutional Investors Love PYPL Stock I’ve been pounding the table about PayPal’s low valuation for a while.
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Furthermore, PayPal now has a value-added tie-in with Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Even while the “Magnificent Seven” stocks carry the market higher, not every technology stock is loved on Wall Street. Amateur traders might not be forward-looking enough to see the future growth of this stablecoin.
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13093.0
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2023-10-16 00:00:00 UTC
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GOOG Stock: Will Alphabet Be the First Quadrillion-Dollar Company?
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AAPL
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https://www.nasdaq.com/articles/goog-stock%3A-will-alphabet-be-the-first-quadrillion-dollar-company
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Don’t look now, but Alphabet’s (NASDAQ:GOOG,NASDAQ:GOOGL) shares are nearing 52-week highs. That’s good news for owners of GOOG stock and technology stocks in general. Tech stocks could be back in the saddle.
GOOG’s shares are trading within 3% of their 52-week high of $142.38. In the past year, its shares are up nearly 40% and 154% over the past 60 months. That’s almost 3x better than the S&P 500 and 42 percentage points higher than the Nasdaq 100.
What’s especially nice to see if you’ve opted for GOOG over Apple (NASDAQ:AAPL) stock is that Alphabet is running away from the maker of iPhones as we travel through the year’s final quarter.
While I like Apple and think it should be in every investor’s long-term portfolio, Alphabet should be alongside it.
The Technicals Suggest GOOG Will Keep Moving Higher
I’m no technical analyst, but the fact that Alphabet’s relative strength index (RSI) has dramatically improved in October — it was 44 at the end of September, and now it’s 66, about 50% higher — tells me almost ready to crash through its 2021 highs around $150.
A company’s RSI ranges between 0 and 100. However, most investors consider anything over 70 to be overvalued and anything under 30 to be overvalued. As a result, some would say GOOG stock is getting close to overvalued territory.
However, if you follow Investor’s Business Daily’s thoughts on relative strength — it takes a stock’s performance over the past 52 weeks and compares it to all other stocks to develop a rating for that stock — you might not feel as bad because in mid-July its IBD RS rating went over 80.
“History reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves,” IBD wrote on July 14.
Since mid-July and IBD’s article, GOOG stock is up more than 10%. More could be just around the corner.
Analysts Sure Don’t Have a Problem With GOOG
Of the 54 analysts that cover Alphabet’s stock, 45 rated Overweight or an outright Buy, with a $150.92 target price — 10% higher than where it’s currently trading.
When Alphabet reported strong Q2 2023 results at the end of July — $21.8 billion in operating income, 12% higher than last year — Needham analysts had three reasons to be optimistic about the company’s stock:
First, co-founder Sergey Brin is back at the company working on generative AI. That is always a good thing, but especially so because it’s such an essential part of the future of technology.
Secondly, the Q2 2023 conference call was held at the company’s Deep Mind AI offices in London, a sign it is taking generative AI seriously.
Lastly, most of the company’s comments in the conference call were about generative AI.
If the Needham analysts were worried about OpenAI’s effect on Alphabet, they had a funny way of showing it, raising their price target by $25 to $140.
YouTube’s a Goldmine
YouTube’s ad revenue in Q2 was $7.7 billion, 4% higher than Q2 2022 and 15% higher than Q1 2023. That’s important because it reverses three consecutive quarters of slowing growth, demonstrating that YouTube’s ad revenue model isn’t broken.
New YouTube CEO Neal Mohan, who took on the role in March, said in July that he plans to continue to improve the platform’s monetization tools and grow the YouTube creator communities. Alphabet CEO Sundar Pichai also noted that YouTube Shorts are viewed by two billion logged-in users each month, 33% higher than a year ago.
Considering the company only started ads on YouTube Shorts late in 2022, the future revenue stream from this segment of YouTube looks very promising.
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 GOOG Stock: Will Alphabet Be the First Quadrillion-Dollar Company? 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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What’s especially nice to see if you’ve opted for GOOG over Apple (NASDAQ:AAPL) stock is that Alphabet is running away from the maker of iPhones as we travel through the year’s final quarter. “History reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves,” IBD wrote on July 14. Alphabet CEO Sundar Pichai also noted that YouTube Shorts are viewed by two billion logged-in users each month, 33% higher than a year ago.
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What’s especially nice to see if you’ve opted for GOOG over Apple (NASDAQ:AAPL) stock is that Alphabet is running away from the maker of iPhones as we travel through the year’s final quarter. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Don’t look now, but Alphabet’s (NASDAQ:GOOG,NASDAQ:GOOGL) shares are nearing 52-week highs. That’s good news for owners of GOOG stock and technology stocks in general.
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What’s especially nice to see if you’ve opted for GOOG over Apple (NASDAQ:AAPL) stock is that Alphabet is running away from the maker of iPhones as we travel through the year’s final quarter. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Don’t look now, but Alphabet’s (NASDAQ:GOOG,NASDAQ:GOOGL) shares are nearing 52-week highs. However, if you follow Investor’s Business Daily’s thoughts on relative strength — it takes a stock’s performance over the past 52 weeks and compares it to all other stocks to develop a rating for that stock — you might not feel as bad because in mid-July its IBD RS rating went over 80.
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What’s especially nice to see if you’ve opted for GOOG over Apple (NASDAQ:AAPL) stock is that Alphabet is running away from the maker of iPhones as we travel through the year’s final quarter. Since mid-July and IBD’s article, GOOG stock is up more than 10%. When Alphabet reported strong Q2 2023 results at the end of July — $21.8 billion in operating income, 12% higher than last year — Needham analysts had three reasons to be optimistic about the company’s stock: First, co-founder Sergey Brin is back at the company working on generative AI.
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13094.0
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2023-10-16 00:00:00 UTC
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US STOCKS-Wall St rises with focus on earnings, economic data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-with-focus-on-earnings-economic-data
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Oct 16 (Reuters) - Wall Street's main indexes advanced on Monday as investors awaited key economic data and major corporate earnings this week for clues on the U.S. economy, while also monitoring the Israel-Hamas conflict.
Long-dated U.S. Treasury yields gained as the United States' strived to prevent an escalation in tensions, with Secretary of State Antony Blinken arriving in Israel for talks after top U.S. officials warned the conflict could worsen.
"(Investors) actually got a little bit less nervous ... the talk now is to try to contain this and not have it expand out to other areas and if that's the case, the market would be okay with it," said Joe Saluzzi, partner and co-founder at Themis Trading in Chatham, New Jersey.
"Earnings will give us a good indication of where we are in the economic cycle and should we be really worried about a recession."
Results from large banks Goldman Sachs GS.N, Bank of America BAC.N, Morgan Stanley MS.N, pharmaceutical giant Johnson & Johnson JNJ.N, EV maker Tesla TSLA.O and video-streaming pioneer Netflix NFLX.O are due this week.
Megacaps Microsoft MSFT.O, Meta Platforms META.O, Alphabet GOOGL.O, Amazon.com AMZN.O rose more than 1% each, though Apple AAPL.O dipped 0.6% on a report the company's iPhones were off to a disappointing start in China.
Investors also await economic data including retail sales for September and the Philly Fed Business Index for October later this week.
Philadelphia Fed President Patrick Harker will speak later in the day while Federal Reserve Chair Jerome Powell is due to speak on Thursday.
Harker said on Friday the U.S. central bank was likely done with its rate-hiking cycle.
Chicago Fed president Austan Goolsbee said that it was "undeniable" the slowdown in U.S. inflation was a trend rather than a momentary blip, according to a report.
Data showed the NY Fed's "Empire State" index, a gauge of manufacturing activity in New York State, fell to -4.60 in October, against expectations of -7.
At 9:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 225.11 points, or 0.67%, at 33,895.40, the S&P 500 .SPX was up 23.95 points, or 0.55%, at 4,351.73, and the Nasdaq Composite .IXIC was up 76.83 points, or 0.57%, at 13,484.06.
Industrials .SPLRCI and consumer discretionary .SPLRCD were amongst the top gainers across the major S&P 500 sectors, while utilities .SPLRCU and real estate .SPLRCR declined.
Lululemon AthleticaLULU.O added 7.8% as the sportswear apparel maker is set to join the S&P 500 index this week, replacing Activision Blizzard ATVI.O.
ModernaMRNA.O reaffirmed its forecast of $6 billion to $8 billion in COVID vaccine sales for the year. The company's shares fell 3.9%.
Advancing issues outnumbered decliners by a 2.04-to-1 ratio on the NYSE and by a 1.47-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and five new lows, while the Nasdaq recorded 19 new highs and 87 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan 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, Alphabet GOOGL.O, Amazon.com AMZN.O rose more than 1% each, though Apple AAPL.O dipped 0.6% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes advanced on Monday as investors awaited key economic data and major corporate earnings this week for clues on the U.S. economy, while also monitoring the Israel-Hamas conflict. "(Investors) actually got a little bit less nervous ... the talk now is to try to contain this and not have it expand out to other areas and if that's the case, the market would be okay with it," said Joe Saluzzi, partner and co-founder at Themis Trading in Chatham, New Jersey.
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Megacaps Microsoft MSFT.O, Meta Platforms META.O, Alphabet GOOGL.O, Amazon.com AMZN.O rose more than 1% each, though Apple AAPL.O dipped 0.6% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes advanced on Monday as investors awaited key economic data and major corporate earnings this week for clues on the U.S. economy, while also monitoring the Israel-Hamas conflict. The S&P index recorded nine new 52-week highs and five new lows, while the Nasdaq recorded 19 new highs and 87 new lows.
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Megacaps Microsoft MSFT.O, Meta Platforms META.O, Alphabet GOOGL.O, Amazon.com AMZN.O rose more than 1% each, though Apple AAPL.O dipped 0.6% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes advanced on Monday as investors awaited key economic data and major corporate earnings this week for clues on the U.S. economy, while also monitoring the Israel-Hamas conflict. Investors also await economic data including retail sales for September and the Philly Fed Business Index for October later this week.
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Megacaps Microsoft MSFT.O, Meta Platforms META.O, Alphabet GOOGL.O, Amazon.com AMZN.O rose more than 1% each, though Apple AAPL.O dipped 0.6% on a report the company's iPhones were off to a disappointing start in China. By Ankika Biswas and Shashwat Chauhan Oct 16 (Reuters) - Wall Street's main indexes advanced on Monday as investors awaited key economic data and major corporate earnings this week for clues on the U.S. economy, while also monitoring the Israel-Hamas conflict. Harker said on Friday the U.S. central bank was likely done with its rate-hiking cycle.
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13095.0
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2023-10-16 00:00:00 UTC
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Global smartphone market slumps to lowest Q3 level in decade - Counterpoint
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AAPL
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https://www.nasdaq.com/articles/global-smartphone-market-slumps-to-lowest-q3-level-in-decade-counterpoint
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nan
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nan
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Oct 16 (Reuters) - The global smartphone market contracted by 8% to its lowest third-quarter level in a decade on subdued demand for major brands including Apple AAPL.O and Samsung 005930.KS in most developed markets, according to data from Counterpoint Research.
The data, shared exclusively with Reuters, showed that the share of the top five brands, which also include Chinese firms Xiaomi 1810.HK, Oppo and Vivo, had fallen to a three-year low.
The report fans fears that the market's ongoing slump could sap upcoming earnings at companies like Apple, whose shipments declined by 8% in the quarter. Market leader Samsung posted a 13% drop in sell-through volumes in the period.
Among those that gained market share in the quarter are Apple's Chinese rival, Huawei, which despite the strict U.S. sanctions against it, shocked the industry earlier this year with its Mate 60 Pro smartphone that uses an advanced domestically made chip.
But overall shipments rose 2% industrywide from the second quarter, raising hopes that the market could snap its more than two-year run of year-on-year declines in the last three months of the year.
Counterpoint cited the iPhone 15 lineup that went on sale in September as a factor that could help revive growth in developed markets such as the United States, Europe and Korea.
"Following a strong September, we expect the momentum to continue until the year-end beginning with full impact of iPhone 15 series," the market research firm said.
It said the festive season in India, the 11.11 sale event in China and end-of-year promotions across regions would also support the market.
So far, emerging markets have been a bright spot for smartphone sales in an otherwise dour year. In the third quarter, the Middle East and Africa were the only regions to record year-on-year growth, according to Counterpoint data.
(Reporting by Akash Sriram, Juby Babu and Aditya Soni in Bengaluru; Editing by Pooja Desai)
((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on X; +91-74116-87774;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 16 (Reuters) - The global smartphone market contracted by 8% to its lowest third-quarter level in a decade on subdued demand for major brands including Apple AAPL.O and Samsung 005930.KS in most developed markets, according to data from Counterpoint Research. Among those that gained market share in the quarter are Apple's Chinese rival, Huawei, which despite the strict U.S. sanctions against it, shocked the industry earlier this year with its Mate 60 Pro smartphone that uses an advanced domestically made chip. Counterpoint cited the iPhone 15 lineup that went on sale in September as a factor that could help revive growth in developed markets such as the United States, Europe and Korea.
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Oct 16 (Reuters) - The global smartphone market contracted by 8% to its lowest third-quarter level in a decade on subdued demand for major brands including Apple AAPL.O and Samsung 005930.KS in most developed markets, according to data from Counterpoint Research. Among those that gained market share in the quarter are Apple's Chinese rival, Huawei, which despite the strict U.S. sanctions against it, shocked the industry earlier this year with its Mate 60 Pro smartphone that uses an advanced domestically made chip. In the third quarter, the Middle East and Africa were the only regions to record year-on-year growth, according to Counterpoint data.
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Oct 16 (Reuters) - The global smartphone market contracted by 8% to its lowest third-quarter level in a decade on subdued demand for major brands including Apple AAPL.O and Samsung 005930.KS in most developed markets, according to data from Counterpoint Research. Among those that gained market share in the quarter are Apple's Chinese rival, Huawei, which despite the strict U.S. sanctions against it, shocked the industry earlier this year with its Mate 60 Pro smartphone that uses an advanced domestically made chip. Counterpoint cited the iPhone 15 lineup that went on sale in September as a factor that could help revive growth in developed markets such as the United States, Europe and Korea.
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Oct 16 (Reuters) - The global smartphone market contracted by 8% to its lowest third-quarter level in a decade on subdued demand for major brands including Apple AAPL.O and Samsung 005930.KS in most developed markets, according to data from Counterpoint Research. The data, shared exclusively with Reuters, showed that the share of the top five brands, which also include Chinese firms Xiaomi 1810.HK, Oppo and Vivo, had fallen to a three-year low. The report fans fears that the market's ongoing slump could sap upcoming earnings at companies like Apple, whose shipments declined by 8% in the quarter.
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13096.0
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2023-10-16 00:00:00 UTC
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Dow Movers: BA, TRV
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-ba-trv-0
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nan
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nan
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In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. Year to date, Travelers Companies has lost about 10.9% of its value.
And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. Boeing is lower by about 3.8% looking at the year to date performance.
Two other components making moves today are Apple, trading down 0.9%, and Nike, trading up 1.5% on the day.
VIDEO: Dow Movers: BA, TRV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. VIDEO: Dow Movers: BA, TRV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. Year to date, Travelers Companies has lost about 10.9% of its value. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%.
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In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. Two other components making moves today are Apple, trading down 0.9%, and Nike, trading up 1.5% on the day.
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In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. VIDEO: Dow Movers: BA, TRV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13097.0
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2023-10-16 00:00:00 UTC
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Better Artificial Intelligence (AI) Stock: Apple vs. Microsoft
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AAPL
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https://www.nasdaq.com/articles/better-artificial-intelligence-ai-stock%3A-apple-vs.-microsoft
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nan
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nan
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The artificial intelligence (AI) market has blown up this year, triggering a recovery for many tech stocks that experienced significant declines under economic strains in 2022. The launch of OpenAI's ChatGPT last November sparked a frenzy among tech enthusiasts, causing many to rethink what they thought was currently possible with AI.
As a result, many companies have pivoted their businesses toward expanding the industry, with hopes to profit from its projected development. Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have each made inroads in AI this year, with one prioritizing the consumer market and the other focusing on the commercial sector. As the world's first and second most valuable companies, these tech giants have substantial resources and could become major players in the industry over the long term.
So, let's look at whether Apple or Microsoft is the better stock to invest in AI.
Apple
In the third quarter of 2023, Apple's research and development spending increased by over $3 billion. CEO Tim Cook revealed in a Reuters interview that the rise was primarily due to a larger focus on generative AI. The surge in AI research aligns with a report from July that stated the company had built a framework for creating large language models and had developed an AI chatbot that engineers nicknamed Apple GPT.
While companies like Amazon and Microsoft have gone full force into AI, Apple has taken a quieter approach. Rather than hosting big presentations about its AI efforts, the company has instead sprinkled the technology across its product lineup. Apple is enhancing user experience with AI-driven improvements to Siri, photos, and autocorrect on the iPhone.
Meanwhile, Apple Watch wearers can now control the device using simple hand gestures, and AirPods Pro will automatically turn off noise canceling when the user engages in a conversation, all thanks to AI.
Apple seems to be playing the long game in AI, banking on the idea that consumers will continue flocking to its devices if it can offer the best experience. Considering Apple has attained leading market shares in most of its product categories, I wouldn't bet against it retaining its spot at the top and using its devices to become the main growth driver in the public's adoption of AI.
Microsoft
Microsoft appeared to have the foresight of the decade when it invested $1 billion in OpenAI in 2019. The company has since increased that figure by an additional $10 billion, attaining a 49% stake in the start-up. The partnership propelled Microsoft ahead of the competition in AI, allowing it to be one of the first to introduce AI features across its software lineup.
Since the start of 2023, Microsoft has integrated OpenAI's technology into its Office productivity suite with new features in Word and Excel, made ChatGPT and other tools available in Azure, and brought AI upgrades to Bing.
OpenAI's technology and the popularity of Microsoft's software could be a winning combination that sees the company become the biggest name in AI productivity software. Consumers and businesses worldwide are increasingly looking for ways to use AI to boost efficiency, and Microsoft is well equipped to win over the market.
Microsoft sees this growth potential and is moving to monetize its AI offerings. The company recently unveiled Copilot, an AI assistant that will soon launch as a $30 monthly add-on to a Microsoft 365 subscription. The new feature could offer a massive boost to sales and be an early step in attracting new users to the platform and other services.
Is Apple or Microsoft the better stock to invest in AI?
Apple and Microsoft have showcased very different strategies for expanding in AI. Apple has solid prospects over the long term, with its AI features likely to help it retain its dominance in the consumer tech market. However, Microsoft is currently the better stock to invest in AI as it has more earnings potential for now.
Microsoft holds the second-largest market share in cloud computing with its platform, Azure. Meanwhile, cloud services have become critical to helping businesses integrate AI into their workflows. The company's solid position in the industry and stake in OpenAI can allow it to offer customers some of the best AI tools in the market.
Moreover, the potency of Microsoft brands such as Word, Excel, PowerPoint, Outlook, and more is another way for the company to cash in on AI. Millions of consumers and businesses have come to rely on these platforms, strengthening Microsoft's claim in the industry as it continues upgrading its services with the help of AI.
So, if you're interested in investing in AI and stuck between these two companies, look no further than the tech behemoth that is Microsoft.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have each made inroads in AI this year, with one prioritizing the consumer market and the other focusing on the commercial sector. Meanwhile, Apple Watch wearers can now control the device using simple hand gestures, and AirPods Pro will automatically turn off noise canceling when the user engages in a conversation, all thanks to AI. Considering Apple has attained leading market shares in most of its product categories, I wouldn't bet against it retaining its spot at the top and using its devices to become the main growth driver in the public's adoption of AI.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have each made inroads in AI this year, with one prioritizing the consumer market and the other focusing on the commercial sector. Since the start of 2023, Microsoft has integrated OpenAI's technology into its Office productivity suite with new features in Word and Excel, made ChatGPT and other tools available in Azure, and brought AI upgrades to Bing. The company's solid position in the industry and stake in OpenAI can allow it to offer customers some of the best AI tools in the market.
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have each made inroads in AI this year, with one prioritizing the consumer market and the other focusing on the commercial sector. So, let's look at whether Apple or Microsoft is the better stock to invest in AI. Is Apple or Microsoft the better stock to invest in AI?
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Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have each made inroads in AI this year, with one prioritizing the consumer market and the other focusing on the commercial sector. So, let's look at whether Apple or Microsoft is the better stock to invest in AI. Is Apple or Microsoft the better stock to invest in AI?
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13098.0
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2023-10-16 00:00:00 UTC
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Morgan Stanley Maintains Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/morgan-stanley-maintains-apple-aapl-overweight-recommendation-3
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nan
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nan
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Fintel reports that on October 16, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 13.81% 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 13.81% from its latest reported closing price of 178.85.
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 6442 funds or institutions reporting positions in Apple. This is an increase of 42 owner(s) or 0.66% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.12%, an increase of 6.14%. Total shares owned by institutions increased in the last three months by 0.27% to 9,945,143K 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 139.25% 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 16, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.12%, an increase of 6.14%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on October 16, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.12%, an increase of 6.14%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on October 16, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.12%, an increase of 6.14%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on October 16, 2023, Morgan Stanley maintained coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.12%, an increase of 6.14%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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13099.0
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2023-10-16 00:00:00 UTC
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Here's What Analysts Expect from Netflix Ahead of Wednesday's Earnings
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AAPL
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https://www.nasdaq.com/articles/heres-what-analysts-expect-from-netflix-ahead-of-wednesdays-earnings
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nan
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nan
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This hasn’t been the most fruitful year for Netflix (NFLX), even as most tech stocks have fared exceptionally well in 2023. Netflix’s stock has gained 21.9% year-to-date, while the benchmark Nasdaq Composite ($NASX) has risen nearly 30%.
www.barchart.com
In comparison, here’s how the other FAANG stocks have performed so far this calendar year:
Meta Platforms (META), previously known as Facebook: up 165%
Amazon (AMZN): up 56%
Apple (AAPL): up 38%
Alphabet (GOOGL), previously known as Google: up 57%
Valued at $157.61 billion, Netflix is the global streaming market leader. Inflation and rising competition in the streaming market have slowed Netflix’s growth in the last few quarters. Furthermore, it made some major changes this year, which has made some investors skeptical of its growth prospects.
However, despite the relatively slow growth, most analysts believe the stock has more upside - and the company appears to be optimistic for the remainder of the year. Even amid increased competition, Netflix still has a stronghold in the streaming business, with revenue up from $16 billion to $32 billion in the last five years.
Netflix Expects Growth to Accelerate Through Year-End
This year, Netflix made significant changes to its C-suite leadership. Ted Sarandos and Greg Peters were named co-CEOs in January, with Reed Hastings staying as Executive Chairman. Amy Reinhard took over as President of Advertising from Jeremi Gorman earlier this month. A sudden change in C-suite leadership usually tends to shake up the stock in anticipation of how the new management will affect the company.
In May, Netflix also announced its subscribers will be unable to share passwords anymore. It introduced paid sharing in more than 100 countries, charging an additional $8 monthly to add a member to your account. The company received a lot of backlash shortly after this decision, with the hashtag “CancelNetflix” trending on Twitter (now known as X).
While many expected this decision to result in more subscriber cancellations, Netflix announced in its Q2 results that it added 5.9 million globally. The streamer's total revenue was $8.2 billion, up 3% year on year, with $1.5 billion in net profit.
Management expects revenue to grow in the second half of this year, driven by the successful rollout of its paid-sharing launch in all the remaining countries, and continued steady growth in its ad-supported plan. Netflix expects revenue to be around $8.5 billion in Q3, which would be an uptick from $7.9 billion in the year-ago quarter.
The company anticipates generating $5 billion in free cash flow (FCF) this year. Management stated that the Hollywood writers' strike reduced cash content spending for 2023. Since the strike has ended, Netflix anticipates spending more on cash content while still generating significant positive FCF in 2024.
What Do Analysts Expect From Netflix’s Q3 Results?
Ahead of this Wednesday's earnings report, analysts predict that Netflix's Q3 revenue will come in at $8.54 billion, an 8% year-over-year increase, and in line with management’s forecast. Earnings per share (EPS) could grow by 12% year-over-year to $3.47.
For the full year 2023, revenue could increase by 7% to $34 billion. Analysts’ estimate for FY EPS is $11.94, up 20% from EPS of $9.95 in 2022.
www.barchart.com
Decelerating growth has made some analysts slightly less optimistic about Netflix’s stock. Last week, analysts at Morgan Stanley, TD Cowen, and Wells Fargo all reduced their respective price targets for Netflix, while Wolfe Research downgraded NFLX from Outperform to Peer Perform. The analyst stated, “The company's 2024 average revenue per user expectations look full while today's paid-sharing net additions will lead to tomorrow's gross adds shortfall.”
Wolfe has no price target for the stock, but believes Netflix's “valuation is reasonable but will not withstand falling growth.” Currently, Netflix trades at 30 times forward earnings.
At present, out of the 37 analysts following Netflix stock, 20 have a “strong buy” recommendation, 15 say it's a “hold,” and two propose a “ strong sell.”
Based on analysts' average price target of $444.39, Wall Street expects potential upside of about 23% in the next 12 months. The highest target price stands at $600 and the lowest at $215 for Netflix.
www.barchart.com
The Takeaway
According to reports, Netflix plans to raise the price for ad-free streaming after the WGA strike ends, but the company has made no official announcement so far. It will be interesting to see if the decision, if executed, increases revenue as the company competes with other streaming platforms such as Alphabet’s YouTube, Disney (DIS), Amazon's Prime Video, and others.
With the strike over and backlash over paid sharing waning, Evercore ISI analyst Mark Mahaney believes that price hikes and improved content could be positive catalysts for the company in 2024. He is optimistic Netflix will be able to meet its 2024 EPS target of $15 per share. The analyst gave the stock a Buy rating. For 2024, the consensus estimate for revenue is $38 billion, representing growth of 13% with EPS of $15.1 per share.
We will know more about Netflix’s performance and growth strategies for 2024 when it releases its earnings this Wednesday, Oct. 18.
On the date of publication, Sushree Mohanty 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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www.barchart.com In comparison, here’s how the other FAANG stocks have performed so far this calendar year: Meta Platforms (META), previously known as Facebook: up 165% Amazon (AMZN): up 56% Apple (AAPL): up 38% Alphabet (GOOGL), previously known as Google: up 57% Valued at $157.61 billion, Netflix is the global streaming market leader. Management expects revenue to grow in the second half of this year, driven by the successful rollout of its paid-sharing launch in all the remaining countries, and continued steady growth in its ad-supported plan. Last week, analysts at Morgan Stanley, TD Cowen, and Wells Fargo all reduced their respective price targets for Netflix, while Wolfe Research downgraded NFLX from Outperform to Peer Perform.
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www.barchart.com In comparison, here’s how the other FAANG stocks have performed so far this calendar year: Meta Platforms (META), previously known as Facebook: up 165% Amazon (AMZN): up 56% Apple (AAPL): up 38% Alphabet (GOOGL), previously known as Google: up 57% Valued at $157.61 billion, Netflix is the global streaming market leader. Since the strike has ended, Netflix anticipates spending more on cash content while still generating significant positive FCF in 2024. The analyst stated, “The company's 2024 average revenue per user expectations look full while today's paid-sharing net additions will lead to tomorrow's gross adds shortfall.” Wolfe has no price target for the stock, but believes Netflix's “valuation is reasonable but will not withstand falling growth.” Currently, Netflix trades at 30 times forward earnings.
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www.barchart.com In comparison, here’s how the other FAANG stocks have performed so far this calendar year: Meta Platforms (META), previously known as Facebook: up 165% Amazon (AMZN): up 56% Apple (AAPL): up 38% Alphabet (GOOGL), previously known as Google: up 57% Valued at $157.61 billion, Netflix is the global streaming market leader. Netflix Expects Growth to Accelerate Through Year-End This year, Netflix made significant changes to its C-suite leadership. Analysts’ estimate for FY EPS is $11.94, up 20% from EPS of $9.95 in 2022. www.barchart.com Decelerating growth has made some analysts slightly less optimistic about Netflix’s stock.
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www.barchart.com In comparison, here’s how the other FAANG stocks have performed so far this calendar year: Meta Platforms (META), previously known as Facebook: up 165% Amazon (AMZN): up 56% Apple (AAPL): up 38% Alphabet (GOOGL), previously known as Google: up 57% Valued at $157.61 billion, Netflix is the global streaming market leader. What Do Analysts Expect From Netflix’s Q3 Results? Earnings per share (EPS) could grow by 12% year-over-year to $3.47.
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