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13100.0
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2023-10-16 00:00:00 UTC
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Financial Sector Update for 10/16/2023: SCHW, GS, AAPL, GM, XLF, FAS, FAZ
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AAPL
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https://www.nasdaq.com/articles/financial-sector-update-for-10-16-2023%3A-schw-gs-aapl-gm-xlf-fas-faz
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Financial stocks were gaining premarket Monday with the Financial Select Sector SPDR Fund (XLF) advancing by 0.7%.
The Direxion Daily Financial Bull 3X Shares (FAS) was 2.5% higher and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.4%.
Charles Schwab (SCHW) was declining 0.6% after it reported Q3 adjusted earnings of $0.77 per diluted share, down from $1.10 a year earlier. Net revenue for the quarter ended Sept. 30 was $4.61 billion, down from $5.50 billion.
Some Goldman Sachs Group (GS) senior executives want to exit the bank's remaining consumer lending business, particularly those linked with Apple (AAPL) products as well as credit cards with Apple and General Motors (GM), The Wall Street Journal reported, citing sources. Goldman Sachs Group was advancing 0.9% pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some Goldman Sachs Group (GS) senior executives want to exit the bank's remaining consumer lending business, particularly those linked with Apple (AAPL) products as well as credit cards with Apple and General Motors (GM), The Wall Street Journal reported, citing sources. The Direxion Daily Financial Bull 3X Shares (FAS) was 2.5% higher and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.4%. Charles Schwab (SCHW) was declining 0.6% after it reported Q3 adjusted earnings of $0.77 per diluted share, down from $1.10 a year earlier.
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Some Goldman Sachs Group (GS) senior executives want to exit the bank's remaining consumer lending business, particularly those linked with Apple (AAPL) products as well as credit cards with Apple and General Motors (GM), The Wall Street Journal reported, citing sources. The Direxion Daily Financial Bull 3X Shares (FAS) was 2.5% higher and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.4%. Goldman Sachs Group was advancing 0.9% pre-bell.
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Some Goldman Sachs Group (GS) senior executives want to exit the bank's remaining consumer lending business, particularly those linked with Apple (AAPL) products as well as credit cards with Apple and General Motors (GM), The Wall Street Journal reported, citing sources. The Direxion Daily Financial Bull 3X Shares (FAS) was 2.5% higher and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.4%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some Goldman Sachs Group (GS) senior executives want to exit the bank's remaining consumer lending business, particularly those linked with Apple (AAPL) products as well as credit cards with Apple and General Motors (GM), The Wall Street Journal reported, citing sources. Financial stocks were gaining premarket Monday with the Financial Select Sector SPDR Fund (XLF) advancing by 0.7%. The Direxion Daily Financial Bull 3X Shares (FAS) was 2.5% higher and bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.4%.
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13101.0
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2023-10-16 00:00:00 UTC
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3 Stocks I Want to Own for the Rest of My Life
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AAPL
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https://www.nasdaq.com/articles/3-stocks-i-want-to-own-for-the-rest-of-my-life
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nan
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nan
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Many successful investors will tell you that their biggest mistake involved selling a great company too soon. Indeed, no less of an investor than Warren Buffett has said that his favorite holding period is "forever". That showcases the incredible potential that long-term investors might find if they manage to simply hold on to the incredibly strong businesses that they already own.
Still, it can be tough to find companies that really seem worthy of holding onto for decades to come. With that in mind, three Motley Fool contributors searched their own investments for ones that seem like they could very well be among that elite cadre of investment. They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). Read on to find out why, then decide for yourself if one or more of them deserves a place in your portfolio for the long haul.
Image source: Getty Images
A trend that will last longer than me
Jason Hall (MercadoLibre): If there's one common thread that ties most of my investments together, it's trends. And no, I don't mean the latest fashion or other ephemeral shiny object; I mean real, lasting, durable trends that can take many years -- even decades -- to play out. And one that's likely to take more decades than I have left on earth is the economic development of Latin America. And this makes MercadoLibre exactly the sort of stock that I intend to own for the rest of my life.
First, why MercadoLibre. To start, its lead in Latin America, while not insurmountable, is significant. It operates in 18 countries in the region, and has a massive head start over the competition. It also operates Mercado Pago, an electronics payments platform, which actually does more transaction volume off its platform than on it; that's a very sticky platform used by millions of people to do things like pay bills, in addition to shopping with MercadoLibre.
And it's built these platforms profitably; over the trailing 12 months, MercadoLibre earned $757 in net income, and generated $4.1 billion in free cash flow. In other words, it's in a position to self-fund growth, without having to rely on fickle and expensive capital markets for funding.
Lastly, its prospects going forward are tremendous. The average American is almost 40, while the median age in Latin and Caribbean countries is 31. The demographic dividend is also delivering in much of Latin America: Median life expectancies are on the rise while fertility rates fall, resulting in more of the population joining the workforce for longer, generating more disposable income. Few companies anywhere are positioned as well as MercadoLibre to grow profitably for as many years to come.
A giant tech company that wins on both hardware and software transactions
Eric Volkman (Apple): Is there anyone in the stock investing universe who thinks Apple will stumble and fall? I sure don't. I bought into the company years ago, and as time has gone by, I've become more convinced that it will only grow its already massive footprint.
The beauty of Apple's business model is that there are numerous levers it can pull to keep pushing its results ever higher.
Its endlessly state-of-the-art products rightfully attract loyalists -- and I'm one of them, having owned and (over-) used iPhones since 2007. The upgrade cycle alone is enough to bring in waves of revenue every time it crests. Apple products are perennially hot items; witness the heavy demand for the recently launched iPhone 15.
The tech giant has also very cleverly positioned itself as a middleman in a great many transactions involving software produced for Apple devices by outside developers. Want that cool new game for your phone? Apple will typically take 30% of what you're paying the company behind it, thank you very much.
The services category continues to balloon for Apple. In the quarter that ended July 1 -- which many considered a disappointment due to continued (but minor) year-over-year revenue declines and other unimportant factors -- services revenue climbed to an all-time quarterly record. The category's take rose by almost 12% to $6.2 billion.
Meanwhile, Apple is pushing into other potential revenue-spinners, as it ever does. It's plowing much of its research and development into generative artificial intelligence (AI). Its home-cooked Apple GPT is already being harnessed by the company as a behind-the-curtain technology powering numerous functionalities.
Apple is a sure bet to continue drawing money from its already very deep and wide revenue streams. And it's got enormous potential in others that have only begun to flow. This stock is staying firmly anchored in my portfolio.
Love it or hate it, its services should still be in demand decades from now
Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America. Whether you love or hate the fossil fuel industry it serves, the reality is that it will be with us for decades to come.
The U.S. Energy Information Agency regularly publishes an energy outlook. In its 2023 edition, it forecasts essentially flat oil and natural gas demand in the United States through 2050. In essence, its projections call for renewables to basically cover the increase in energy demand over the next few decades. So while other energy sources will likely continue to grow over time, there is good reason to believe that the core demand will continue to be there for Enbridge to provide its energy transportation services.
In addition, while it is expensive and politically difficult to build new pipeline infrastructure these days, those challenges can actually work in favor of large, established players like Enbridge. After all, the fewer other pipelines get built, the more attractive Enbridge's existing infrastructure looks by comparison. With fewer alternate pipeline routes, Enbridge's competition becomes railroads and trucks, both of which tend to be costlier than pipelines where that infrastructure exists.
Thanks to that long-term structural demand, Enbridge can pay out a whopping 8% yield, on a dividend that consumes less than 60% of its operating cash flow. Not only can Enbridge pay that dividend, it also has a 28-year long streak of annually increasing that payment.
There are very few companies out there that look capable of potentially paying a high and growing dividend for many decades into the future. With its entrenched infrastructure, high likelihood of continued demand, and the expansion challenges that help keep competition at bay, Enbridge just might find itself on that list. That combination makes it a stock I hope to be able to hold onto for the rest of my life.
What do all three of these companies have in common?
While it may not seem like MercadoLibre, Apple, and Enbridge have a lot in common on the surface, what unites them is the fact that they have each built businesses that look like they can have legitimate long-term staying power. Should that anticipated future come to pass, decades from now, future investors might still be calling them companies worthy of being held for the long haul.
No matter what the future may bring, to get the potential rewards of long-term ownership, you first have to make that initial investment. There's no time like the present to take that first step toward owning companies you might want to hold onto for the rest of your life. Make today the day you decide whether one of these companies may very well be worthy of winding up a one-decision investment for yourself.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 9, 2023
Chuck Saletta has positions in Enbridge and has the following options: long January 2025 $37.50 calls on Enbridge, short January 2025 $37.50 puts on Enbridge, short November 2023 $32.50 puts on Enbridge, and short November 2023 $42.50 calls on Enbridge. Eric Volkman has positions in Apple. Jason Hall has positions in MercadoLibre. The Motley Fool recommends Apple, Enbridge, and MercadoLibre. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). And it's built these platforms profitably; over the trailing 12 months, MercadoLibre earned $757 in net income, and generated $4.1 billion in free cash flow. The demographic dividend is also delivering in much of Latin America: Median life expectancies are on the rise while fertility rates fall, resulting in more of the population joining the workforce for longer, generating more disposable income.
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They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). Image source: Getty Images A trend that will last longer than me Jason Hall (MercadoLibre): If there's one common thread that ties most of my investments together, it's trends. Love it or hate it, its services should still be in demand decades from now Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America.
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They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). A giant tech company that wins on both hardware and software transactions Eric Volkman (Apple): Is there anyone in the stock investing universe who thinks Apple will stumble and fall? Love it or hate it, its services should still be in demand decades from now Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America.
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They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). Still, it can be tough to find companies that really seem worthy of holding onto for decades to come. Love it or hate it, its services should still be in demand decades from now Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America.
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13102.0
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2023-10-16 00:00:00 UTC
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Markets Today: Stocks Edge Higher on Hopes Israeli-Hamas Conflict Can Be Contained
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AAPL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-edge-higher-on-hopes-israeli-hamas-conflict-can-be-contained
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nan
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nan
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Morning Markets
December E-Mini S&P 500 futures (ESZ23) are up +0.38%, and the Dec Nasdaq 100 E-Mini futures (NQZ23) are up +0.22%.
Stock index futures this morning are moderately higher as the markets track diplomatic efforts to contain the Israel-Hamas conflict. The markets are also looking to Q3 corporate quarterly earnings results that ramp up this week.
The U.S. and its allies are ramping up diplomatic efforts to contain the conflict between Israel and Hamas. President Biden is considering visiting Israel himself, and German Chancellor Scholz is expected to arrive in Israel on Tuesday. Also, Jordan King Abdullah II is in Italy, where he’s expected to meet with Italian Prime Minister Meloni to discuss the crisis. Meanwhile, U.S. Security Advisor Sullivan said the U.S. had warned Iran through back-channel talks about the risk of escalation of the war.
In an interview with Sky News, U.S. Treasury Secretary Yellen said higher interest rates in the U.S. may persist while also saying the U.S. economy is "in a good place."
The U.S. Oct Empire manufacturing survey general business conditions fell -6.5 to -4.6, a smaller decline than expectations of for a report of -6.0.
The markets are discounting an 8% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 35% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields are higher. The 10-year T-note is up +7.1 bp at 4.683%. The 10-year German bund yield is up +4.4 bp at 2.781%. The 10-year UK gilt yield is up +7.7 bp at 4.463%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.06%. China’s Shanghai Composite Index closed down -0.46%. Japan’s Nikkei 225 today closed down -2.03 %.
The Euro Stoxx 50 today is slightly higher as the markets focus on any new developments in the Israeli-Hamas war and what implications the war could have on the economy and interest rates. Crude prices and European government bond yields are slightly higher. Technological stock losses are weighing on the overall market after Bloomberg News reported that the U.S. is considering further restrictions on China’s access to advanced semiconductors. An easing of Eurozone price pressures is supporting stocks after the German Sep wholesale price index eased to -4.1% y/y, the steepest drop in more than three years. Also, Eurozone political risks eased as exit polls showed Poland’s pro-EU opposition party won a majority in parliamentary elections on Sunday.
The German Sep wholesale price index eased to -4.1% y/y from -2.7% y/y in Aug, the largest decline in more than three years.
ECB Governing Council member de Cos said the surge in global borrowing costs means ECB policymakers have probably done enough to tame inflation, and the September assessment that the level of interest rates was more appropriate "is even more valid today."
China’s Shanghai Composite Stock Index today dropped to a 7-week low and closed moderately lower. A slide in technology stocks today undercut market sentiment and weighed on the overall market after Bloomberg News reported the U.S. plans to tighten sweeping measures to restrict China’s access to advanced semiconductors and chipmaking gear. The new rules aim to close loopholes from curbs announced last October and strengthen controls on selling graphic chips for artificial intelligence applications. The U.S. will also impose additional checks on Chinese firms attempting to evade export restrictions by routing shipments through other nations and add Chinese chip design firms to a trade restriction list, requiring overseas manufacturers to obtain a U.S. license to fill orders from those companies. Losses in Chinese stocks were limited after the PBOC boosted liquidity and injected the most cash into the financial system in almost three years.
The People's Bank of China (PBOC) added a net 289 billion yuan ($39.6 billion) into the financial system via the medium-term lending facility, the largest monthly injection of cash into the financial system since December 2020.
Japan’s Nikkei Stock Index today closed sharply lower amid concern about the conflict between Israel and Hamas. Weakness in technology stocks weighed on the overall market after Bloomberg News reported the U.S. will tighten curbs on China’s access to chip technology. Also, a downward revision to Japan's industrial production activity in August was negative for stocks. In addition, airlines and Industrial stocks moved lower on concerns that soaring fuel prices will undercut profits after last week’s surge in crude prices.
Japan Aug industrial production was revised downward to -0.7% m/m from the initially reported unchanged m/m.
Pre-Market U.S. Stock Movers
Lululemon Athletica (LULU) jumped more than +4% in pre-market trading after S&P Dow Jones Indices announced the stock will replace Activision Blizzard in the S&P 500 before the opening of trading on Wednesday.
Hubbell Inc (HUBB) climbed more than +2% in pre-market trading after S&P Dow Jones Indices announced the stock would replace Organon in the S&P 500 before the opening of trading on Wednesday.
VinFast Auto Ltd (VFS) rose more than +3% in pre-market trading after CEO Le Thi Thu Thuy said the company plans to move into Southeast Asian markets aggressively and expects to meet its target of selling 35,000 to 50,000 vehicles this year.
Allison Transmission Holdings (ALSN) is up more than +2% in pre-market trading after JPMorgan Chase upgraded the stock to neutral from underweight.
Dexcom (DXCM) climbed more than +2% in pre-market trading after Leerink Partners reinstated coverage of the stock with a recommendation of outperform and a price target of $110.
Colgate-Palmolive (CL) rose more than +1% in pre-market trading after Stifel upgraded the stock to buy from hold with a price target of $81.
Instacart (CART) gained more than +1% in pre-market trading after Barclays initiated coverage on the stock with a recommendation of overweight and a price target of $40.
New Ambrx Biopharma (AMAM) surged more than +45% in pre-market trading after it released data abstract from a trial of its investigational drug for prostate cancer. Cantor Fitzgerald said the data “exceeded street expectations.”
Apple (AAPL) fell more than -1% in pre-market trading on signs of weak Chinese demand for the new iPhone when market tracker Counterpoint Research reported sales of the new iPhone 15 are down -4.5% in China compared with the iPhone 14 over their first 17 days after release.
Pfizer (PFE) dropped more than -2% in pre-market trading after cutting its full-year revenue forecast to $58 billion-$61 billion from a previous estimate of $67 billion-$70 billion.
Chip equipment stocks are falling in pre-market trading after Bloomberg News reported that the U.S. plans to tighten restrictions on China’s access to advanced semiconductors and chipmaking gear. As a result, Nvidia (NVDA), KLA Corp (KLAC), Applied Materials (AMAT), Lam Research (LRCX), Advanced Micro Devices (AMD), and ASML Holding NV (ASML) are down more than -1%.
Trade Desk (TTD) tumbled more than -5% in pre-market trading on signs of insider selling after an SEC filing showed CEO Green sold $14.9 million shares last Wednesday and Friday.
Charles Schwab (SCHW) slid nearly -1% in pre-market trading after reporting Q3 net revenue of $4.61 billion, weaker than the consensus of $4.63 billion.
Earnings Reports (10/16/2023)
Charles Schwab Corp/The (SCHW), CrossFirst Bankshares Inc (CFB), Enerpac Tool Group Corp (EPAC), Equity LifeStyle Properties Inc (ELS), FB Financial Corp (FBK), Guaranty Bancshares Inc/TX (GNTY), ServisFirst Bancshares Inc (SFBS), Veradigm Inc (MDRX).
More Stock Market News from Barchart
Option Volatility And Earnings Report For October 16 - 20
Stocks Set to Open Higher as Investors Await Powell Speech and Corporate Earnings
Geopolitics, Earnings and Other Key Themes to Watch this Week
From Field to Silo: Trading the Journey of Corn During the Harvest Season
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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Cantor Fitzgerald said the data “exceeded street expectations.” Apple (AAPL) fell more than -1% in pre-market trading on signs of weak Chinese demand for the new iPhone when market tracker Counterpoint Research reported sales of the new iPhone 15 are down -4.5% in China compared with the iPhone 14 over their first 17 days after release. Also, Eurozone political risks eased as exit polls showed Poland’s pro-EU opposition party won a majority in parliamentary elections on Sunday. VinFast Auto Ltd (VFS) rose more than +3% in pre-market trading after CEO Le Thi Thu Thuy said the company plans to move into Southeast Asian markets aggressively and expects to meet its target of selling 35,000 to 50,000 vehicles this year.
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Cantor Fitzgerald said the data “exceeded street expectations.” Apple (AAPL) fell more than -1% in pre-market trading on signs of weak Chinese demand for the new iPhone when market tracker Counterpoint Research reported sales of the new iPhone 15 are down -4.5% in China compared with the iPhone 14 over their first 17 days after release. A slide in technology stocks today undercut market sentiment and weighed on the overall market after Bloomberg News reported the U.S. plans to tighten sweeping measures to restrict China’s access to advanced semiconductors and chipmaking gear. Weakness in technology stocks weighed on the overall market after Bloomberg News reported the U.S. will tighten curbs on China’s access to chip technology.
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Cantor Fitzgerald said the data “exceeded street expectations.” Apple (AAPL) fell more than -1% in pre-market trading on signs of weak Chinese demand for the new iPhone when market tracker Counterpoint Research reported sales of the new iPhone 15 are down -4.5% in China compared with the iPhone 14 over their first 17 days after release. A slide in technology stocks today undercut market sentiment and weighed on the overall market after Bloomberg News reported the U.S. plans to tighten sweeping measures to restrict China’s access to advanced semiconductors and chipmaking gear. Pre-Market U.S. Stock Movers Lululemon Athletica (LULU) jumped more than +4% in pre-market trading after S&P Dow Jones Indices announced the stock will replace Activision Blizzard in the S&P 500 before the opening of trading on Wednesday.
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Cantor Fitzgerald said the data “exceeded street expectations.” Apple (AAPL) fell more than -1% in pre-market trading on signs of weak Chinese demand for the new iPhone when market tracker Counterpoint Research reported sales of the new iPhone 15 are down -4.5% in China compared with the iPhone 14 over their first 17 days after release. The 10-year German bund yield is up +4.4 bp at 2.781%. The Euro Stoxx 50 today is slightly higher as the markets focus on any new developments in the Israeli-Hamas war and what implications the war could have on the economy and interest rates.
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13103.0
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2023-10-16 00:00:00 UTC
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A Bull Market Is Coming: 3 Low-Risk Stocks That Could Help You Safely Profit From the Next Stock Market Rally
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-3-low-risk-stocks-that-could-help-you-safely-profit-from-the-next
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nan
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nan
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It is possible to earn excellent returns in the stock market without taking big risks. It's often the best -- and, therefore, lowest-risk -- businesses that generate the highest long-term returns for their investors.
To help you in your search for these fortune-builders, here are three stalwart companies that can help you protect and grow your wealth.
1. Microsoft
Diverse revenue streams and a fortress-like balance sheet make Microsoft (NASDAQ: MSFT) one of the least risky investments in the tech world. The software giant holds lucrative positions in key markets like computer operating systems, productivity apps, and cloud computing. Yet it's Microsoft's formidable presence in artificial intelligence (AI) that has investors most excited.
The worldwide market for AI products and services will top $1.8 trillion by 2030, according to Statista. Microsoft's multibillion-dollar investment in ChatGPT maker OpenAI vaulted the tech titan to the vanguard of the AI race. Microsoft has since worked quickly to integrate cutting-edge AI into its popular productivity tools and Bing search engine. Additionally, booming demand for AI model training and applications is boosting the growth of Microsoft's Azure cloud computing platform.
Microsoft's staggering profitability also helps to reduce the risks for investors. With over $70 billion in profits over the trailing 12 months, Microsoft has more than enough cash to fund its operations and research and development program while still rewarding its shareholders with dividends and stock buybacks.
2. Apple
Like Microsoft, Apple (NASDAQ: AAPL) is a moneymaking powerhouse. The iPhone maker's $167 billion in cash and investments as of July 1 and roughly $100 billion in annual profits give it an unrivaled level of financial fortitude.
Apple's edge lies in the seamless integration of its well-designed hardware and software. A thriving ecosystem of more than 2 billion installed devices and 1 billion paid subscriptions creates a lucrative stream of recurring revenue. Once someone buys an Apple device, they typically remain a loyal customer. And the company's services -- such as Apple Pay, iCloud, and Apple Care -- are already on pace to produce $85 billion in high-margin sales annually.
Incredibly, with massive markets like India still largely untapped, these figures are likely to head even higher in the coming years. Consider buying shares of Apple today, and you can position yourself to profit alongside this proven wealth creator.
3. Mastercard
Unlike banks that are exposed to loan defaults, credit risk is not an issue for Mastercard (NYSE: MA). The payment processing leader operates more like a tollbooth by earning a fee from each transaction that it facilitates. And those fees add up to billions of dollars in profits for Mastercard and its shareowners.
The proliferation of mobile devices and the growth of e-commerce are driving a shift from cash payments to digital transactions. As a leading credit and debit card network, Mastercard (NYSE: MA) is well-situated to benefit from these trends.
With an operating margin of over 50%, Mastercard is already highly profitable. It enjoys enviable scale advantages from its 3.2 billion payment cards in use around the world -- and more than $8 trillion in annual gross dollar volume -- that its smaller rivals simply can't match. This embedded position within the global economy should continue to serve Mastercard and its shareholders well in the years ahead.
10 stocks we like better than Mastercard
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 Mastercard 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 13, 2023
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Mastercard, and Microsoft. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Like Microsoft, Apple (NASDAQ: AAPL) is a moneymaking powerhouse. Additionally, booming demand for AI model training and applications is boosting the growth of Microsoft's Azure cloud computing platform. With over $70 billion in profits over the trailing 12 months, Microsoft has more than enough cash to fund its operations and research and development program while still rewarding its shareholders with dividends and stock buybacks.
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Apple Like Microsoft, Apple (NASDAQ: AAPL) is a moneymaking powerhouse. The software giant holds lucrative positions in key markets like computer operating systems, productivity apps, and cloud computing. See the 10 stocks *Stock Advisor returns as of October 13, 2023 Joe Tenebruso has no position in any of the stocks mentioned.
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Apple Like Microsoft, Apple (NASDAQ: AAPL) is a moneymaking powerhouse. With over $70 billion in profits over the trailing 12 months, Microsoft has more than enough cash to fund its operations and research and development program while still rewarding its shareholders with dividends and stock buybacks. See the 10 stocks *Stock Advisor returns as of October 13, 2023 Joe Tenebruso has no position in any of the stocks mentioned.
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Apple Like Microsoft, Apple (NASDAQ: AAPL) is a moneymaking powerhouse. The iPhone maker's $167 billion in cash and investments as of July 1 and roughly $100 billion in annual profits give it an unrivaled level of financial fortitude. The Motley Fool has positions in and recommends Apple, Mastercard, and Microsoft.
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13104.0
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2023-10-16 00:00:00 UTC
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2 Vanguard ETFs That Could Make You a Millionaire With Next to No Effort
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AAPL
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https://www.nasdaq.com/articles/2-vanguard-etfs-that-could-make-you-a-millionaire-with-next-to-no-effort
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nan
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nan
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Reaching millionaire status by investing in the stock market is an attainable goal, but you'll need the right investments.
If you're looking for a low-maintenance investment that does most of the work for you, an exchange-traded fund (ETF) may be the right fit for your portfolio.
Each ETF contains dozens or even hundreds of stocks, all bundled together into a single investment. This not only takes most of the guesswork out of choosing where to buy, but it also limits your risk by creating an instantly diversified portfolio.
Not all ETFs are created equal, but there are two Vanguard funds that could help you earn $1 million or more with next to no effort on your part.
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is a leading broad-market fund. It tracks the S&P 500 index itself, so it includes stocks from 500 of the largest and strongest U.S. companies.
S&P 500 ETFs are generally one of the safest types of funds out there. Investing in hundreds of stocks at once provides immediate diversification, and the S&P 500 itself has a decades-long track record of recovering from even the worst market crashes, recessions, and other downturns.
The Vanguard S&P 500 ETF, in particular, can also be a smart choice because of its low annual fees. It has a rock-bottom expense ratio of 0.03%, which is far lower than many similar ETFs. Over time, this could help you save tens of thousands of dollars in fees.
Despite being a safer investment, the S&P 500 ETF can also help you build life-changing wealth. Historically, the market itself has earned an average rate of return of around 10% per year, meaning the annual returns have averaged out to around 10% per year over decades.
Assuming you're earning a 10% average annual return on your investment, here's what it would take to reach $1 million, depending on how many years you have to invest:
NUMBER OF YEARS AMOUNT INVESTED PER MONTH TOTAL SAVINGS
20 $1,500 $1.031 million
25 $900 $1.062 million
30 $525 $1.036 million
35 $325 $1.057 million
40 $200 $1.062 million
Data source: Author's calculations via Investor.gov
With enough time and consistency, it's possible to earn well over $1 million with this ETF. And the sooner you get started, the less you'll need to invest each month.
2. Vanguard Growth ETF
The Vanguard Growth ETF (NYSEMKT: VUG) is a fund designed to earn above-average returns. It contains 235 stocks, roughly half of which are from the tech sector. But perhaps its biggest advantage is its balance of blue chip stocks and up-and-coming companies.
The top 10 holdings make up around half of the fund's total composition, and these stocks include household names like Apple, Amazon, NVIDIA, and Visa. While these companies may not experience explosive growth, they're incredibly strong organizations that are more likely to survive periods of volatility.
The other half of the fund, then, is comprised of smaller stocks from lesser-known companies. While these stocks are riskier, they also have far more room for growth. This mix of strong businesses and rising stars can help protect your portfolio while still maximizing your earnings.
Over the past 10 years, the Vanguard Growth ETF has earned an average rate of return of 13.55% per year. But to stay on the safe side, let's assume your investments only earn a 12% average annual return -- only slightly higher than the market's historic average.
NUMBER OF YEARS AMOUNT INVESTED PER MONTH TOTAL SAVINGS
20 $1,200 $1.038 million
25 $650 $1.040 million
30 $350 $1.014 million
35 $200 $1.036 million
40 $115 $1.059 million
Data source: Author's calculations via Investor.gov
One thing to keep in mind with growth ETFs is that they do carry more risk than broad-market funds like S&P 500 ETFs. But if you're willing to take on more risk for the chance at higher earnings over time, they could be a smart investment.
Building a million-dollar portfolio isn't easy, and it takes time and consistency to see significant earnings. But with the right investments, you'll be on your way to building life-changing wealth in the stock market.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investing in hundreds of stocks at once provides immediate diversification, and the S&P 500 itself has a decades-long track record of recovering from even the worst market crashes, recessions, and other downturns. The top 10 holdings make up around half of the fund's total composition, and these stocks include household names like Apple, Amazon, NVIDIA, and Visa. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them!
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20 $1,500 $1.031 million 25 $900 $1.062 million 30 $525 $1.036 million 35 $325 $1.057 million 40 $200 $1.062 million Data source: Author's calculations via Investor.gov With enough time and consistency, it's possible to earn well over $1 million with this ETF. 20 $1,200 $1.038 million 25 $650 $1.040 million 30 $350 $1.014 million 35 $200 $1.036 million 40 $115 $1.059 million Data source: Author's calculations via Investor.gov One thing to keep in mind with growth ETFs is that they do carry more risk than broad-market funds like S&P 500 ETFs. The Motley Fool has positions in and recommends Amazon.com, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Visa.
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20 $1,500 $1.031 million 25 $900 $1.062 million 30 $525 $1.036 million 35 $325 $1.057 million 40 $200 $1.062 million Data source: Author's calculations via Investor.gov With enough time and consistency, it's possible to earn well over $1 million with this ETF. Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) is a fund designed to earn above-average returns. 20 $1,200 $1.038 million 25 $650 $1.040 million 30 $350 $1.014 million 35 $200 $1.036 million 40 $115 $1.059 million Data source: Author's calculations via Investor.gov One thing to keep in mind with growth ETFs is that they do carry more risk than broad-market funds like S&P 500 ETFs.
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Vanguard S&P 500 ETF The Vanguard S&P 500 ETF (NYSEMKT: VOO) is a leading broad-market fund. Assuming you're earning a 10% average annual return on your investment, here's what it would take to reach $1 million, depending on how many years you have to invest: The Motley Fool has positions in and recommends Amazon.com, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Visa.
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2023-10-16 00:00:00 UTC
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Should Vanguard Growth ETF (VUG) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-vanguard-growth-etf-vug-be-on-your-investing-radar-9
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Launched on 01/26/2004, the Vanguard Growth ETF (VUG) 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 Vanguard. It has amassed assets over $91.25 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
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.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.60%.
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 44.10% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 51.08% of total assets under management.
Performance and Risk
VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses. The CRSP US Large Cap Growth Index represents the growth companies of the CRSP US Large Cap Index.
The ETF has added about 31.11% so far this year and is up about 30.12% in the last one year (as of 10/16/2023). In the past 52-week period, it has traded between $208.44 and $293.50.
The ETF has a beta of 1.11 and standard deviation of 23.51% for the trailing three-year period, making it a medium risk choice in the space. With about 239 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Growth 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, VUG is a reasonable option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Growth ETF (IWF) and the Invesco QQQ (QQQ) track a similar index. While iShares Russell 1000 Growth ETF has $71.06 billion in assets, Invesco QQQ has $202.75 billion. IWF has an expense ratio of 0.19% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Growth ETF (VUG): 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
iShares Russell 1000 Growth ETF (IWF): 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 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $91.25 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Performance and Risk VUG seeks to match the performance of the CRSP U.S. Large Cap Growth Index before fees and expenses.
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Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Launched on 01/26/2004, the Vanguard Growth ETF (VUG) 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 13.64% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Growth ETF (VUG): 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 iShares Russell 1000 Growth ETF (IWF): ETF Research Reports To read this article on Zacks.com click here. Launched on 01/26/2004, the Vanguard Growth ETF (VUG) 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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13106.0
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2023-10-16 00:00:00 UTC
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2 Consumer Staples Stocks That Are Screaming Cheap
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https://www.nasdaq.com/articles/2-consumer-staples-stocks-that-are-screaming-cheap
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What did the two birds flying over K-Mart say to each other? Cheap, cheap. They might say the same thing about these two consumer staples stocks, trading near their 52-week lows. What a difference a year makes. It's hard to believe, but these stocks traded at 52-week highs in 2022. Consumer staples stocks were key benefactors during the COVID-19 pandemic as they experienced unprecedented demands from consumers stockpiling non-perishable food products to weather the pandemic. The surge in revenues eventually had to succumb to reversion and normalization. The question is whether that normalization may be coming too far. These two iconic brand-name consumer stocks may be bargains at these levels, especially with recession fears and the frigid temperatures predicted for this winter.
Hormel Inc. (NYSE: HRL)
Meat, snacks and food products retailer Hormel is well known for its household brands, likely in your cupboard or refrigerator. Sold worldwide in over 80 countries, its popular brands include SPAM (the meat kind), Planters, Skippy, Dinty Moore, Columbus Craft Meats, Jenni-O and Hormel. Its Applegate brand sells organic and natural meat bacon, sausage and hotdogs. Despite growing its brand, operating income has stagnated over the past few years.
Too Much of a Good Thing
It's possible to have too much of a good thing. SPAM has been around since 1937, created from pork shoulder, ham and spices. SPAM is short for spiced ham. Soldiers and consumers consumed over 150 million pounds of SPAM during World War II. It was cheap, convenient, portable, tasty, and storable, and soldiers could use the grease to lubricate their boots. The U.S. government issued so much SPAM that soldiers got sick of SPAM as it was served up to three times a day and seven days a week. This perfectly describes the around-the-clock repetitive junk e-mail netizens face daily, thus termed e-mail spam.
Normalization Continues
Hormel reported fiscal Q3 2023 earnings of 40 cents per share, missing estimates by 1 cent. Revenues few 2.3% YoY to $2.96 billion, falling short of the $3.04 billion consensus analyst estimates. Hormel sees in-line Q4 2023 revenues of $3.1 billion to $3.6 billion versus $3.43 billion analyst estimates. Full-year 2023 EPS was lowered from $1.61 to $1.67, falling short of the $1.73 analyst estimates.
Segment Summary
Normalization made YoY comparisons difficult after strong results for 2021 and 2022. Retail sales volume rose 1%, net sales fell 2%, and segment profit fell 7%. Hormel Black label bacon has been the fastest-growing national brand in the category over the last year, with volume growth of 13%. Hormel pepperoni is the number one selling pepperoni brand in the U.S. Foodservice sales grew 14% in China. Skippy peanut butter was launched in Germany. Calbee SPAM flavored potato chips were launched in Japan.
Foodservice volume rose 2%, net sales fell 3%, but segment profit rose 14%. International volume rose 10%, net sales fell 6%, and segment profit collapsed 50%. Segment profit shortfall was attributed mainly to sales in China.
Investor Day Fallout
On October 12, 2023, Hormel hosted its Investor Day. The company outlined a three-year strategic plan for earnings growth through modernization, transformation and strategic value capture. The company hopes to transcend income growth of over $250 million by 2026. Hormel also announced its largest wage increase with the United Food and Commercial Workers Union. The company reported $3 to $6 per hour wage increases, double bereavement leave, healthcare coverage protection and increased 401K and pension benefits. This triggered analyst reactions, collapsing shares to 52-week lows.
Analyst Actions
Barclay's analyst Benjamin Theurer cited that Hormel's target was much less than his $370 million operating income projection as he lowered the price target to $33 from $42 with an Equal-Weight rating. Piper Sandler analyst Michael Lavery cut his price target to $35 from $41 with a Neutral rating. Stephens analyst Ben Bienvenu cut his price target to $38 with an Equal-Weight rating.
Hormel analyst ratings and price targets are at MarketBeat. Hormel peers and competitor stocks can be found with the MarketBeat stock screener.
Descending Triangle Breakdown
The weekly candlestick chart on HRL illustrates the descending triangle breakdown pattern. The flat-bottom horizontal support at $37.40 was broken firmly on the Investor Day fallout. HRL failed to trigger the weekly market structure low (MSL) at $38.28, as each attempt was rejected. The weekly relative strength index (RSI) turned back down from the 45-band, falling through the oversold 30-band as shares collapsed to 52-week lows of $30.79. Pullback support levels are $30.25, $38.54, $27.99 and $27.03.
Campbell Soup Co. (NYSE: CPB)
Iconic soup and snack maker Campbell has been around since 1869. The company is well known for its canned soup products. The company has expanded its core product line to include meals, snacks and beverages. Its meals and beverage brands include Swanson, Prego, V8, SpaghettiOs and cooking sauces. Its snack brands include Pepperidge Farms, Kettle, Snyder's, Cape Cod, Goldfish and Late July. The company is acquiring Sovos Brands Inc. (NASDAQ: SOVO), which owns Rao's Homemade, Noosa Greek Yoghurts and Michael Angelo's, for $2.7 billion or $23 per share. The acquisition is expected to be accretive and generate cost synergies while driving growth. Sovos has been a robust growth machine, generating 22% YoY revenue growth in 2022 with a 13.9% trailing EBIT margin.
Stable and Steady
Campbell Soup reported its fiscal Q4 2023 earnings for the quarter ended July 2023 on August 31, 2023. They reported a profit of 50 cents per share, in line with consensus analyst estimates. The company generated a 5.7% YoY revenue growth of $2.1 billion, falling short of $2.6 billion consensus analyst estimates. Organic sales rose 5% YoY. Adjusted gross margin fell 70 bps to 30.6% from unfavorable volume/product mix. However, net price realization and supply chain productivity improvements offset higher cost inflation.
In-Line Guidance
Campbell sees full-year 2023 revenues down 0.5% to up 1.5%, ranging between $9.31 billion to $9.50 billion versus $9.35 billion analyst estimates. Campbell estimates fiscal full-year 2024 EPS of $3.09 to $3.15 versus $3.09 consensus analyst estimates. While volume is expected to decline during the first half of fiscal 2024, positive trends should lead to sequential improvements in the year's second half.
Campbell analyst ratings and price targets are at MarketBeat.
Weekly Inverse Cup Pattern
The weekly candlestick chart on CPB illustrates the inverse cup pattern that started in November 2021 at the $37.34 cup lip line. CPB rallied to $56.03 by January 2023, failing several attempts to break higher as it eventually formed rounding top. Shares continued falling lower as the weekly RSI oscillated through the 30-band oversold level. CPB attempts to stay above the cup lip line as the weekly RSI attempts to rebound through the 30-band with a divergence bottom. Pullback supports are at $37.34 inverse cup lip line, $34.12, $32.47 and $30.98 weekly MSL trigger.
The views and 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 two iconic brand-name consumer stocks may be bargains at these levels, especially with recession fears and the frigid temperatures predicted for this winter. The weekly relative strength index (RSI) turned back down from the 45-band, falling through the oversold 30-band as shares collapsed to 52-week lows of $30.79. Its snack brands include Pepperidge Farms, Kettle, Snyder's, Cape Cod, Goldfish and Late July.
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Descending Triangle Breakdown The weekly candlestick chart on HRL illustrates the descending triangle breakdown pattern. The company generated a 5.7% YoY revenue growth of $2.1 billion, falling short of $2.6 billion consensus analyst estimates. Weekly Inverse Cup Pattern The weekly candlestick chart on CPB illustrates the inverse cup pattern that started in November 2021 at the $37.34 cup lip line.
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Hormel sees in-line Q4 2023 revenues of $3.1 billion to $3.6 billion versus $3.43 billion analyst estimates. Analyst Actions Barclay's analyst Benjamin Theurer cited that Hormel's target was much less than his $370 million operating income projection as he lowered the price target to $33 from $42 with an Equal-Weight rating. The company generated a 5.7% YoY revenue growth of $2.1 billion, falling short of $2.6 billion consensus analyst estimates.
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They might say the same thing about these two consumer staples stocks, trading near their 52-week lows. They reported a profit of 50 cents per share, in line with consensus analyst estimates. The company generated a 5.7% YoY revenue growth of $2.1 billion, falling short of $2.6 billion consensus analyst estimates.
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13107.0
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2023-10-16 00:00:00 UTC
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Apple (AAPL) Stock Sinks As Market Gains: What You Should Know
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https://www.nasdaq.com/articles/apple-aapl-stock-sinks-as-market-gains%3A-what-you-should-know-7
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In the latest trading session, Apple (AAPL) closed at $178.72, marking a -0.07% move from the previous day. This move lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow experienced a rise of 0.93%, and the technology-dominated Nasdaq saw an increase of 1.2%.
The maker of iPhones, iPads and other products's stock has climbed by 2.19% in the past month, exceeding the Computer and Technology sector's loss of 2.02% and the S&P 500's loss of 3%.
The investment community will be paying close attention to the earnings performance of Apple in its upcoming release. The company is slated to reveal its earnings on November 2, 2023. The company is expected to report EPS of $1.39, up 7.75% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $88.87 billion, indicating a 1.42% decline compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. As of now, Apple holds a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 27.19. This denotes a premium relative to the industry's average Forward P/E of 12.46.
We can also see that AAPL currently has a PEG ratio of 2.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computer - Mini computers industry held an average PEG ratio of 2.4.
The Computer - Mini computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 194, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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In the latest trading session, Apple (AAPL) closed at $178.72, marking a -0.07% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.4. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, Apple (AAPL) closed at $178.72, marking a -0.07% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.4.
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In the latest trading session, Apple (AAPL) closed at $178.72, marking a -0.07% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.4. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the latest trading session, Apple (AAPL) closed at $178.72, marking a -0.07% move from the previous day. We can also see that AAPL currently has a PEG ratio of 2.4. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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13108.0
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2023-10-16 00:00:00 UTC
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2 Trillion-Dollar Stocks Billionaires Are Selling and the 1 They're Surprisingly Buying Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/2-trillion-dollar-stocks-billionaires-are-selling-and-the-1-theyre-surprisingly-buying
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It's been a wild ride for Wall Street over the past couple of years. Since the start of 2020, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have wavered between bull and bear markets multiple times. While looking to the horizon is always a smart move for long-term-minded investors, it also pays to know what Wall Street's brightest minds have been up to within their portfolios.
Every quarter, institutional money managers with at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission. A 13F provides a snapshot of what Wall Street's top investors bought and sold in the most recent quarter.
Image source: Getty Images.
While investors have seemingly flocked to Wall Street's five trillion-dollar companies this year -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) -- 13F filings show that not all billionaire investors share the same enthusiasm for some of these trillion-dollar stocks.
Based on the latest round of 13Fs, billionaires have been busy selling two of the aforementioned five trillion-dollar stocks and buying the one you might least expect.
Trillion-dollar stock No. 1 billionaires are selling: Alphabet
The first trillion-dollar stock that had four high-profile billionaires running for the exit during the second quarter is Alphabet, the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo. The four billionaire sellers include (number of Class A GOOGL shares sold in parentheses):
Chase Coleman of Tiger Global Management (4,551,949 shares).
Dan Loeb of Third Point (3,325,000 shares).
Steven Cohen of Point72 Asset Management (3,299,177 shares).
Ray Dalio of Bridgewater Associates (348,344 shares).
The most logical explanation for the selling we've witnessed in Alphabet likely has to do with the belief that the U.S. and global economy will weaken in the coming quarters. Alphabet generates most of its revenue from advertising, and advertisers tend to quickly pare back their spending at the first signs of trouble. Even with Alphabet's dominant positioning in the ad space, the expectation would be for slower sales growth, if not a revenue reversal, if the U.S. and global economy dip into a recession.
However, heading for the exits based on a forecast of short-term turbulence doesn't seem like a smart move. For instance, Google accounted for nearly 92% of worldwide internet search share in September 2023, and it hasn't held less than 90% of global internet search share in a given month since March 2015. Even if there's temporary weakness in the U.S. and global economy, having a veritable monopoly in internet search is going to help Alphabet maintain substantial ad-pricing power.
We're also seeing Alphabet make significant headway with its cloud infrastructure service platform, Google Cloud. Following years of losses, Google Cloud has been profitable in each of the first two quarters of 2023. Enterprise cloud spending has an exceptionally long growth runway, and Google Cloud is currently the global No. 3 in total cloud infrastructure services spending.
Perhaps most baffling is the fact that Alphabet is historically inexpensive. After averaging a price-to-cash-flow multiple of more than 18 over the past five years, investors can purchase shares of Alphabet right now for less than 15 times Wall Street's forward-year cash flow estimate.
Long story short, the pessimism surrounding Alphabet doesn't make a lot of sense.
Trillion-dollar stock No. 2 billionaires are selling: Amazon
The other trillion-dollar stock that billionaires have been active sellers of is yet another head-scratcher: e-commerce company Amazon. A grand total of 10 prominent billionaires reduced or exited their fund's stake in Amazon during the June-ended quarter, including (number of shares sold in parentheses):
Jim Simons of Renaissance Technologies (8,999,016 shares).
Terry Smith of Fundsmith (6,777,831 shares).
Chase Coleman of Tiger Global Management (5,989,891 shares).
Ole Andreas Halvorsen of Viking Global Investors (3,226,907 shares).
Stephen Mandel of Lone Pine Capital (1,709,767 shares)
David Siegel and John Overdeck of Two Sigma Investments (1,443,520 shares).
Israel Englander of Millennium Management (1,159,561 shares).
Steven Cohen of Point72 Asset Management (994,294 shares).
Ken Fisher of Fisher Asset Management (678,708 shares).
There are two headwinds that may explain this billionaire exodus from Amazon. The first is the aforementioned growing likelihood of a U.S. recession. Multiple economic data points and predictive tools suggest the U.S. economy will weaken in the coming quarters, which wouldn't be good news for Amazon's top revenue generator, its online marketplace.
The other headwind is Amazon's valuation. During periods of uncertainty, investors tend to gravitate to perceived-to-be inexpensive companies. With Amazon valued at more than 100 times trailing-12-month earnings and roughly 60 times forecast earnings for 2023, it doesn't fit the traditional mold of a "cheap" stock.
However, both of these headwinds overlook Amazon's rapidly growing, high-margin ancillary segments -- Amazon Web Services (AWS), subscription services, and advertising services -- which are collectively expected to more than triple its operating cash flow between 2022 and 2026. If Amazon matches Wall Street's forecast, it would be valued at a historically low valuation relative to its future cash flow.
In particular, AWS is Amazon's shining star. Amazon is the global No. 1 in cloud infrastructure service spending, according to Canalys. More importantly, the margins associated with cloud services are considerably higher than the razor-thin margins seen with online retail sales. As AWS grows into a larger percentage of net sales, Amazon will enjoy an outsized increase in its operating cash flow.
Image source: Getty Images.
The surprising trillion-dollar stock billionaires are buying hand over fist: Nvidia
While billionaire money managers were busy selling two trillion-dollar stocks that are historically inexpensive relative to their future cash flow, they surprisingly couldn't stop buying the top-performing trillion-dollar stock of 2023 that is, arguably, pricier than ever: Nvidia. A total of 11 billionaire investors bought Nvidia stock hand over fist in the second quarter, including (number of shares purchased in parenthesis):
Jeff Yass of Susquehanna International (5,401,204 shares).
Jim Simons of Renaissance Technologies (1,852,712 shares).
Israel Englander of Millennium Management (1,023,518 shares).
David Tepper of Appaloosa Management (870,000 shares).
Steven Cohen of Point72 Asset Management (662,385 shares).
Stephen Mandel of Lone Pine Capital (641,649 shares).
David Siegel and John Overdeck of Two Sigma Investments (629,072 shares).
Chase Coleman of Tiger Global Management (584,700 shares).
Dan Loeb of Third Point (500,000 shares).
Ole Andreas Halvorsen of Viking Global Investors (312,400 shares).
The overwhelming buying activity in Nvidia by billionaire money managers unquestionably has to do with the company's role in fueling the artificial intelligence (AI) revolution. AI involves using software and systems to handle tasks typically overseen by humans.
Nvidia is widely viewed as the infrastructure backbone of AI-accelerated data centers. The company's A100 and H100 graphics processing units (GPUs) are expected to account for 90% (or more) of all GPUs being deployed in high-compute data centers in the coming quarters. Thanks to a combination of AI-related hype, business demand, and A100/H100 scarcity, Nvidia's margins have soared, and its sale and profit forecasts have blown even Wall Street's wildest high-end estimates out of the water.
However, Nvidia is set to face multiple headwinds in the coming quarters yet remains priced for perfection. It'll be contending with new competition in the AI-GPU arena from the likes of Advanced Micro Devices and Intel, and U.S. regulators may further restrict the company's ability to export high-powered GPUs to China.
Furthermore, Nvidia's own production expansion could lead to its downfall. Being able to meet more of its customers' demands will reduce its exorbitant AI-GPU pricing power and likely weigh on its gross margin in its upcoming fiscal year (Nvidia's fiscal year typically starts in late January or early February).
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. 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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While investors have seemingly flocked to Wall Street's five trillion-dollar companies this year -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) -- 13F filings show that not all billionaire investors share the same enthusiasm for some of these trillion-dollar stocks. Multiple economic data points and predictive tools suggest the U.S. economy will weaken in the coming quarters, which wouldn't be good news for Amazon's top revenue generator, its online marketplace. Thanks to a combination of AI-related hype, business demand, and A100/H100 scarcity, Nvidia's margins have soared, and its sale and profit forecasts have blown even Wall Street's wildest high-end estimates out of the water.
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While investors have seemingly flocked to Wall Street's five trillion-dollar companies this year -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) -- 13F filings show that not all billionaire investors share the same enthusiasm for some of these trillion-dollar stocks. The four billionaire sellers include (number of Class A GOOGL shares sold in parentheses): Chase Coleman of Tiger Global Management (4,551,949 shares). The surprising trillion-dollar stock billionaires are buying hand over fist: Nvidia While billionaire money managers were busy selling two trillion-dollar stocks that are historically inexpensive relative to their future cash flow, they surprisingly couldn't stop buying the top-performing trillion-dollar stock of 2023 that is, arguably, pricier than ever: Nvidia.
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While investors have seemingly flocked to Wall Street's five trillion-dollar companies this year -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) -- 13F filings show that not all billionaire investors share the same enthusiasm for some of these trillion-dollar stocks. The surprising trillion-dollar stock billionaires are buying hand over fist: Nvidia While billionaire money managers were busy selling two trillion-dollar stocks that are historically inexpensive relative to their future cash flow, they surprisingly couldn't stop buying the top-performing trillion-dollar stock of 2023 that is, arguably, pricier than ever: Nvidia. A total of 11 billionaire investors bought Nvidia stock hand over fist in the second quarter, including (number of shares purchased in parenthesis): Jeff Yass of Susquehanna International (5,401,204 shares).
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While investors have seemingly flocked to Wall Street's five trillion-dollar companies this year -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA) -- 13F filings show that not all billionaire investors share the same enthusiasm for some of these trillion-dollar stocks. After averaging a price-to-cash-flow multiple of more than 18 over the past five years, investors can purchase shares of Alphabet right now for less than 15 times Wall Street's forward-year cash flow estimate. Multiple economic data points and predictive tools suggest the U.S. economy will weaken in the coming quarters, which wouldn't be good news for Amazon's top revenue generator, its online marketplace.
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13109.0
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2023-10-16 00:00:00 UTC
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Top 7 Stocks to Consider as Virtual and Augmented Reality Take Center Stage Again
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AAPL
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https://www.nasdaq.com/articles/top-7-stocks-to-consider-as-virtual-and-augmented-reality-take-center-stage-again
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Virtual reality stocks flamed out beginning in late 2021, some very dramatically. 2022 was exceptionally tough on all things tech. Rate hikes prompted by rampant inflation caused a swift and about-face for a sector that had been red hot. The hype fell off a cliff, the reality of Fed rate hikes set in, and investor capital fled the sector en masse. Still, there’s still plenty of potential left in VR stocks for investors to consider.
If you’re thinking it should have been predictable, it wasn’t. Headlines celebrated the sector before it fell and an infamous rebrand only reinforced the idea that the metaverse was set to continue growing. Rate hikes are slowing now and there’s an end in sight. VR/AR/XR products are going to be released in the near future.
That means investors are again reexamining VR stocks and so should you.
Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) stock has performed very well in 2023. It hasn’t been due to VR in any direct way. Nor has it been due to growth. In fact, Apple continued to contract in its fiscal year Q3 overall.
iPhone sales are down which is a leading indicator that consumers simply don’t have as much money for expensive tech as they did in the recent past. That should dictate that AAPL shares fall in price. They haven’t. Apple is simply too big and important and has too many catalysts in its favor. Investors are giving Apple credit for all of it. That includes a burgeoning market in India where Apple is investing heavily. It also includes an increasing ability to derive more revenue from services. This makes it one of those VR stocks to consider.
Even when Apple falters investors give it the benefit of the doubt. iPhone sales have inspired a cult-like following and that matters. VR matters too. Apple will release the Apple Vision Pro in the first quarter of 2024. It will cost $3,499. While that’s a lofty price, it isn’t expected to move the revenue needle much given sales projections. Instead, it gives Apple greater long-term potential in an exciting new sector.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
I alluded to Meta Platforms’ (NASDAQ:META) rebrand in the introduction to this article. The stock gave a lot of pundits a lot to like when it ditched its Facebook moniker in late October of 2021.
The rebrand implied that growth initiatives were here to stay. Otherwise, what would give Facebook the confidence to abandon its brand for the Metaverse? You don’t give up the Facebook name without a firm belief that rates will remain low and growth high. The Meta Platforms rebrand was a screaming indication of that belief. It was also wrong. A few weeks later inflation data caught up to the markets. The realization that quantitative tightening was approaching swept over markets in mid-November. The newly renamed Meta Platforms tanked, Zuckerberg looked like a fool, and the metaverse fervor dissipated.
All things come and go. Meta Platforms has rebounded in 2023. The rebound is primarily attributable to its growing top-line and steady bottom-line performance. Reality Labs, its virtual reality segment, is only losing more and more money. It has sold a lot of headsets but struggles to retain customers. As VR comes back into focus that’s where Meta can make gains.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Let me start by discussing Qualcomm (NASDAQ:QCOM) as a stock that is attractive in general. The company is an important chipmaker in the tech space and has forged important relationships with the world’s biggest companies. Apple among them. It’s going to continue to supply Apple with RF chips through 2026. That’s a big win because it provides a stable runway for the firm for several years.
Further, Qualcomm is simply stable overall. Not many other tech firms of its size provide a dividend that yields 2.9%. QCOM shares do and that dividend has grown since 2003. Investors should get the general sense that Qualcomm is stable. This stability may boost its attractiveness as one of those VR stocks.
In regard to virtual reality, Qualcomm is also notable. The company is developing VR glasses that will compete with the Apple Vision Pro in the near future. They’re not nearly as large and look like industrial safety glasses, not a massive headset. Overall, QCOM is a safe bet for tech exposure that includes virtual reality.
Unity Software (U)
Source: viewimage / Shutterstock.com
A peak into Unity Software’s (NYSE:U) investor relations provides a lot of insight into the direction of the stock. It is heavily entrenched in the reemerging virtual reality opportunity.
The company released a beta program to allow developers to begin creating apps and games for the Apple Vision Pro in July. Unity developers are now creating VR experiences using VisionOS, Apple’s operating system for its headset.
Unity has also set up a new division that will grant the broader virtual effects industry access to its Weta FX tools. Those tools were used in movies including Lord of the Rings and Avatar. The new division is making both 2D and 3D tools available to developers. That further confirms that Unity Software has established itself in the VR space.
Unity Software continues to grow steadily and reached EBITDA profitability in Q4 of 2022. Net losses narrowed in H1 though still substantial. Those losses are likely to be a drag on U shares in this higher longer rate environment. That said, the overall picture is positive based on VR-related news and fundamental improvements.
Matterport (MTTR)
Matterport (NASDAQ:MTTR) stock is again becoming a relevant growth story in the virtual reality/digital twin space. The company sells 3D cameras and software that are used to create virtual models of buildings. It’s easy to imagine the overall utility and opportunity the company provides for investors as more and more spaces get mapped digitally.
That is actually precisely what’s occurring at the moment. Matterport is growing steadily and rapidly. Q2 revenues grew by 39% to $39.6 million. That’s great but not particularly compelling to investors because of the rates. The issue that holds MTTR stock lower at the moment is the fact that losses increased from $56.5 million to $64.6 million in Q2. The positive there is that losses grew at a lower rate than that by which revenues increased. In other words, Matterport could reasonably be expected to see losses begin to narrow in the future.
It has no problem selling its cameras and software. It has a cyclicality problem that will change in a year or so. It’s definitely one o those VR stocks to consider.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Adobe (NASDAQ:ADBE) is another stock that’s heavily invested in virtual reality. It’s perhaps best known for tools like Acrobat but it is also a major visualization firm as evidenced by Photoshop’s dominance. Adobe’s presence in 2D digital visualization should make it unsurprising that the company is moving into 3D digital experiences as well.
Abode Substance 3D is the company’s toolset for 3D and AR software. It supports 3D modeling of objects just as all other 3D visualization software does. It’s difficult to assert that Adobe is the clear winner in that regard as it remains early. However, it’s incontrovertible that Adobe just delivered record revenue in Q3. It also reported record digital media annual recurring revenue for within digital media. Adobe is capitalizing on the AI boom and the VR opportunity is yet to come.
ABDE shares are strong even though the company is part of a second tier of tech stocks that fall behind the likes of the ‘Magnificent 7’.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA), unsurprisingly, is also very useful for virtual reality. That, among many other strengths, continues to make the stock a strong overall pick.
There’s no definitive ‘best’ chip for VR. Everything depends upon end-use and budget. This guide lays out those options very thoroughly. Nvidia comes up again and again and that’s yet another reason that investors have to believe in its long-term value.
It’s tough to talk about Nvidia without mentioning AI. Its dominance in that sphere has propelled shares massively higher this year as generative AI has been commercialized. AI investment has cooled as the market is more fearful at the moment. However, Nvidia has done its part: It delivered revenues that far exceeded already sky-high estimates in Q2. Buy it for virtual reality because it’s strong there or buy it for AI because it dominates there. Nvidia simply remains a buy because it’s too difficult to argue against its overall strengths in this new era as AI emerges. Whichever way you cut it, this means it one of those VR stocks to pay attention to.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post Top 7 Stocks to Consider as Virtual and Augmented Reality Take Center Stage Again appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has performed very well in 2023. That should dictate that AAPL shares fall in price. The hype fell off a cliff, the reality of Fed rate hikes set in, and investor capital fled the sector en masse.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has performed very well in 2023. That should dictate that AAPL shares fall in price. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Virtual reality stocks flamed out beginning in late 2021, some very dramatically.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has performed very well in 2023. That should dictate that AAPL shares fall in price. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Virtual reality stocks flamed out beginning in late 2021, some very dramatically.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has performed very well in 2023. That should dictate that AAPL shares fall in price. This makes it one of those VR stocks to consider.
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13110.0
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2023-10-16 00:00:00 UTC
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Buffett’s Successors: 3 Stocks the Next Generation of Billionaires Are Buying
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AAPL
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https://www.nasdaq.com/articles/buffetts-successors%3A-3-stocks-the-next-generation-of-billionaires-are-buying
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Amid an increasingly uncertain macro environment with heightened geopolitical tensions and a sell-off in the broad indices like the S&P 500, it may be reassuring that there are still some safe havens we can fall back on for solid returns. In this case, it’s the emergence of Warren Buffett stocks that may give growth and stability to our portfolios.
This article highlights Warren Buffett stocks chosen for their long-term growth potential and may trade at undervalued levels. As one of the grandfathers of value investing, Buffett himself may deem these picks to be worthy plays thanks to them being superb companies in their own right.
So here are the best Warren Buffett stocks to buy that may create the next generation of billionaires.
Microsoft (MSFT)
Source: The Art of Pics / Shutterstock.com
Microsoft (NASDAQ:MSFT) is surely one of those Warren Buffett stocks that has the potential to make you rich. In addition to being one of the bluest of chips, MSFT also has staggering growth potential. Much of its growth in the near term can be chalked up to its investment in generative AI, which could see it steal market share away from competitor search traffic.
As a huge company, MSFT also has other irons in the fire to propel its valuation upwards. One less talked about catalyst is its development of quantum computers. Although the technology at this stage is speculative and firmly in the realm of research and development, quantum computing will allow us to tackle problems presently impossible via classical computers. More processing power means we can model more complex systems more efficiently and with greater accuracy, such as financial markets, biological processes, and even weather and global warming patterns.
MSFT stock stands out among its competitors in the race to be the first to commercialize quantum technologies. It’s exploring a more experimental path which has more risk, but a greater potential upside if their investment pays off. To put their solution simply, their quantum system is speculated to be more stable than its competitors, but reaching that stability will take some time. By contrast, MSFT’s peers are exploring more well-understood systems but may come with bigger problems in scale, implementation, and being the first to get their quantum systems ready for commercialization. This gives MSFT a leg up, thus making it one of those Warren Buffet stocks we should keep an eye on.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA) is perhaps one of the most contentious growth stocks that people debate about. Detractors believe that it may have used up most if not all of its growth potential this year alone, while the bulls point towards the many avenues of growth it has yet to explore.
To name just a few of the industries NVDA serves, they include AI, blockchain, gaming, virtual reality, the metaverse, the chip market, and so much more. My view is that the company’s stock price will naturally reflect these catalysts moving forward, but since it trades at 113 times earnings, it may take longer than expected to get there.
The company will need to continue its absolutely stellar earnings performance to keep that earnings multiple stable, and that’s assuming that the stock price doesn’t continue to climb higher. The valuation still might be a little rich. Still, for those who firmly believe in the company’s outlook but are afraid of it being potentially overpriced, strategies like dollar cost averaging might be a robust solution to get cheaper shares over time.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
I believe that Apple (NASDAQ:AAPL) lost a bit of its sex appeal this year as a growth stock. While AI took off with many of its magnificent seven embracing it, AAPL has had a relatively slow start. This, combined with lower-than-expected hardware sales has led it to be overshadowed by other companies on this list.
But AAPL might be looking to change that on the AI front. Apple could become a significant player in the AI space, leveraging its vast installed device base and robust services segment. The company could capitalize on AI by integrating it into consumer products, potentially transforming Siri into a more advanced conversational AI model. This approach could allow Apple to monetize AI through its existing subscription services, tapping into a substantial revenue potential without needing to convert new users aggressively.
This, along with a depressed AAPL stock price at just 30 times earnings, makes it one of those Warren Buffet stocks investors should consider adding to their portfolios.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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The post Buffett’s Successors: 3 Stocks the Next Generation of Billionaires Are Buying appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com I believe that Apple (NASDAQ:AAPL) lost a bit of its sex appeal this year as a growth stock. While AI took off with many of its magnificent seven embracing it, AAPL has had a relatively slow start. But AAPL might be looking to change that on the AI front.
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This, along with a depressed AAPL stock price at just 30 times earnings, makes it one of those Warren Buffet stocks investors should consider adding to their portfolios. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com I believe that Apple (NASDAQ:AAPL) lost a bit of its sex appeal this year as a growth stock. While AI took off with many of its magnificent seven embracing it, AAPL has had a relatively slow start.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com I believe that Apple (NASDAQ:AAPL) lost a bit of its sex appeal this year as a growth stock. This, along with a depressed AAPL stock price at just 30 times earnings, makes it one of those Warren Buffet stocks investors should consider adding to their portfolios. While AI took off with many of its magnificent seven embracing it, AAPL has had a relatively slow start.
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This, along with a depressed AAPL stock price at just 30 times earnings, makes it one of those Warren Buffet stocks investors should consider adding to their portfolios. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com I believe that Apple (NASDAQ:AAPL) lost a bit of its sex appeal this year as a growth stock. While AI took off with many of its magnificent seven embracing it, AAPL has had a relatively slow start.
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13111.0
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2023-10-16 00:00:00 UTC
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Technology Sector Update for 10/16/2023: PCTI, APH, AAPL, MTEK, XLK, XSD
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-16-2023%3A-pcti-aph-aapl-mtek-xlk-xsd
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nan
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nan
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Technology stocks were gaining premarket Monday as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher while the SPDR S&P Semiconductor ETF (XSD) was up nearly 2% recently.
PCTEL (PCTI) was rallying more than 47% after saying it has agreed to be acquired by Amphenol (APH) in an all-cash deal worth roughly $139.7 million.
Apple's (AAPL) iPhone 15 is seeing lower sales in China as demand in the country remains weak and rivals like Huawei Technologies begin to outsell the US phone brand, Bloomberg reported. Apple was 0.6% lower pre-bell.
Maris-Tech (MTEK) was up more than 3%, offsetting losses from Friday that followed its announcement of a notice from Nasdaq, indicating it was no longer in compliance with the exchange's minimum bid price requirement for continued listing.
The views and 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 (AAPL) iPhone 15 is seeing lower sales in China as demand in the country remains weak and rivals like Huawei Technologies begin to outsell the US phone brand, Bloomberg reported. PCTEL (PCTI) was rallying more than 47% after saying it has agreed to be acquired by Amphenol (APH) in an all-cash deal worth roughly $139.7 million. Maris-Tech (MTEK) was up more than 3%, offsetting losses from Friday that followed its announcement of a notice from Nasdaq, indicating it was no longer in compliance with the exchange's minimum bid price requirement for continued listing.
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Apple's (AAPL) iPhone 15 is seeing lower sales in China as demand in the country remains weak and rivals like Huawei Technologies begin to outsell the US phone brand, Bloomberg reported. Technology stocks were gaining premarket Monday as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher while the SPDR S&P Semiconductor ETF (XSD) was up nearly 2% recently. Apple was 0.6% lower pre-bell.
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Apple's (AAPL) iPhone 15 is seeing lower sales in China as demand in the country remains weak and rivals like Huawei Technologies begin to outsell the US phone brand, Bloomberg reported. Technology stocks were gaining premarket Monday as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher while the SPDR S&P Semiconductor ETF (XSD) was up nearly 2% recently. Maris-Tech (MTEK) was up more than 3%, offsetting losses from Friday that followed its announcement of a notice from Nasdaq, indicating it was no longer in compliance with the exchange's minimum bid price requirement for continued listing.
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Apple's (AAPL) iPhone 15 is seeing lower sales in China as demand in the country remains weak and rivals like Huawei Technologies begin to outsell the US phone brand, Bloomberg reported. Technology stocks were gaining premarket Monday as the Technology Select Sector SPDR Fund (XLK) was 0.3% higher while the SPDR S&P Semiconductor ETF (XSD) was up nearly 2% recently. PCTEL (PCTI) was rallying more than 47% after saying it has agreed to be acquired by Amphenol (APH) in an all-cash deal worth roughly $139.7 million.
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13112.0
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2023-10-16 00:00:00 UTC
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PREVIEW-TSMC third-quarter profit to slide 30%, focus on how much growth to come
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AAPL
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https://www.nasdaq.com/articles/preview-tsmc-third-quarter-profit-to-slide-30-focus-on-how-much-growth-to-come
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nan
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By Sarah Wu and Ben Blanchard
TAIPEI, Oct 17 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N is expected to report a 30% slump in third-quarter profit on Thursday but analysts predict robust growth next year as the chip industry emerges from its current downturn.
The likely decline in profit also reflects a strong performance last year, when the company was still riding high on pent-up post-pandemic demand.
The world's largest contract chipmaker is set to report net profit of T$195.9 billion ($6 billion) for July-September - its second straight quarter of profit decline, according to an LSEG SmartEstimate drawn from 19 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate.
Revenue for the quarter came in at around $17 billion, according to TSMC figures, down 20% from a year earlier and roughly the middle of the company's forecast range.
Global demand for semiconductors began to weaken in the second half of last year, but analysts say inventories at smartphone and computer makers are running down and restocking demand is expected to pick up.
Given that, much of Thursday's focus will be on TSMC's outlook for the fourth quarter and beyond.
Morgan Stanley analysts have forecast 10% revenue growth for the fourth quarter but also said in a research note that "guidance may surprise to the upside," citing strong demand for high-end chips used in artificial intelligence as one factor.
The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock having surged 23% so far this year.
An LSEG SmartEstimate puts TSMC's 2024 revenue growth at around 22%.
Sources have said, however, that TSMC has been nervous about customer demand and told its major suppliers to delay the delivery of high-end chip-making equipment, although they added that suppliers expect the delay to be short-term.
Some analysts are also reining in their optimism somewhat.
Fubon Securities expects a slow start to next year for TSMC, with 10% growth in the first quarter, predicting order cancellations towards the year end and mild restocking demand. In particular, it is concerned that Apple AAPL.O, a major customer, may revise down its orders.
"We think the market consensus is still too bullish," it said in a research note.
The company is due to report at 0600 GMT on Thursday.
($1 = 32.2290 Taiwan dollars)
(Reporting by Sarah Wu and Ben Blanchard; Additional reporting by Emily Chan; Editing by 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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In particular, it is concerned that Apple AAPL.O, a major customer, may revise down its orders. By Sarah Wu and Ben Blanchard TAIPEI, Oct 17 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N is expected to report a 30% slump in third-quarter profit on Thursday but analysts predict robust growth next year as the chip industry emerges from its current downturn. Morgan Stanley analysts have forecast 10% revenue growth for the fourth quarter but also said in a research note that "guidance may surprise to the upside," citing strong demand for high-end chips used in artificial intelligence as one factor.
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In particular, it is concerned that Apple AAPL.O, a major customer, may revise down its orders. An LSEG SmartEstimate puts TSMC's 2024 revenue growth at around 22%. Fubon Securities expects a slow start to next year for TSMC, with 10% growth in the first quarter, predicting order cancellations towards the year end and mild restocking demand.
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In particular, it is concerned that Apple AAPL.O, a major customer, may revise down its orders. By Sarah Wu and Ben Blanchard TAIPEI, Oct 17 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N is expected to report a 30% slump in third-quarter profit on Thursday but analysts predict robust growth next year as the chip industry emerges from its current downturn. Morgan Stanley analysts have forecast 10% revenue growth for the fourth quarter but also said in a research note that "guidance may surprise to the upside," citing strong demand for high-end chips used in artificial intelligence as one factor.
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In particular, it is concerned that Apple AAPL.O, a major customer, may revise down its orders. By Sarah Wu and Ben Blanchard TAIPEI, Oct 17 (Reuters) - Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, TSM.N is expected to report a 30% slump in third-quarter profit on Thursday but analysts predict robust growth next year as the chip industry emerges from its current downturn. Morgan Stanley analysts have forecast 10% revenue growth for the fourth quarter but also said in a research note that "guidance may surprise to the upside," citing strong demand for high-end chips used in artificial intelligence as one factor.
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13113.0
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2023-10-16 00:00:00 UTC
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Option Volatility And Earnings Report For October 16 - 20
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AAPL
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https://www.nasdaq.com/articles/option-volatility-and-earnings-report-for-october-16-20
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nan
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nan
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Earnings season kicked off last week and it’s stepping up a gear this week with a huge number of big names set to report. This week we have Tesla (TSLA), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Morgan Stanley (MS), American Express (AXP), Lockheed Martin (LMT) and Goldman Sachs (GS) all set to report.
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
After the earnings announcement, implied volatility usually drops back down to normal levels.
Let’s take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate.
Monday
SCHW – 7.6%
Tuesday
JNJ – 2.9%
BAC – 5.2%
LMT – 3.8%
GS – 4.3%
IBKR – 4.9%
UAL – 7.2%
Wednesday
TSLA – 7.0%
PG – 3.9%
ABT – 5.1%
NFLX – 8.3%
MS – 4.9%
USB – 6.1%
LVS – 5.5%
Thursday
TSM – 5.0%
PM – 3.4%
UNP – 4.1%
T – 5.1%
ISRG – 8.5%
BX – 5.0%
FCX – 5.3%
Friday
AXP – 4.4%
SLB – 4.6%
Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range.
Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance.
Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range.
When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
Stocks With High Implied Volatility
We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
Let’s run thestock screenerwith the following filters:
Total call volume: Greater than 2,000
Market Cap: Greater than 40 billion
IV Percentile: Greater than 50%
This screener produces the following results sorted by IV Percentile. Not many stocks with high volatility at the moment.
You can refer to this article for details of how to find option trades for this earnings season.
Last Week’s Earnings Moves
Last week’s we only had one company of interest report earnings:
PEP +1.9% vs 3.7% expected
DPZ -1.1% vs 7.1% expected
WBA +7.0% vs 7.9% expected
DAL -2.3% vs 5.2% expected
JPM +1.5% vs 3.7% expected
UNH +2.6% vs 3.2% expected
C -0.2% vs 4.6% expected
WFC +3.1% vs 5.0% expected
PNC -2.6% vs 4.8% expected
BLK -1.3% vs 3.9% expected
Overall, there were 10 out of 10 that stayed within the expected range.
Changes In Open Interest
DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week.
Other stocks with large changes in open interest are shown below:
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
3 Dividend Aristocrats to Defend Your Portfolio in Q4
Stocks End Mostly Lower on Geopolitical Risks in the Middle East
3 Cannabis Stocks Analysts Like Better Than Canopy Growth
Should You Buy the Dip in Chewy Stock?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. This week we have Tesla (TSLA), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Morgan Stanley (MS), American Express (AXP), Lockheed Martin (LMT) and Goldman Sachs (GS) all set to report. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
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Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. This week we have Tesla (TSLA), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Morgan Stanley (MS), American Express (AXP), Lockheed Martin (LMT) and Goldman Sachs (GS) all set to report. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
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Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
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Changes In Open Interest DAL, META, AAPL, GOOGL and AAL saw some of the largest changes in open interest last week. Option traders can use these expected moves to structure trades. You can refer to this article for details of how to find option trades for this earnings season.
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13114.0
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2023-10-15 00:00:00 UTC
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The ‘Millionaire Playbook’ for Easy Profits in the AI Boom
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AAPL
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https://www.nasdaq.com/articles/the-millionaire-playbook-for-easy-profits-in-the-ai-boom
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “The ‘Millionaire Playbook’ for Easy Profits in the AI Boom” was previously published in August 2023. It has since been updated to include the most relevant information available.
At this point, it’s quickly becoming clear that AI is the real deal. And over the next few years, as it continues its ascent and transforms the world in profound ways, investors that buy AI stocks today will make fortunes.
But one major question still remains…
What are the best AI stocks to buy today?
Should you chase the rally in red-hot AI chipmaker Nvidia (NVDA)? Or maybe buy the breakout in the AI software company C3.ai (AI)? Or is a hardware play like Tesla (TSLA) the best AI stock to buy right now?
The answer to those questions may be rooted in a historical analysis of previous technological paradigm shifts.
Indeed, every new technological paradigm shift – like the one we’re seeing with AI right now – follows a similar pattern.
They evolve in three distinct “profit waves.”
The ‘Millionaire Playbook’
The first profit wave emerges in the “picks-and-shovels” suppliers of the new tech – the companies that make the stuff that powers the technology.
The second profit wave emerges in the infrastructure makers for the new tech – the companies that take those picks and shovels and make new devices.
And the third profit wave emerges in the software and services developers for the new tech – the companies that create cool, usable applications on top of the new devices.
Makes sense, right?
First, there’s a gold rush for materials to build new tech. Then, there’s a gold rush for new devices that are built with that tech. Then, once everyone has one of those devices, there’s a gold rush for creating applications and services on top of them.
Take the mobile internet boom of the 2010s, for example.
In that time, we saw a profit boom in semiconductor companies like Qualcomm (QCOM), which was selling the chips that powered smartphones.
A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones.
By 2015, a profit boom emerged in software and services companies like Alphabet (GOOGL) and Amazon (AMZN). Once smartphones were ubiquitous, those companies built really cool mobile internet applications for those devices.
In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks.
That was the “Millionaire Playbook” for the mobile internet boom of the 2010s.
Monetizing the AI Revolution
It is also the “Millionaire Playbook” for every major technological revolution of the past 50 years. Every new tech revolution emerges in three distinct profit waves: Suppliers first, device-makers second, and software developers third.
The AI Revolution will play out no differently.
We’re already seeing the first profit wave emerge today. AI chip supplier stocks – paced by Nvidia – are soaring right now.
This boom will last for a year or so. Then, it’ll be the AI hardware makers who experience a profit surge. After that, the AI software developers will start to soar.
The Final Word on AI Stocks
This is the “Millionaire Playbook” to follow for the AI Revolution.
Buy the AI supplier stocks first, hardware stocks second, and software stocks third.
Follow this playbook, and you could mint fortunes in the AI Revolution of the 2020s.
The AI suppliers have already had their profit wave. That means it is time to move on to the AI hardware makers, and even the AI software developers.
Those are the AI stocks you want to be buying today – not Nvidia.
And we’ve compiled some picks that may be the best AI stocks to buy for the wave of mega profits.
Find out all the details.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post The ‘Millionaire Playbook’ for Easy Profits in the AI Boom appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. And over the next few years, as it continues its ascent and transforms the world in profound ways, investors that buy AI stocks today will make fortunes. And the third profit wave emerges in the software and services developers for the new tech – the companies that create cool, usable applications on top of the new devices.
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A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. And the third profit wave emerges in the software and services developers for the new tech – the companies that create cool, usable applications on top of the new devices. In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks.
|
A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks. Buy the AI supplier stocks first, hardware stocks second, and software stocks third.
|
A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks. Every new tech revolution emerges in three distinct profit waves: Suppliers first, device-makers second, and software developers third.
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13115.0
|
2023-10-15 00:00:00 UTC
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Down 10% From Highs, Should You Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/down-10-from-highs-should-you-buy-apple-stock
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nan
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nan
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Apple (AAPL) is one of the most recognized companies globally, and anyone who bought Apple shares a decade back will not be regretting it now. The stock has gained roughly 1,000% in the last 10 years, thanks to its constant innovation to offer a diversified range of high-quality products to consumers. It has now become a household name, and consumers eagerly await the annual release of iPhones.
However, lately, it appears the company is losing its steam by failing to provide any substantive upgrades to its products. The recent iPhone 15 launch did not please investors. However, the artificial intelligence (AI) rally has benefited tech stocks hugely this year. Apple’s stock is up 38% year-to-date, outperforming the 28% rise for the Nasdaq Composite ($NASX).
www.barchart.com
That said, AAPL is now trading 10.8% below its 52-week high. Let’s take a look at this correction, and how Apple might maintain its winning streak going forward.
What’s Happening With Apple?
Over the years, Apple's products have included the Macintosh, iMac, iPod, iPad, Apple Watch, iPhone, and Air Pods. Its distinct strength is its integrated ecosystem, which enhances user experience. Apple also provides services such as iCloud, Apple Music, Apple TV, and Apple News.
For its Q3 ended July 1, services revenue increased by 8% year-over-year to $21 billion. Product revenue, on the other hand, fell by 4.4% to $60.5 billion. In 2023, rising inflation took a hit on spending, affecting most consumer companies. With the launch of a new iPhone or any other product, Apple mostly expects a sales boost from customer upgrades or conversions from Android users. However, over the last few years, Apple hasn’t made many significant hardware updates that might entice customers to upgrade. It released its iPhone 15 models in September.
Soon after the launch, Ben Wood from CCS Insight told BBC, “It isn't a surprise given the maturity of the iPhone and Watch. It reflects just how refined the iPhone and Watch devices are and how tough it has become to deliver truly disruptive updates every year."
What’s Next for Apple?
When Apple announced its Vision Pro Headset in June, it took a significant step into the augmented reality (AR) market. The device will cost around $3,500 and will be available in early 2024. Credit Suisse analysts predicted that Apple would ship more than one million units in the first year.
Though impressed with the technology, many analysts believe Vision Pro will take time to be widely accepted because of its high price. It will also face competition from Meta Platforms' (META) Quest 3, which is quite low-priced at $500. However, according to Reuters, Apple had asked its Chinese supplier to scale down production by 400,000 units in 2024, due to the complex design. Apple set an initial goal of 1 million units in the first year.
In the future, Apple's product popularity among teenagers could be its strongest growth driver. According to a Piper Sandler teen survey, 87% of teens own an iPhone, with 88% planning to purchase one soon. Approximately 34% of the teens polled own an Apple Watch. Generally, most Apple users find it difficult to switch to other products. The company's emphasis on aesthetics, simplicity, and ease of use has earned it a devoted and loyal following. Plus, thanks to that integrated ecosystem, most users are enticed to buy other Apple products - such as AirPods, Mac, iPad, and Apple Watch.
Since the device's launch, Apple has resolved the iPhone 15 overheating issues with a software upgrade. Separately, France’s regulatory agency also lifted the ban on iPhone 12, after it cleared the country’s electromagnetic radiation regulations.
Furthermore, reports indicate Apple and Microsoft (MSFT) may be collaborating to create a search engine to replace Google (GOOGL). Apple is also working on reducing its reliance on China as a supplier. These positive factors may increase sales over time.
What Are Analysts’ Views on AAPL?
Though the sales trend isn't promising for this year, many analysts believe it will improve next year. According to Wedbush Securities analyst Dan Ives, the iPhone 15 Pro and Pro Max will contribute to around 75% of the device sales in 2024. Meanwhile, J.P. Morgan (JPM) said the demand for iPhone 15 might be fading based on a decline in lead times. Along with the new iPhone, Apple also introduced the Apple Watch Series 9.
Overall, analysts predict that Apple's revenue will dip to $89.3 billion in Q4 2023, down from $117 billion in Q4 2022. EPS could also be $1.39 in Q4 2023, down from $1.88 in the year-ago period. For the year ending Sept. 2023, revenue forecasts call for $383.6 billion, a dip of 3% year-over-year. Revenue, could, however, rise by 6.0% to $405.6 billion for the year ending Sept. 2024.
The consensus EPS estimate for the fiscal year ending Sept. 2024 is $6.58, up from the EPS of $6.05 expected for fiscal year 2023. That would mark year-over-year growth of 8.8%. Apple will release its Q4 and full-year results on Nov. 2. Priced at 27 times forward earnings, the company is reasonably valued at current levels.
Wall Street remains bullish on AAPL. At present, out of the 29 analysts following Apple stock, 17 have a “strong buy” recommendation, 3 propose a “moderate buy,” and nine call it a “hold.” The stock has no “sell” recommendations.
Based on analysts' average price target of $206.03, Wall Street expects potential upside of about 15% in the next 12 months. The highest target price stands at $240 and the lowest at $140 for AAPL.
www.barchart.com
The Key Takeaway
According to a BBC report, Apple's CEO Tim Cook stated that the company will increase its AI development spending to hire more talent, particularly in the UK. Apple has already been working on several AI projects, the most notable of which is Siri, its AI-powered voice assistant.
Though this year hasn’t been favorable, Apple’s efforts to innovate and create products that resonate with users worldwide - all while incorporating AI - could help it maintain its legacy in the long run. For long-term investors who believe in Apple’s ability to innovate, now would be a good time to buy the dip in AAPL.
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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Apple (AAPL) is one of the most recognized companies globally, and anyone who bought Apple shares a decade back will not be regretting it now. www.barchart.com That said, AAPL is now trading 10.8% below its 52-week high. What Are Analysts’ Views on AAPL?
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Apple (AAPL) is one of the most recognized companies globally, and anyone who bought Apple shares a decade back will not be regretting it now. www.barchart.com That said, AAPL is now trading 10.8% below its 52-week high. What Are Analysts’ Views on AAPL?
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Apple (AAPL) is one of the most recognized companies globally, and anyone who bought Apple shares a decade back will not be regretting it now. www.barchart.com That said, AAPL is now trading 10.8% below its 52-week high. What Are Analysts’ Views on AAPL?
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What Are Analysts’ Views on AAPL? Apple (AAPL) is one of the most recognized companies globally, and anyone who bought Apple shares a decade back will not be regretting it now. www.barchart.com That said, AAPL is now trading 10.8% below its 52-week high.
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13116.0
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2023-10-15 00:00:00 UTC
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Geopolitics, Earnings and Other Key Themes to Watch this Week
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AAPL
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https://www.nasdaq.com/articles/geopolitics-earnings-and-other-key-themes-to-watch-this-week
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nan
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nan
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Last week we saw some of the volatility from the prior weeks start to subside with the S&P 500 ($SPX) (SPY) finishing the week up just under a 0.5%. Even with some less-than-favorable news releases the markets seemed to be fairly resilient with Apple (AAPL) mostly leading the charge.
This week there are quite a few things to keep an eye on in the news and geopolitical realms. In addition to both of these, we have earnings starting back up with some bigger names in the financial sector reporting this week. Here are 5 things to watch in the market this week:
Earnings
It’s that time of the quarter again, earnings are back. Similar to last quarter it could prove to be very valuable to look past the top and bottom line numbers and listen to the forward guidance from the companies. Banks started to report last Friday and continue into this week with big names like Bank of America (BAC) and Goldman Sachs (GS) reporting on Tuesday, Morgan Stanley (MS) on Wednesday, and American Express (AXP) on Friday.
The big financials could give some insight into where they think the rates are heading as well as some consumer spending habits. The latter is especially relevant to American Express. In addition to the banks, Tesla (TSLA) is out Wednesday after hours and Johnson and Johnson (JNJ) is out Tuesday before the open. Tesla could potentially move the entire market given how popular it is as a trading stock, so that is potentially something to be aware of holding through the close on Wednesday.
Geopolitical Conflict
Tensions have flared and conflict has broken out in the Middle East and this could have some far-reaching consequences outside of all of the human cost involved. This has already sparked a hot war and both the East and West seem hesitant to actually get involved. This is something to watch as a geopolitical event risk continues to rise against the markets.
Empire State Manufacturing
Monday at 8:30 the Empire State Manufacturing is due out, and it has not been great as of late. This could produce some short-term volatility before the open, but it’s likely any volatility will have subsided by the bell. This is more of an economic indicator about the overall conditions of the economy and given last week's news releases, it's possible it's viewed with some additional scrutiny.
Building Permits
Due out Wednesday at 8:30 am are the US building permits which is a measure of new home starts for the month (annualized). Given the current housing situation in the US, this could be viewed as a possible bellwether as to the future of housing. If permits are up, the market could see a rally on the hopes that additional supply can bring housing costs down. If it's a miss it's possible we see the market sell off a bit in the possible thinking that the Fed will need to continue to raise rates to beat down housing costs.
Fed Speakers
Thursday looks to be a very busy day for the talking heads at the Fed. Powell is speaking at the Economic Club of New York and most of the time when he talks and gets asked questions it has a mildly market-moving effect. Later that day both Goolsbee and Harker are speaking as well so it is possible that Thursday could have some wild price action, especially taking into consideration that Tesla is releasing earnings the night before and that often moves the markets on its own.
Best of luck this week and don’t forget to check out my daily options article.
More Stock Market News from Barchart
3 Dividend Aristocrats to Defend Your Portfolio in Q4
Stocks End Mostly Lower on Geopolitical Risks in the Middle East
3 Cannabis Stocks Analysts Like Better Than Canopy Growth
Should You Buy the Dip in Chewy Stock?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even with some less-than-favorable news releases the markets seemed to be fairly resilient with Apple (AAPL) mostly leading the charge. Similar to last quarter it could prove to be very valuable to look past the top and bottom line numbers and listen to the forward guidance from the companies. Powell is speaking at the Economic Club of New York and most of the time when he talks and gets asked questions it has a mildly market-moving effect.
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Even with some less-than-favorable news releases the markets seemed to be fairly resilient with Apple (AAPL) mostly leading the charge. Here are 5 things to watch in the market this week: Earnings It’s that time of the quarter again, earnings are back. Banks started to report last Friday and continue into this week with big names like Bank of America (BAC) and Goldman Sachs (GS) reporting on Tuesday, Morgan Stanley (MS) on Wednesday, and American Express (AXP) on Friday.
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Even with some less-than-favorable news releases the markets seemed to be fairly resilient with Apple (AAPL) mostly leading the charge. Last week we saw some of the volatility from the prior weeks start to subside with the S&P 500 ($SPX) (SPY) finishing the week up just under a 0.5%. Banks started to report last Friday and continue into this week with big names like Bank of America (BAC) and Goldman Sachs (GS) reporting on Tuesday, Morgan Stanley (MS) on Wednesday, and American Express (AXP) on Friday.
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Even with some less-than-favorable news releases the markets seemed to be fairly resilient with Apple (AAPL) mostly leading the charge. In addition to both of these, we have earnings starting back up with some bigger names in the financial sector reporting this week. This is more of an economic indicator about the overall conditions of the economy and given last week's news releases, it's possible it's viewed with some additional scrutiny.
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13117.0
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2023-10-15 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-10
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nan
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nan
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Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our 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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13118.0
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2023-10-15 00:00:00 UTC
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SoundHound AI Stock: Bull vs. Bear
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AAPL
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https://www.nasdaq.com/articles/soundhound-ai-stock%3A-bull-vs.-bear
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nan
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nan
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Artificial intelligence (AI) is a hot topic these days, but not every AI specialist has enjoyed a soaring rocket ride in 2023. Voice control systems expert SoundHound AI (NASDAQ: SOUN), for example, has taken a 48% price cut in 52 weeks.
Is SoundHound a great buy at these low prices, or is the stock cheap for good reason? We tapped two of The Fool's top tech experts to help you straighten out this market conundrum. Anders Bylund sees a wide-open buying window but Keith Noonan is not so enthusiastic.
Well, we are Motley after all. Read on to see how our experts arrived at conflicting conclusions about SoundHound AI.
Bull: This AI veteran deserves a second look
Anders Bylund: This company has been around the block a time or two. Founded in 2005 with an early focus on music recognition services, SoundHound has nearly two decades of AI-based audio expertise under its belt.
Investors who write it off as a newcomer may not know the full story, in other words. After evolving its technology and business plans for many years, SoundHound was ready to take the next step and go public in 2022. The company entered the public stock market through a special purpose acquisition company (SPAC), equipped with an impressive list of automaker and restaurant clients and a sophisticated system for voice-control functions.
I don't mind taking the rocky road toward a long-term success story. SoundHound keeps finding fresh customers and technology partners, including new deals with Casey's General Stores and White Castle in the last two months.
SoundHound has lots of room for continued growth. The automaker client list is far from complete, the Houndify voice control platform's foray into food service and general retail stores has only just begun, and the long-term opportunity is massive.
The SPAC-based initial public offering was poorly timed, setting early investors up for disappointment near the start of a lengthy global downturn. But that pain is in the rearview mirror and new investors don't need to worry about the clumsy market entry. SoundHound is poised to perform from here, being a firmly established leader in the promising field of AI-based voice control systems.
And the modest stock price could lead to a different exit ramp. Larger technology companies could boost their AI-powered voice control muscle with a quick and easy, modestly priced buyout. Let me remind you that voice control experts Shazam and Nuance Communications took that off-ramp in 2018 -- Apple (NASDAQ: AAPL) picked up Shazam for $400 million while Microsoft (NASDAQ: MSFT) invested $16.5 billion in Nuance -- and I think a SoundHound deal would command a billion-dollar price tag too. So Cupertino and Redmond are stocked up on voice control expertise but other tech titans could very well pursue SoundHound while the stock is valued at just $440 million.
As SoundHound carves its niche in the bustling AI audio space, it's a stock that warrants a closer look. With a modest price tag and a robust client base, it could be music to long-term investors' ears or a noteworthy acquisition target for tech giants looking to amplify their voice tech capabilities. Either way, I'm convinced that this AI veteran is deeply undervalued right now.
Bear: SoundHound is still risky after its big pullback
Keith Noonan: SoundHound AI has already found some notable success in the restaurant industry and has growth opportunities in call centers and other categories, but its expansion could proceed at an uneven pace. There are already some signs that this may be occurring.
While SoundHound grew revenue roughly 42% year over year in the second quarter, its cumulative bookings backlog grew just 20%. For comparison, revenue grew 57% year over year and the business's bookings backlog increased 46% in Q1.
SoundHound is still a relatively young company, and its growth-dependent valuation sets the stage for significant downside risk if performance comes in weaker than the market's expectations.
Even after pulling back roughly 62% from its 2023 valuation high, SoundHound currently trades at roughly 9.4 times this year's expected sales. Admittedly, the company has been growing revenue at an impressive pace lately and margins have improved, but the business still appears far away from shifting into profitability. As such, the software specialist will likely continue to rely on debt and issuing new stock in order to fund its operations -- both of which come with downsides for investors.
SOUN PS Ratio (Forward) data by YCharts
SoundHound has promising technologies, and it's possible that its Houndify platform and broader business will prove to be highly scalable and deliver strong sales and earnings performance over the long term. On the other hand, the company's current valuation already has some strong growth priced in, and charting its expansion outlook involves a significant degree of speculation.
After posting combined revenue of roughly $15.5 million across this year's first half, the company's guidance for annual revenue between $43 million and $50 million suggests meaningful growth deceleration in this year's second half. If the trend continues, investors could apply more conservative growth multiples and lower SoundHound's share price.
I certainly wouldn't short the stock, and I wouldn't be shocked if it climbs above current levels. On the other hand, I think that investors looking for the next explosive AI play should understand that there's substantial risk here.
10 stocks we like better than SoundHound AI
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 SoundHound AI 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 13, 2023
Anders Bylund has no position in any of the stocks mentioned. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends Casey's General Stores. 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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Let me remind you that voice control experts Shazam and Nuance Communications took that off-ramp in 2018 -- Apple (NASDAQ: AAPL) picked up Shazam for $400 million while Microsoft (NASDAQ: MSFT) invested $16.5 billion in Nuance -- and I think a SoundHound deal would command a billion-dollar price tag too. The automaker client list is far from complete, the Houndify voice control platform's foray into food service and general retail stores has only just begun, and the long-term opportunity is massive. The SPAC-based initial public offering was poorly timed, setting early investors up for disappointment near the start of a lengthy global downturn.
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Let me remind you that voice control experts Shazam and Nuance Communications took that off-ramp in 2018 -- Apple (NASDAQ: AAPL) picked up Shazam for $400 million while Microsoft (NASDAQ: MSFT) invested $16.5 billion in Nuance -- and I think a SoundHound deal would command a billion-dollar price tag too. Voice control systems expert SoundHound AI (NASDAQ: SOUN), for example, has taken a 48% price cut in 52 weeks. Even after pulling back roughly 62% from its 2023 valuation high, SoundHound currently trades at roughly 9.4 times this year's expected sales.
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Let me remind you that voice control experts Shazam and Nuance Communications took that off-ramp in 2018 -- Apple (NASDAQ: AAPL) picked up Shazam for $400 million while Microsoft (NASDAQ: MSFT) invested $16.5 billion in Nuance -- and I think a SoundHound deal would command a billion-dollar price tag too. So Cupertino and Redmond are stocked up on voice control expertise but other tech titans could very well pursue SoundHound while the stock is valued at just $440 million. 10 stocks we like better than SoundHound AI When our analyst team has a stock tip, it can pay to listen.
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Let me remind you that voice control experts Shazam and Nuance Communications took that off-ramp in 2018 -- Apple (NASDAQ: AAPL) picked up Shazam for $400 million while Microsoft (NASDAQ: MSFT) invested $16.5 billion in Nuance -- and I think a SoundHound deal would command a billion-dollar price tag too. Voice control systems expert SoundHound AI (NASDAQ: SOUN), for example, has taken a 48% price cut in 52 weeks. * They just revealed what they believe are the ten best stocks for investors to buy right now... and SoundHound AI wasn't one of them!
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13119.0
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2023-10-15 00:00:00 UTC
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2 Growth Stocks to Buy in October
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AAPL
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https://www.nasdaq.com/articles/2-growth-stocks-to-buy-in-october
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nan
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nan
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Inflation has consistently eased since reaching a high of 9% in June 2022, with the Consumer Price Index rising 3.7% last month. The cost of living is moving in the right direction, with many experts saying inflation will likely continue easing through 2024. However, Wall Street remains apprehensive, as many companies have continued to suffer from reductions in consumer spending.
Market uncertainty makes now an excellent time to invest in solid growth stocks with plans to hold shares for the long term. Companies active in consistently expanding industries might suffer temporary dips if faced with macroeconomic headwinds but could offer significant gains over many years. So, strengthen your portfolio by considering an investment in these two growth stocks this October.
1. Apple: The king of consumer tech
Investors have slightly pulled back on Apple (NASDAQ: AAPL), with its stock down 7% since the start of August. Macro challenges have caught up with the company, as slowing product sales have led to three consecutive quarters of revenue declines. In the third quarter of 2023, net sales fell in three of Apple's four product segments, with total revenue tumbling 1% year over year.
However, recent headwinds are why keeping a long-term perspective with growth stocks is essential. Despite poor economic conditions, Apple's operating income barely budged in Q3 2023, hitting $23 billion.
Meanwhile, the company's dominance in consumer tech has allowed it to stay resilient during a market downturn. Counterpoint Research shows U.S. smartphone shipments decreased by 24% year over year in Q2 2023. Consequently, Samsung's sales fell 37% during the period. However, consumer preference for Apple meant its sales dipped a more moderate 6%, allowing it to grow its market share from 52% to 55%.
The iPhone company performed similarly in the burdened PC market. Global PC shipments fell 13% in Q2 2023. Yet, Apple experienced growth of 10% in its MacBook business, while competitors like Dell and Lenovo saw declines of 22% and 18%.
Apple holds leading market shares in the majority of its product categories. The company has strategically created an interconnected ecosystem for its products that discourages users from straying to the competition. Its dominance in the market has seen its revenue soar 52% over the last five years, with operating income up 87%.
The tech giant's ability to outperform the competition during economic headwinds makes its stock a reliable investment over the long term. Meanwhile, a booming services business and a growing venture in artificial intelligence only strengthen the argument for this growth stock.
2. Costco: The reliable buy with plenty of growth potential
Costco (NASDAQ: COST) is easily one of the best growth stocks in retail. The company's unique business model of offering wholesale products at market-low prices for an annual subscription fee has won over shoppers worldwide. Its success delivered revenue growth of 59% since 2019, with operating income rising 71%.
Meanwhile, Costco has gained a reputation for reliability among stockholders. The chart illustrates how its shares enjoyed considerably more growth over the last five years than some of the biggest retail companies in the U.S.
Data by YCharts
Meanwhile, as companies like Walmart and Target haven't strayed very far from North America, Costco has significantly profited from its expansion abroad -- and so have investors. Costco now operates in 14 countries but continues to have massive growth potential. In five of those countries, the company manages four or fewer stores, suggesting plenty of expansion opportunities. In France alone, Costco hosts two locations but has plans to build 12 more after winning over residents.
In Costco's Q4 2023 (ending in August), revenue rose 9.5% year over year, beating analysts' forecasts by more than $1 billion. The company has stayed resilient despite economic headwinds, making it an excellent stock for the long term. Costco could be on a promising growth trajectory, and you won't want to miss out.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: The king of consumer tech Investors have slightly pulled back on Apple (NASDAQ: AAPL), with its stock down 7% since the start of August. Companies active in consistently expanding industries might suffer temporary dips if faced with macroeconomic headwinds but could offer significant gains over many years. The company's unique business model of offering wholesale products at market-low prices for an annual subscription fee has won over shoppers worldwide.
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Apple: The king of consumer tech Investors have slightly pulled back on Apple (NASDAQ: AAPL), with its stock down 7% since the start of August. The tech giant's ability to outperform the competition during economic headwinds makes its stock a reliable investment over the long term. Costco: The reliable buy with plenty of growth potential Costco (NASDAQ: COST) is easily one of the best growth stocks in retail.
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Apple: The king of consumer tech Investors have slightly pulled back on Apple (NASDAQ: AAPL), with its stock down 7% since the start of August. In the third quarter of 2023, net sales fell in three of Apple's four product segments, with total revenue tumbling 1% year over year. Costco: The reliable buy with plenty of growth potential Costco (NASDAQ: COST) is easily one of the best growth stocks in retail.
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Apple: The king of consumer tech Investors have slightly pulled back on Apple (NASDAQ: AAPL), with its stock down 7% since the start of August. In the third quarter of 2023, net sales fell in three of Apple's four product segments, with total revenue tumbling 1% year over year. Costco: The reliable buy with plenty of growth potential Costco (NASDAQ: COST) is easily one of the best growth stocks in retail.
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13120.0
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2023-10-15 00:00:00 UTC
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Charlie Munger Says AI Is Overhyped. But Berkshire Hathaway's $345 Billion Portfolio Is Packed With (at Least) 8 AI Stocks!
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AAPL
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https://www.nasdaq.com/articles/charlie-munger-says-ai-is-overhyped.-but-berkshire-hathaways-%24345-billion-portfolio-is
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nan
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nan
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Artificial intelligence (AI) is a game-changing technology that could have a greater impact on the economy than the internet or the smartphone. Generative AI's ability to generate text, images, videos, and even computer code could drive a productivity boom unlike anything businesses have ever seen.
Investors are excited. They have sent AI stocks like Nvidia soaring this year, but one investing titan is saying maybe it's time to pump the brakes.
Charlie Munger is the vice chairman of the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) investment company, and he has worked alongside the legendary Warren Buffett since the 1970s. At a recent conference, Munger reportedly said AI is getting a "huge amount of hype ... probably more than it deserves." He noted that AI has been around for a long time, and he expressed skepticism about the technology's ability to achieve monumental things like, for instance, curing cancer in the near term.
Even with that skepticism, Berkshire's $345 billion portfolio of publicly traded stocks and securities currently owns a stake in several companies using AI to supercharge their businesses, even though Munger and Buffett didn't necessarily buy them for that reason and perhaps weren't the people who decided to make the purchase. Below, I'll share eight of the investment firm's AI stocks.
Image source: Getty Images.
1. Apple: 47.2% of Berkshire's portfolio
Apple (NASDAQ: AAPL) might produce some of the most popular consumer devices, from the iPhone to the Mac computer, but it's also a force in AI, even if the company doesn't outright promote itself as such.
Apple designs its own chips, which are fundamental to AI. The A17 Pro CPU chip inside the new iPhone 15 is capable of rapidly processing AI workloads like predictive text and the Siri voice assistant. Remarkably, it all happens on-device rather than in the cloud, which is testament to how powerful the company's chips have become.
But that's not all. Several of Apple's native mobile applications rely on AI, including the camera and Apple Music, which uses the technology to curate personalized playlists.
Almost half of Berkshire's $345 billion portfolio is invested in Apple, so the investment company is likely to become a huge beneficiary of AI over the long term.
2. Bank of America: 8.1% of Berkshire's portfolio
Investors might not associate banking with AI, but the technology is making a notable impact on the institutions willing to adopt it. In 2018, Bank of America (NYSE: BAC) launched an AI chatbot called Erica, which was designed to handle customer queries and reduce strain on the bank's physical branches and call centers.
Erica has logged 1.5 billion interactions with customers since then, and as it continues to grow more sophisticated, Bank of America will likely save an increasing amount of money on support staff. In September, the bank decided to expand on Erica's success by integrating the same technology into its CashPro digital banking platform for business clients. It will reduce friction on CashPro by allowing customers to quickly access transaction records and find information about their accounts.
The normally slow-moving banking sector could be a substantial beneficiary of AI over the long term, and again, Berkshire stands to reap the rewards as Bank of America stock is the firm's second-largest holding.
3. American Express: 6.6% of Berkshire's portfolio
Credit card companies have been fighting fraud since (almost) the dawn of time. As one of the largest players in the industry, American Express (NYSE: AXP) understands the importance of technology in that ongoing battle.
In 2020, it launched an advanced machine learning system to weed out fraud after a decade of development. The company said it was the world's largest model of its kind at the time. More recently, the AmEx Digital Labs division within American Express has been experimenting with generative AI tools to improve customer experience. It has a virtual assistant called AskAmex that is powered by Mezi, a generative AI company focused on the travel sector, which American Express acquired back in 2018.
American Express tends to attract more affluent consumers, and it is possible AI will play a greater role in concierge services in the future to help the credit card giant fill customers' needs more quickly. But the technology will always feature prominently in the background as fraud becomes more sophisticated. With 6.6% of Berkshire's portfolio value in American Express, that translates to a whopping 20% ownership stake in the company.
4. Coca-Cola: 6.2% of Berkshire's portfolio
This one might come as a surprise, but there is plenty of interest in AI at the world's largest beverage company. In June, Coca-Cola (NYSE: KO) appointed a global head of generative AI, which is a clear sign the company plans for the technology to play a key role in its future.
Coca-Cola just launched a new promotional soda called Coca-Cola Y3000 Zero Sugar, which was formulated with the help of AI. The company gathered data on how customers imagined the future -- it included colors, flavors, and emotions -- and then fed the information into an AI model. The goal was to replicate what Coca-Cola might taste like in the year 3000, but since none of us will be around then, we'll leave it to future generations to digest the results.
Coca-Cola also used AI to design a marketing campaign called Masterpiece recently, featuring a video created with a mix of real and AI-generated content. Those initiatives will likely expand in scope in the future, and Berkshire might be glad it owns $21.6 billion worth of the company's stock.
5. BYD Co.: 0.9% of Berkshire's portfolio
BYD Co. (OTC: BYDDY) is based in China, and it's one of the world's largest electric vehicle manufacturers. It makes everything from electric buses to forklifts to passenger vehicles.
The company uses Nvidia's DRIVE platform to power autonomous self-driving capabilities in its cars, which includes all of the necessary hardware and software. While BYD isn't sold on developing competing technologies in-house, it is focused on integrating AI and automation into its production processes, which could drive substantial value.
The company is also experimenting with autonomous driving for its forklifts, which likely poses less risk and liability compared with putting passenger cars on public roads. For now, it appears BYD is likely to implement AI around the edges of its business rather than making it a central focus. Nonetheless, Berkshire will benefit from any success that strategy brings thanks to its position in BYD stock, which represents 0.9% of the firm's portfolio.
6. Amazon: 0.4% of Berkshire's portfolio
Amazon (NASDAQ: AMZN) is one of Berkshire's most direct AI investments, even though the firm first bought the stock in 2019, before the technology took hold. Amazon is home to the world's largest cloud computing platform, Amazon Web Services (AWS), and it's racing to build its portfolio of AI products and services.
AWS has designed its own chips, and it's also developing large language models its business customers can use and build upon. Amazon is also fresh off a $4 billion investment into leading generative AI start-up Anthropic, which will help accelerate its progress across the AI stack.
Since AI is developed, trained, and deployed in the cloud, Amazon could be one of Berkshire's most important investments in this industry -- even if it only represents 0.4% of the firm's portfolio right now.
7. Snowflake: 0.3% of Berkshire's portfolio
Snowflake (NYSE: SNOW) might be considered another direct AI investment. It's an innovative leader in the cloud computing industry, helping thousands of businesses aggregate their data using its Data Cloud platform for maximum visibility and powerful analysis. Now, it's investing heavily in bringing more AI tools to its customers.
Snowflake has acquired several small AI start-ups to accelerate its initiatives. One of them is Neeva, which developed a search tool designed to help everyday users find critical information using natural language instead of programming language. That means more employees can draw useful insights from an organization's data, as opposed to technical staff alone.
Snowflake also launched a new tool called Document AI to help businesses extract important information from unstructured data sets in contracts and invoices, for example. Professionals like lawyers and accountants could experience a productivity explosion thanks to that technology.
Snowflake is a tiny piece of Berkshire's portfolio, representing just 0.3% of its value, and the company is still losing money, making it one of the riskier plays the company is holding.
8. General Motors: 0.2% of Berkshire's portfolio
The automotive industry could be another major beneficiary of AI, and legacy manufacturers like General Motors (NYSE: GM) are racing to keep up with the technological advancements of new competitors like Tesla.
GM owns Cruise, a start-up developing autonomous vehicles which already operate in at least three major U.S. cities. Self-driving technology, which is powered by AI, has the potential to change the future of human mobility.
GM is also working with Google parent Alphabet to implement AI across its business. Google's conversational AI already powers the in-car voice assistant in GM's vehicles.
Berkshire has sold more than half of its stake in GM in 2023, which doesn't inspire much confidence. Its remaining position represents just 0.2% of the firm's portfolio.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 9, 2023
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. American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Bank of America, Berkshire Hathaway, Nvidia, Snowflake, 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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Apple: 47.2% of Berkshire's portfolio Apple (NASDAQ: AAPL) might produce some of the most popular consumer devices, from the iPhone to the Mac computer, but it's also a force in AI, even if the company doesn't outright promote itself as such. Erica has logged 1.5 billion interactions with customers since then, and as it continues to grow more sophisticated, Bank of America will likely save an increasing amount of money on support staff. American Express tends to attract more affluent consumers, and it is possible AI will play a greater role in concierge services in the future to help the credit card giant fill customers' needs more quickly.
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Apple: 47.2% of Berkshire's portfolio Apple (NASDAQ: AAPL) might produce some of the most popular consumer devices, from the iPhone to the Mac computer, but it's also a force in AI, even if the company doesn't outright promote itself as such. Amazon is home to the world's largest cloud computing platform, Amazon Web Services (AWS), and it's racing to build its portfolio of AI products and services. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Bank of America, Berkshire Hathaway, Nvidia, Snowflake, and Tesla.
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Apple: 47.2% of Berkshire's portfolio Apple (NASDAQ: AAPL) might produce some of the most popular consumer devices, from the iPhone to the Mac computer, but it's also a force in AI, even if the company doesn't outright promote itself as such. Even with that skepticism, Berkshire's $345 billion portfolio of publicly traded stocks and securities currently owns a stake in several companies using AI to supercharge their businesses, even though Munger and Buffett didn't necessarily buy them for that reason and perhaps weren't the people who decided to make the purchase. Almost half of Berkshire's $345 billion portfolio is invested in Apple, so the investment company is likely to become a huge beneficiary of AI over the long term.
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Apple: 47.2% of Berkshire's portfolio Apple (NASDAQ: AAPL) might produce some of the most popular consumer devices, from the iPhone to the Mac computer, but it's also a force in AI, even if the company doesn't outright promote itself as such. Almost half of Berkshire's $345 billion portfolio is invested in Apple, so the investment company is likely to become a huge beneficiary of AI over the long term. Bank of America: 8.1% of Berkshire's portfolio Investors might not associate banking with AI, but the technology is making a notable impact on the institutions willing to adopt it.
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13121.0
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2023-10-15 00:00:00 UTC
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Veteran Tech Analyst Dan Ives Says AI Tech Stocks Set to "Rip Higher." 7 Best-Quality Growth Stocks to Buy Now.
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AAPL
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https://www.nasdaq.com/articles/veteran-tech-analyst-dan-ives-says-ai-tech-stocks-set-to-rip-higher.-7-best-quality-growth
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nan
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nan
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There's a great deal of uncertainty on Wall Street right now. After the major stock market indexes kicked off 2023 with a sharp rise up, stocks took a breather in August and September. Investors got a bit nervous, citing macroeconomic concerns about the Federal Reserve's ongoing battle with inflation and rising Treasury yields.
These macro concerns are "overshadowing the biggest technology revolution in the last 30 years," claims Wedbush managing director and senior tech analyst Dan Ives. He asserts that the opportunity wrought by artificial intelligence (AI) will push stocks much higher in the months and years to come. Investors should ignore the noise and seize the opportunity to buy "the best-quality tech stocks" out there.
Here are seven stocks Ives believes are ripe for the picking.
Image source: Getty Images.
1. Apple
With the largest market cap on the planet, some investors sold off thinking that Apple (NASDAQ: AAPL) has no worlds left to conquer. Yet Ives believes the next opportunity is hiding in plain sight.
The recent release of the iPhone 15, complete with upgraded processor and camera technology and deeply infused with AI, is driving strong demand. The iPhone 15 Pro and Max models have been in short supply, with wait times pushed out until mid-November, suggesting consumers are upgrading to the latest and greatest Apple devices.
Ives estimates that 250 million iPhones haven't been upgraded in more than four years, resulting in a large base of pent-up demand. That, coupled with strong consumer interest in the highest-priced models, illustrates the enduring power of the iPhone, which remains the most popular phone in the world and could drive Apple stock higher.
2. Microsoft
AI made plenty of headlines in 2023, and Microsoft (NASDAQ: MSFT) remains one of the companies best positioned to benefit from the shift to AI, according to Ives.
Microsoft was among the first to recognize the trend, making a sizable investment in ChatGPT creator OpenAI. The result of that collaboration is a host of generative AI tools -- led by Microsoft 365 Copilot -- that are deeply integrated into Microsoft's Azure Cloud and Office suite of products.
While estimates vary, some on Wall Street calculate that Microsoft will generate $100 billion in incremental revenue annually by 2027, which would no doubt send its stock higher.
3. Palo Alto Networks
Investors only need to check the headlines to understand the clear, growing need for cybersecurity, and Palo Alto Networks (NASDAQ: PANW) remains "a top pick in the sector," according to Ives. Fueling his enthusiasm about Palo Alto is the company's expanding total addressable market and innovation across its "entire product portfolio," leveraging the latest generative AI tools.
Indeed, Palo Alto Networks recently updated its guidance and estimates its total addressable market at $213 billion, up from just $38 billion five years ago. This helps to illustrate the large and growing opportunity as the company expands its zero-trust model into adjacent markets.
Palo Alto Networks increased its revenue by 198% over the past five years, driving its stock price up by 327%. Given the company's track record, there's no reason to believe this trend won't continue.
4. Palantir
As one of the few pure-play AI companies out there, Palantir (NYSE: PLTR) is well positioned to "garner a meaningful share" of the estimated $1 trillion global AI opportunity, according to Ives.
Ives is probably on to something. While Palantir is a pioneer in the field and has long been the go-to for large-scale data mining that leverages AI, the company quickly pivoted to include generative AI tools that deeply integrate with customer data, courtesy of its Artificial Intelligence Platform (AIP). CEO Alex Karp noted that "demand for AIP is unlike anything we have seen in the past 20 years," noting the platform "already has users across 100 organizations," and Palantir is in discussions to deploy with 300 more.
Palantir's steadily improving financial results and credibility in the field give it a massive edge in a quickly growing marketplace.
5. Zscaler
Given the magnitude of the opportunity in the cybersecurity market, it isn't surprising Ives would have several companies in the industry among his favorites, and Zscaler's (NASDAQ: ZS) place on the list is well earned. The company's software-as-a-service (SaaS) applications and cloud workload protections, fueled by AI, provide real-time insights -- making it a "top name in this space," according to Ives.
Zscaler, which boasts the world's largest security cloud platform, has an impressive track record of "beat and raise" -- beating analysts' consensus estimates while simultaneously raising guidance. As a result, the company generated revenue of $1.6 billion for fiscal 2023 (ended July 31), which pales in comparison to its addressable market of $72 billion.
Furthermore, a recent collaboration with CrowdStrike (NASDAQ: CRWD) to create a zero-trust cybersecurity solution customized for medical institutions helps expand its market opportunity even further.
6. CrowdStrike
Speaking of CrowdStrike, the cybersecurity specialist, which provides cloud-delivered protection for endpoints, cloud workloads, identity, and data, also made Ives's short list of top cybersecurity picks. CrowdStrike's Falcon platform began using AI before it was fashionable, helping it stay well ahead of the next cyberattack. The company recently hosted an Analyst Day, which left Ives even more bullish.
The company laid out plans to increase its addressable market from its current level of $100 billion to $225 billion by 2028. This will come courtesy of an increasing product pipeline, expanding solutions, and geographical expansion. CrowdStrike also released its updated target operating model, which is expected to increase its operating margin to roughly 21% and free cash flow margin to 31% over the coming three to five years.
CrowdStrike's consistently improving financial results help illustrate why this AI innovator is a buy.
7. MongoDB
While legacy databases are limited by what fits neatly into rows and columns, MongoDB's (NASDAQ: MDB) cloud-native Atlas platform handles a much greater variety of both structured and unstructured data. This includes things like audio and video files, social media posts, and even entire documents. Ives and colleague Taz Koujalgi cite the company's industry-leading product, consistent execution, and large addressable market.
MongoDB is a developer favorite, providing tools that help them infuse AI into applications. The company has been selected as a Leader in Gartner's Magic Quadrant for Cloud Database Management Systems. The company also recently launched Atlas for Industries, a comprehensive set of industry-specific tools to help customers succeed.
Management estimates the company's current market opportunity at $81 billion, growing to $136 billion by 2027.
The opportunity is vast
While estimates vary wildly, most experts agree the opportunity represented by AI is likely in the trillions of dollars. Much of that will come from top companies that can strategically integrate the technology into their existing offerings, making them even more attractive.
I have no doubt each of these companies will find compelling ways to benefit from AI. In fact, even before Ives posted his latest ponderings, I owned all but one of these stocks.
10 stocks we like better than Apple
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*Stock Advisor returns as of October 13, 2023
Danny Vena has positions in Apple, CrowdStrike, Microsoft, MongoDB, Palantir Technologies, and Zscaler. The Motley Fool has positions in and recommends Apple, CrowdStrike, Microsoft, MongoDB, Palantir Technologies, Palo Alto Networks, and Zscaler. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple With the largest market cap on the planet, some investors sold off thinking that Apple (NASDAQ: AAPL) has no worlds left to conquer. The iPhone 15 Pro and Max models have been in short supply, with wait times pushed out until mid-November, suggesting consumers are upgrading to the latest and greatest Apple devices. That, coupled with strong consumer interest in the highest-priced models, illustrates the enduring power of the iPhone, which remains the most popular phone in the world and could drive Apple stock higher.
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Apple With the largest market cap on the planet, some investors sold off thinking that Apple (NASDAQ: AAPL) has no worlds left to conquer. Fueling his enthusiasm about Palo Alto is the company's expanding total addressable market and innovation across its "entire product portfolio," leveraging the latest generative AI tools. While Palantir is a pioneer in the field and has long been the go-to for large-scale data mining that leverages AI, the company quickly pivoted to include generative AI tools that deeply integrate with customer data, courtesy of its Artificial Intelligence Platform (AIP).
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Apple With the largest market cap on the planet, some investors sold off thinking that Apple (NASDAQ: AAPL) has no worlds left to conquer. Microsoft AI made plenty of headlines in 2023, and Microsoft (NASDAQ: MSFT) remains one of the companies best positioned to benefit from the shift to AI, according to Ives. Palantir As one of the few pure-play AI companies out there, Palantir (NYSE: PLTR) is well positioned to "garner a meaningful share" of the estimated $1 trillion global AI opportunity, according to Ives.
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Apple With the largest market cap on the planet, some investors sold off thinking that Apple (NASDAQ: AAPL) has no worlds left to conquer. While estimates vary, some on Wall Street calculate that Microsoft will generate $100 billion in incremental revenue annually by 2027, which would no doubt send its stock higher. Fueling his enthusiasm about Palo Alto is the company's expanding total addressable market and innovation across its "entire product portfolio," leveraging the latest generative AI tools.
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13122.0
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2023-10-15 00:00:00 UTC
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4 Timeless Lessons From Warren Buffett's Favorite Stock
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AAPL
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https://www.nasdaq.com/articles/4-timeless-lessons-from-warren-buffetts-favorite-stock
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nan
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nan
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It's no secret by now that Apple (NASDAQ: AAPL) is Warren Buffett's favorite stock.
The Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) chief has sung its praises time and again, calling it a "wonderful business" and even saying it's "probably the best business I know in the world."
Despite the company's size and Buffett's fondness for the iPhone maker, it may still come as a surprise to learn Apple now makes up 51% of Berkshire Hathaway's stock portfolio as of the end of the second quarter.
Berkshire first began buying the stock in 2016, and since then, it's delivered monster returns, up more than 500%. If you want to invest like Buffett, keep reading to see four easy ways you can follow his example with Apple.
Image source: The Motley Fool.
1. Let your winners run
Buffett prefers to be a buy-and-hold investor when the circumstances support it, saying that his favorite holding period is forever when the business and management are outstanding.
Letting your winners run, as opposed to selling them to book gains, is a crucial tactic for any investor aiming to outperform the market. The best stocks can deliver returns of 10 times, 20 times, 50 times, or even more on your original investment, but you only benefit from those gains if you hold the stock.
By doing so, you benefit from the magic of compounding, and one big winner can truly make a difference to your overall wealth, as well as offsetting dozens of losers.
Buffett has benefited from this strategy with stocks like Coca-Cola and American Express, which Berkshire has held for more than 30 years, generating over 1,500% returns without dividends reinvested.
2. Diversification is overrated
If your financial advisor saw you had more than half of your portfolio invested in one stock, their hair might catch on fire.
Most individual investors are counseled to avoid being overly concentrated in one stock and to diversify across multiple sectors and even asset classes. Index funds and mutual funds make it easy for investors to diversify, and there's some logic to the practice.
Diversifying is a way of limiting downside risk, and for many investors, especially in a retirement account, the first rule is not to lose money. When you have 51% of your holdings in one stock, it only takes one thing to go wrong with that company, and your portfolio could get crushed.
However, the flip side of diversification is that you limit your upside gains when you sell your winners instead of letting them run. Rebalancing your portfolio by selling winners to reduce concentration is common, but it can be counterproductive to achieving truly outstanding returns.
Diversification can work, but it requires careful consideration rather than blindly selling otherwise winning stocks.
3. Sometimes, winners are hiding in plain sight
Newer investors often believe they have to find an under-the-radar small-cap stock in order to make big money on the stock market.
However, the opposite seems to be true most of the time.
There are few stocks that seem more obvious than Apple, after all. Its business and brand strength are easy to understand, and it's been the most profitable smartphone company ever.
In fact, many of the other top performers of the 21st century have been stocks whose competitive advantages were readily apparent. Those include Amazon, Netflix, Alphabet, and Tesla.
The lesson here is that you don't need to overthink investing, and there are no bonus points for originality. Just because a stock seems obvious doesn't mean it won't be a big winner, especially if it still has a long growth runway ahead of it.
4. You can get in late and still earn big returns
Finally, a key lesson from Buffett's success with Apple is that you can get into a stock late and still be a big winner.
By 2016, Apple's dominant consumer tech ecosystem was clear with several leading devices and a growing, high-margin business in services, including its App Store and Apple Pay.
It would have been easy to think the stock had already run its course, but it's jumped by more than six times since then. The company has continued to raise prices on the iPhone, seen strong growth from new products like Airpods, and expanded its services business.
Don't assume that a large, dominant company is always done growing. If it can continue to increase profits and the valuation is reasonable, the stock should have room to go higher.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon.com and Netflix. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Netflix. 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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It's no secret by now that Apple (NASDAQ: AAPL) is Warren Buffett's favorite stock. Despite the company's size and Buffett's fondness for the iPhone maker, it may still come as a surprise to learn Apple now makes up 51% of Berkshire Hathaway's stock portfolio as of the end of the second quarter. Let your winners run Buffett prefers to be a buy-and-hold investor when the circumstances support it, saying that his favorite holding period is forever when the business and management are outstanding.
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It's no secret by now that Apple (NASDAQ: AAPL) is Warren Buffett's favorite stock. The Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) chief has sung its praises time and again, calling it a "wonderful business" and even saying it's "probably the best business I know in the world." The best stocks can deliver returns of 10 times, 20 times, 50 times, or even more on your original investment, but you only benefit from those gains if you hold the stock.
|
It's no secret by now that Apple (NASDAQ: AAPL) is Warren Buffett's favorite stock. The best stocks can deliver returns of 10 times, 20 times, 50 times, or even more on your original investment, but you only benefit from those gains if you hold the stock. Sometimes, winners are hiding in plain sight Newer investors often believe they have to find an under-the-radar small-cap stock in order to make big money on the stock market.
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It's no secret by now that Apple (NASDAQ: AAPL) is Warren Buffett's favorite stock. The best stocks can deliver returns of 10 times, 20 times, 50 times, or even more on your original investment, but you only benefit from those gains if you hold the stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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13123.0
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2023-10-15 00:00:00 UTC
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3 Top Stocks to Buy for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/3-top-stocks-to-buy-for-the-long-haul-10
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nan
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nan
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One of the advantages individual investors have is the length of time their stocks are held. Research shows that trading in and out of stocks is detrimental to returns. Timing the market is difficult and many investors make the mistake of buying when the market is up and selling when the market is down. Buying great companies and holding them for many years is likely to result in better returns for shareholders.
The question for investors is which stocks make those great long-term investments. There are three companies in particular I think have competitive advantages and growth opportunities to make them top choices for long-term investors.
Apple
Apple (NASDAQ: AAPL) is best known for its popular devices like the iPhone, iPad, and Mac computers. However, the company has been methodically building an ecosystem of software and subscriptions that has two benefits to the business results.
Once a customer has a few Apple products and is pulled into Apple's world of software and subscriptions (which the company calls its services segment), they're more likely to continue to buy Apple products because there are switching costs in terms of time spent to start using other software, apps, and subscriptions.
Second, the services part of the business is growing impressively and bringing high-margin revenue to Apple. In the most recently reported quarter, Apple's third quarter of 2023, services revenue came in at $21 billion, up 8% year over year and accounting for 26% of total revenue.
Services is now Apple's second-largest segment, after its iPhone sales. This higher-margin services revenue has helped Apple improve its gross margin by 14% over the past five years.
MercadoLibre
MercadoLibre (NASDAQ: MELI) may not be a household name in the U.S., but in many parts of Latin America, it is the leader in e-commerce and fintech. With its MercadoLibre Marketplace, the company brings online shopping to many countries including Argentina, Brazil, and Mexico.
In Q2 of 2023, MercadoLibre's e-commerce marketplace grew its gross merchandise volume (GMV) by 47% after adjusting for currency exchange rates. This was led by GMV in Argentina, which grew 119%, and Mexico, which increased by 34%. GMV is the total value of all the transactions that take place on the platform, so it's a good indicator of how well the e-commerce business is performing. These results show there's still plenty of growth for this business to capture.
MercadoLibre also has a fast-growing fintech platform called MercadoPago. While the e-commerce business can be measured by TPV, the fintech business uses a metric called total payment transactions. This is the number of all transactions paid for using MercadoPago. Total payment transactions were up 69% in Q2 of 2023, demonstrating the demand in Latin America for digital payments.
The ever-increasing popularity of the e-commerce and fintech businesses contributed to MercadoLibre's Q2 2023 revenue growth of 32% as well as its 112% increase in earnings per share. As the leader in the emerging Latin American market, there should be plenty of growth yet to come for MercadoLibre.
Disney
Few companies have struggled more over the last five years than Disney (NYSE: DIS). Between the launch of its successful but cash-burning Disney+ streaming service, the COVID-19 pandemic, and its high-profile CEO changes, Disney has seen its share of turmoil. The result has been a stock that's down 58% from its early-2021 high.
Despite these challenges, the most recently reported quarter showed some bright spots that could give investors some hope that better days are ahead. First of all, operating losses for Disney's direct-to-consumer business improved by $550 million, helped by improved results at Disney+. Management stated that its new ad-supported tier is working so well that it's raising prices on its ad-free tier in an effort to push subscribers to the ad-supported tier.
While the media business should see continued improvement, the parks and experiences side of the business is back on the right track after going through the pandemic shutdowns. Through the first nine months of 2023, parks and experiences revenue was up by 17% and operating income grew by 20% over the same time frame in 2022. These strong results are especially helpful to Disney's profitability. Despite representing only about one-third of overall revenue, the parks and experiences segment accounts for 60% of operating income.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
Jeff Santoro has positions in Apple, MercadoLibre, and Walt Disney. The Motley Fool has positions in and recommends Apple, MercadoLibre, and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is best known for its popular devices like the iPhone, iPad, and Mac computers. In Q2 of 2023, MercadoLibre's e-commerce marketplace grew its gross merchandise volume (GMV) by 47% after adjusting for currency exchange rates. The ever-increasing popularity of the e-commerce and fintech businesses contributed to MercadoLibre's Q2 2023 revenue growth of 32% as well as its 112% increase in earnings per share.
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Apple Apple (NASDAQ: AAPL) is best known for its popular devices like the iPhone, iPad, and Mac computers. In the most recently reported quarter, Apple's third quarter of 2023, services revenue came in at $21 billion, up 8% year over year and accounting for 26% of total revenue. This higher-margin services revenue has helped Apple improve its gross margin by 14% over the past five years.
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Apple Apple (NASDAQ: AAPL) is best known for its popular devices like the iPhone, iPad, and Mac computers. Once a customer has a few Apple products and is pulled into Apple's world of software and subscriptions (which the company calls its services segment), they're more likely to continue to buy Apple products because there are switching costs in terms of time spent to start using other software, apps, and subscriptions. In the most recently reported quarter, Apple's third quarter of 2023, services revenue came in at $21 billion, up 8% year over year and accounting for 26% of total revenue.
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Apple Apple (NASDAQ: AAPL) is best known for its popular devices like the iPhone, iPad, and Mac computers. These results show there's still plenty of growth for this business to capture. While the e-commerce business can be measured by TPV, the fintech business uses a metric called total payment transactions.
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13124.0
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2023-10-14 00:00:00 UTC
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Apple Stock (NASDAQ:AAPL): What to Look for In Its Q4 Results
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AAPL
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https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-what-to-look-for-in-its-q4-results
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nan
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nan
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Apple (NASDAQ:AAPL) is set to release its Q4 results on November 2, which makes this an ideal time to review some of the key figures investors ought to look out for. The $2.8 trillion technology behemoth released the iPhone 15 just days before its quarter-end, adding complexity to revenue predictions. Further, with Apple shares dipping in August, monitoring the course of share repurchases will provide valuable insights into the stock's valuation. For the time being, I am neutral on the stock.
Can Strong iPhone Sales Momentum from Q3 Transfer Over to Q4?
Apple ended Q3 with strong momentum, which has likely lasted as the company made its way into Q4. For context, Apple posted revenues of $81.8 billion in the previous quarter. While this marked a decline of 1.4% over Q3 2022, lower sales were only due to seasonality around device purchasing and foreign exchange headwinds. In fact, the company posted record iPhone revenues in multiple emerging market regions and in some of its more mature markets, ending the quarter with strong momentum.
Specifically, despite the 2.5% decline in iPhone sales, management mentioned that quarterly iPhone revenues hit new records in India, Indonesia, Mexico, the Philippines, Poland, Saudi Arabia, Turkey, and the UAE. The company also set new quarterly records in a number of its more mature countries as well, including France, the Netherlands, and Austria.
Given the strong international iPhone sales momentum Apple posted in Q3, investors are eager to see how the device's sales will come in during Q4 (Apple's fiscal Q4 ends September 30th). This question becomes even more interesting when we take into account that Apple released the iPhone 15 on September 22, just before the end of Q4. Well, it's safe to say that iPhone sales won't be disappointing. Early reports indicate record-breaking sales in key markets such as China.
However, I would say that regardless of whether iPhone 15 sales appear strong or not, there are better key performance indicators (KPIs) for investors to focus on in this report. The reason is that the iPhone 15's incremental improvements from its predecessor, while meaningful to the device's evolution, don't make a big enough impact to cause users to upgrade. If you own an iPhone 14, there is little incentive to upgrade unless you are a professional creator seeking to leverage an even better camera.
In my view, to assess whether Apple's momentum remains strong in Q4, investors should assess how Apple's overall ecosystem is evolving. The company's installed base is a great metric. For example, even if not many people were to upgrade to an iPhone 15, the fact that the company's installed base continues to grow is way more important.
Smartphone sales follow a cyclical pattern, with users who opt not to upgrade to the iPhone 15 likely considering the move next year. Conversely, those who have upgraded now may not revisit the decision until the release of the iPhone 17. However, for Apple, the crucial metric lies in sustaining consistent growth in the overall number of iPhone users. Notably, in Q3, Apple celebrated an all-time high installed base of active devices.
In turn, this translates to higher revenues in the company's non-cyclical source of revenue -- Services. Indeed, in Q3, Services revenues grew by 8.2% to $21.2 billion, a new all-time high for Apple. This is a high-margin segment for the company, whose continuous growth should support earnings expansion. So, to wrap up, investors should focus more on the progress in Apple's installed base and growth in Services rather than the year-over-year growth in iPhone sales.
What Do Apple's Buybacks Say About the Stock's Valuation?
Apple's Q4 buybacks can unveil crucial insights into the current valuation of the stock. Despite a significant uptick in interest rates, the stock's valuation has consistently maintained elevated levels. Notably, Apple's forward P/E multiple, standing at nearly 28, surpasses its historical range of 10-17 observed between 2010 and 2020. This discrepancy is particularly perplexing, given the considerably lower interest rates prevailing in that earlier period. That's quite puzzling and has raised concerns among investors.
Therefore, seeing how Apple will react to its current valuation based on whether it chooses to repurchase a bunch of stock or be more conservative should be a good indicator. If AAPL continues buying back stock aggressively, it's quite likely that the company's own earnings growth expectations for the future remain assertive. If, instead, repurchase activity softens, it could be an indicator that management thinks the stock is overvalued relative to the company's earnings growth potential.
Is AAPL Stock a Buy, According to Analysts?
Regarding Wall Street’s view on the stock, Apple features a Moderate Buy consensus rating based on 20 Buys and nine Holds assigned in the past three months. At $207.69, the average Apple stock forecast implies 16.1% 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 from TD Cowen, boasting an average return of 47.5% per rating and a 93% success rate.
The Takeaway
In conclusion, as Apple gears up for its Q4 results, the focus should extend beyond the immediate impact of iPhone 15 sales. While early reports suggest strong demand, the key indicators for investors lie in the sustained growth of Apple's installed base and the flourishing Services segment.
Additionally, an assessment of Apple's buyback strategy in Q4 will offer insights into the company's valuation and management's confidence in future earnings growth. As of now, maintaining a neutral stance on the stock seems prudent.
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) is set to release its Q4 results on November 2, which makes this an ideal time to review some of the key figures investors ought to look out for. If AAPL continues buying back stock aggressively, it's quite likely that the company's own earnings growth expectations for the future remain assertive. Is AAPL Stock a Buy, According to Analysts?
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Apple (NASDAQ:AAPL) is set to release its Q4 results on November 2, which makes this an ideal time to review some of the key figures investors ought to look out for. If AAPL continues buying back stock aggressively, it's quite likely that the company's own earnings growth expectations for the future remain assertive. Is AAPL Stock a Buy, According to Analysts?
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Apple (NASDAQ:AAPL) is set to release its Q4 results on November 2, which makes this an ideal time to review some of the key figures investors ought to look out for. If AAPL continues buying back stock aggressively, it's quite likely that the company's own earnings growth expectations for the future remain assertive. Is AAPL Stock a Buy, According to Analysts?
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Apple (NASDAQ:AAPL) is set to release its Q4 results on November 2, which makes this an ideal time to review some of the key figures investors ought to look out for. If AAPL continues buying back stock aggressively, it's quite likely that the company's own earnings growth expectations for the future remain assertive. Is AAPL Stock a Buy, According to Analysts?
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13125.0
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2023-10-14 00:00:00 UTC
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Where Will Apple Stock Be in 3 Years?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-stock-be-in-3-years-2
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nan
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nan
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It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. The stock's 52% trailing-three-year return crushes the 18% gain of the Nasdaq Composite. And if we zoom out even further, the tech giant's shares have climbed at an even more impressive clip.
But while looking at past data can show us previous winners, investors care about what the future holds. With our eyes set on the next three years, what are the prospects for this FAANG stock?
Services leading the way
The iPhone needs no introduction. Apple's flagship product represented nearly half of companywide sales in the most recent quarter (the Q3 2023, ended July 1). With the recent launch of the latest upgrade cycle, these smartphones could be an even more important contributor when Apple reports its fourth-quarter financials on Nov. 2.
Other hardware products, like the iPad, MacBook, AirPods, and Watch, are incredibly popular among consumers. And they exemplify the strong brand presence that the company has. In recent years, though, it's the services segment that is rapidly ascending, now accounting for a quarter of Apple's revenue. Notable offerings in this division include iCloud, Pay, Music, and TV+.
I see two major benefits for Apple from its budding services. The fact that this group carries a gross margin of more than 70% means that as it continues on its path of becoming a bigger revenue contributor for Apple, the company's overall profitability should get a boost.
And from a strictly qualitative perspective, this drives stickiness from consumers to not want to leave the ecosystem. Customer loyalty is what every business strives for. Apple has cracked that code. Looking ahead, it's clear that services will be even more critical to the company's financial success.
Continued operating leverage
In the last three years, Apple's revenue increased at a compound annual rate of 11.1%. That's an impressive rate for such a massive corporation. What's encouraging, however, is that its net income expanded at an even faster clip, an annualized pace of 20.9% during that same time.
This is what's called operating leverage. Apple has proven that it can spread out its fixed costs for things like research and development and SG&A (selling, general, and administrative) functions over rising sales. And this has led to an expanding bottom line. The operating margin went from 21.9% in Q3 2020 to 28.1% in the most recent quarter.
And as I alluded to above, as services grow quicker than products, profitability is set to keep rising. Plus, Apple's pricing power helps. Investors worried that inflationary pressures will continue for an extended period of time are somewhat protected by the company's premium status in the marketplace. That's because consumers have shown the propensity to pay up for what Apple sells.
Keep expectations in check
With the potential for services to become a bigger part of the overall business, coupled with the continuation of faster-rising profits, Apple's fundamentals are almost certainly going to be heading in the right direction over the next three years.
This doesn't mean the stock will automatically end up being a winning investment. The final variable to consider is the valuation. As of this writing, shares are trading hands at a price-to-earnings ratio of 30. On a historical basis, that's way on the expensive side of the equation.
For a company that's mature in its lifecycle, I think the valuation is steep. Expectations are likely pricing in double-digit revenue growth for Apple going forward, which could be a bit of a stretch.
Unless there's another breakthrough product that gets introduced, which is impossible to predict, there's a very real possibility that this stock will disappoint investors looking out over the next three years.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of October 9, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. The fact that this group carries a gross margin of more than 70% means that as it continues on its path of becoming a bigger revenue contributor for Apple, the company's overall profitability should get a boost. Apple has proven that it can spread out its fixed costs for things like research and development and SG&A (selling, general, and administrative) functions over rising sales.
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It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. The fact that this group carries a gross margin of more than 70% means that as it continues on its path of becoming a bigger revenue contributor for Apple, the company's overall profitability should get a boost. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. In recent years, though, it's the services segment that is rapidly ascending, now accounting for a quarter of Apple's revenue. Continued operating leverage In the last three years, Apple's revenue increased at a compound annual rate of 11.1%.
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It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. Continued operating leverage In the last three years, Apple's revenue increased at a compound annual rate of 11.1%. The operating margin went from 21.9% in Q3 2020 to 28.1% in the most recent quarter.
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13126.0
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2023-10-14 00:00:00 UTC
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3 Reasons to Buy Apple Stock and Never Sell
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AAPL
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https://www.nasdaq.com/articles/3-reasons-to-buy-apple-stock-and-never-sell
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nan
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nan
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Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). By focusing on design and the user experience, Apple created innovative and disruptive products that consistently joined the cultural zeitgeist. The iPod was the first of its products to achieve mass adoption, but Apple continued an unprecedented winning streak with the iPhone, iPad, Apple Watch, and AirPods.
These fan-favorite products weren't the first to market, but each soon dominated their respective categories. As a result of its long history of success, Apple has the distinction of being the world's most valuable company, the first U.S. company to achieve market caps of $1 trillion, $2 trillion, and $3 trillion, respectively.
Recent data released by Piper Sandler includes three reasons investors should buy Apple stock and never sell.
Image source: Apple.
The underlying data
Just this week, Piper Sandler released its 46th semi-annual Taking Stock With Teens survey, which tallied responses from 9,193 teens in Generation Z. The report assesses discretionary spending, fashion trends, technology, and brand and media preferences of high school students across the U.S.
As in previous surveys, Apple products and services featured prominently, which points to the enduring attraction of the company's devices and the continuing utility of its services. Three key points in the survey should be of keen interest to Apple investors.
1. Generational demand for the iPhone
The word "dominate" is often thrown around pretty freely, but in this case, it isn't merely hyperbole. A whopping 87% of teens reported owning an iPhone, a percentage that has been consistently rising in recent years. In the fall of 2017, 78% of teens reported owning an iPhone, which illustrates the increasing appeal of the iconic device. Furthermore, 88% of teens expect their next mobile device to be an iPhone, up from 82% in 2017.
This is important to Apple investors as the iPhone represents the lion's share of the company's sales. For the company's fiscal 2022 (ended Sept. 24, 2022), the iPhone was responsible for 52% of Apple's revenue. That trend continues. For the first nine months of fiscal 2023 (ended July 1), iPhone accounted for 53% of Apple's revenue.
The iPhone is the foundational product in Apple's ecosystem, and all other products and services revolve around it.
2. The iPhone is a gateway product
Once a consumer owns an iPhone, chances increase significantly that they will purchase other Apple products, many of which are designed to augment the iPhone experience. 34% of the teens surveyed reported owning an Apple Watch, which is largely a companion product whose functionality is deeply integrated with the iPhone.
During the fall of 2016, just 5% of teens planned to buy an Apple Watch, a percentage that has steadily increased in each successive survey. In fact, by early 2021, Apple Watch overtook Rolex as the favorite watch brand of upper-income teens and has retained the No. 1 position ever since.
3. The Apple ecosystem makes the iPhone even stickier
It's hard to overstate the importance of Apple's growing ecosystem and how pervasive its products and services can be. Take something as simple as paying for retail purchases. While many older consumers still rely on credit and debit cards, payment apps are the order of the day for teens.
This is another area where Apple ranked supreme. Apple Pay was the No. 1 payment app used over the past month, at 42%. For context, Block's Cash App came in second with 27%. This helps illustrate how much of a lead Apple has amassed over its fintech rivals.
What all this means for Apple
The importance of Apple's appeal to younger buyers can't be overstated. While teens aren't yet the primary wage earners, they are establishing their likes and dislikes, which will help inform their buying patterns for years to come.
The sheer dominance of the iPhone among teens and the strong demand for ancillary products and services illustrates that -- all things being equal -- demand for Apple products should continue for years to come.
That's good news for Apple -- and its investors.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
Danny Vena has positions in Apple and Block. The Motley Fool has positions in and recommends Apple and Block. 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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Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). By focusing on design and the user experience, Apple created innovative and disruptive products that consistently joined the cultural zeitgeist. 34% of the teens surveyed reported owning an Apple Watch, which is largely a companion product whose functionality is deeply integrated with the iPhone.
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Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). Recent data released by Piper Sandler includes three reasons investors should buy Apple stock and never sell. In the fall of 2017, 78% of teens reported owning an iPhone, which illustrates the increasing appeal of the iconic device.
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Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). The iPod was the first of its products to achieve mass adoption, but Apple continued an unprecedented winning streak with the iPhone, iPad, Apple Watch, and AirPods. The iPhone is a gateway product Once a consumer owns an iPhone, chances increase significantly that they will purchase other Apple products, many of which are designed to augment the iPhone experience.
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Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). In the fall of 2017, 78% of teens reported owning an iPhone, which illustrates the increasing appeal of the iconic device. The iPhone is a gateway product Once a consumer owns an iPhone, chances increase significantly that they will purchase other Apple products, many of which are designed to augment the iPhone experience.
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13127.0
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2023-10-14 00:00:00 UTC
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Can Shiba Inu Reach $0.01?
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AAPL
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https://www.nasdaq.com/articles/can-shiba-inu-reach-%240.01-3
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nan
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nan
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You would be hard-pressed to find a single asset that outperformed Shiba Inu (CRYPTO: SHIB) in 2021. Enthusiasm around the most speculative cryptocurrencies hit unprecedented levels, a bubble that popped faster than it started. As of this writing, Shiba Inu is 92% below its peak price.
Looking ahead, is it a realistic scenario for the price of one Shiba Inu token to reach $0.01? Based on today's price of $0.000006858, this implies an enormous gain of roughly 148,000%. While that would make some strong HODLers (crypto lingo for "holders) of this dog-themed digital asset wealthy beyond their wildest dreams, I think it's completely out of the question.
Here's why I don't think Shiba Inu will get to $0.01.
What's the point?
A valid argument can be made that there is simply no need for Shiba Inu. That might be too bold a statement for some people, but let me explain.
Zooming out a bit, some might even make the case that cryptocurrencies have no purpose. I wouldn't go that far, because there is some potential with this nascent and unproven technology. Bitcoin is trying to fix money altogether, which is inherently broken thanks to central banks constantly devaluing currency. And with its smart-contract capabilities, Ethereum aims to introduce newer use cases for specific applications. These have potential.
But I'm more skeptical about Shiba Inu. To its credit, it was created to take advantage of Dogecoin's lack of functionality, meaning that Shiba Inu is able to work with the entire Ethereum ecosystem. This should make it easily accessible to a wider range of users and developers.
This hasn't been the case, though. According to cryptwerk.com, Shiba Inu is only accepted as a method of payment at 778 merchants.
Shiba Inu might have caught on to become the 19th most valuable cryptocurrency because of its strong community of supporters, who probably view it more as a potential path to get rich than for any real utility in their day-to-day lives. But betting on community support to increase the price of the token isn't a sound investing thesis.
On the development front, the introduction of Shibarium, a Layer-2 scaling solution that's supposed to help the network process faster transactions at lower costs, is something many supporters hope can take Shiba Inu to the next level. But I'm not convinced it can.
Cryptocurrencies benefit from having network effects. Consequently, the largest networks can provide the most value. Why would any developer or user flock to Shiba Inu's protocol when they can take their time, talent, resources, and money to Ethereum, for example?
I think on a long enough time horizon, Shiba Inu's value will ultimately go to zero.
The math doesn't work out
Even if you think the token can eventually hit $0.01, the numbers just don't check out. There are currently 589 trillion Shiba Inu tokens in circulation. At a penny per token, we're talking about a potential market cap of nearly $6 trillion. That's just ridiculous. It would account for more than 25% of the $27 trillion gross domestic product of the U.S.!
That valuation is more than double the current $2.8 trillion market cap of Apple, arguably the most successful enterprise of all time. If that sounds ridiculous, that's because it is.
To help get the token supply under control, there is a coin burning mechanism in place that sends tokens to dead wallets and gets them out of circulation. In the last 24 hours, 78 million Shiba Inu tokens were burned, translating to 28.5 billion on an annualized basis. Even over a stretch of time that spans decades, that rate isn't going to put a dent in the current token supply.
Let's face it. There's almost no chance that Shiba Inu gets to a penny.
10 stocks we like better than Shiba Inu
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu 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 9, 2023
Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While that would make some strong HODLers (crypto lingo for "holders) of this dog-themed digital asset wealthy beyond their wildest dreams, I think it's completely out of the question. Shiba Inu might have caught on to become the 19th most valuable cryptocurrency because of its strong community of supporters, who probably view it more as a potential path to get rich than for any real utility in their day-to-day lives. On the development front, the introduction of Shibarium, a Layer-2 scaling solution that's supposed to help the network process faster transactions at lower costs, is something many supporters hope can take Shiba Inu to the next level.
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There are currently 589 trillion Shiba Inu tokens in circulation. That valuation is more than double the current $2.8 trillion market cap of Apple, arguably the most successful enterprise of all time. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Here's why I don't think Shiba Inu will get to $0.01. There are currently 589 trillion Shiba Inu tokens in circulation. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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Here's why I don't think Shiba Inu will get to $0.01. This hasn't been the case, though. There are currently 589 trillion Shiba Inu tokens in circulation.
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13128.0
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2023-10-14 00:00:00 UTC
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This Top Dividend Stock Paid Warren Buffett $700 Million Last Year. Should You Buy It?
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AAPL
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https://www.nasdaq.com/articles/this-top-dividend-stock-paid-warren-buffett-%24700-million-last-year.-should-you-buy-it
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nan
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nan
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All three major indexes dipped into bear territory last year, and many top companies saw their share prices sink. Your portfolio may have felt the pain, too. But there is a way to cushion the impact of a tough economy and market on your investments. And that's by following the lead of billionaire investor Warren Buffett and snapping up dividend stocks. They will offer you passive income even if the market is down -- and even if their particular shares are down.
The Oracle of Omaha, as he's often called, collected just north of $700 million from a single company last year. I'm talking about Coca-Cola (NYSE: KO), a stock Buffett has held for more than three decades. Buffett considers it one of his favorite stocks -- for the strength of its dividend and the overall quality of the company and its earnings. Should you follow Buffett into this top dividend player? Let's find out.
Coca-Cola's 200 top brands
I probably don't have to tell you that Coca-Cola is a beverage giant, selling its eponymous drink in more than 200 countries around the globe. But Coca-Cola isn't just about one beverage. The company actually is present across a wide variety of categories, from juices to coffee and water. As the world's largest nonalcoholic beverage maker, it owns more than 200 major brands including Minute Maid and Dasani.
And that brings me to an important point. Coca-Cola's brand strength, as well as its extensive distribution network, offer it a moat. This is a competitive advantage that keeps the company ahead of rivals and should power earnings growth over the long term. And it's something Warren Buffett is known to appreciate.
Coca-Cola has demonstrated this earnings strength, thanks in part to its moat, over the years even during tough economic times -- such as today's environment. In the most recent quarter, Coca-Cola's revenue and earnings per share increased, and the company gained value share in the total nonalcoholic ready-to-drink beverages market.
Customers come back for the popular drinks they've enjoyed since they were kids -- and Coca-Cola has innovated to meet customers' evolving tastes too, introducing products with lower sugar content, for example.
The company also has increased its operating margin since refranchising its bottling operations back in 2017.
KO Operating Margin (Annual) data by YCharts
A Dividend King
Now, let's move along to the dividend story. Coca-Cola is a member of an elite list known as the Dividend Kings. These are companies that have increased dividend payments for at least the past 50 years. Why is this positive? It shows rewarding shareholders is important to the company, so it's likely it will continue along this path.
Today, Coca-Cola pays out $1.84 per share annually, representing a dividend yield of 3.48%, well surpassing the S&P 500 index's dividend yield. And Coca-Cola's high level of free cash flow -- at about $9.5 billion -- means the company has what it takes to keep increasing and paying a dividend.
So, it's pretty safe to say you can count on Coca-Cola dividend income today and into the future. As Buffett said in last year's shareholder letter, "Growth occurred every year, just as certain as birthdays... We expect that those checks are highly likely to grow."
Is Coca-Cola a buy?
Does all of this mean you should follow Buffett and buy Coca-Cola stock? The answer depends on your investment strategy.
If you're looking for a high-growth stock, Coca-Cola probably isn't the right choice for you. Though the company's growth story is far from over, it still isn't going to deliver the enormous levels we're more likely to see from a newer player with more territory to conquer -- or a dividend stock in a high-growth business like technology, such as Apple.
But if, as part of your investment strategy, you're looking for a solid combination of steady earnings growth, staying power, and dividend increases, then Coca-Cola makes a great stock to buy and hold for the long term. You'll appreciate the passive income no matter what the market is doing -- just like Warren Buffett.
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 9, 2023
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. 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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And Coca-Cola's high level of free cash flow -- at about $9.5 billion -- means the company has what it takes to keep increasing and paying a dividend. Though the company's growth story is far from over, it still isn't going to deliver the enormous levels we're more likely to see from a newer player with more territory to conquer -- or a dividend stock in a high-growth business like technology, such as Apple. But if, as part of your investment strategy, you're looking for a solid combination of steady earnings growth, staying power, and dividend increases, then Coca-Cola makes a great stock to buy and hold for the long term.
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Today, Coca-Cola pays out $1.84 per share annually, representing a dividend yield of 3.48%, well surpassing the S&P 500 index's dividend yield. But if, as part of your investment strategy, you're looking for a solid combination of steady earnings growth, staying power, and dividend increases, then Coca-Cola makes a great stock to buy and hold for the long term. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola.
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In the most recent quarter, Coca-Cola's revenue and earnings per share increased, and the company gained value share in the total nonalcoholic ready-to-drink beverages market. Does all of this mean you should follow Buffett and buy Coca-Cola stock? But if, as part of your investment strategy, you're looking for a solid combination of steady earnings growth, staying power, and dividend increases, then Coca-Cola makes a great stock to buy and hold for the long term.
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KO Operating Margin (Annual) data by YCharts A Dividend King Now, let's move along to the dividend story. These are companies that have increased dividend payments for at least the past 50 years. Does all of this mean you should follow Buffett and buy Coca-Cola stock?
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13129.0
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2023-10-13 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq down as decline in megacaps dulls big banks' shine
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-down-as-decline-in-megacaps-dulls-big-banks-shine
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 13 (Reuters) - The S&P 500 and the Nasdaq fell on Friday, as a decline in megacap stocks overshadowed upbeat quarterly earnings from some of the largest U.S. banks.
JPMorgan ChaseJPM.N, Wells FargoWFC.N and CitigroupC.N rose between 2.5% and 3.4% after their quarterly profits trounced analysts' estimates, helped by higher interest rates.
The S&P 500 Banks index .SPXBK gained 1.9%, hitting a three-week high intraday.
Megapcaps including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Amazon.com AMZN.O and Meta Platforms META.O slid between 0.9% and 2.3%.
A preliminary reading on U.S. consumer sentiment that showed a sharp fall in October also pressured equities.
Meanwhile, safe-haven U.S. Treasuries rallied on Friday as investors kept a tab on developments in the conflict in the Middle East that has unnerved markets since the start of the week.
Other traditional safe-haven assets such as goldXAU= were also trading higher.
Countries have urged Israel to hold off on plans for an all-out assault on northern Gaza, where more than a million civilians largely defied its order to evacuate before it goes after Hamas militants who slaughtered Israelis a week ago.
"The tragic events that are going on in the Middle East at the moment have the potential to disregard (current market trends) because if we see an escalation there, then there's a chance for a further rally in risk-free assets," said Niall O' Sullivan, chief investment officer multi-asset strategies EMEA at Neuberger Berman.
Federal Reserve Bank of Philadelphia President Patrick Harker said he believes the central bank is likely done with its rate-hiking cycle amid waning price pressures.
At 12:21 p.m. ET, the Dow Jones Industrial Average .DJI was up 95.34 points, or 0.28%, at 33,726.48, the S&P 500 .SPX was down 11.34 points, or 0.26%, at 4,338.27, and the Nasdaq Composite .IXIC was down 131.31 points, or 0.97%, at 13,442.91.
The energy sector .SPNY tracked a more than 3% jump in crude prices and led the gains among major S&P 500 sectors. It was also poised to be the top weekly performer.
The S&P 500 and the Dow eyed weekly gains despite recent weakness.
Among stocks, asset manager BlackRockBLK.N dipped 1.1% after posting a sharp drop in third-quarter net inflows.
UnitedHealthUNH.N advanced 2.2% after beating third-quarter profit estimates.
Dollar GeneralDG.N added 10.2% after the discount store retailer brought back former CEO Todd Vasos to replace Chief Executive Jeffery Owen.
BoeingBA.N shed 3.1% after the planemaker and Spirit AeroSystems SPR.N expanded the scope of their ongoing inspections of a production defect affecting 737 Max 8 aircraft. Spirit's shares were down 1.2%.
Declining issues outnumbered advancers for a 1.17-to-1 ratio on the NYSE and a 1.49-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and 14 new lows, while the Nasdaq recorded 25 new highs and 252 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Shinjini Ganguli)
((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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Megapcaps including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Amazon.com AMZN.O and Meta Platforms META.O slid between 0.9% and 2.3%. By Shashwat Chauhan and Ankika Biswas Oct 13 (Reuters) - The S&P 500 and the Nasdaq fell on Friday, as a decline in megacap stocks overshadowed upbeat quarterly earnings from some of the largest U.S. banks. Countries have urged Israel to hold off on plans for an all-out assault on northern Gaza, where more than a million civilians largely defied its order to evacuate before it goes after Hamas militants who slaughtered Israelis a week ago.
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Megapcaps including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Amazon.com AMZN.O and Meta Platforms META.O slid between 0.9% and 2.3%. By Shashwat Chauhan and Ankika Biswas Oct 13 (Reuters) - The S&P 500 and the Nasdaq fell on Friday, as a decline in megacap stocks overshadowed upbeat quarterly earnings from some of the largest U.S. banks. The S&P index recorded 11 new 52-week highs and 14 new lows, while the Nasdaq recorded 25 new highs and 252 new lows.
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Megapcaps including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Amazon.com AMZN.O and Meta Platforms META.O slid between 0.9% and 2.3%. By Shashwat Chauhan and Ankika Biswas Oct 13 (Reuters) - The S&P 500 and the Nasdaq fell on Friday, as a decline in megacap stocks overshadowed upbeat quarterly earnings from some of the largest U.S. banks. "The tragic events that are going on in the Middle East at the moment have the potential to disregard (current market trends) because if we see an escalation there, then there's a chance for a further rally in risk-free assets," said Niall O' Sullivan, chief investment officer multi-asset strategies EMEA at Neuberger Berman.
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Megapcaps including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Amazon.com AMZN.O and Meta Platforms META.O slid between 0.9% and 2.3%. The S&P 500 Banks index .SPXBK gained 1.9%, hitting a three-week high intraday. Meanwhile, safe-haven U.S. Treasuries rallied on Friday as investors kept a tab on developments in the conflict in the Middle East that has unnerved markets since the start of the week.
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13130.0
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2023-10-13 00:00:00 UTC
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56% of Warren Buffett's $341 Billion Portfolio Is Invested in These 2 Stocks
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AAPL
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https://www.nasdaq.com/articles/56-of-warren-buffetts-%24341-billion-portfolio-is-invested-in-these-2-stocks
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nan
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Few people have the ability to captivate the attention of professional and everyday investors quite like billionaire Warren Buffett. Since becoming CEO of conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in the mid-1960s, Buffett has delivered an annualized return for his company's Class A shares (BRK.A) of 19.8% (as of Dec. 31, 2022). That's double the annualized total return, including dividends paid, of the benchmark S&P 500 (9.9%) over the same timeline.
Riding the Oracle of Omaha's coattails to big gains and mirroring his trades has been easy, thanks to required quarterly 13F filings with the Securities and Exchange Commission. A 13F provides an under-the-hood look at what Wall Street's brightest minds bought and sold in the latest quarter.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
While there's a laundry list of reasons for Buffett's long-term success, such as his buy-and-hold ethos and love of dividend stocks, it's the Oracle of Omaha's portfolio concentration that deserves a meaningful amount of credit. Buffett and his investing team piling into their best ideas has led to outsized long-term returns.
Despite holding more than 50 securities in Berkshire Hathaway's $341 billion portfolio, as of the closing bell on Oct. 7, 2023, just two core stocks account for 56% ($189 billion) of invested assets.
Apple: $162,502,812,201 (47.7% of invested assets)
If there was ever any doubt that the Oracle of Omaha favors portfolio concentration, the fact that tech stock Apple (NASDAQ: AAPL) accounts for nearly 48% of invested assets seals it.
It isn't surprising that Berkshire's portfolio holds such a sizable stake in Apple. During the company's annual shareholder meeting in early May, Buffett described Apple as "a better business than any we own." It's an incredibly strong statement when you consider that Berkshire owns dominant railroad BNSF and highly profitable insurer GEICO, along with roughly five dozen other businesses.
One reason Apple is lauded as an investment is its brand value. Apple is one of the world's most recognized brands and is frequently labeled in surveys as the most valuable brand. Consumers are eager to buy its newly released products and have remained exceptionally loyal to the brand over the years.
Apple's innovative capacity provides another reason for Warren Buffett and his investing lieutenants to trust Apple with nearly half of Berkshire Hathaway's invested assets. In addition to Apple accounting for more than half of all smartphone market share in the U.S., it's been steadily pivoting to a subscription-driven future. Evolving into a platforms company should lift Apple's operating margin over time, while also minimizing the revenue fluctuations that often accompany major iPhone upgrade cycles.
To build on this point, the Oracle of Omaha and his team favor businesses with strong, trusted management teams. Apple CEO Tim Cook has overseen numerous evolutions of the iPhone and is successfully transitioning Apple to a higher-margin future, driven by subscriptions.
But what may ultimately be captivating Warren Buffett's attention is Apple's capital-return program, which is second to none. On top of doling out one of the largest nominal-dollar dividends on the planet ($15 billion annually), Apple has repurchased around $600 billion worth of its common shares since the start of 2013. The amount Apple has spent buying back its stock is greater than the market cap of 492 out of the 500 companies that comprise the S&P 500.
The beauty of buybacks is they can increase earnings per share for companies with steady or growing net income, which can make them appear more fundamentally attractive to investors. Repurchases are also allowing Berkshire Hathaway to become a larger stakeholder in Apple without Buffett or his team having to lift a finger.
Image source: Getty Images.
Bank of America: $26,926,451,796 (7.9% of invested assets)
The other brand-name stock that accounts for a sizable percentage of Berkshire Hathaway's invested assets is Bank of America (NYSE: BAC), which is commonly known as "BofA." The nearly $27 billion invested in BofA makes up almost 8% of the $341 billion investment portfolio Warren Buffett oversees.
There arguably isn't a sector the Oracle of Omaha loves investing in more than financials. He's an especially big fan of bank stocks, largely due to their cyclical nature.
Although recessions are a normal and inevitable part of the economic cycle, all 12 U.S. recessions following World War II have lasted between two and 18 months. By comparison, most periods of expansion after World War II have lasted years, if not a full decade. Bank stocks benefit from these disproportionately long periods of economic growth.
On a more company-specific basis, there are three factors that have attracted the Oracle of Omaha to Bank of America.
To begin with, Bank of America is the most interest-sensitive bank of the large U.S. money-center banks. In other words, as interest rates shift higher or lower, no large bank is going to see a greater impact on its net interest income than BofA. On the heels of the Federal Reserve increasing the federal funds rate at the fastest clip in more than four decades -- 525 basis points since March 2022 -- Bank of America has enjoyed an enormous uptick in quarterly net interest income.
The second reason for Warren Buffett and his team to be pleased with BofA as an investment is the company's execution. In particular, Bank of America has aggressively put money to work in a variety of digitization initiatives. Almost three-quarters of all households banking with BofA are doing so digitally (online or via mobile app). As the number of transactions and loans conducted digitally grows, Bank of America should see if operating efficiency continues to improve.
The third and final factor that's likely encouraged Warren Buffett to pile into Bank of America is its generally robust capital-return program. Although the Fed has the final say on the capital-return programs of the largest banks by assets in the U.S., BofA commonly returns $20 billion or more annually to its shareholders via a combination of dividends and share buybacks when the U.S. economy is firing on all cylinders.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 2, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $162,502,812,201 (47.7% of invested assets) If there was ever any doubt that the Oracle of Omaha favors portfolio concentration, the fact that tech stock Apple (NASDAQ: AAPL) accounts for nearly 48% of invested assets seals it. While there's a laundry list of reasons for Buffett's long-term success, such as his buy-and-hold ethos and love of dividend stocks, it's the Oracle of Omaha's portfolio concentration that deserves a meaningful amount of credit. Evolving into a platforms company should lift Apple's operating margin over time, while also minimizing the revenue fluctuations that often accompany major iPhone upgrade cycles.
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Apple: $162,502,812,201 (47.7% of invested assets) If there was ever any doubt that the Oracle of Omaha favors portfolio concentration, the fact that tech stock Apple (NASDAQ: AAPL) accounts for nearly 48% of invested assets seals it. Apple's innovative capacity provides another reason for Warren Buffett and his investing lieutenants to trust Apple with nearly half of Berkshire Hathaway's invested assets. But what may ultimately be captivating Warren Buffett's attention is Apple's capital-return program, which is second to none.
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Apple: $162,502,812,201 (47.7% of invested assets) If there was ever any doubt that the Oracle of Omaha favors portfolio concentration, the fact that tech stock Apple (NASDAQ: AAPL) accounts for nearly 48% of invested assets seals it. Apple's innovative capacity provides another reason for Warren Buffett and his investing lieutenants to trust Apple with nearly half of Berkshire Hathaway's invested assets. Bank of America: $26,926,451,796 (7.9% of invested assets) The other brand-name stock that accounts for a sizable percentage of Berkshire Hathaway's invested assets is Bank of America (NYSE: BAC), which is commonly known as "BofA."
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Apple: $162,502,812,201 (47.7% of invested assets) If there was ever any doubt that the Oracle of Omaha favors portfolio concentration, the fact that tech stock Apple (NASDAQ: AAPL) accounts for nearly 48% of invested assets seals it. Berkshire Hathaway CEO Warren Buffett. On a more company-specific basis, there are three factors that have attracted the Oracle of Omaha to Bank of America.
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13131.0
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2023-10-13 00:00:00 UTC
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Is Apple a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-a-buy-now-0
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nan
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nan
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It might be worrying to see that Apple's (NASDAQ: AAPL) revenue has declined on a year-over-year basis in each of the last three quarters. But shareholders don't seem concerned. The stock has climbed 38% so far in 2023, a better return than the Nasdaq Composite.
Zooming out, Apple's rise is even more impressive. This has benefited Warren Buffett's Berkshire Hathaway tremendously, as the conglomerate's portfolio is heavily concentrated in the tech giant. But is now a good time for investors to buy shares in the iPhone maker?
There are strong arguments to consider before making a decision. Let's take a look at them.
The best business ever?
The iPhone might be the single-most successful product ever invented. More than 16 years after the first model was launched, Apple is still releasing updates to the smartphone. And consumers have shown a propensity to pay steep prices for these upgrades, even though the new features might be limited.
Apple has a stranglehold on the global smartphone market. While it has just a 21% share of unit volume, due to its premium status, the iPhone accounts for a whopping 82% of operating profits in the industry. And it's still the key driver for Apple's business, representing 49% of overall revenue in the most recent fiscal quarter (third quarter of 2023, ended July 1).
Besides the iPhone, Apple has launched other popular hardware products like the iPod, MacBook, iPad, AirPods, and Watch. All of these benefit from strong demand, bolstered by Apple's incredible brand presence. On their own, the products aren't that impressive, to be clear.
What makes Apple arguably the best business ever is how it combines this incredible hardware with its own internally developed software and services. The ecosystem is Apple's secret to success. It drives customer loyalty and stickiness. And in recent years, services like Music, Pay, and TV+ are driving greater usage. In Q3, services represented 26% of revenue but 41% of company gross profit.
A top-notch product and services portfolio has resulted in massive financial success. Apple's operating margin has averaged a stellar 27% in the past five years. And this company generates so much free cash flow that management has to figure out what to do with it. To its credit, Apple has repurchased a lot of its stock, which boosts earnings per share. And it pays a dividend, further adding to shareholder returns.
Not a good setup for investors
Finding a wonderful business that possesses all of the positive characteristics that Apple does is only part of the challenge. Investors then need to be critical about the valuation that they are willing to pay for such a great company. Even the best businesses can be terrible investments if the price is too high. I don't think Apple is any different.
After soaring 216% in the past five years, the stock currently trades at a price-to-earnings (P/E) ratio of about 30. In my opinion, this isn't cheap by any means. It's 50% more expensive than Apple's trailing 10-year average P/E multiple. And the current valuation is astronomically higher than the P/E ratio that Buffett paid in early 2016 when he first bought the stock.
But isn't it worth paying up for one of the best businesses in the world? If you're willing to pay such a high P/E, you need to question where the market-beating returns will come from. Quite frankly, it takes a lot to move the needle financially for a company that has the scale that Apple does. And unless a game-changing product is introduced that can drive higher growth, I just don't see huge gains coming from Apple in the years ahead.
The current valuation provides no margin of safety, so it might be best for investors to pass on the stock right now.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. 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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It might be worrying to see that Apple's (NASDAQ: AAPL) revenue has declined on a year-over-year basis in each of the last three quarters. This has benefited Warren Buffett's Berkshire Hathaway tremendously, as the conglomerate's portfolio is heavily concentrated in the tech giant. Not a good setup for investors Finding a wonderful business that possesses all of the positive characteristics that Apple does is only part of the challenge.
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It might be worrying to see that Apple's (NASDAQ: AAPL) revenue has declined on a year-over-year basis in each of the last three quarters. And it's still the key driver for Apple's business, representing 49% of overall revenue in the most recent fiscal quarter (third quarter of 2023, ended July 1). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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It might be worrying to see that Apple's (NASDAQ: AAPL) revenue has declined on a year-over-year basis in each of the last three quarters. I don't think Apple is any different. And unless a game-changing product is introduced that can drive higher growth, I just don't see huge gains coming from Apple in the years ahead.
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It might be worrying to see that Apple's (NASDAQ: AAPL) revenue has declined on a year-over-year basis in each of the last three quarters. On their own, the products aren't that impressive, to be clear. Apple's operating margin has averaged a stellar 27% in the past five years.
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13132.0
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2023-10-13 00:00:00 UTC
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What BlackRock's Earnings Tell You About The Stock Market Tide
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AAPL
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https://www.nasdaq.com/articles/what-blackrocks-earnings-tell-you-about-the-stock-market-tide
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The masters of the universe, otherwise known as the institutions that call upon investor capital (individual citizens or even entire governments), can often act as a proxy for what the global economy is going through and, more importantly, where it is headed.
Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest. A little-known indicator of future performance can be dissected in these documents: welcome to the big leagues.
After a swift reaction to the release, BlackRock (NYSE: BLK) stock has changed little, which can be a good thing to start. Still, the juice that can really make you take a second look at the market lies ahead within the data-driven assumptions of the finance titan.
Sign of the Times
Understanding what BlackRock's most prominent clients are doing, otherwise known as those fish that typically stick to the big sharks for leftover food and protection, can give you an inside look into where the sharks are hunting for alpha.
Investors like Warren Buffett were criticized for keeping a large cash balance when the stock market eked out single to double-digit returns. Yet, it looks like the big guys are following suit this quarter.
Regarding banking stocks, you can get a pulse on what has transpired year-to-date. Through the Financial Select Sector SPDR Fund (NYSEARCA: XLF), the performance of most of these names can be checked live, and 2023 could have been more exciting with a close to 0.0% performance.
So now, how can anyone digest the massive data output within quarterly SEC filings and all the corporate lingo that comes with them? Do not worry; MarketBeat has got you covered.
Beginning with what is likely to make headlines soon, net inflows and outflows to and from the bank's clients and products can be a tremendous first pillar upon which to build your outlook.
In the case of flows, BlackRock saw its first net outflows since the outset of the COVID-19 pandemic, with a total of $13 billion pulled from long-term investment fund products; where is all the money going? The answer may surprise you.
Clients are choosing to pivot their funds into money market products and other bond strategies. Can you blame them for wanting to take some risk off the table and instead take advantage of the near 5.0% yields that treasuries offer today?
Within these reports, an undisclosed international client pulled out as much as $19 billion from equity index products. This department saw its AUM (assets under management) fall by as much as $49 billion.
These moves are typically tied to advice coming from either 'family shops' or insiders at BlackRock advising on their clients' best interests, and the view driving the advice is what you came here for.
Implications
Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks.
What are other investors to do with this information? As intimidating as it may seem, following the money is straightforward. Suppose the big guys are beginning to hoard liquidity for better prices, buying bonds, or seeking yield. In that case, there are ways you can follow the strategy.
MarketBeat offers a great screening tool, which allows you to find high-quality, profitable stocks at dirt-cheap valuations, sending you miles ahead of everyone else scrambling and waiting for BlackRock's next release.
For everything else regarding bonds, there are two main players stepping up to the plate, offering upside and yield at the same time. If bonds seem too boring for you, check out these stocks offering high yields with upside appreciation potential as well.
If bonds excite you, congratulations on being one of the few savvy investors. The Vanguard Short-Term Inflation-Protected Securities ETF (NASDAQ: VTIP) is a great way to generate yield. At the same time, inflation remains high and will get some appreciation once inflation inevitably lowers to the FED's 2% target.
While Vanguard's ETF offers a 3.9% dividend yield, there is another ETF out there beating this rate and offering similar upside potential. The iShares Core 10+ Year USD Bond ETF (NYSEARCA: ILTB) comes to save your newly liquidated cash with a 4.8% yield.
There you have it; now you are armed with BlackRock's advice without paying the endless fees required for a proper sit down with the pros. Whether you take the equities route, the bonds route, or both, you too can beat the market this coming quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. The masters of the universe, otherwise known as the institutions that call upon investor capital (individual citizens or even entire governments), can often act as a proxy for what the global economy is going through and, more importantly, where it is headed. Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest.
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Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest. If bonds seem too boring for you, check out these stocks offering high yields with upside appreciation potential as well.
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Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest. Clients are choosing to pivot their funds into money market products and other bond strategies.
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Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. Clients are choosing to pivot their funds into money market products and other bond strategies. These moves are typically tied to advice coming from either 'family shops' or insiders at BlackRock advising on their clients' best interests, and the view driving the advice is what you came here for.
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13133.0
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2023-10-13 00:00:00 UTC
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Arm Holdings Already Has 40% Upside
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AAPL
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https://www.nasdaq.com/articles/arm-holdings-already-has-40-upside
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With just over 20 days of public trading under their belt, Arm Holdings plc - ADR (NASDAQ: ARM) shares have already been on a rollercoaster. As the biggest IPO of the year, there were plenty of eyes watching when they floated last month, and expectations were high.
Arm is one of the brightest stars of the British tech scene and the UK’s only real chip maker of any significance. Their chips are used across a range of devices, including most of the world’s smartphones, and compete against the likes of NVIDIA Corp (NASDAQ: NVDA). In fact, for a while last year, there were talks of the latter acquiring Arm, so for them to make it to the public market on their own eventually is a bold statement.
It remains to be seen, however, if Arm can also deliver the eye-watering gains that NVIDIA has been giving to shareholders in recent months.
First Few Days
In a hark back to the golden days of tech IPOs, Arm’s shares did deliver on the hype in their first few days of trading, jumping 35% from their IPO price of $51. But the honeymoon period ended pretty quickly, and they’re less than a dollar away from dropping below their IPO price after a 25% fall.
To be fair, equities, in general, traded down at the end of September, so you could say it’s been a case of unfortunate timing for Arm, who got caught up in the slide. But with both the broader market, as seen with the benchmark S&P 500 index, and chip stocks in general starting to turn north again in the past week, it’s a good time to see what the outlook is like for Arm shares heading into the rest of the year.
One of the most bullish calls out there is from the team at J.P. Morgan, who initiated their coverage of Arm earlier this week with a $70 price target. From where shares were due to open on Friday, this points to an upside of around 40%, not bad for a freshly floated company that’s still finding its feet.
Strong Profile
Analyst Harlan Sur is a big fan of how embedded Arm chips already are with the likes of Apple Inc’s (NASDAQ: AAPL) and Alphabet Inc’s (NASDAQ: GOOGL) smartphones, while at the same time, the company is driving for further diversification with broader computer, networking and memory products. Sur is looking for at least 18% revenue growth over the next three years and expects the company to strengthen its foothold in multiple industries, such as auto, IOT, and data centers, along the way.
Bank of America echoed this with their Buy rating on Arm shares and shared a compound annual growth rate target of 43% through 2025. This would be a full 1.5x what its chipmaking peers are targeting but is more than doable given Arm commands higher royalty rates and strong relationships with the big customers.
Getting Involved
Against these bullish calls, there has been some caution urged, with the likes of Susquehanna rating them a Neutral and Bernstein going all the way to an Underperform rating. A key concern, shared by both, revolves around how much of the company’s revenue, 25% last year, comes from the Chinese market and how this might be adversely affected by any escalation in geopolitical tensions there.
But this is something all the chip makers are dealing with to some extent or another, and it’s hard to argue that the risk/reward setup isn’t attractive right now. Yesterday, Arm shares found themselves back by their IPO level for the tenth time since IPO’ing.
On each previous occasion, there have been plenty of buyers who stepped in, and short of a broader market sell-off, you’d expect the same this time. If the bears are unable to take shares below $51 in the coming sessions definitively, momentum should swing hard to the upside. NVIDIA shares are currently rallying hard towards fresh all-time highs, which bodes well for other chipmakers, so it’s fair to expect Arm to follow shortly in their slipstream.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong Profile Analyst Harlan Sur is a big fan of how embedded Arm chips already are with the likes of Apple Inc’s (NASDAQ: AAPL) and Alphabet Inc’s (NASDAQ: GOOGL) smartphones, while at the same time, the company is driving for further diversification with broader computer, networking and memory products. But with both the broader market, as seen with the benchmark S&P 500 index, and chip stocks in general starting to turn north again in the past week, it’s a good time to see what the outlook is like for Arm shares heading into the rest of the year. A key concern, shared by both, revolves around how much of the company’s revenue, 25% last year, comes from the Chinese market and how this might be adversely affected by any escalation in geopolitical tensions there.
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Strong Profile Analyst Harlan Sur is a big fan of how embedded Arm chips already are with the likes of Apple Inc’s (NASDAQ: AAPL) and Alphabet Inc’s (NASDAQ: GOOGL) smartphones, while at the same time, the company is driving for further diversification with broader computer, networking and memory products. With just over 20 days of public trading under their belt, Arm Holdings plc - ADR (NASDAQ: ARM) shares have already been on a rollercoaster. First Few Days In a hark back to the golden days of tech IPOs, Arm’s shares did deliver on the hype in their first few days of trading, jumping 35% from their IPO price of $51.
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Strong Profile Analyst Harlan Sur is a big fan of how embedded Arm chips already are with the likes of Apple Inc’s (NASDAQ: AAPL) and Alphabet Inc’s (NASDAQ: GOOGL) smartphones, while at the same time, the company is driving for further diversification with broader computer, networking and memory products. With just over 20 days of public trading under their belt, Arm Holdings plc - ADR (NASDAQ: ARM) shares have already been on a rollercoaster. First Few Days In a hark back to the golden days of tech IPOs, Arm’s shares did deliver on the hype in their first few days of trading, jumping 35% from their IPO price of $51.
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Strong Profile Analyst Harlan Sur is a big fan of how embedded Arm chips already are with the likes of Apple Inc’s (NASDAQ: AAPL) and Alphabet Inc’s (NASDAQ: GOOGL) smartphones, while at the same time, the company is driving for further diversification with broader computer, networking and memory products. First Few Days In a hark back to the golden days of tech IPOs, Arm’s shares did deliver on the hype in their first few days of trading, jumping 35% from their IPO price of $51. Bank of America echoed this with their Buy rating on Arm shares and shared a compound annual growth rate target of 43% through 2025.
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13134.0
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2023-10-13 00:00:00 UTC
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2 Dow Jones Industrial Average Stocks For Your Mid-October 2023 Watchlist
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AAPL
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https://www.nasdaq.com/articles/2-dow-jones-industrial-average-stocks-for-your-mid-october-2023-watchlist
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The Dow Jones Industrial Average (DJIA) is widely recognized as “the Dow.” It’s a notable stock market index, representing the performance of 30 major U.S. companies from various sectors. Established over a century ago, it serves as a broad measure of U.S. economic health and market conditions. It features “blue-chip” stocks, known for stability and dependable performance. Corporations like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) highlight the financial strength demonstrated by the Dow.
Investing in Dow Jones Industrial Average stocks involves buying shares of its constituent companies. Each is often seen as a secure, reliable investment due to historical resilience and consistent returns. The DJIA’s blue-chip stocks are known for weathering economic downturns and providing stable returns. Thus, they present a seemingly prudent investment strategy. The varied sectors representing technology, healthcare finance, and others provide investors with diverse industry exposure.
Retail investors and traders can direct investments towards individual DJIA companies or exchange-traded funds (ETFs) that track the index. This provides a diversified investment approach. Investing in the DJIA, through either individual stocks or ETFs, requires careful attention to market trends, economic indicators, and company performances. This ensures that the investment approach is both strategic and well-informed. Having said this, here are two Dow 30 stocks to check out in the stock market now.
Dow Jones Stocks To Buy [Or Sell] Now
The Boeing Company (NYSE: BA)
The Walt Disney Company (NYSE: DIS)
Boeing Company (BA Stock)
First up, The Boeing Company (BA), commonly referred to as Boeing stands as one of the world’s foremost aerospace and defense manufacturers. The company engages in the design, development, and production of aircraft, satellites, missile defense systems, and advanced technology solutions for a global customer base.
Just this week, The Boeing Company announced its program deliveries across its commercial and defense operations for the third quarter of 2023. In detail, Boeing reported it delivered 70 units of the 737 model and 19 units of the 787 model in the commercial airplanes category. In the defense, space, and security category, its deliveries included 9 units of remanufactured AH-64 Apache helicopters. Making it one of the highest in this category for the quarter. Additionally, the company delivered 5 new AH-64 Apache units. This also stands out as one of the higher figures in this period.
In the last month of trading, BA stock has fallen by 11.08%. Meanwhile, during Friday’s lunchtime trading session, shares of Boeing Company stock are trading down on the day so far by 3.13% at $185.30 a share.
[Read More] 3 Defense Stocks For Your October 2023 Watchlist
The Walt Disney Company (DIS Stock)
Next, The Walt Disney Company (DIS), universally known as Disney, operates as a diversified multinational entertainment and media conglomerate. Disney is well known for its film and TV production, theme parks, and various related media networks. This includes the popular Disney+ streaming service.
Last month, Walt Disney Company and Charter Communications announced it has entered a multi-year distribution agreement. This reintegrates Disney’s networks into Spectrum’s offerings and blends traditional and streaming services. The deal includes providing Disney+ Basic and ESPN+ in specific Spectrum TV packages. As well as making Disney’s Direct-To-Consumer services available to Charter’s broadband-only customers.
Looking at the last month of trading activity, shares of DIS stock are trading slightly higher by 0.30%. Moreover, during Friday’s lunchtime trading action, Walt Disney stock is trading down on the day so far by 0.74% at $83.73 a share.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Corporations like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) highlight the financial strength demonstrated by the Dow. The Dow Jones Industrial Average (DJIA) is widely recognized as “the Dow.” It’s a notable stock market index, representing the performance of 30 major U.S. companies from various sectors. Investing in the DJIA, through either individual stocks or ETFs, requires careful attention to market trends, economic indicators, and company performances.
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Corporations like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) highlight the financial strength demonstrated by the Dow. Investing in Dow Jones Industrial Average stocks involves buying shares of its constituent companies. Dow Jones Stocks To Buy [Or Sell] Now The Boeing Company (NYSE: BA) The Walt Disney Company (NYSE: DIS) Boeing Company (BA Stock) First up, The Boeing Company (BA), commonly referred to as Boeing stands as one of the world’s foremost aerospace and defense manufacturers.
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Corporations like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) highlight the financial strength demonstrated by the Dow. Dow Jones Stocks To Buy [Or Sell] Now The Boeing Company (NYSE: BA) The Walt Disney Company (NYSE: DIS) Boeing Company (BA Stock) First up, The Boeing Company (BA), commonly referred to as Boeing stands as one of the world’s foremost aerospace and defense manufacturers. Meanwhile, during Friday’s lunchtime trading session, shares of Boeing Company stock are trading down on the day so far by 3.13% at $185.30 a share.
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Corporations like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) highlight the financial strength demonstrated by the Dow. The Dow Jones Industrial Average (DJIA) is widely recognized as “the Dow.” It’s a notable stock market index, representing the performance of 30 major U.S. companies from various sectors. Investing in the DJIA, through either individual stocks or ETFs, requires careful attention to market trends, economic indicators, and company performances.
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13135.0
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2023-10-13 00:00:00 UTC
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After Hours Most Active for Oct 13, 2023 : IGSB, DNB, TNGX, INTC, AAPL, SNAP, BMY, QQQ, VCLT, RBLX, KEY, JPM
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-13-2023-%3A-igsb-dnb-tngx-intc-aapl-snap-bmy-qqq-vclt-rblx
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The NASDAQ 100 After Hours Indicator is down -9.38 to 14,985.74. The total After hours volume is currently 78,011,380 shares traded.
The following are the most active stocks for the after hours session:
iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is -0.0106 at $49.72, with 9,233,767 shares traded. This represents a 2.26% increase from its 52 Week Low.
Dun & Bradstreet Holdings, Inc. (DNB) is unchanged at $9.51, with 6,249,891 shares traded. DNB's current last sale is 60.38% of the target price of $15.75.
Tango Therapeutics, Inc. (TNGX) is unchanged at $7.69, with 3,508,549 shares traded. As reported by Zacks, the current mean recommendation for TNGX is in the "strong buy range".
Intel Corporation (INTC) is +0.0509 at $36.02, with 3,239,208 shares traded. INTC's current last sale is 102.92% of the target price of $35.
Apple Inc. (AAPL) is -0.2 at $178.65, with 2,711,470 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Snap Inc. (SNAP) is -0.07 at $8.61, with 2,350,022 shares traded. SNAP's current last sale is 86.1% of the target price of $10.
Bristol-Myers Squibb Company (BMY) is -0.01 at $56.46, with 2,265,462 shares traded. BMY's current last sale is 79.52% of the target price of $71.
Invesco QQQ Trust, Series 1 (QQQ) is -0.33 at $364.95, with 2,159,231 shares traded. This represents a 43.53% increase from its 52 Week Low.
Vanguard Long-Term Corporate Bond ETF (VCLT) is +0.0115 at $70.93, with 1,973,456 shares traded. This represents a 3.4% increase from its 52 Week Low.
Roblox Corporation (RBLX) is -0.03 at $30.48, with 1,322,267 shares traded. RBLX's current last sale is 82.38% of the target price of $37.
KeyCorp (KEY) is -0.02 at $10.44, with 1,130,492 shares traded.KEY is scheduled to provide an earnings report on 10/19/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.27 per share, which represents a 55 percent increase over the EPS one Year Ago
J P Morgan Chase & Co (JPM) is -0.15 at $147.85, with 1,108,873 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $3.89. Smarter Analyst Reports: EVgo’s PlugShare Platform Crosses 1M Downloads in 2021
The views and 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 -0.2 at $178.65, with 2,711,470 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is -0.0106 at $49.72, with 9,233,767 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.2 at $178.65, with 2,711,470 shares traded. The consensus earnings per share forecast is 0.27 per share, which represents a 55 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.2 at $178.65, with 2,711,470 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 78,011,380 shares traded.
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Apple Inc. (AAPL) is -0.2 at $178.65, with 2,711,470 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -9.38 to 14,985.74.
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13136.0
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2023-10-13 00:00:00 UTC
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India won't impose restrictions on laptop imports - official
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AAPL
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https://www.nasdaq.com/articles/india-wont-impose-restrictions-on-laptop-imports-official
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nan
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nan
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Recasts, adds government official comments in paragraphs 2,3,5
NEW DELHI, Oct 13 (Reuters) - India is rolling back its earlier plan to impose restrictions on laptop imports, months after abruptly announcing such plans which came under criticism from industry and Washington.
"India will not impose restrictions on laptop imports," Trade Secretary Sunil Barthwal told a press conference on Friday.
He said the government "only wants importers to be on close watch."
The import licensing regime, announced on Aug. 3, aimed to "ensure trusted hardware and systems" enter India, but it was delayed by three months after objections from industry and criticism by Washington. It would affect companies like Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK.
The government is holding consultations with the industry and a new order on laptop imports will be announced by the end of October, Directorate General of Foreign Trade Santosh Kumar Sarangi said.
The officials did not disclose details about the new plans.
(Reporting by Sarita Chaganti Singh and Nikunj Ohri; editing by David Evans and Susan Fenton)
((Aftab.Ahmed@thomsonreuters.com; +91 99109 33884;))
The views and 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 would affect companies like Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK. "India will not impose restrictions on laptop imports," Trade Secretary Sunil Barthwal told a press conference on Friday. The import licensing regime, announced on Aug. 3, aimed to "ensure trusted hardware and systems" enter India, but it was delayed by three months after objections from industry and criticism by Washington.
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It would affect companies like Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK. Recasts, adds government official comments in paragraphs 2,3,5 NEW DELHI, Oct 13 (Reuters) - India is rolling back its earlier plan to impose restrictions on laptop imports, months after abruptly announcing such plans which came under criticism from industry and Washington. "India will not impose restrictions on laptop imports," Trade Secretary Sunil Barthwal told a press conference on Friday.
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It would affect companies like Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK. Recasts, adds government official comments in paragraphs 2,3,5 NEW DELHI, Oct 13 (Reuters) - India is rolling back its earlier plan to impose restrictions on laptop imports, months after abruptly announcing such plans which came under criticism from industry and Washington. The import licensing regime, announced on Aug. 3, aimed to "ensure trusted hardware and systems" enter India, but it was delayed by three months after objections from industry and criticism by Washington.
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It would affect companies like Dell DELL.N, HP HPE.N, Apple AAPL.O, Samsung 005930.KS and Lenovo 0992.HK. Recasts, adds government official comments in paragraphs 2,3,5 NEW DELHI, Oct 13 (Reuters) - India is rolling back its earlier plan to impose restrictions on laptop imports, months after abruptly announcing such plans which came under criticism from industry and Washington. He said the government "only wants importers to be on close watch."
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13137.0
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2023-10-13 00:00:00 UTC
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Apple (AAPL) Unveils Trailer of For All Mankind Season 4
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-unveils-trailer-of-for-all-mankind-season-4
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nan
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nan
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Apple AAPL recently unveiled season four of the space drama, For All Mankind, at New York Comic Con. The iPhone maker is set to launch the latest season beginning Nov 10 on Apple TV+, followed by one new episode weekly every Friday through Jan 12, 2024.
Apple TV+, despite having fewer subscribers than Netflix NFLX and Disney DIS, has been gaining recognition due to its impressive content portfolio that includes shows like Ted Lasso. Its animated movie, The Boy, the Mole, the Fox and the Horse, won an Oscar for Best Animated Short Film this year. Last year, Apple won three Academy Awards for CODA.
Apple’s impressive run at the Academy Awards has been instrumental in driving the recognition of Apple TV+ in the saturated streaming market currently dominated by the likes of Amazon AMZN, Netflix and Disney+.
Per the latest report from JustWatch, cited by 9TO5, Apple TV+’s market share increased 1% to 7% for the January-September 2023 period. Amazon Prime Video maintained its #1 position with 22%, trailed by Netflix’s 21%. Disney+ lost 1% to 12%, grabbing the #4 spot.
Apple TV+ has been benefiting from an expanding content portfolio. Its upcoming World War II drama, Masters of the Air, follows the true story of an American bomber group. The series is executive produced by Steven Spielberg, Tom Hanks and Gary Goetzman. These three were also involved in the production of Band of Brothers and The Pacific.
Apple TV+ Expanding Content to Boost Prospects
Apple shares have outperformed Netflix and Disney but underperformed Amazon. Apple shares have returned 39.1%, while Amazon and Netflix shares have returned 57.1% and 22.6%, respectively. Disney shares have declined 2.9% year to date.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple is expanding its footprint in the entertainment industry with plans to spend $1 billion on producing movies, per Bloomberg. The iPhone maker partnered with Paramount for the distribution of its upcoming movie, Killers of the Flower Moon.
The growing popularity of Apple TV+, as well as services like Apple News and Fitness+, has been beneficial for Apple’s Services business, which has become a major revenue generator lately.
The Services portfolio currently has more than 1 billion paid subscribers and accounted for 25.9% of sales in the fiscal third quarter. Apple’s Services revenues increased 8.2% from the year-ago quarter to $21.21 billion.
For the fiscal fourth quarter, this Zacks Rank #3 (Hold) company expects iPhone and Services’ year-over-year performance to accelerate from the June quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for fourth-quarter fiscal 2023 revenues for the Services segment is pegged at $21.33 billion, indicating 11.2% year-over-year growth.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL recently unveiled season four of the space drama, For All Mankind, at New York Comic Con. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The iPhone maker is set to launch the latest season beginning Nov 10 on Apple TV+, followed by one new episode weekly every Friday through Jan 12, 2024.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL recently unveiled season four of the space drama, For All Mankind, at New York Comic Con. Apple TV+, despite having fewer subscribers than Netflix NFLX and Disney DIS, has been gaining recognition due to its impressive content portfolio that includes shows like Ted Lasso.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL recently unveiled season four of the space drama, For All Mankind, at New York Comic Con. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Apple is expanding its footprint in the entertainment industry with plans to spend $1 billion on producing movies, per Bloomberg.
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Apple AAPL recently unveiled season four of the space drama, For All Mankind, at New York Comic Con. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple TV+ Expanding Content to Boost Prospects Apple shares have outperformed Netflix and Disney but underperformed Amazon.
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13138.0
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2023-10-13 00:00:00 UTC
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Netflix (NFLX) Gears Up for Q3 Earnings: What's in the Cards?
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-gears-up-for-q3-earnings%3A-whats-in-the-cards-0
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nan
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Netflix NFLX is set to report its third-quarter 2023 results on Oct 18.
Netflix expects its third-quarter earnings to be $3.52 per share, suggesting a year-over-year increase of almost 10%.
The Zacks Consensus Estimate for earnings is currently pegged at $3.47 per share, down 0.6% over the past 30 days. The figure indicates an increase of 11.94% from the year-ago quarter.
NFLX expects total revenues to increase 7% year over year to $8.52 billion. The consensus mark for third-quarter revenues is currently pegged at $8.53 billion, suggesting 7.65% growth from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average negative surprise being 2.38%.
Let’s see how things are shaping up for this announcement.
Netflix, Inc. Price and EPS Surprise
Netflix, Inc. price-eps-surprise | Netflix, Inc. Quote
Factors to Consider
Netflix now expects revenue growth to accelerate in the second half of 2023, driven by the launch of paid sharing.
The company launched its paid-sharing model in the United States on May 23, notifying members that their accounts cannot be shared for free with users outside their residences. In the third quarter, Netflix ended password sharing in India, announcing that only members of a household will be able to access a single account.
Moreover, ad-supported low-priced plans are expected to have a modest incremental benefit toward top-line growth in the to-be-reported quarter.
NFLX’s sprawling games portfolio is also expected to have boosted user engagement in the to-be-reported quarter. In the third quarter, the company launched four new games, such as SNK Corporation’s Samurai Shodown, LEGO Legacy: Heroes Unboxed by Gameloft, WrestleQuest by Mega Cat Studios and Cut the Rope Daily by Zeptolab.
Netflix, currently carrying a Zacks Rank #3 (Hold), is expected to have benefited from its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+ and Amazon has been a headwind for Netflix. It is also facing competition for consumer time from linear TV, YouTube, short-form entertainment like TikTok and gaming.
Nevertheless, Netflix’s strong content portfolio is expected to have helped keep the subscriber base intact in the third quarter of 2023.
The company is expanding its footprint in India through partnerships with the likes of Yash Raj Films and acclaimed director Neeraj Pandey’s Friday Storytellers LLP, the digital content production arm of Friday Filmworks.
The launch of Indian drama series like Choona and Kohrra, the addition of German Originals like Dear Child and Korean originals like Mask Girl besides the ongoing K-dramas Behind Your Touch and Destined With You are expected to have aided international subscriber growth in the to-be-reported quarter.
Shares of the company have gained 22.6% year to date, outperforming the Zacks Broadcast Radio and Television industry’s growth of 10.5%. Shares of Apple and Comcast have returned 39.1% and 25.5%, respectively, while shares of Disney have declined 2.9%.
Top-Line Growth Estimates Positive in Q3
The Zacks Consensus Estimate for paid total streaming net membership additions is pegged at 5.854 million. Netflix gained 2.413 million paid subscribers globally in the year-ago quarter.
The consensus mark for third-quarter 2023 Asia-Pacific revenues is pegged at $959 million, indicating 7.9% growth from the figure reported in the year-ago quarter.
Our estimate for Asia-Pacific is pegged at $954.7 million, indicating 7.4% year-over-year growth.
The Zacks Consensus Estimate for Latin America (LATAM) revenues is pegged at $1.12 billion, suggesting a rise of 10.3% from the figure reported in the previous quarter.
Our estimate for LATAM revenues is pegged at $1.11 billion, indicating 8.5% year-over-year growth.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.67 billion, suggesting an increase of 12.6% from the figure reported in the year-ago quarter.
Our estimate for Europe, Middle East & Africa revenues is pegged at $2.6 billion, suggesting a 9.5% year-over-year increase.
The Zacks Consensus Estimate for the United States and Canada revenues is pegged at $3.76 billion, indicating a 4.6% rise from the figure reported in the year-ago quarter.
Our estimate for the United States and Canada revenues is pinned at $3.82 billion, indicating 6.2% year-over-year growth.
Upcoming Earnings
Comcast is set to report its third-quarter 2023 results on Oct 26, while both Apple’s and Disney’s fourth-quarter fiscal 2023 results are set for Nov 3 and Nov 8, respectively.
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 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
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+ and Amazon has been a headwind for Netflix. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. In the third quarter, the company launched four new games, such as SNK Corporation’s Samurai Shodown, LEGO Legacy: Heroes Unboxed by Gameloft, WrestleQuest by Mega Cat Studios and Cut the Rope Daily by Zeptolab.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+ and Amazon has been a headwind for Netflix. Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.67 billion, suggesting an increase of 12.6% from the figure reported in the year-ago quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+ and Amazon has been a headwind for Netflix. The Zacks Consensus Estimate for Latin America (LATAM) revenues is pegged at $1.12 billion, suggesting a rise of 10.3% from the figure reported in the previous quarter.
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Nevertheless, stiff competition from streaming services like Disney’s DIS Disney+, HBO Max, Comcast’s CMCSA Peacock, Paramount+, Apple’s AAPL Apple TV+ and Amazon has been a headwind for Netflix. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix expects its third-quarter earnings to be $3.52 per share, suggesting a year-over-year increase of almost 10%.
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2023-10-13 00:00:00 UTC
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US banks, tech firms offer support for Israel victims, announce aid
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AAPL
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https://www.nasdaq.com/articles/us-banks-tech-firms-offer-support-for-israel-victims-announce-aid
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nan
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nan
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By Lananh Nguyen and Aditya Soni
Oct 13 (Reuters) - As big U.S. corporations kicked off corporate earnings season this week, executives addressed the Israel-Hamas conflict and some companies launched fundraising efforts.
"I just want to say how deeply saddened that we all are about the recent horrific attacks on Israel ... Terrorism and hatred have no place in our civilized world," JPMorgan Chase JPM.N CEO Jamie Dimon said on a postearnings callbefore diving into results.
He warned that the war in Ukraine, compounded by the attacks on Israel, could have "far-reaching impacts on energy and food markets, global trade, and geopolitical relationships."
On Thursday, Pfizer PFE.N CEO Albert Bourla said: "As the days have passed, the scope of the atrocities carried out against Israel and its citizens have become clearer and more horrific. It is not enough to condemn terrorism and the intentional targeting of civilians - we ourselves must take action."
Fundraising efforts to relieve the crisis have been mobilized swiftly. Billionaires and members of the U.S. and Canadian Jewish community have contributed millions of dollars, military gear and clothing, and food and household supplies.
On Thursday, in a memo to employees, UBS UBSG.S said it would match $5 million in donations from employees and clients and would work to expand its network of partners to provide aid with resettlement for displaced families.
Jefferies raised $13 million from clients, partners, and employees for charities providing humanitarian aid, it said on Friday. The contributions included $2 million from Michael Bloomberg, former New York City mayor and co-founder of Bloomberg LP.
Goldman Sachs GS.Npledged $2 million in aid and said it would match employee donations.
Delta Air Lines DAL.N, which has suspended flights to and from Israel until the end of this month, said it will donate $1 million to the American Red Cross.
On Friday, Citigroup CEO Jane Fraser included Israel in her opening remarks on the bank'searnings call/span>.
"We are a significant bank in the country, and many of our people have lost friends and loved ones," Fraser said. "Others are being called up to serve. Despite all they're dealing with, they are keeping our bank running in the country. And I'm, frankly, in awe of their commitment."
More broadly, Fraser said, "the price innocent civilians are paying as this crisis unfolds is absolutely devastating to witness."
BlackRock CEO Larry Fink also addressed Israel on the company'searnings call
"There's pretty much universal condemnation of violence with civilian casualties," said David Kotok, co-founder of Florida-based investment advisor Cumberland Advisors.
He noted that firms have refrained from mentioning specifics, given the political sensitivities of the conflict. "Once someone ventures into the space of, 'who is the perpetrator and who is the victim,' you enter into the exposure of social media disinformation and risk," Kotok said.
Bosses at large tech companies have also issued strong statements.
Hewlett Packard Enterprise HPE.N CEO Antonio Neri said: "The attack by Hamas on Israeli civilians is unjustified and inexcusable" and Amazon CEO Andy Jassy called the attacks "shocking and painful to watch."
Amazon said it has a contingency plan to keep its AWS cloud service available for customers in Israel. Meta META.O said on Friday it was taking steps including removing praise and substantive support for Hamas from its platforms after the European Union reprimanded social media companies for failing to adequately tackle disinformation.
Alphabet GOOGL.O CEO Sundar Pichai said it was "important to call out and stand against antisemitism at this terrible moment" and condemned "this historic evil." Google has two offices and over 2,000 employees in Israel.
Microsoft MSFT.O CEO Satya Nadella posted on social media platform X, formerly Twitter, that he was "heartbroken by the horrific terrorist attacks on Israel," where the company has nearly 3,000 employees.
Some large companies including Apple AAPL.O and Walmart WMT.N had yet to issue statements, while some prominent personalities including NBA star LeBron James have spoken out.
Supermodel Gigi Hadid, whose father is Palestinian, said on Instagram: "While I have hopes and dreams for Palestinians, none of them include the harm of a Jewish person."
(Reporting by Lananh Nguyen in New York and Aditya Soni in Bengaluru; Additional reporting by Stephen Nellis, Siddharth Cavale, David Gaffen, Arriana McLymore; Writing by Sayantani Ghosh; Editing by David Gregorio)
((sayantani.ghosh@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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Some large companies including Apple AAPL.O and Walmart WMT.N had yet to issue statements, while some prominent personalities including NBA star LeBron James have spoken out. He warned that the war in Ukraine, compounded by the attacks on Israel, could have "far-reaching impacts on energy and food markets, global trade, and geopolitical relationships." Meta META.O said on Friday it was taking steps including removing praise and substantive support for Hamas from its platforms after the European Union reprimanded social media companies for failing to adequately tackle disinformation.
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Some large companies including Apple AAPL.O and Walmart WMT.N had yet to issue statements, while some prominent personalities including NBA star LeBron James have spoken out. Jefferies raised $13 million from clients, partners, and employees for charities providing humanitarian aid, it said on Friday. On Friday, Citigroup CEO Jane Fraser included Israel in her opening remarks on the bank'searnings call/span>.
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Some large companies including Apple AAPL.O and Walmart WMT.N had yet to issue statements, while some prominent personalities including NBA star LeBron James have spoken out. BlackRock CEO Larry Fink also addressed Israel on the company'searnings call "There's pretty much universal condemnation of violence with civilian casualties," said David Kotok, co-founder of Florida-based investment advisor Cumberland Advisors. Hewlett Packard Enterprise HPE.N CEO Antonio Neri said: "The attack by Hamas on Israeli civilians is unjustified and inexcusable" and Amazon CEO Andy Jassy called the attacks "shocking and painful to watch."
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Some large companies including Apple AAPL.O and Walmart WMT.N had yet to issue statements, while some prominent personalities including NBA star LeBron James have spoken out. "I just want to say how deeply saddened that we all are about the recent horrific attacks on Israel ... Goldman Sachs GS.Npledged $2 million in aid and said it would match employee donations.
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2023-10-13 00:00:00 UTC
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Wait, Is the DOJ Lawsuit Actually Bullish For Alphabet?
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AAPL
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https://www.nasdaq.com/articles/wait-is-the-doj-lawsuit-actually-bullish-for-alphabet
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nan
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nan
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The government continues to go after the big technology companies. In September, the Department of Justice's (DOJ) antitrust case against Google's search engine monopoly began its trial, with testimonies from various business leaders illuminating the workings of the important sector. Alphabet (NASDAQ: GOOG) -- parent company of Google -- has an estimated 90% share of the search engine market and has wiped the floor with any competitor for years. The DOJ is arguing that its distribution deals with hardware makers like Apple harm competition and unfairly enforce its monopolistic position.
While antitrust cases can lead to regulation and future profit losses, strangely, in this case, Alphabet may actually benefit if the DOJ wins its antitrust suit. Here's why.
What's actually happening
This DOJ case centers around three technology giants: Apple, Alphabet (Google), and Microsoft. There are a few other parts to the suit, but the most important topic by far is Alphabet's distribution deal with Apple. Alphabet pays Apple a handsome sum every year -- some estimate upwards of $20 billion -- to have Google be the default search engine on its Safari browser. This does not make Google the only search engine Apple users can try, but the one that is pre-installed onto the Safari engine.
With over a billion Apple users around the globe that skew toward higher incomes, Google finds it valuable to pay Apple this fat distribution tax every year. It hasn't hurt its profitability one bit, with its overall operating income hitting $22 billion just last quarter. The company also pays a distribution tax to other hardware makers, such as Samsung, although a much smaller amount.
So, where does Microsoft come in? As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices. In fact, Microsoft admitted that it offered Apple a deal to have Bing be its default search engine but couldn't make the economics work like Google. They and the DOJ are arguing that this is an unfair agreement that no other company in the world can match, even one the size of Microsoft.
Why Google wins (even if it loses)
If the DOJ prevails in its case, Alphabet may be forced to stop paying Apple, opening it up to more competitive threats. Investors may see this as a sign of a weakening competitive advantage and a risk for Alphabet shareholders as Google Search may start to lose market share to other search engines, such as Bing or DuckDuckGo, around the world.
But let's reiterate: This outcome would force Alphabet to stop spending tens of billions each year on search engine distribution. If the DOJ wins, Alphabet will eliminate all of this money from its operating expenses each year. Of course, if it loses more in revenue than it saves in expenses, this will be a net loss for Google. There are also rumors that Apple is working on its own search engine as a backup plan if the Google distribution agreement falls through, which they would clearly default to on Apple devices -- scary stuff.
Good news for investors: We have historical evidence of how successful Google can be when competing with an integrated search engine provider. Today, Google has just under 85% market share in search for desktop computers. Microsoft's Windows operating system is one of the leaders in the desktop computing space and defaults users to its Edge internet browser and Bing search engine (some may argue anticompetitively, but that's another story). The company has also apparently spent $100 billion over the years on its Bing segment to try and gain market share.
If Google search gets back to a level playing field competitively -- or perhaps even disadvantaged on Apple if it releases an in-house search engine -- investors shouldn't worry about the company losing much market share. The company has locked in users for years due to free services such as Gmail, Google Drive, Chrome, and Google Maps that connect back to the Google Search engine. This is why the company succeeds on Windows even though Microsoft defaults to its Bing search engine. I wouldn't expect anything different on Apple devices.
To sum things up, if Alphabet and Apple win this lawsuit, Google will retain its current position. If they lose, Google will likely only lose a little bit in market share. Neither scenario should hurt Alphabet financially. In fact, one might argue that the company will generate even more earnings if it stops paying so much in distribution fees every year.
AAPL Operating Income (TTM) data by YCharts.
The real loser may be Apple
Counterintuitively, the company that may actually get hurt here is Apple. Apple's distribution tax on Google is $20 billion in revenue it earns every year with virtually 100% profit margins. Over the last 12 months, it generated $112 billion in operating income, meaning the Google tax is an estimated 18% of Apple's overall profits if the $20 billion payment figure is accurate. If that goes away, its operating income will immediately fall by that 18% number. Shareholders will not like this.
The DOJ lawsuit against Alphabet may shake up the big tech landscape. Just not in the way you think. Apple is at more risk here financially than Alphabet.
10 stocks we like better than Alphabet
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, 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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AAPL Operating Income (TTM) data by YCharts. In September, the Department of Justice's (DOJ) antitrust case against Google's search engine monopoly began its trial, with testimonies from various business leaders illuminating the workings of the important sector. Alphabet (NASDAQ: GOOG) -- parent company of Google -- has an estimated 90% share of the search engine market and has wiped the floor with any competitor for years.
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AAPL Operating Income (TTM) data by YCharts. Alphabet pays Apple a handsome sum every year -- some estimate upwards of $20 billion -- to have Google be the default search engine on its Safari browser. As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices.
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AAPL Operating Income (TTM) data by YCharts. As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices. Investors may see this as a sign of a weakening competitive advantage and a risk for Alphabet shareholders as Google Search may start to lose market share to other search engines, such as Bing or DuckDuckGo, around the world.
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AAPL Operating Income (TTM) data by YCharts. As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices. Investors may see this as a sign of a weakening competitive advantage and a risk for Alphabet shareholders as Google Search may start to lose market share to other search engines, such as Bing or DuckDuckGo, around the world.
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2023-10-13 00:00:00 UTC
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3 Artificial Intelligence (AI) Stocks With More Potential Than Any Cryptocurrency
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AAPL
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https://www.nasdaq.com/articles/3-artificial-intelligence-ai-stocks-with-more-potential-than-any-cryptocurrency-1
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nan
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nan
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The crypto market has produced some insane returns over the years. However, its tendency to unexpectedly rise and fall makes it a bigger risk than most stocks. The decentralized aspect of cryptocurrencies means very few factors truly influence their price fluctuation. As a result, buying crypto can feel more like gambling than making an informed stock investment.
Meanwhile, the tech industry is known for its reliable long-term gains. Tech companies profit significantly from the innovative nature of the market, with constant upgrades to software, services, and various devices that consistently drive revenue growth.
In 2023, artificial intelligence (AI) has exploded, sending many tech stocks soaring. AI has the potential to boost countless industries across tech as millions of businesses and consumers adopt the technology. As a result, AI stocks could offer far bigger gains over the long term than the crypto market.
Data by YCharts
The chart above shows that all three AI-motivated companies on this list have produced significantly more growth in the last six months than the two most prominent cryptocurrencies. So, here are three artificial intelligence stocks with more potential than any cryptocurrency.
1. Apple
It's still early days for Apple's (NASDAQ: AAPL) venture into AI. However, the potency of its brand could take it far in the industry. The company has built immense brand loyalty with consumers, which bodes well for its long-term position in AI.
Apple has taken a quieter approach to AI than most companies, gradually using the technology to improve user experience across its product lineup. This year, the company introduced several AI-enabled features to its devices, such as improvements to Siri, the iPhone's camera, autocorrect, and various upgrades to the AirPods and Apple Watch.
Moreover, Bloomberg revealed in July that Apple has developed a framework for building large language models and produced its own version of OpenAI's ChatGPT, which engineers call Apple GPT. The report aligned with comments from CEO Tim Cook, who said the company's $3 billion increase in research and development spending in its third quarter of 2023 was primarily owed to its expansion in generative AI.
While most companies are focused on the commercial side of AI, Apple has its sights set on consumers. The tech giant holds leading market shares in multiple product categories, which could see it become the biggest growth driver of the public's adoption of AI. The company has massive potential in the industry, making it a better investment than any cryptocurrency.
2. Microsoft
As an early investor in AI, Microsoft (NASDAQ: MSFT) became a company to watch this year. It invested $1 billion in ChatGPT developer OpenAI in 2019, increasing that figure by a further $10 billion at the start of this year. As a result, Microsoft now boasts a 49% stake in the start-up, giving it access to some of the most powerful AI technology available.
Microsoft's partnership with OpenAI gave it a head start in the industry, gaining an edge over competitors like Amazon and Alphabet. The Windows company has used OpenAI's technology to bring AI upgrades to many of its services, including Word, Excel, Bing, and Azure. These platforms have seen millions of consumers and businesses grow to depend on Microsoft's productivity software, giving it massive AI potential. As more companies seek AI services to improve productivity, Microsoft's offerings are an increasingly attractive option.
The tech company is taking advantage of its dominance in productivity, with plans to soon launch an AI assistant called Copilot to its Microsoft 365 service. The assistant will be a $30 monthly add-on to a regular 365 subscription, which could significantly boost earnings over the next year.
Microsoft is on a promising growth path and will likely offer far larger returns than any cryptocurrency.
3. Advanced Micro Devices
Chip stocks like Advanced Micro Devices (NASDAQ: AMD) have been among the biggest winners as the AI market has exploded. Its stock soared about 70% since Jan. 1, as Wall Street grew bullish over its long-term prospects.
AMD started the year on the back foot, having fallen behind its biggest competitor, Nvidia, in AI. However, the company has pivoted its business to the high-growth sector and is gearing up to make a play for a portion of Nvidia's market share in 2024.
At the start of next year, AMD is expected to launch the next generation of its MI300 line of chips, which it described as its most powerful graphics processing unit (GPU). The new chip comes as many AI-driven companies are calling for increased competition in the market and alternatives to Nvidia that can offer high performance at a lower cost.
If AMD can launch its new chips at an attractive price point, its stock and earnings could skyrocket. The company has solid prospects in AI and is another far better investment than the crypto market.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. 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 9, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple It's still early days for Apple's (NASDAQ: AAPL) venture into AI. Tech companies profit significantly from the innovative nature of the market, with constant upgrades to software, services, and various devices that consistently drive revenue growth. This year, the company introduced several AI-enabled features to its devices, such as improvements to Siri, the iPhone's camera, autocorrect, and various upgrades to the AirPods and Apple Watch.
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Apple It's still early days for Apple's (NASDAQ: AAPL) venture into AI. As more companies seek AI services to improve productivity, Microsoft's offerings are an increasingly attractive option. Advanced Micro Devices Chip stocks like Advanced Micro Devices (NASDAQ: AMD) have been among the biggest winners as the AI market has exploded.
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Apple It's still early days for Apple's (NASDAQ: AAPL) venture into AI. Microsoft As an early investor in AI, Microsoft (NASDAQ: MSFT) became a company to watch this year. The tech company is taking advantage of its dominance in productivity, with plans to soon launch an AI assistant called Copilot to its Microsoft 365 service.
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Apple It's still early days for Apple's (NASDAQ: AAPL) venture into AI. Tech companies profit significantly from the innovative nature of the market, with constant upgrades to software, services, and various devices that consistently drive revenue growth. The company has massive potential in the industry, making it a better investment than any cryptocurrency.
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2023-10-13 00:00:00 UTC
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2 Under-the-Radar Gaming 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-under-the-radar-gaming-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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During the 2008 recession, the video games market became a haven for investors as it proved less vulnerable to economic headwinds. Banks collapsed, and the housing market crashed, yet Nintendo continued to sell millions of consoles and games.
In 2023, the games industry might not be as recession-proof as it once was. However, it remains a solid growth market and showed its resilience last year as Sony and Microsoft had trouble keeping consoles on shelves despite macroeconomic challenges. Meanwhile, more recent developments, such as microtransactions and mobile games, provide more avenues for game companies to boost earnings.
Video games are an ever-expanding industry where companies benefit from consistent demand for new content and regular updates to hardware that force consumers to upgrade their current setups every few years. As a result, it's not a bad idea to strengthen your portfolio by holding a video game stock over the long term.
As the world's most renowned gaming corporations, Nintendo, Sony, and Microsoft might look like obvious picks. However, there are some less obvious gaming companies that could offer more gains. So, here are two under-the-radar gaming stocks you can buy and hold for the next decade.
1. Nvidia
Nvidia (NASDAQ: NVDA) has been the toast of Wall Street this year, with its stock soaring more than 210% since Jan. 1. Investors have rallied as the company claimed about 90% of the artificial intelligence (AI) chip market. Its years of dominance in graphics processing units (GPUs) saw it catapult to the top of the burgeoning sector as it became the go-to chip supplier for AI-minded companies.
As a result, it's easy to forget that prior to this year, Nvidia was best known for its leading position in the games market. For years, the company's GPUs have been a favorite among PC gamers, who use Nvidia's chips to play new titles at settings far higher than possible on a console. Nvidia's success in games paved the way for it to achieve an 87% market share in discrete GPUs, perfectly positioning it to flourish once the AI market exploded.
In addition to PC gaming, Nvidia has a lucrative role in consoles by being the exclusive supplier of chips to the Nintendo Switch. Since its launch in 2017, Nintendo has sold more than 129 million Switches, making it the third-best-selling console of all time. The partnership has put Nvidia's hardware into the hands of millions of consumers worldwide and offered a consistent revenue stream. Rumors have swirled that a sequel to the Switch may be released in 2024, which could offer the company another boost to earnings.
As a leading chipmaker, Nvidia powers multiple industries with its hardware, making its stock an attractive way to invest in video games, AI, cloud computing, PCs, and more. It's an excellent option to buy now and hold for many years.
2. Apple
Apple (NASDAQ: AAPL) has grown into a tech behemoth, with its business expanding far and wide. Its dominance has seen it gain solid positions in markets that would likely surprise most consumers. In fact, Apple is perhaps the most successful under-the-radar gaming stock as it is currently the world's third-largest games company by revenue.
The tech giant achieved its dominance in games with the massive success of its App Store and consistent growth in the mobile games industry.
In May, Apple announced its App Store had generated more than $1 trillion in 2022, with mobile games accounting for 66% of consumer spending. The majority of those earnings would have gone to developers, but Apple's financials show the App Store is an incredibly lucrative part of its business.
Income from the App Store is filed under the company's services segment, which has quickly become the second-highest earning part of its business. Last year, services revenue rose 14% year over year, double the iPhone's growth. Meanwhile, services profit margins generally hover around 70%, compared to its products, which come in at around 36%.
Without seeking it out, Apple has become one of the biggest names in gaming. Its services segment growth shows its gaming business is on the charge, making Apple stock an attractive way to invest in the market and profit from the long-term development of video games.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of October 9, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) has grown into a tech behemoth, with its business expanding far and wide. However, it remains a solid growth market and showed its resilience last year as Sony and Microsoft had trouble keeping consoles on shelves despite macroeconomic challenges. Video games are an ever-expanding industry where companies benefit from consistent demand for new content and regular updates to hardware that force consumers to upgrade their current setups every few years.
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Apple Apple (NASDAQ: AAPL) has grown into a tech behemoth, with its business expanding far and wide. As a leading chipmaker, Nvidia powers multiple industries with its hardware, making its stock an attractive way to invest in video games, AI, cloud computing, PCs, and more. The tech giant achieved its dominance in games with the massive success of its App Store and consistent growth in the mobile games industry.
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Apple Apple (NASDAQ: AAPL) has grown into a tech behemoth, with its business expanding far and wide. In fact, Apple is perhaps the most successful under-the-radar gaming stock as it is currently the world's third-largest games company by revenue. The tech giant achieved its dominance in games with the massive success of its App Store and consistent growth in the mobile games industry.
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Apple Apple (NASDAQ: AAPL) has grown into a tech behemoth, with its business expanding far and wide. The tech giant achieved its dominance in games with the massive success of its App Store and consistent growth in the mobile games industry. Its services segment growth shows its gaming business is on the charge, making Apple stock an attractive way to invest in the market and profit from the long-term development of video games.
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13143.0
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2023-10-13 00:00:00 UTC
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Apple CEO Tim Cook Just Sold $88 Million Worth of Stock. Has the Stock Peaked?
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AAPL
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https://www.nasdaq.com/articles/apple-ceo-tim-cook-just-sold-%2488-million-worth-of-stock.-has-the-stock-peaked
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nan
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nan
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According to a filing from Oct. 1, Apple (NASDAQ: AAPL) CEO Tim Cook exercised options on 511,000 shares of Apple stock which were valued at more than $88 million. Cook's profit on the options sale totaled $41.5 million. It was the largest sale of Apple stock the executive has made in two years.
With Apple stock trading down more than 8% since August, is this a sign that even management believes the stock has already peaked? Is now the time for Apple investors to consider cashing in their shares of the business as well?
Is Tim Cook selling Apple stock a concern for investors?
A CEO selling shares of a company isn't necessarily a sign that he or she is pessimistic about its future. There are many possible reasons for an executive to sell shares, which can range from simply needing the liquidity for personal reasons to doing it for tax-planning purposes.
The timing of the sale certainly doesn't hurt, however, as shares of Apple trade up 38% so far this year and have been performing well. Cook still owns 3.3 million shares of Apple, so investors can probably dismiss the notion that this is a sign the CEO is worried the business is in trouble or that the stock can't go higher.
Still, investors often monitor executive stock sales and purchases to gauge management's confidence in the business. In this case, news of the sale hasn't had a noticeable impact on the stock price as shares of Apple continue to rise.
How expensive is Apple's stock?
Although Cook's stock sale may not necessarily indicate anything about the CEO's views of the company's future, it is never a bad idea to consider selling shares of a business that may be overpriced. And Apple's stock is arguably selling at a premium.
Shares of Apple trade at 30 times the company's trailing profits. That is well above its 10-year average, but not above the peak it hit in 2021 when investors were paying more than 41 times earnings for the stock.
AAPL PE Ratio data by YCharts
Investors have generally been paying more of a premium over the past few years than they have prior to the pandemic. My concern is that market values remain inflated. Considering that Apple's business is struggling a bit right now to generate consistent growth, it's a somewhat steep price to pay for the stock.
AAPL Revenue (Quarterly YoY Growth) data by YCharts
Should investors sell their shares of Apple?
Apple has an impressive, loyal fanbase which helps the company perform well even in an inflationary economy. But with its growth rate declining, student loan payments resuming, and a potential recession looming, the company may be facing some more challenging headwinds in the quarters ahead. Plus, its inflated valuation also suggests that the stock is vastly overpriced given the lack of growth it has been achieving.
This is a great, stable business that can generate consistent numbers or even single-digit growth over the long haul, but the danger is when investors start to expect too much from Apple's business, which is what that high earnings multiple suggests. Unless you're willing to hold the stock for the very long haul (10 years or more), now may be a time to consider cashing out.
At its current valuation, the stock has a lot of future growth already baked into its price. For some investors, this may not be a great growth stock to buy right now.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 2023
David Jagielski 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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According to a filing from Oct. 1, Apple (NASDAQ: AAPL) CEO Tim Cook exercised options on 511,000 shares of Apple stock which were valued at more than $88 million. AAPL PE Ratio data by YCharts Investors have generally been paying more of a premium over the past few years than they have prior to the pandemic. AAPL Revenue (Quarterly YoY Growth) data by YCharts Should investors sell their shares of Apple?
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According to a filing from Oct. 1, Apple (NASDAQ: AAPL) CEO Tim Cook exercised options on 511,000 shares of Apple stock which were valued at more than $88 million. AAPL Revenue (Quarterly YoY Growth) data by YCharts Should investors sell their shares of Apple? AAPL PE Ratio data by YCharts Investors have generally been paying more of a premium over the past few years than they have prior to the pandemic.
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According to a filing from Oct. 1, Apple (NASDAQ: AAPL) CEO Tim Cook exercised options on 511,000 shares of Apple stock which were valued at more than $88 million. AAPL PE Ratio data by YCharts Investors have generally been paying more of a premium over the past few years than they have prior to the pandemic. AAPL Revenue (Quarterly YoY Growth) data by YCharts Should investors sell their shares of Apple?
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According to a filing from Oct. 1, Apple (NASDAQ: AAPL) CEO Tim Cook exercised options on 511,000 shares of Apple stock which were valued at more than $88 million. AAPL PE Ratio data by YCharts Investors have generally been paying more of a premium over the past few years than they have prior to the pandemic. AAPL Revenue (Quarterly YoY Growth) data by YCharts Should investors sell their shares of Apple?
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13144.0
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2023-10-13 00:00:00 UTC
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The 4 Most Commonly Held Stocks Among Retail Investors
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AAPL
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https://www.nasdaq.com/articles/the-4-most-commonly-held-stocks-among-retail-investors
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nan
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nan
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Over the past three years, retail investors have rocked the boat like never before on Wall Street. The meme-stock phenomenon of early 2021, which saw dozens of short-sold stocks explode higher in a matter of days, sounded their arrival. But it's the trading activity of these everyday investors that speaks volumes.
Between 2010 and 2023, the percentage of shares traded on major exchanges by retail investors has effectively doubled. While high-frequency trading and professional investors still account for the lion's share of trading activity on Wall Street, retail investors are playing a progressively larger role in moving markets. In other words, knowing what these folks are buying, selling, and holding is taking on increased importance.
Image source: Getty Images.
One such platform that offers an under-the-hood look at what its everyday investors are holding is Robinhood (NASDAQ: HOOD). Since retail investors have gravitated to Robinhood's investing platform for a variety of reasons over the past three years, its list of the 100 most commonly held securities (stocks and exchange-traded funds) is a veritable goldmine for those looking to understand what companies are captivating the attention of a growing army of everyday investors.
According to Robinhood, these are the four most commonly held stocks among retail investors.
Tesla
The stock you'd be likeliest to find in the investment portfolios of Robinhood's retail investors is electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA).
EVs represent something of a no-brainer growth opportunity over the next couple of decades as consumers and businesses shift away from fossil fuel-powered transportation and toward green energy vehicles. Tesla has been leading this shift, with its first-mover advantages propelling its shares higher by more than 16,000% since its initial public offering (IPO) in 2010.
Tesla is the first automaker to successfully build itself from the ground up to mass production in more than a half-century, and it's currently the only EV pure play that's reached recurring profitability based on generally accepted accounting principles (GAAP). Tesla is very likely on its way to a fourth consecutive year of GAAP profits in 2023.
Retail investors also seem to appreciate the innovation of CEO Elon Musk. Musk has expanded Tesla's product line to include four production models, with a fifth (Cybertruck) on the way. Additionally, he's overseen Tesla's expansion into energy-storage products.
However, this top retail holding isn't without its flaws. Tesla's operating margin has plunged since kicking off a price war with new and legacy players in the EV space. Likewise, Tesla's attempts to become more than a car company have either been met with losses (e.g., residential solar panels) or low margins (e.g., energy storage and supercharger network).
The biggest worry of all for Tesla shareholders is its leadership. Elon Musk is a bit of a loose cannon who has a terrible habit of overpromising and underdelivering. Tesla is working on a mile-long list of promises that haven't yet been delivered.
Apple
Perhaps it's no surprise that the largest publicly traded company by market cap in the U.S., Apple (NASDAQ: AAPL), is among the most commonly held stocks in retail investors' portfolios, according to Robinhood. At one time, Apple was the most commonly held stock, but it's since fallen to the No. 2 spot behind Tesla.
One of the biggest lures of Apple as an investment is the visibility and familiarity of its brand. Apple is considered one of the most valuable and easily recognizable brands globally, and it has a very loyal base of consumers. It's no secret that some investors buy what they know -- and most everyone is familiar with Apple.
Another reason everyday investors can be excited about owning shares of Apple is the company's ongoing innovation. In addition to accounting for around half of U.S. smartphone market share, Apple is steadily evolving as a platform company. Subscription services has been its fastest-growing operating segment for years, and over time it should provide a healthy lift to the company's operating margin.
Apple is also unmatched in the capital-return column. It's parsing out $15 billion in dividends each year, and it's repurchased around $600 billion worth of its common stock since instituting a buyback program in 2013. Share repurchases have helped Apple's earnings per share grow over time.
The big concern at the moment for Apple shareholders is the company's valuation. With the exception of its Services segment, sales for all of the company's physical products have declined on a year-over-year basis through the first nine months of fiscal 2023. Modestly declining sales, coupled with a historically pricey forward price-to-earnings ratio of 29, isn't a great combination.
Image source: Amazon.
Amazon
The third most commonly held stock in the portfolios of retail investors is e-commerce company Amazon (NASDAQ: AMZN).
Familiarity likely plays a big role in Amazon climbing into the top three on Robinhood's platform. According to a 2022 report from eMarketer, Amazon was estimated to account for just shy of 40% of online retail sales in the United States. Well over 2 billion people visit Amazon's site each month, many of whom have a product or purchase on their mind.
But what's interesting about Amazon is that its online marketplace plays little role in its cash-flow generation. Amazon absolutely loves to reinvest most of its cash flow back into higher-growth initiatives and its burgeoning logistics operations. A significant chunk of the company's cash flow derives from Amazon Web Services (AWS).
Second-quarter estimates from tech analysis company Canalys show that AWS controls a 30% share of global cloud infrastructure service spending. Considering how much juicier the margins are for cloud services, compared to online retail sales, AWS regularly accounts for 50% to 100% of Amazon's operating income despite contributing to just a sixth of its net sales.
Subscriptions services and advertising services are other key cash-flow drivers for Amazon. This is a company with exceptional pricing power that shouldn't have any trouble raising the monthly or annual cost of Prime subscriptions. Plus, as noted, having more than 2 billion people visiting its online marketplace monthly puts the ball completely in its court on ad pricing.
Ford Motor Company
The fourth most commonly held stock among retail investors is yet another auto stock, Ford Motor Company (NYSE: F). Despite a host of brand-name, historically high-flying stocks for retail investors to choose from, such as Microsoft, Walt Disney, Nvidia, Meta Platforms, and Starbucks, it's legacy auto company Ford that gets the nod.
The excitement surrounding Ford has to do with the aforementioned shift to EVs. With well-defined organic catalysts in place, Ford has committed more than $50 billion to EV and battery research through 2026. The goal is to ramp its annual run-rate EV production to 2 million by the end of 2026.
Although Tesla possesses first-mover advantages in North America, Ford has one competitive edge that the world's largest auto company by market value simply can't match: its brand value. Ford has 120 years of history in its sails, and it can easily use this nostalgia to engage with consumers across generational gaps.
Additionally, this is a company that has its sights set on becoming far more than just a major EV producer in the United States. Ford has had an established presence in China, the world's No. 1 auto market, for two decades. Although it doesn't control a large percentage of the existing China auto market, the EV space in China remains nascent, with market share up for grabs.
On the other hand, auto stocks are highly cyclical and, Tesla aside, rarely trade at premiums valuations. Between the United Auto Workers' strike and select economic datapoints signaling a growing likelihood of a recession, Ford Motor's shareholders may find the drive a bit bumpy in the near future.
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. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 9, 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Amazon.com and Meta Platforms. The Motley Fool has positions in and recommends Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Starbucks, Tesla, and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Perhaps it's no surprise that the largest publicly traded company by market cap in the U.S., Apple (NASDAQ: AAPL), is among the most commonly held stocks in retail investors' portfolios, according to Robinhood. Tesla is the first automaker to successfully build itself from the ground up to mass production in more than a half-century, and it's currently the only EV pure play that's reached recurring profitability based on generally accepted accounting principles (GAAP). Despite a host of brand-name, historically high-flying stocks for retail investors to choose from, such as Microsoft, Walt Disney, Nvidia, Meta Platforms, and Starbucks, it's legacy auto company Ford that gets the nod.
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Apple Perhaps it's no surprise that the largest publicly traded company by market cap in the U.S., Apple (NASDAQ: AAPL), is among the most commonly held stocks in retail investors' portfolios, according to Robinhood. Ford Motor Company The fourth most commonly held stock among retail investors is yet another auto stock, Ford Motor Company (NYSE: F). Despite a host of brand-name, historically high-flying stocks for retail investors to choose from, such as Microsoft, Walt Disney, Nvidia, Meta Platforms, and Starbucks, it's legacy auto company Ford that gets the nod.
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Apple Perhaps it's no surprise that the largest publicly traded company by market cap in the U.S., Apple (NASDAQ: AAPL), is among the most commonly held stocks in retail investors' portfolios, according to Robinhood. Since retail investors have gravitated to Robinhood's investing platform for a variety of reasons over the past three years, its list of the 100 most commonly held securities (stocks and exchange-traded funds) is a veritable goldmine for those looking to understand what companies are captivating the attention of a growing army of everyday investors. Ford Motor Company The fourth most commonly held stock among retail investors is yet another auto stock, Ford Motor Company (NYSE: F).
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Apple Perhaps it's no surprise that the largest publicly traded company by market cap in the U.S., Apple (NASDAQ: AAPL), is among the most commonly held stocks in retail investors' portfolios, according to Robinhood. According to Robinhood, these are the four most commonly held stocks among retail investors. Ford Motor Company The fourth most commonly held stock among retail investors is yet another auto stock, Ford Motor Company (NYSE: F).
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13145.0
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2023-10-13 00:00:00 UTC
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Qualcomm's Bright Future Just Got Extended, Right At Resistance
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AAPL
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https://www.nasdaq.com/articles/qualcomms-bright-future-just-got-extended-right-at-resistance
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nan
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nan
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So look, no beating around the bush this time; when a high-quality asset (a business in this case) goes on sale because of outside forces weighing in the past the profitable realities of such support, you should be honing into your screen and digging out the facts to make an educated investment decision.
You have decided to come to the right place, which is why MarketBeat has provided you with enough time savings on research so you can think more about buying or getting busy selling. Today, the case study falls on Qualcomm (NASDAQ: QCOM), a well-known name with a beaten-up stock price.
With a brief lesson on value investing and deal-making, you will walk away with enough information to consider the vitality of allocating some of your hard-earned dollars to this name and get yourself acquainted with this stock.
Bring in the Protein
Plain and simple, this stock is trading at a 20% discount from its 52-week high. Wall Street's definition of a bear market is just this: a 20% decline from recent (or all-time) highs, first initial check once you open up the stock chart, done.
Why has the stock been falling this much? A valid concern may start to brew questions around the stability of the business, though these can be dismissed shortly.
According to industry readings from the United States ISM manufacturing PMI reports, the computer electronics industry has been on a near twelve-month contraction. This explains the slowdowns across the entire sector, excusing some - if not all - of the financial contractions seen in Qualcomm's figures.
Bigger, more established names like Apple (NASDAQ: AAPL) have been affected by this demand downturn, as America's favorite electronics brand reported a roughly 40% decline in personal computer shipments this year.
So, things are not necessarily blowing up inside Qualcomm's headquarters; instead, the entire industry is in trouble, and stock prices are all headed down together, but does the market agree with this assumption?
Analysts have placed a consensus price target of $142.6 a share for Qualcomm stock, which directly implies a 28.0% upside from today's prices. Analysts, who live and breathe the companies they cover, would not be bullish at all if there were any real trouble.
In fact, the company's financials will reveal the platform upon which a massive deal can build momentum for tremendous growth opportunities, but more on this later; for now, focus on the following key metrics.
Gross margins have been over 55% year after year, which can be a sign of pricing power or some other form of product moat. On a net income margin basis, this rate hardly dips below 22%, an astonishing rate of profitability for any industry.
So it's a well-managed money-pumping machine, but is it good enough for your money? Some will suggest it is.
Bright Future
Making - and maintaining - good margins is only part of the game; with all the extra money lying around, management has to be efficient enough to put it in the right places. You can use the ROIC (return on invested capital) metric to dig deeper into this.
Qualcomm's ROIC has hovered around 20-30% on a five-year average basis, which is a massive rate of return enough to call even the greediest value investors out there.
All else being equal, stock prices should reflect ROIC levels in their annual appreciation over the long run, and compounding money at rates above 20% sounds good even when inflation is running wild.
Why is all of this critical, information from past performance and all? You can safely assume that any incremental dollar of revenue that comes into this business will not only retain 22% or more but that this leftover will be wisely managed.
It was time to find out where all of this additional revenue would be coming from, and it turned out to be a place most bulls had given up on, one that bears were never counting on coming back.
Qualcomm has renewed its relationship with Apple, agreeing to be the exclusive supplier of Snapdragon 5G chips for smartphones. This reiterates Qualcomm's positioning as a leader in 5G technology, a moat you cannot put a price on.
Analysts only see earnings per share jumping by 11.5% for the next twelve months, a projection that may still need to reflect the potential upside this renewed contract may bring. Remember, each dollar of additional revenue goes a long way in Qualcomm's bottom line.
Considering this massive tailwind could be reflected in the coming quarterly earnings report. The stock trading the lowest P/E multiples in more than 5 years (ex. COVID), the ducks are in a row for potential purchase in this tremendous deal.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bigger, more established names like Apple (NASDAQ: AAPL) have been affected by this demand downturn, as America's favorite electronics brand reported a roughly 40% decline in personal computer shipments this year. So look, no beating around the bush this time; when a high-quality asset (a business in this case) goes on sale because of outside forces weighing in the past the profitable realities of such support, you should be honing into your screen and digging out the facts to make an educated investment decision. Bright Future Making - and maintaining - good margins is only part of the game; with all the extra money lying around, management has to be efficient enough to put it in the right places.
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Bigger, more established names like Apple (NASDAQ: AAPL) have been affected by this demand downturn, as America's favorite electronics brand reported a roughly 40% decline in personal computer shipments this year. According to industry readings from the United States ISM manufacturing PMI reports, the computer electronics industry has been on a near twelve-month contraction. All else being equal, stock prices should reflect ROIC levels in their annual appreciation over the long run, and compounding money at rates above 20% sounds good even when inflation is running wild.
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Bigger, more established names like Apple (NASDAQ: AAPL) have been affected by this demand downturn, as America's favorite electronics brand reported a roughly 40% decline in personal computer shipments this year. So, things are not necessarily blowing up inside Qualcomm's headquarters; instead, the entire industry is in trouble, and stock prices are all headed down together, but does the market agree with this assumption? Analysts have placed a consensus price target of $142.6 a share for Qualcomm stock, which directly implies a 28.0% upside from today's prices.
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Bigger, more established names like Apple (NASDAQ: AAPL) have been affected by this demand downturn, as America's favorite electronics brand reported a roughly 40% decline in personal computer shipments this year. Analysts have placed a consensus price target of $142.6 a share for Qualcomm stock, which directly implies a 28.0% upside from today's prices. So it's a well-managed money-pumping machine, but is it good enough for your money?
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13146.0
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2023-10-13 00:00:00 UTC
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US STOCKS-Wall St set for mixed open as investors assess big bank earnings
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-mixed-open-as-investors-assess-big-bank-earnings
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 13 (Reuters) - Wall Street's main stock indexes eyed a mixed open on Friday as investors assessed earnings from big U.S. banks, while Treasury yields eased following a spike in the previous session.
JPMorgan ChaseJPM.N rose 1.1% in premarket trading after beating expectations for third-quarter profit as a tighter monetary policy and the acquisition of failed First Republic Bank drove the lender's interest income to a record high.
Wells FargoWFC.N gained 2.5% after beating third-quarter profit estimates, while CitigroupC.N rose 2.3% after the bank said its quarterly profit was broadly steady as it benefited from rising interest payments and surging investment banking fees.
"The market will likely breathe a sigh of relief as the solid Citi numbers chime with the good results from JPMorgan and Wells Fargo too, and will go some way toward suggesting that the worst of the banking crisis is now over," said Stuart Cole, chief macro economist, at Equiti Capital.
"But next year may prove to be more difficult, when the Fed is expected to start cutting rates again and there are still fears remaining over whether the U.S. will avoid a period of negative growth."
Asset manager BlackRockBLK.N dipped 1.8% after posting a sharp drop in net inflows in the third quarter.
Options traders are bracing for larger-than-usual post-earnings stock price swings for some U.S. banks, despite signs of cooling volatility in broader markets, options data showed.
UnitedHealthUNH.N advanced 1.2% after beating third-quarter profit estimates, helped by a lower-than-feared rise in medical costs at the company's health insurance unit.
Keeping a lid on gains, megacap stocks Apple AAPL.O, Amazon.com AMZN.O, Tesla TSLA.O, Meta Platforms META.O and Nvidia NVDA.O dipped between 0.3% and 0.8%.
U.S. stocks registered their first decline in five days on Thursday as yields rose after consumer inflation data and weak demand in the auction of U.S. 30-year bonds.
Yields, however, eased on Friday, and the three main U.S. stock indexes were on track to register gains for the week.
Investors will look out for comments from Philadelphia Fed President Patrick Harker later in the day.
A preliminary estimate of the University of Michigan's October consumer sentiment index is due at 10 a.m. ET.
At 8:23 a.m. ET, Dow e-minis 1YMcv1 were up 30 points, or 0.09%, S&P 500 e-minis EScv1 were down 2.75 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were down 48.25 points, or 0.32%.
Investors also kept an eye on the conflict in Israel. The country's military has called for all civilians of Gaza City, more than 1 million people, to relocate south within 24 hours, as it amassed tanks ahead of an expected ground invasion after a devastating attack by the militant group Hamas.
Energy companies Exxon Mobil XOM.N, Chevron CVX.N, Callon Petroleum CPE.N and Occidental Petroleum OXY.N rose between 1.3% and 3.0%, tracking a near 4% jump in crude oil prices.
Dollar GeneralDG.N added 7.2% after the discount store retailer brought back former CEO Todd Vasos to replace Chief Executive Jeffery Owen.
BoeingBA.N lost 2.4% after the planemaker and Spirit AeroSystems SPR.N expanded the scope of their ongoing inspections of a production defect affecting 737 Max 8 aircraft. Spirit's shares were down 4.7%.
NetflixNFLX.O fell 1.8% on a report Wolfe Research downgraded the streaming service's shares to "peer perform".
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)
((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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Keeping a lid on gains, megacap stocks Apple AAPL.O, Amazon.com AMZN.O, Tesla TSLA.O, Meta Platforms META.O and Nvidia NVDA.O dipped between 0.3% and 0.8%. By Shashwat Chauhan and Ankika Biswas Oct 13 (Reuters) - Wall Street's main stock indexes eyed a mixed open on Friday as investors assessed earnings from big U.S. banks, while Treasury yields eased following a spike in the previous session. "The market will likely breathe a sigh of relief as the solid Citi numbers chime with the good results from JPMorgan and Wells Fargo too, and will go some way toward suggesting that the worst of the banking crisis is now over," said Stuart Cole, chief macro economist, at Equiti Capital.
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Keeping a lid on gains, megacap stocks Apple AAPL.O, Amazon.com AMZN.O, Tesla TSLA.O, Meta Platforms META.O and Nvidia NVDA.O dipped between 0.3% and 0.8%. By Shashwat Chauhan and Ankika Biswas Oct 13 (Reuters) - Wall Street's main stock indexes eyed a mixed open on Friday as investors assessed earnings from big U.S. banks, while Treasury yields eased following a spike in the previous session. Wells FargoWFC.N gained 2.5% after beating third-quarter profit estimates, while CitigroupC.N rose 2.3% after the bank said its quarterly profit was broadly steady as it benefited from rising interest payments and surging investment banking fees.
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Keeping a lid on gains, megacap stocks Apple AAPL.O, Amazon.com AMZN.O, Tesla TSLA.O, Meta Platforms META.O and Nvidia NVDA.O dipped between 0.3% and 0.8%. By Shashwat Chauhan and Ankika Biswas Oct 13 (Reuters) - Wall Street's main stock indexes eyed a mixed open on Friday as investors assessed earnings from big U.S. banks, while Treasury yields eased following a spike in the previous session. JPMorgan ChaseJPM.N rose 1.1% in premarket trading after beating expectations for third-quarter profit as a tighter monetary policy and the acquisition of failed First Republic Bank drove the lender's interest income to a record high.
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Keeping a lid on gains, megacap stocks Apple AAPL.O, Amazon.com AMZN.O, Tesla TSLA.O, Meta Platforms META.O and Nvidia NVDA.O dipped between 0.3% and 0.8%. By Shashwat Chauhan and Ankika Biswas Oct 13 (Reuters) - Wall Street's main stock indexes eyed a mixed open on Friday as investors assessed earnings from big U.S. banks, while Treasury yields eased following a spike in the previous session. Yields, however, eased on Friday, and the three main U.S. stock indexes were on track to register gains for the week.
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13147.0
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2023-10-13 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-3
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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
Excess Returns Investing 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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13148.0
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2023-10-13 00:00:00 UTC
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Ignore Tim Cook’s Insider Selling and Keep Doubling Down on AAPL Stock
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AAPL
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https://www.nasdaq.com/articles/ignore-tim-cooks-insider-selling-and-keep-doubling-down-on-aapl-stock
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Eyebrows were recently raised on news that Apple (NASDAQ:AAPL) CEO Tim Cook sold 511,000 shares of APPL stock worth $87.8 million before taxes. However, investors should ignore the insider selling and double down on Apple’s shares for continued long-term gains.
According to filings with securities regulators, Cook earned $41.5 million from the stock sale after taxes were deducted. It was the CEO’s biggest stock sale in two years. Cook had previously made $355 million from a stock sale in August 2021. The Apple leader now owns 3.3 million shares of the company he runs, which is valued at more than $550 million based on the current stock price.
Curious Timing
It wasn’t just the size of Tim Cook’s stock sale that attracted investor attention. It was also the timing. The sale came at the end of a volatile month for the consumer electronics company. In mid-September, Apple launched its new iPhone 15. Early indications are that sales of the new smartphone have been brisk. However, there have also been reports the device is prone to overheating, requiring Apple to issue a fix.
Earlier in September, Apple was embroiled in geopolitics when reports surfaced that China had banned government workers from using its iPhones. With concerns rising that China planned to extend the ban to all citizens in the nation of 1.4 billion people, AAPL stock plunged, erasing $200 billion off its market capitalization in only a few days. However, China has since backed off on the ban.
The stock sale also comes amid some worrying long-term trends for Apple. The company’s most recent financial results showed a continuing decline in sales of its iPhone, Mac computer, and iPad, each of which has fallen for multiple quarters. Apple managed to beat Wall Street estimates for its second-quarter results due largely to strong sales of its services, such as its App Store and Apple TV, which grew 8% annually.
Continued Strength
Despite these issues, investors shouldn’t read too much into Tim Cook’s recent stock sale. While the stock sale by executives is often viewed as a sign of internal trouble at a company and a strong sell signal, that is unlikely to be the case at Apple. First, the stock sale was likely prearranged when Cook received the shares as part of his compensation. This is often the case at large, publicly traded companies and is done to avoid perceptions of insider wheeling and dealing on the part of management.
Second, while Apple has faced some near-term headwinds, most problems, such as overheating China and the iPhone 15, are being remedied. Also, most analysts on Wall Street continue to be bullish on the tech company and its stock. Among the 37 analysts who cover the company, the median price target on AAPL stock is currently $200, implying an 11% increase from current levels. JPMorgan Chase maintains a “buy” equivalent rating on the stock and a price target of $230.
Lastly, while Apple has seen a slowdown in sales of its electronic devices, its services are more than making up for the shortfall as the company’s ecosystem continues to grow and strengthen. The new iPhone 15, which includes a more durable Titanium shell, looks to be a hit with consumers. The company has a coming catalyst in early 2024 with the launch of its Vision Pro augmented reality headset, Apple’s first completely new product in a decade.
AAPL Stock: What’s Next
Despite the recent slump in its share price, Apple remains the world’s most valuable publicly traded company. Apple is, after all, the only company to have achieved a $3 trillion market capitalization, which happened less than six months ago. While the ride has been bumpy lately, AAPL stock can be expected to rise again and remain a leading blue-chip technology security. For these reasons, investors shouldn’t sweat Tim Cook’s recent stock sale.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post Ignore Tim Cook’s Insider Selling and Keep Doubling Down on AAPL 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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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Ignore Tim Cook’s Insider Selling and Keep Doubling Down on AAPL Stock appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Eyebrows were recently raised on news that Apple (NASDAQ:AAPL) CEO Tim Cook sold 511,000 shares of APPL stock worth $87.8 million before taxes. With concerns rising that China planned to extend the ban to all citizens in the nation of 1.4 billion people, AAPL stock plunged, erasing $200 billion off its market capitalization in only a few days.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Eyebrows were recently raised on news that Apple (NASDAQ:AAPL) CEO Tim Cook sold 511,000 shares of APPL stock worth $87.8 million before taxes. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Ignore Tim Cook’s Insider Selling and Keep Doubling Down on AAPL Stock appeared first on InvestorPlace. With concerns rising that China planned to extend the ban to all citizens in the nation of 1.4 billion people, AAPL stock plunged, erasing $200 billion off its market capitalization in only a few days.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Eyebrows were recently raised on news that Apple (NASDAQ:AAPL) CEO Tim Cook sold 511,000 shares of APPL stock worth $87.8 million before taxes. AAPL Stock: What’s Next Despite the recent slump in its share price, Apple remains the world’s most valuable publicly traded company. With concerns rising that China planned to extend the ban to all citizens in the nation of 1.4 billion people, AAPL stock plunged, erasing $200 billion off its market capitalization in only a few days.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Eyebrows were recently raised on news that Apple (NASDAQ:AAPL) CEO Tim Cook sold 511,000 shares of APPL stock worth $87.8 million before taxes. AAPL Stock: What’s Next Despite the recent slump in its share price, Apple remains the world’s most valuable publicly traded company. With concerns rising that China planned to extend the ban to all citizens in the nation of 1.4 billion people, AAPL stock plunged, erasing $200 billion off its market capitalization in only a few days.
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13149.0
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2023-10-12 00:00:00 UTC
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US STOCKS-Futures rise as Treasury yields retreat ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-as-treasury-yields-retreat-ahead-of-inflation-data
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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
CPI, weekly jobless claims due at 8:30 a.m. ET
Fed officials adopted more cautious stance in September
Israel says no exceptions to Gaza siege unless hostages freed
Delta Air Lines up on quarterly profit beat
Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35%
Updated at 7:09 a.m. ET/1109 GMT
By Shashwat Chauhan and Ankika Biswas
Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
The Labor Department report, due at 8:30 a.m. ET, is expected to show consumer prices rose 0.3% in September, according to economists polled by Reuters, from a gasoline-fueled 0.6% rise in August.
Core CPI, which excludes volatile food and energy prices, is seen rising at a similar pace to last month's 0.3%. Focus will also be on weekly jobless claims for clues on the state of the labor market.
The yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O advance between 0.2% and 0.7% in premarket trading.
Boston Fed President Susan Collins said on Wednesday while the odds of the economy escaping a recession have grown, it's possible the central bank is not done with interest rate hikes aimed at bringing inflation back to its target.
Remarks from other Fed policymakers, including Atlanta's Raphael Bostic, are also expected on Thursday.
Minutes of the Fed's Sept. 19-20 meeting showed a growing sense of uncertainty around the path of the U.S. economy, with volatile data and tightening financial markets posing risks to growth.
"The words 'proceed carefully' and 'risks to achieving the goals had become more two-sided' speak to the view of the centrists on the FOMC," Societe Generale strategists said, referring to the Fed minutes.
"Barring a surprise for CPI today ... one must assume another hawkish pause or skip on Nov. 1 is now a done deal."
Traders put the chance of interest rates remaining unchanged in November and December at around 91% and around 72%, respectively, according to CME's FedWatch tool.
Meanwhile, Israel said there would be no humanitarian exceptions to its siege of the Gaza Strip until all its hostages were freed.
Public broadcaster Kan said the Israeli death toll had risen to more than 1,300 since Saturday, while Gaza authorities said more than 1,200 people have been killed and more than 5,000 people have been wounded in retaliatory bombings.
At 7:09 a.m. ET, Dow e-minis 1YMcv1 were up 105 points, or 0.31%, S&P 500 e-minis EScv1 were up 16.5 points, or 0.37%, and Nasdaq 100 e-minis NQcv1 were up 54.25 points, or 0.35%.
All three major U.S. stock indexes closed higher for the fourth straight session on Wednesday.
Delta Air LinesDAL.N rose 3.3% after reporting a stronger-than-expected quarterly profit. Other airline stocks such as American Airlines Group AAL.O, Southwest Airlines LUV.N and United Airlines Holdings UAL.O rose more than 1%.
Walgreens Boots AllianceWBA.O lost 4% after the pharmacy chain operator forecast a lower-than-estimated profit for 2024.
FordF.N fell 2.5% after the United Auto Workers union shut down the company's biggest plant globally.
BirkenstockBIRK.N rose 1% after the German sandal maker's stock ended more than 12% below its IPO price on its market debut on Wednesday.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((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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The yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O advance between 0.2% and 0.7% in premarket trading. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook. Boston Fed President Susan Collins said on Wednesday while the odds of the economy escaping a recession have grown, it's possible the central bank is not done with interest rate hikes aimed at bringing inflation back to its target.
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The yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O advance between 0.2% and 0.7% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window CPI, weekly jobless claims due at 8:30 a.m. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
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The yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O advance between 0.2% and 0.7% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window CPI, weekly jobless claims due at 8:30 a.m. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
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The yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks Apple AAPL.O, Alphabet GOOGL.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O advance between 0.2% and 0.7% in premarket trading. ET Fed officials adopted more cautious stance in September Israel says no exceptions to Gaza siege unless hostages freed Delta Air Lines up on quarterly profit beat Futures up: Dow 0.31%, S&P 0.37%, Nasdaq 0.35% Updated at 7:09 a.m. ET/1109 GMT By Shashwat Chauhan and Ankika Biswas Oct 12 (Reuters) - Futures tracking Wall Street's main indexes rose on Thursday as Treasury yields continued to ease, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook. The Labor Department report, due at 8:30 a.m.
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13150.0
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2023-10-12 00:00:00 UTC
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Alphabet Stock (NASDAQ:GOOGL): Analysts Predict Greater Growth from AI Boom
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AAPL
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https://www.nasdaq.com/articles/alphabet-stock-nasdaq%3Agoogl%3A-analysts-predict-greater-growth-from-ai-boom
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nan
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nan
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Despite the ongoing antitrust trial and macro uncertainty, shares of Google parent Alphabet (NASDAQ:GOOGL, GOOG) have risen more than 59% so far this year. Several analysts have recently expressed optimism about the company’s continued growth, supported by generative artificial intelligence (AI)-induced opportunities, continued innovation, and Google’s leadership in the Search space.
Analysts Optimistic About GOOGL’s Growth Potential
Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition.
While Monness analyst Brian White acknowledges the presence of regulatory headwinds and a dynamic competitive landscape, he reiterated a Buy rating on GOOGL stock with a price target of $160 on October 5 following the company’s “Made by Google” event. White noted that the company infused its new Pixel offerings with AI-powered experiences.
At the event, the company unveiled the Google Pixel 8 and Pixel 8 Pro smartphones, which are powered by the new Google Tensor G3 chip and have more AI capabilities. Alphabet also launched Google Watch 2 with advanced health tracking features supported by AI.
“Given Google’s storied history developing AI innovations, we believe the company has an opportunity to differentiate itself in mobile devices,” said White.
Like White, Goldman Sachs analyst Eric Sheridan also reacted positively to the “Made by Google” event. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Sheridan reiterated a Buy rating on Alphabet stock with a price target of $154.
Another GOOGL bull, Bank of America analyst Justin Post, reaffirmed a Buy rating on GOOGL stock on October 4 and increased the price target to $146 from $142. Post said that Statcounter's data revealed that Google's search market share declined slightly (27 basis points month-over-month and 84 basis points year-over-year) to 91.6% in September, but continues to be relatively stable since OpenAI’s ChatGPT was launched in late 2022.
He added that the market share of Microsoft’s (NASDAQ:MSFT) Bing Search engine fell 2 basis points month-over-month and 44 basis points year-over-year to 3% in September.
Post thinks that AI will be incrementally positive to Google's ad revenue in the second half of the year, fueled by the growing advertiser adoption of the Performance Max suite and the ramp of AI-driven offerings like dynamic keyword campaigns. With search growth accelerating, the analyst anticipates Google’s search business to enjoy solid margin leverage in the second half of 2023. Moreover, he expects cost efficiencies to drive upside to analysts’ estimates in 2024.
What is the Target Price of GOOGL Stock?
With 31 Buys and four Holds, Google stock scores Wall Street’s Strong Buy consensus rating. The average price target of $150.85 implies 7.3% upside.
Conclusion
Several analysts recently reaffirmed their bullish stance on GOOGL stock due to AI-led prospects. In fact, in a research note on Tuesday, Wedbush analyst Daniel Ives said that his firm's proprietary generative AI survey identified Microsoft and Google as the early leaders in the AI race. Overall, Wall Street remains optimistic about GOOGL stock, backed by continued innovation, search engine dominance, growth potential in the cloud, and robust AI opportunities.
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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Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Post thinks that AI will be incrementally positive to Google's ad revenue in the second half of the year, fueled by the growing advertiser adoption of the Performance Max suite and the ramp of AI-driven offerings like dynamic keyword campaigns.
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Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. Post said that Statcounter's data revealed that Google's search market share declined slightly (27 basis points month-over-month and 84 basis points year-over-year) to 91.6% in September, but continues to be relatively stable since OpenAI’s ChatGPT was launched in late 2022. He added that the market share of Microsoft’s (NASDAQ:MSFT) Bing Search engine fell 2 basis points month-over-month and 44 basis points year-over-year to 3% in September.
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Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. While Monness analyst Brian White acknowledges the presence of regulatory headwinds and a dynamic competitive landscape, he reiterated a Buy rating on GOOGL stock with a price target of $160 on October 5 following the company’s “Made by Google” event. Another GOOGL bull, Bank of America analyst Justin Post, reaffirmed a Buy rating on GOOGL stock on October 4 and increased the price target to $146 from $142.
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Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Sheridan reiterated a Buy rating on Alphabet stock with a price target of $154.
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13151.0
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2023-10-12 00:00:00 UTC
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Stock Market News for Oct 12, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-oct-12-2023
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nan
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nan
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U.S. stocks closed higher on Wednesday as investors assessed minutes from the Fed’s September FOMC meeting and producer-price index reading that came in slightly higher than expectations. Also, treasury yields continued to retreat. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.2% or 65.57 points to finish at 33,804.87 points.
The S&P 500 advanced 0.4% or 18.71 points, to close at 4,376.95 points. Utilities, real estate and communication services stocks were the biggest gainers.
The Utilities Select Sector SPDR (XLU) increased 1.6%, while the Utilities Select Sector SPDR (XLU) rose 2%. The Communication Services Select Sector SPDR (XLC) gained 0.9%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 0.7% or 96.83 points to end at 13,659.68 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.52% to 16.09. A total of 10 billion shares were traded on Wednesday, lower than the last 20-session average of 10.7 billion. Advancers outnumbered decliners on the NYSE by a 1.65-to-1 ratio. On the Nasdaq, a 1.19-to-1 ratio favored advancing issues.
Investors Try to Assess Fed’s Next Move
Stocks rallied for the fourth straight session on Wednesday as investors digested the meetings from the Federal Reserve’s September FOMC meeting. The minutes showed that Fed officials are still unclear about the future course of the economy as inflation stays elevated.
The minutes also revealed that as the Fed remains uncertain about the nation’s economy officials have decided to take a cautious meeting-by-meeting approach to its interest rate hike policy. Investors are now trying to gauge if the minutes of the meeting were hawkish or dovish.
However, investors’ sentiment remained upbeat despite this. Meanwhile, the 10-year Treasury yield continued to fall after hitting its highest level since Oct 2007 last week. The 10-year Treasury yield retreated 5.8 basis points to settle at 4.596% on Wednesday. However, the 2-year Treasury yield rose 2.1 basis points to end around 5%.
Shares of Apple Inc. (AAPL) gained 0.8%, while Microsoft Corporation (MSFT) rose 1.2%. Microsoft carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Wholesale Inflation Increases
Investors also kept a close watch on the September wholesale inflation report. The report showed that the producer price index (PPI) for September rose 0.5% month over month, higher than the consensus estimate of a rise of 0.3%. The jump was primarily driven by a rise in energy costs. However, it was down from August’s increase of 0.7%.
Core PPI, which excludes the volatile, energy and food prices, rose 0.3% in September, which came in line with expectations.
Year over year, PPI increased 2.2% in September, after increasing 2% in August. Core PPI rose 2.8% year over year after jumping 2.9% in August.
Investors are now looking forward to the consumer price index data, which is scheduled for release on Thursday.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. (AAPL) gained 0.8%, while Microsoft Corporation (MSFT) rose 1.2%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. The minutes showed that Fed officials are still unclear about the future course of the economy as inflation stays elevated.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 0.8%, while Microsoft Corporation (MSFT) rose 1.2%. U.S. stocks closed higher on Wednesday as investors assessed minutes from the Fed’s September FOMC meeting and producer-price index reading that came in slightly higher than expectations.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) gained 0.8%, while Microsoft Corporation (MSFT) rose 1.2%. U.S. stocks closed higher on Wednesday as investors assessed minutes from the Fed’s September FOMC meeting and producer-price index reading that came in slightly higher than expectations.
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Shares of Apple Inc. (AAPL) gained 0.8%, while Microsoft Corporation (MSFT) rose 1.2%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report To read this article on Zacks.com click here. The S&P 500 advanced 0.4% or 18.71 points, to close at 4,376.95 points.
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13152.0
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2023-10-12 00:00:00 UTC
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Australia unveils draft law to regulate digital payment providers
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AAPL
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https://www.nasdaq.com/articles/australia-unveils-draft-law-to-regulate-digital-payment-providers-0
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nan
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nan
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This Oct 11 story was updated on Oct 13 to add Google's comment in paragraph 10
SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay.
Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system.
The proposed rules would enable the Reserve Bank of Australia (RBA) to monitor digital wallet payments in the same way as credit card networks and other transactions. It would also give powers to the treasurer to order regulators to check if any payment platforms pose risks to the country.
"(The) government is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition and spur innovation," Treasurer Jim Chalmers said in a statement.
The draft law would expand the definitions of "payment system" and "participant" in Australia's existing laws, treasury documents showed.
Payments infrastructure and the regulatory framework have not kept pace with transitions in finance, particularly in Australia's digital economy and payments.
In a June report, the Australian Banking Association said it was witnessing a "phenomenal shift" in payment preferences in recent years, with the number of mobile wallet transactions in the country surging to 2.4 billion in 2022, from 29.2 million in 2018.
Google and Apple have been opposing the government's move to designate them as payment providers, saying customers only use their phones to use cards issued by banks to make payments.
Apple declined to comment on the draft law and instead referred to a submission it made to the treasury in July, when it said any reforms "should be proportionate to the limited, indirect role" digital services had in the payment system.
Google has been working closely and consistently with the Australian government in support of its reform of the country's payments system, Lucinda Longcroft, director of public policy at Google Australia, said in an emailed response.
The government has sought feedback from stakeholders on the draft legislation until Nov. 1. The legislation is expected to be introduced to parliament this year.
(Reporting by Renju Jose in Sydney; Editing by Stephen Coates and Jamie Freed)
((renju.jose@thomsonreuters.com; +61 29171 7126; Reuters Messaging: @renjujose))
The views and 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 Oct 11 story was updated on Oct 13 to add Google's comment in paragraph 10 SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. "(The) government is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition and spur innovation," Treasurer Jim Chalmers said in a statement. In a June report, the Australian Banking Association said it was witnessing a "phenomenal shift" in payment preferences in recent years, with the number of mobile wallet transactions in the country surging to 2.4 billion in 2022, from 29.2 million in 2018.
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This Oct 11 story was updated on Oct 13 to add Google's comment in paragraph 10 SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system. "(The) government is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition and spur innovation," Treasurer Jim Chalmers said in a statement.
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This Oct 11 story was updated on Oct 13 to add Google's comment in paragraph 10 SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system. Google and Apple have been opposing the government's move to designate them as payment providers, saying customers only use their phones to use cards issued by banks to make payments.
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This Oct 11 story was updated on Oct 13 to add Google's comment in paragraph 10 SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system. The proposed rules would enable the Reserve Bank of Australia (RBA) to monitor digital wallet payments in the same way as credit card networks and other transactions.
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13153.0
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2023-10-12 00:00:00 UTC
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After Hours Most Active for Oct 12, 2023 : RIG, AAPL, WU, HBAN, SQQQ, TLT, BAC, BP, MRTX, TQQQ, SNAP, HPE
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-12-2023-%3A-rig-aapl-wu-hban-sqqq-tlt-bac-bp-mrtx-tqqq-snap
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 1.44 to 15,185.54. The total After hours volume is currently 72,489,241 shares traded.
The following are the most active stocks for the after hours session:
Transocean Ltd. (RIG) is unchanged at $7.57, with 6,730,723 shares traded. RIG's current last sale is 97.68% of the target price of $7.75.
Apple Inc. (AAPL) is +0.39 at $181.10, with 3,311,588 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Western Union Company (The) (WU) is unchanged at $13.09, with 2,906,842 shares traded. WU's current last sale is 100.69% of the target price of $13.
Huntington Bancshares Incorporated (HBAN) is +0.01 at $10.04, with 2,883,420 shares traded. HBAN's current last sale is 81.96% of the target price of $12.25.
ProShares UltraPro Short QQQ (SQQQ) is -0.02 at $18.57, with 2,620,322 shares traded. This represents a 13.37% increase from its 52 Week Low.
iShares 20+ Year Treasury Bond ETF (TLT) is +0.23 at $86.30, with 2,164,226 shares traded. This represents a 2.66% increase from its 52 Week Low.
Bank of America Corporation (BAC) is unchanged at $26.90, with 1,963,751 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 $0.8. BAC is scheduled to provide an earnings report on 10/17/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.8 per share, which represents a 81 percent increase over the EPS one Year Ago
BP p.l.c. (BP) is unchanged at $39.29, with 1,961,056 shares traded. BP's current last sale is 94.67% of the target price of $41.5.
Mirati Therapeutics, Inc. (MRTX) is -0.06 at $56.14, with 1,866,267 shares traded. MRTX's current last sale is 93.57% of the target price of $60.
ProShares UltraPro QQQ (TQQQ) is +0.05 at $38.93, with 1,835,542 shares traded. This represents a 141.8% increase from its 52 Week Low.
Snap Inc. (SNAP) is unchanged at $9.11, with 1,805,882 shares traded. SNAP's current last sale is 91.1% of the target price of $10.
Hewlett Packard Enterprise Company (HPE) is unchanged at $16.95, with 1,574,948 shares traded. HPE's current last sale is 94.17% of the target price of $18.
The views and 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 +0.39 at $181.10, with 3,311,588 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.39 at $181.10, with 3,311,588 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is +0.39 at $181.10, with 3,311,588 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.8 per share, which represents a 81 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.39 at $181.10, with 3,311,588 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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13154.0
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2023-10-12 00:00:00 UTC
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Five things to know about the Google antitrust trial as it hits halfway mark
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AAPL
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https://www.nasdaq.com/articles/five-things-to-know-about-the-google-antitrust-trial-as-it-hits-halfway-mark
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nan
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nan
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By Diane Bartz
WASHINGTON, Oct 12 (Reuters) - The U.S. government is near the halfway mark in its court battle with Alphabet's GOOGL.O Google, which it has accused of breaking antitrust law with the tactics it used to dominate online search and some aspects of advertising.
In the trial that started on Sept. 12 and is scheduled to go to about mid-November, the Justice Department accused Google of manipulating online auctions - a multibillion dollar industry dominated by Google - with these formulas to favor its own bottom line.
Here are five important points raised so far during the trial:
GOOGLE PAYS BILLIONS TO PROTECT ITS SEARCH MONOPOLY
Google's James Kolotouros, who negotiated search distribution agreements with Android device makers and carriers, testified the agreements gave Google search exclusivity, and Google monitored compliance with them.
GOOGLE'S SEARCH DOMINANCE LED TO AD CLOUT, AND HIGHER PRICES
GOOGLE'S MASS OF SEARCH QUERIES COULD BE AN AI ADVANTAGE
Microsoft MSFT.OCEO Satya Nadella testified that access to search queries - like Google has on a massive scale - would not only help it improve its own search engine Bing, but could help it dominate artificial intelligence.
He said improving artificial intelligence requires computing power, or servers, and data to train software.
GOOGLE'S DEFENSE NO. 1: WE'RE BIG BECAUSE WE'RE GOOD
Google has argued that the government was wrong to say it broke the law to hold onto its massive market share, saying its search engine was wildly popular because of its quality and that dissatisfied users can easily switch.
Apple's AAPL.Osenior vice president of services Eddie Cue praised Google's search and acknowledged under questioning that the smartphone maker had meetings with Microsoft and DuckDuckGo, which uses Bing searches, but found them inadequate.
GOOGLE'S DEFENSE NO. 2: DEFAULTS ARE NOT THAT USEFUL
While Google pays billions of dollars per year to be the default search engine on Apple and Android devices, its lawyers have argued that being the default does not actually mean that users will stick around if they are dissatisfied.
John Schmidtlein, Google's lead lawyer, said Microsoft's success in becoming the default on some Verizon phones in 2008, and BlackBerry BB.TO and Nokia NOKIA.HE devices in 2011, ended with users bypassing Bing and doing most of their searches on Google.
(Reporting by Diane Bartz Editing by Marguerita Choy)
((Diane.Bartz@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's AAPL.Osenior vice president of services Eddie Cue praised Google's search and acknowledged under questioning that the smartphone maker had meetings with Microsoft and DuckDuckGo, which uses Bing searches, but found them inadequate. By Diane Bartz WASHINGTON, Oct 12 (Reuters) - The U.S. government is near the halfway mark in its court battle with Alphabet's GOOGL.O Google, which it has accused of breaking antitrust law with the tactics it used to dominate online search and some aspects of advertising. He said improving artificial intelligence requires computing power, or servers, and data to train software.
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Apple's AAPL.Osenior vice president of services Eddie Cue praised Google's search and acknowledged under questioning that the smartphone maker had meetings with Microsoft and DuckDuckGo, which uses Bing searches, but found them inadequate. By Diane Bartz WASHINGTON, Oct 12 (Reuters) - The U.S. government is near the halfway mark in its court battle with Alphabet's GOOGL.O Google, which it has accused of breaking antitrust law with the tactics it used to dominate online search and some aspects of advertising. Google's James Kolotouros, who negotiated search distribution agreements with Android device makers and carriers, testified the agreements gave Google search exclusivity, and Google monitored compliance with them.
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Apple's AAPL.Osenior vice president of services Eddie Cue praised Google's search and acknowledged under questioning that the smartphone maker had meetings with Microsoft and DuckDuckGo, which uses Bing searches, but found them inadequate. Google's James Kolotouros, who negotiated search distribution agreements with Android device makers and carriers, testified the agreements gave Google search exclusivity, and Google monitored compliance with them. Microsoft MSFT.OCEO Satya Nadella testified that access to search queries - like Google has on a massive scale - would not only help it improve its own search engine Bing, but could help it dominate artificial intelligence.
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Apple's AAPL.Osenior vice president of services Eddie Cue praised Google's search and acknowledged under questioning that the smartphone maker had meetings with Microsoft and DuckDuckGo, which uses Bing searches, but found them inadequate. By Diane Bartz WASHINGTON, Oct 12 (Reuters) - The U.S. government is near the halfway mark in its court battle with Alphabet's GOOGL.O Google, which it has accused of breaking antitrust law with the tactics it used to dominate online search and some aspects of advertising. In the trial that started on Sept. 12 and is scheduled to go to about mid-November, the Justice Department accused Google of manipulating online auctions - a multibillion dollar industry dominated by Google - with these formulas to favor its own bottom line.
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13155.0
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2023-10-12 00:00:00 UTC
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Microsoft (MSFT) May Contest IRS Claim of $28.9B in Back Taxes
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AAPL
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https://www.nasdaq.com/articles/microsoft-msft-may-contest-irs-claim-of-%2428.9b-in-back-taxes
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nan
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nan
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Microsoft MSFT is facing a demand for $28.9 billion in back taxes from the U.S. Internal Revenue Service (IRS), which marks a significant escalation in one of the largest corporate tax disputes in recent times.
Per a recent 8-K filing by the company, along with back taxes, this demand encompassed penalties and interest for late payment. The core of this dispute centers on Microsoft's use of transfer pricing, a practice that has been criticized for allowing companies, particularly in the tech sector, to shift profits to low-tax countries, thereby reducing their tax obligations.
Microsoft disclosed over a decade ago that it conducted its software production and distribution through regional centers in countries like Singapore, Dublin and Puerto Rico. By doing so, it was able to manage its profits in a manner that reduced its overall tax burden. This approach of allocating profits to different locations, based on where a portion of the costs and assets are situated, is commonly employed by multinational tech corporations.
Microsoft has expressed its disagreement with IRS's latest tax demand. It has indicated its intention to contest the claims vigorously through IRS's administrative appeals office, a process that could span several years. If necessary, MSFT is willing to take the matter to court. Additionally, the company stated that it would not set aside any additional reserves to cover the tax claim.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Microsoft Among Other Tech Giants Facing Tax Disputes
Governments have accused companies such as Apple AAPL, Amazon AMZN and Microsoft of shifting revenues through low or zero-tax jurisdictions in order to escape taxation in their main markets and maximize profits.
This spurred a major international agreement among 140 countries, brokered by Organization for Economic Cooperation and Development (OECD), that is designed to better share and regulate tax revenues of the giants. Recently, OECD published a draft agreement, implementing a major part of that deal with hopes of having it ratified by the end of 2023.
In 2019, a US appeals court sided with AMZN in a similar transfer pricing case brought by IRS. That case revolved around whether Amazon had undervalued its IP when it transferred it to a subsidiary in Luxembourg in 2005. The appeals court determined that Amazon's actions were consistent with the transfer pricing rules in place at the time. However, it might have been deemed non-compliant with later regulations introduced in 2009.
In the European Union, authorities in 2016 ordered Apple to pay 13 billion euros ($14 billion) in back taxes over similar accounting practices. Yet, Brussels lost an appeal to Apple and is awaiting the outcome of a further appeal.
Apart from the investigation of Microsoft's tax payments between 2004 and 2013, the company is also undergoing an audit by IRS for its tax returns from 2014 to 2017.
In recent years, Microsoft has taken steps to reconfigure some of its tax arrangements, partly due to changes in US tax laws aimed at encouraging tech companies to bring their intellectual property (IP) back to the United States.
In 2021, Microsoft shifted certain IP from Puerto Rico to the United States, which allowed it to claim a $3.3 billion tax benefit. It reflected the impact of Global Intangible Low-Taxed Income tax implemented during the Trump administration.
The disclosure of IRS notices comes just under two weeks before Microsoft plans to announce its financial results for fiscal 2024's first quarter.
The Zacks Consensus Estimate for MSFT’s first-quarter fiscal 2024 revenues is pegged at $54.42 billion, indicating year-over-year growth of 8.57%. The consensus mark for earnings is pegged at $2.65 per share, suggesting a year-over-year increase of 12.77%.
Shares of this Zacks Rank #3 (Hold) company have gained 33.2% year to date compared with the Zacks Computer and Technology sector’s return of 33.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft is on the cusp of buying Activision Blizzard ATVI for $68.7 billion, ending its near two-year pursuit of the maker of Call of Duty, World of Warcraft and Candy Crush. The deal is expected to close on Oct 13.
However, despite the merger, popular titles such as Call of Duty: Modern Warfare 3 and Diablo 4 might not be made immediately available on Xbox Game Pass this year. Activision Blizzard plans to start bringing its games to the subscription service from 2024.
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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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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Microsoft Among Other Tech Giants Facing Tax Disputes Governments have accused companies such as Apple AAPL, Amazon AMZN and Microsoft of shifting revenues through low or zero-tax jurisdictions in order to escape taxation in their main markets and maximize profits. 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 Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report To read this article on Zacks.com click here. The core of this dispute centers on Microsoft's use of transfer pricing, a practice that has been criticized for allowing companies, particularly in the tech sector, to shift profits to low-tax countries, thereby reducing their tax obligations.
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Microsoft Among Other Tech Giants Facing Tax Disputes Governments have accused companies such as Apple AAPL, Amazon AMZN and Microsoft of shifting revenues through low or zero-tax jurisdictions in order to escape taxation in their main markets and maximize profits. 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 Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT is facing a demand for $28.9 billion in back taxes from the U.S. Internal Revenue Service (IRS), which marks a significant escalation in one of the largest corporate tax disputes in recent times.
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Microsoft Among Other Tech Giants Facing Tax Disputes Governments have accused companies such as Apple AAPL, Amazon AMZN and Microsoft of shifting revenues through low or zero-tax jurisdictions in order to escape taxation in their main markets and maximize profits. 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 Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT is facing a demand for $28.9 billion in back taxes from the U.S. Internal Revenue Service (IRS), which marks a significant escalation in one of the largest corporate tax disputes in recent times.
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Microsoft Among Other Tech Giants Facing Tax Disputes Governments have accused companies such as Apple AAPL, Amazon AMZN and Microsoft of shifting revenues through low or zero-tax jurisdictions in order to escape taxation in their main markets and maximize profits. 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 Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT is facing a demand for $28.9 billion in back taxes from the U.S. Internal Revenue Service (IRS), which marks a significant escalation in one of the largest corporate tax disputes in recent times.
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2023-10-12 00:00:00 UTC
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2 Stocks to Invest in Virtual Reality
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AAPL
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https://www.nasdaq.com/articles/2-stocks-to-invest-in-virtual-reality-8
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nan
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nan
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Tech stocks fell out of favor last year as an economic downturn caused steep declines in consumer spending. However, Wall Street has grown bullish about the industry again in 2023, with many companies' stocks on the rise. As a result, now is an excellent time to invest in an exciting growth area of tech like virtual reality (VR).
Data from The Insight Partners shows the VR market is projected to hit $442 billion by 2030, expanding at a compound annual growth rate of 29%. The technology has had trouble attracting mainstream audiences in the past, and has been primarily embraced by the video gaming community. However, major companies like Apple (NASDAQ: AAPL) and Meta Platforms are heavily investing in VR now, with hopes of convincing consumers across multiple industries to adopt the technology.
It's still early days in the VR market, presenting an exciting investment opportunity. The industry could have a lot to offer stockholders over the long term. So, here are two stocks to invest in virtual reality this month.
1. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) has become a favorite with investors this year, with its stock up about 65% since Jan. 1. Wall Street has rallied over the company's potential in artificial intelligence (AI) as it gradually expands in the booming industry. However, AMD's chips can be applied to countless segments across tech and have already proven their worth in VR.
Until recently, the best VR experience could be achieved by connecting a headset to a gaming PC equipped with high-performance chips. In this way, AMD has successfully powered VR headsets such as the Meta Quest, Microsoft's Windows Mixed Reality, and HTC's Vive with its powerful central processing units (CPUs), graphics processing units (GPUs), and LiquidVR technology. AMD also indirectly powers Sony's PlayStation VR 2 by supplying the chips in the PlayStation 5, which is necessary to run the headset.
However, advances in chip technology are gradually allowing headsets to become all-in-one machines, freeing users from the constraints of being attached to a PC or console.
AMD has massive potential as the industry evolves, with its experience supplying custom chips to companies across tech. In addition to the PlayStation 5, AMD's hardware powers Microsoft's Xbox Series X|S, countless laptops, and handheld gaming machines.
AMD's chips could become a go-to for VR companies looking to take their headsets to the next level. For example, the Meta Quest Pro currently runs on Qualcomm's Snapdragon XR2 Plus Gen 1, a chip based on ones used in 2020 smartphones. The next version of Meta's VR headset will likely require more powerful hardware, with AMD well equipped to power the next generation of VR headsets.
AMD is no stranger to the VR market and could profit significantly as the market expands.
2. Apple
Apple is gearing up to make a big splash in VR in 2024 after unveiling its first virtual/augmented reality headset this past June, which it calls the Vision Pro. The device is expected to begin shipping early next year and, in true Apple form, could offer the industry a significant boost.
The company isn't always the first to a market, but it is known for taking existing technology and using its unique design language to attract millions of users. Apple has done this with smartphones, tablets, and smartwatches, achieving leading market shares. Each of these product categories experienced a rapid spike in public adoption once Apple entered the picture, which bodes well for its venture into VR/AR.
Apple's Vision Pro has seemingly taken leaps in innovation, offering many features never before seen in a headset. The device is equipped with the same chip powering the company's MacBook Air, essentially making it a full computer in headset form. As a result, the Vision Pro can perform almost any computing function that the average consumer requires, including web browsing, video streaming, FaceTime calls, editing, and word processing.
With the Vision Pro, Apple seems to be employing a similar strategy that proved successful when launching its first smartwatch. The company is releasing its first headset jam-packed with features and applications, allowing consumers to decide its best use case. For the Apple Watch, that turned out to be fitness tracking. Only time will tell what the best use will be for the Vision Pro.
Prospective shareholders should be aware that Apple is a long-term VR stock. The Vision Pro will launch at $3,499, pricing out many consumers. However, future iterations of the device will likely see this cost come down, a strategy Apple has used with many of its previous products.
Regardless, the company's past success when entering new markets suggests an investment in its stock today could be an investment in the future leader of the lucrative industry.
10 stocks we like better than Advanced Micro Devices
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Meta Platforms, Microsoft, and Qualcomm. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, major companies like Apple (NASDAQ: AAPL) and Meta Platforms are heavily investing in VR now, with hopes of convincing consumers across multiple industries to adopt the technology. Data from The Insight Partners shows the VR market is projected to hit $442 billion by 2030, expanding at a compound annual growth rate of 29%. As a result, the Vision Pro can perform almost any computing function that the average consumer requires, including web browsing, video streaming, FaceTime calls, editing, and word processing.
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However, major companies like Apple (NASDAQ: AAPL) and Meta Platforms are heavily investing in VR now, with hopes of convincing consumers across multiple industries to adopt the technology. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) has become a favorite with investors this year, with its stock up about 65% since Jan. 1. In this way, AMD has successfully powered VR headsets such as the Meta Quest, Microsoft's Windows Mixed Reality, and HTC's Vive with its powerful central processing units (CPUs), graphics processing units (GPUs), and LiquidVR technology.
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However, major companies like Apple (NASDAQ: AAPL) and Meta Platforms are heavily investing in VR now, with hopes of convincing consumers across multiple industries to adopt the technology. The next version of Meta's VR headset will likely require more powerful hardware, with AMD well equipped to power the next generation of VR headsets. Apple Apple is gearing up to make a big splash in VR in 2024 after unveiling its first virtual/augmented reality headset this past June, which it calls the Vision Pro.
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However, major companies like Apple (NASDAQ: AAPL) and Meta Platforms are heavily investing in VR now, with hopes of convincing consumers across multiple industries to adopt the technology. AMD also indirectly powers Sony's PlayStation VR 2 by supplying the chips in the PlayStation 5, which is necessary to run the headset. Regardless, the company's past success when entering new markets suggests an investment in its stock today could be an investment in the future leader of the lucrative industry.
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13157.0
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2023-10-12 00:00:00 UTC
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1 Green Flag for Apple in 2023, and 1 Red Flag
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-for-apple-in-2023-and-1-red-flag-3
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nan
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nan
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Wall Street has gone hot and cold on tech this year, with many of the market's stocks soaring in the first half of 2023 as excitement over artificial intelligence (AI) increased. However, the Nasdaq-100 Technology Sector index tumbled 6% since the start of August, when multiple companies posted dismal quarterly results. The decline proved many companies are still fighting against macroeconomic headwinds, which could continue into next year.
Despite the immense popularity of its products, Apple (NASDAQ: AAPL) hasn't come through market challenges unscathed. The company has faced repeated revenue declines, with its shares falling about 9% since Aug. 1. As a result, it's not a bad idea to learn more about this tech giant before filling up on its stock.
So here are one green flag and one red flag for Apple in 2023.
Green flag: Nearly unrivaled brand loyalty among consumers
Despite poor market conditions, Apple remains a favorite among consumers. Its dominance in tech could massively pay off over the long term once economic troubles subside, indicating that buying its recent stock dip might be a good idea.
Apple has built up immense brand loyalty with the public over the years, allowing it to snap up market share in nearly every industry it has entered. Product segments such as smartphones, tablets, smartwatches, and headphones were all led by other tech companies before Apple entered the picture. However, the company now boasts leading positions in each. Apple-exclusive apps like Messages and FaceTime, alongside an interconnected ecosystem that promotes ease of use among its devices, have won over shoppers.
The public's preference for Apple's offerings has been particularly prevalent during this economic downturn, as the company continued to outperform its peers. Data from Counterpoint Research shows that in the second quarter of 2023, U.S. smartphone shipments fell 24% year over year (YOY). Market trouble meant Samsung's sales plunged 37%. However, Apple reported a more moderate decline of 6% in the period, which allowed its smartphone market share to rise from 52% to 55%.
Global PC sales similarly fell 13% in Q2 2023. Yet, while Lenovo and Dell experienced sales declines of 18% and 22%, Apple's MacBook division actually grew 10% YOY.
Moreover, the popularity of Apple's products has bolstered its ventures into more digital markets like app sales, subscription services, and fintech. As a result, services is now the company's highest-earning division, with revenue growth consistently outpacing the iPhone (Apple's highest-earning division). Services enables Apple to lean less on its product sales during challenging market conditions, likely making its stock a reliable option over the long term.
Red flag: Vulnerable to macroeconomic headwinds
While Apple has outperformed its competitors amid market headwinds, prospective investors should be aware that its products business still makes it vulnerable to macroeconomic headwinds.
More than 70% of the company's revenue relies on product sales, with close to 50% of that owed to the iPhone. Consequently, reductions in consumer spending over the last year have been tough on growth.
In Q3 2023, Apple's total revenue fell for the third consecutive quarter, down 1% YOY after declines in three of its four product areas. The company remained profitable, achieving $23 billion in operating income. However, looming fears of a recession indicate Apple could continue to report revenue dips into the start of next year.
As a result, it's crucial to keep a long-term perspective on Apple's stock. The company remains a leader in one of the fastest-growing sectors, which suggests it will continue to offer significant gains to patient investors.
Meanwhile, at the rate services is growing, it could eventually surpass the iPhone as the highest-earning segment. Services posted revenue growth of 14% year over year in fiscal 2022, double that of the iPhone. Then, in Q3 2023, the segment hit 8% growth compared to the iPhone's decline of 2%.
Services consistently hit profit margins of around 70%, compared to products' 35%. Apple's gradual expansion in the digital market sees it playing the long game, fortifying its business by potentially decreasing its vulnerability to poor product sales. Given aggressive investment in the booming AI market, I wouldn't bet on Apple losing its status as an excellent growth stock in the coming years.
Find out why Apple is one of the 10 best stocks to buy now
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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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Despite the immense popularity of its products, Apple (NASDAQ: AAPL) hasn't come through market challenges unscathed. Wall Street has gone hot and cold on tech this year, with many of the market's stocks soaring in the first half of 2023 as excitement over artificial intelligence (AI) increased. Its dominance in tech could massively pay off over the long term once economic troubles subside, indicating that buying its recent stock dip might be a good idea.
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Despite the immense popularity of its products, Apple (NASDAQ: AAPL) hasn't come through market challenges unscathed. Green flag: Nearly unrivaled brand loyalty among consumers Despite poor market conditions, Apple remains a favorite among consumers. As a result, services is now the company's highest-earning division, with revenue growth consistently outpacing the iPhone (Apple's highest-earning division).
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Despite the immense popularity of its products, Apple (NASDAQ: AAPL) hasn't come through market challenges unscathed. As a result, services is now the company's highest-earning division, with revenue growth consistently outpacing the iPhone (Apple's highest-earning division). Services enables Apple to lean less on its product sales during challenging market conditions, likely making its stock a reliable option over the long term.
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Despite the immense popularity of its products, Apple (NASDAQ: AAPL) hasn't come through market challenges unscathed. The decline proved many companies are still fighting against macroeconomic headwinds, which could continue into next year. Services posted revenue growth of 14% year over year in fiscal 2022, double that of the iPhone.
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2023-10-12 00:00:00 UTC
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US STOCKS-Futures rise as Treasury yields drop ahead of inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-as-treasury-yields-drop-ahead-of-inflation-data
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.29%, S&P 0.35%, Nasdaq 0.34%
Oct 12 (Reuters) - Futures for Wall Street's main stock indexes rose on Thursday as Treasury yields eased, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
The Labor Department report, due at 8:30 a.m. ET, is expected to show consumer prices rising 0.3% in September according to economists polled by Reuters.
Prices are seen rising to 3.6% in the 12 months through September. The core figure, which excludes volatile food and energy prices, is expected to rise 0.3% last month.
Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading.
Fed Bank of Boston President Susan Collins, who does not have a vote on the rate setting Federal Open Market Committee (FOMC) this year, said the economy was yet to feel the full impact of the rate hike cycle, while reiterating that the central bank is not done with rate hikes.
Minutes from the Fed's September policy meeting showed that policymakers were turning cautious due to the growing uncertainty around the path of the U.S. economy, as well as volatile data and tightening financial markets posing risks to growth.
"The words 'proceed carefully' and 'risks to achieving the goals had become more two-sided' speak to the view of the centrists on the FOMC," strategists at Societe Generale said in a note.
"Barring a surprise for CPI today on the scale of non-farm payrolls last week, one must assume another hawkish pause or skip on Nov. 1 is now a done deal."
Traders put the chance of interest rates remaining unchanged in November and December at around 91% and around 72%, respectively, according to CME's FedWatch tool.
Meanwhile, Israel said there would be no humanitarian break to its siege of the Gaza Strip until all its hostages were freed.
At 5:20 a.m. ET, Dow e-minis 1YMcv1 were up 99 points, or 0.29%, S&P 500 e-minis EScv1 were up 15.25 points, or 0.35%, and Nasdaq 100 e-minis NQcv1 were up 52.75 points, or 0.34%.
All three major U.S. stock indexes closed higher for the fourth straight session on Wednesday.
Quarterly earnings from fast food chain Domino's Pizza DPZ.N, pharmacy chain operator Walgreens Boots Alliance WBA.O and Delta Air Lines DAL.N are due before the markets open.
Ford MotorF.N dipped 1.9% after United Auto Workers shut down the company's biggest plant globally.
Birkenstock HoldingBIRK.N added 0.5% after the German sandal maker's stock ended more than 12% below its initial public offering price on its market debut on Wednesday.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur)
((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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Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. Minutes from the Fed's September policy meeting showed that policymakers were turning cautious due to the growing uncertainty around the path of the U.S. economy, as well as volatile data and tightening financial markets posing risks to growth. Birkenstock HoldingBIRK.N added 0.5% after the German sandal maker's stock ended more than 12% below its initial public offering price on its market debut on Wednesday.
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Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. The core figure, which excludes volatile food and energy prices, is expected to rise 0.3% last month. Fed Bank of Boston President Susan Collins, who does not have a vote on the rate setting Federal Open Market Committee (FOMC) this year, said the economy was yet to feel the full impact of the rate hike cycle, while reiterating that the central bank is not done with rate hikes.
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Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. Futures up: Dow 0.29%, S&P 0.35%, Nasdaq 0.34% Oct 12 (Reuters) - Futures for Wall Street's main stock indexes rose on Thursday as Treasury yields eased, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook. Fed Bank of Boston President Susan Collins, who does not have a vote on the rate setting Federal Open Market Committee (FOMC) this year, said the economy was yet to feel the full impact of the rate hike cycle, while reiterating that the central bank is not done with rate hikes.
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Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.29%, S&P 0.35%, Nasdaq 0.34% Oct 12 (Reuters) - Futures for Wall Street's main stock indexes rose on Thursday as Treasury yields eased, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
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13159.0
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2023-10-12 00:00:00 UTC
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A Bull Market is Coming: 2 Warren Buffett Favorites to Buy Now
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-warren-buffett-favorites-to-buy-now
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nan
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nan
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The three major indexes have rallied since the start of the year, offering us hope that we're moving closer and closer to the next bull market. After all, history shows us bear markets always lead to periods of market expansion. And that could lift shares of companies that are growing -- or set to grow -- at a fast rate.
So, what should we do to prepare? We should invest in some of these quality players that could excel in a bull market, and a great place to look for ideas is in the portfolio of an investing expert. Here, I'm talking about Warren Buffett. The billionaire investor, as chairman, has led Berkshire Hathaway to a compounded annual gain of nearly 20% in 57 years, topping the S&P 500's performance. Let's check out two Buffett favorites to buy now.
1. Apple
Apple (NASDAQ: AAPL) has steadily increased revenue and net income over the years thanks to its top-seller, the iPhone, and various other products -- from Macs to the Apple Watch. That's helped the share price climb, and the company's market value reach more than $2.7 trillion today.
But Apple's growth story isn't over, and the company may actually get a big boost from its services business. That business -- including iCloud storage, digital content, payment services like Apple Pay and more -- reported record-high revenue in the most recent quarter thanks to one billion paid subscriptions. Services net sales climbed more than 8% to $21.2 billion, even as the difficult economic environment weighed on product sales.
The good news here is Apple generates more of a profit from its services, with a gross margin greater than 70% compared to gross margin of about 35% for products. And this momentum in services isn't likely to stop as Apple continues to boost its offerings, for example launching new content on Apple TV+ and adding financial products for Apple Card holders.
Finally, it's important to take a look at another element Warren Buffett surely likes, and that's Apple's moat, or competitive advantage. In this case, the moat is linked to Apple's brand strength. And this has helped the company grow return on invested capital and free cash flow over the years as well.
AAPL Return on Invested Capital data by YCharts
Meanwhile, Apple shares trade for about 27 times forward earnings estimates. Buffett always likes a bargain, and this looks like one considering Apple's long-term growth, brand strength, and future prospects.
2. Amazon
Amazon (NASDAQ: AMZN) is a leader in two markets that are growing in the double-digits: e-commerce and cloud computing. Like Apple, the company has increased earnings over the years -- but it stumbled in recent times as inflation weighed on its costs and on its customers' buying power.
But this actually led to something positive. Amazon improved its cost structure, and this move will help it come out ahead over time. The company has cut jobs, improved efficiency, and focused investments on areas with high potential such as technology infrastructure and artificial intelligence.
It even shifted its fulfillment model from a national to a regional one. This means that if you're in Connecticut, for example, your order will ship from nearby rather than from California. This saves Amazon money and makes deliveries faster, scoring a win for the company and for the customer.
Amazon's recent moves have been bearing fruit. In the most recent quarter, operating income more than doubled year over year, and free cash flow improved to an inflow over the trailing 12 months from an outflow a year ago.
The company also saw improvements in trends at Amazon Web Services (AWS), its cloud computing business, as clients started to deploy new projects again. This is key because AWS generally has driven profit at Amazon.
Finally, like Apple, Amazon also has a moat in the form of its vast fulfillment network and brand strength -- many of us often go straight to Amazon if we're looking for something ordinary or something unusual, figuring you can find it all on the e-commerce site.
Today, Amazon shares trade for 60 times forward earnings estimates, which may seem like a lot. But it's actually reasonable considering the company's position in two high-growth markets, its earnings track record, and earnings prospects. Amazon could flourish in the next bull market -- and so could Buffett's investment and your investment in this top stock.
Find out why Apple is one of the 10 best stocks to buy now
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon.com. 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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Apple Apple (NASDAQ: AAPL) has steadily increased revenue and net income over the years thanks to its top-seller, the iPhone, and various other products -- from Macs to the Apple Watch. AAPL Return on Invested Capital data by YCharts Meanwhile, Apple shares trade for about 27 times forward earnings estimates. That business -- including iCloud storage, digital content, payment services like Apple Pay and more -- reported record-high revenue in the most recent quarter thanks to one billion paid subscriptions.
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Apple Apple (NASDAQ: AAPL) has steadily increased revenue and net income over the years thanks to its top-seller, the iPhone, and various other products -- from Macs to the Apple Watch. AAPL Return on Invested Capital data by YCharts Meanwhile, Apple shares trade for about 27 times forward earnings estimates. And this has helped the company grow return on invested capital and free cash flow over the years as well.
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Apple Apple (NASDAQ: AAPL) has steadily increased revenue and net income over the years thanks to its top-seller, the iPhone, and various other products -- from Macs to the Apple Watch. AAPL Return on Invested Capital data by YCharts Meanwhile, Apple shares trade for about 27 times forward earnings estimates. And this momentum in services isn't likely to stop as Apple continues to boost its offerings, for example launching new content on Apple TV+ and adding financial products for Apple Card holders.
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Apple Apple (NASDAQ: AAPL) has steadily increased revenue and net income over the years thanks to its top-seller, the iPhone, and various other products -- from Macs to the Apple Watch. AAPL Return on Invested Capital data by YCharts Meanwhile, Apple shares trade for about 27 times forward earnings estimates. Like Apple, the company has increased earnings over the years -- but it stumbled in recent times as inflation weighed on its costs and on its customers' buying power.
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13160.0
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2023-10-12 00:00:00 UTC
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Clicking towards record: India's festival season spurs online shopping spree
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AAPL
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https://www.nasdaq.com/articles/clicking-towards-record%3A-indias-festival-season-spurs-online-shopping-spree
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nan
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nan
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By Manoj Kumar
NEW DELHI, Oct 12 (Reuters) - Run off their virtual feet at the start of India's festival season, e-commerce companies like Amazon AMZN.O and Walmart WMT.N owned Flipkart are looking forward to a potentially record breaking few weeks.
Any lingering fears that inflation and higher interest rates would dampen consumers' spirit in Asia's third largest economy, are being rapidly dispelled.
RedSeer, a Bangalore-based consultancy, which monitors over 100 platforms covering 90% of online sales, predicts virtual shoppers will spend a record $11 billion during the month to mid-November - which would be nearly 20% more than last year.
Amazon India has made its "best-ever start" to the peak period in the shopping calendar, according to vice president Manish Tiwary, reporting a record 95 million customer visits in the first two days of its 'Great Indian Festival 2023' campaign.
Over at Flipkart, sales of electronic products, lifestyle garments and furniture were seven to ten times higher than in the pre-festival period, said vice president Arief Mohamad.
Both retailers have hired over 200,000 temporary workers to meet the rush and added over 300,000 new sellers, according to company officials.
"I don't have time even for lunch as there are so many packets to be delivered," said Ajay Singh, a delivery boy at a Flipkart delivery centre in a busy market in New Delhi.
Singh says he's working more than 12 hours a day and expects to double his earnings over the next few weeks.
CHANGING WAYS
A shift in consumer behaviour and increased penetration of smartphones has fuelled the rise in online buying.
Manju Negi could be speaking for a lot of working women in India with money to spend but little time to spare, and no great desire to travel on jammed roads to and from bustling malls and markets.
"Who would like to go to an overcrowded market and spend hours buying products while paying for transport, when there are so many options on online platforms," said Negi, a public relations manager with a company in Delhi. "We plan to spend more on festival buying compared to last year."
Negi has already bought a washing machine and an air-fryer online and said she is now looking for home décor items ahead of India's largest festival of Diwali in November.
DELIVERY NETWORKS
The e-commerce firms have also expanded their footprint by organising delivery solutions for more customers living outside India's major metros.
"The fast emerging online business has created opportunities for a number of logistics companies and small sellers - generating jobs for millions," said Ashwani Jakhar, CEO of Prozo, a supply-chain management company based in Gurgaon, near Delhi.
Commenting on the first 48 hours of the festival sales, Amazon said in a statement that more than 80% of customers came from non-metro cities, and smaller sellers saw a 35% jump in sales compared a year ago.
A report by India's central bank last week showed consumer confidence touched a four-year high in September on the back of stabilising inflation and improving employment conditions.
As consumer spending accounts for 60% of gross domestic product, that would support the Reserve Bank of India's forecast for economic growth of 6.5% in the year to March 31, 2024.
Mrigank Gutgutia, partner at RedSeer, expected the improvement in business and consumer sentiment to last, resulting in "better and stable growth for e-commerce not only this festival season but in the next few years as well."
The e-commerce market is projected to expand to $350 billion by 2030 from an estimated $63 billion in 2023, according to government estimates.
($1 = 83.2350 Indian rupees)
Bumper festive sales https://tmsnrt.rs/3PNCzcd
Strong consumer confidence https://tmsnrt.rs/45ln3Kt
Rising business confidence https://tmsnrt.rs/3twsWr2
(Reporting by Manoj Kumar; Graphics by Riddhima Talwani; Editing by Simon Cameron-Moore)
((manoj.kumar@thomsonreuters.com; +919810286200; Twitter:@manojgulnar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Manoj Kumar NEW DELHI, Oct 12 (Reuters) - Run off their virtual feet at the start of India's festival season, e-commerce companies like Amazon AMZN.O and Walmart WMT.N owned Flipkart are looking forward to a potentially record breaking few weeks. Amazon India has made its "best-ever start" to the peak period in the shopping calendar, according to vice president Manish Tiwary, reporting a record 95 million customer visits in the first two days of its 'Great Indian Festival 2023' campaign. Manju Negi could be speaking for a lot of working women in India with money to spend but little time to spare, and no great desire to travel on jammed roads to and from bustling malls and markets.
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By Manoj Kumar NEW DELHI, Oct 12 (Reuters) - Run off their virtual feet at the start of India's festival season, e-commerce companies like Amazon AMZN.O and Walmart WMT.N owned Flipkart are looking forward to a potentially record breaking few weeks. "Who would like to go to an overcrowded market and spend hours buying products while paying for transport, when there are so many options on online platforms," said Negi, a public relations manager with a company in Delhi. ($1 = 83.2350 Indian rupees) Bumper festive sales https://tmsnrt.rs/3PNCzcd Strong consumer confidence https://tmsnrt.rs/45ln3Kt Rising business confidence https://tmsnrt.rs/3twsWr2 (Reporting by Manoj Kumar; Graphics by Riddhima Talwani; Editing by Simon Cameron-Moore) ((manoj.kumar@thomsonreuters.com; +919810286200; Twitter:@manojgulnar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Manoj Kumar NEW DELHI, Oct 12 (Reuters) - Run off their virtual feet at the start of India's festival season, e-commerce companies like Amazon AMZN.O and Walmart WMT.N owned Flipkart are looking forward to a potentially record breaking few weeks. "Who would like to go to an overcrowded market and spend hours buying products while paying for transport, when there are so many options on online platforms," said Negi, a public relations manager with a company in Delhi. ($1 = 83.2350 Indian rupees) Bumper festive sales https://tmsnrt.rs/3PNCzcd Strong consumer confidence https://tmsnrt.rs/45ln3Kt Rising business confidence https://tmsnrt.rs/3twsWr2 (Reporting by Manoj Kumar; Graphics by Riddhima Talwani; Editing by Simon Cameron-Moore) ((manoj.kumar@thomsonreuters.com; +919810286200; Twitter:@manojgulnar;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Amazon India has made its "best-ever start" to the peak period in the shopping calendar, according to vice president Manish Tiwary, reporting a record 95 million customer visits in the first two days of its 'Great Indian Festival 2023' campaign. "Who would like to go to an overcrowded market and spend hours buying products while paying for transport, when there are so many options on online platforms," said Negi, a public relations manager with a company in Delhi. "We plan to spend more on festival buying compared to last year."
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13161.0
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2023-10-12 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-9
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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
Excess Returns Investing 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 Twin Momentum Investor model based on the published strategy of Dashan Huang. 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 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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13162.0
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2023-10-11 00:00:00 UTC
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Meta Platforms sued by virtual reality fitness app developer after deal craters
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-sued-by-virtual-reality-fitness-app-developer-after-deal-craters
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nan
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By Mike Scarcella
Oct 11 (Reuters) - An interactive app and game-design collective has sued Meta Platforms META.O in U.S. court, accusing Facebook's owner of unlawfully breaking a contract for a fitness program in an anticompetitive "campaign to conquer" virtual reality markets.
California-based Andre Elijah Immersive Inc filed its complaint in San Jose federal court against Meta and other defendants, including Alo Yoga, the clothing and fitness company.
The collective said it had developed a fitness app with Meta and Alo featuring the "best and most widely-recognized yoga instructors in the world."
The lawsuit claimed Meta was prepared to launch the app at the company's virtual reality conference Meta Connect 2023. But Meta, according to the complaint, terminated its contract with the collective after learning it was also working with rival platforms Apple AAPL.O and Pico to distribute its app.
A representative from Meta had no immediate comment on Wednesday. Los Angeles-founded Alo did not immediately respond to a request for comment. Attorneys for the defendants have not yet made appearances in the case.
Apple and Pico, a virtual reality headset manufacturer owned by TikTok's Chinese developer ByteDance, did not immediately respond to requests for comment. Apple, Pico and ByteDance are not defendants in the case.
The collective's attorney, Joseph Prencipe, told Reuters that "resolution of the lawsuit will determine what happens to the app."
The lawsuit accused Meta and the co-defendants of "abusive and anticompetitive behavior" in violation of U.S. antitrust law.
The complaint demands more than $100 million in antitrust damages, before automatic trebling, as well as several million dollars for the defendants' alleged breach of the app contract.
The collective described itself in the lawsuit as a "new entrant" in the virtual reality fitness market, which was the centerpiece of a U.S. Federal Trade Commission lawsuit against Meta last year in California federal court.
The FTC unsuccessfully sued to stop Meta's purchase of Within Unlimited, maker of the Supernatural fitness workouts. Meta denied the agency's claim that the acquisition would "dampen innovation" in markets for VR fitness apps.
The deal closed in February after a U.S. judge declined to order a preliminary injunction.
The collective's lawsuit, featuring contract documents between it and Meta, said Meta had become a "key player" at various levels in the virtual reality marketplace, including hardware and app distribution.
The exclusion of the collective's fitness app "eliminates both present and future competition," the complaint alleged.
The case is Andre Elijah Immersive Inc v. Meta Platforms Technologies LLC et al, U.S. District Court, Northern District of California, No. 5:23-cv-05159-NC.
Read more:
Meta unveils Quest 3 mixed reality headset ahead of Apple's VR debut
U.S. judge denies FTC request to stop Meta from acquiring VR firm Within
(Reporting by Mike Scarcella)
((Mike.Scarcella@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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But Meta, according to the complaint, terminated its contract with the collective after learning it was also working with rival platforms Apple AAPL.O and Pico to distribute its app. By Mike Scarcella Oct 11 (Reuters) - An interactive app and game-design collective has sued Meta Platforms META.O in U.S. court, accusing Facebook's owner of unlawfully breaking a contract for a fitness program in an anticompetitive "campaign to conquer" virtual reality markets. California-based Andre Elijah Immersive Inc filed its complaint in San Jose federal court against Meta and other defendants, including Alo Yoga, the clothing and fitness company.
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But Meta, according to the complaint, terminated its contract with the collective after learning it was also working with rival platforms Apple AAPL.O and Pico to distribute its app. By Mike Scarcella Oct 11 (Reuters) - An interactive app and game-design collective has sued Meta Platforms META.O in U.S. court, accusing Facebook's owner of unlawfully breaking a contract for a fitness program in an anticompetitive "campaign to conquer" virtual reality markets. California-based Andre Elijah Immersive Inc filed its complaint in San Jose federal court against Meta and other defendants, including Alo Yoga, the clothing and fitness company.
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But Meta, according to the complaint, terminated its contract with the collective after learning it was also working with rival platforms Apple AAPL.O and Pico to distribute its app. By Mike Scarcella Oct 11 (Reuters) - An interactive app and game-design collective has sued Meta Platforms META.O in U.S. court, accusing Facebook's owner of unlawfully breaking a contract for a fitness program in an anticompetitive "campaign to conquer" virtual reality markets. The collective's lawsuit, featuring contract documents between it and Meta, said Meta had become a "key player" at various levels in the virtual reality marketplace, including hardware and app distribution.
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But Meta, according to the complaint, terminated its contract with the collective after learning it was also working with rival platforms Apple AAPL.O and Pico to distribute its app. California-based Andre Elijah Immersive Inc filed its complaint in San Jose federal court against Meta and other defendants, including Alo Yoga, the clothing and fitness company. Apple and Pico, a virtual reality headset manufacturer owned by TikTok's Chinese developer ByteDance, did not immediately respond to requests for comment.
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13163.0
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2023-10-11 00:00:00 UTC
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Looking for a Safe, Low-Effort Investment? 1 ETF to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/looking-for-a-safe-low-effort-investment-1-etf-to-buy-right-now
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nan
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nan
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Investing in the stock market can be daunting, but with the right strategy, it can also be lucrative.
You don't need to be a stock market guru or spend countless hours researching companies to make a lot of money investing, either. While there's no single correct way to invest, there's one type of investment that can help you (safely) build wealth with very little effort: The S&P 500 ETF.
What is an S&P 500 ETF?
An S&P 500 ETF (exchange-traded fund) is an investment that tracks the S&P 500 index. In other words, it includes the same stocks as the index itself, and it aims to mirror its performance over time.
The S&P 500 itself includes stocks from 500 of the largest and strongest companies in the U.S., ranging from tech giants like Apple and Amazon to household brands such as Procter & Gamble and Coca-Cola. When you invest in just one S&P 500 ETF, you'll own a stake in all 500 of these companies.
There are many advantages to this type of investment, but a few of the most important include:
Instant diversification: With an S&P 500 ETF, you're not only investing in hundreds of stocks at once, but those companies are also from a wide variety of industries. This provides plenty of diversification, which can limit your risk.
A long track record of success: The S&P 500 itself has a decades-long history of recovering from market crashes, recessions, and other downturns. While there are never any guarantees when investing, an S&P 500 ETF is about as close as you can get to guaranteed positive average returns over the long haul.
More protection against volatility: No investment is immune to short-term volatility. Although this ETF will still take a hit during market slumps, it often doesn't experience extreme ups and downs like many other investments.
One of the best perks about this investment, though, is that it's almost entirely passive. You don't need to research companies, as all of the stocks are already chosen for you. Because it's a long-term investment, you also don't have to worry about when to buy or sell. Just invest as much as you can afford each month, then hold your investment for as long as possible.
How much can you earn with this ETF?
Of course, exactly how much you'll earn with any investment will depend on how the market fares over the coming years and decades. However, it's possible to get a rough estimate of how your investment will grow over time.
Historically, the market itself has earned an average annual return of around 10% per year, meaning the annual highs and lows have averaged out to roughly 10% per year over several decades.
If you're investing, say, $200 per month in an S&P 500 ETF while earning a 10% average annual return, here's approximately how much you could accumulate over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via Investor.gov
Again, the S&P 500 ETF is a passive investment, so it requires next to no effort on your end other than investing consistently. By contributing even a couple hundred dollars per month, you could build a portfolio worth hundreds of thousands of dollars or more over time.
The best S&P 500 ETFs to buy right now
There are many different S&P 500 ETFs to choose from. A few of the most popular include the Vanguard S&P 500 ETF (NYSEMKT: VOO), the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), and the iShares Core S&P 500 ETF (NYSEMKT: IVV).
The SPDR S&P 500 ETF holds the title of the very first ETF launched in the U.S., dating back to 1993. It's also the largest ETF by assets managed, making it a popular choice among investors.
One major advantage that the Vanguard and iShares funds share, though, is low fees. Both ETFs have an expense ratio of just 0.03% per year, compared to SPDR's 0.0945% per year. While this difference may not seem like much, it could add up to tens of thousands of dollars in fees over time.
There's not necessarily a right or wrong choice here. S&P 500 ETFs track the same index and will see roughly the same returns over time. But it's important to know the advantages and disadvantages of any fund you're considering buying.
The S&P 500 ETF is one of the safest and most reliable funds out there, and it has a long track record of consistent growth over time. If you're looking for a hands-off investment that can help you generate wealth over the long haul, the S&P 500 ETF could be a good fit for your portfolio.
10 stocks we like better than SPDR S&P 500 ETF Trust
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They just revealed what they believe are the ten best stocks for investors to buy right now... and SPDR S&P 500 ETF Trust wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You don't need to be a stock market guru or spend countless hours researching companies to make a lot of money investing, either. The S&P 500 itself includes stocks from 500 of the largest and strongest companies in the U.S., ranging from tech giants like Apple and Amazon to household brands such as Procter & Gamble and Coca-Cola. A long track record of success: The S&P 500 itself has a decades-long history of recovering from market crashes, recessions, and other downturns.
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While there are never any guarantees when investing, an S&P 500 ETF is about as close as you can get to guaranteed positive average returns over the long haul. Historically, the market itself has earned an average annual return of around 10% per year, meaning the annual highs and lows have averaged out to roughly 10% per year over several decades. A few of the most popular include the Vanguard S&P 500 ETF (NYSEMKT: VOO), the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), and the iShares Core S&P 500 ETF (NYSEMKT: IVV).
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There are many advantages to this type of investment, but a few of the most important include: Instant diversification: With an S&P 500 ETF, you're not only investing in hundreds of stocks at once, but those companies are also from a wide variety of industries. 20 $137,000 25 $236,000 30 $395,000 35 $650,000 40 $1,062,000 Data source: Author's calculations via Investor.gov Again, the S&P 500 ETF is a passive investment, so it requires next to no effort on your end other than investing consistently. A few of the most popular include the Vanguard S&P 500 ETF (NYSEMKT: VOO), the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), and the iShares Core S&P 500 ETF (NYSEMKT: IVV).
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There are many advantages to this type of investment, but a few of the most important include: Instant diversification: With an S&P 500 ETF, you're not only investing in hundreds of stocks at once, but those companies are also from a wide variety of industries. * They just revealed what they believe are the ten best stocks for investors to buy right now... and SPDR S&P 500 ETF Trust wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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13164.0
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2023-10-11 00:00:00 UTC
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Could Visa Be the Next Company to Join the Trillion-Dollar Market Cap Club?
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AAPL
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https://www.nasdaq.com/articles/could-visa-be-the-next-company-to-join-the-trillion-dollar-market-cap-club
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nan
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nan
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A trillion dollars isn't as insurmountable a market cap goal as it used to be.
We now have seven companies -- excluding state-run organizations -- that have achieved market capitalizations of $1 trillion after Nvidia shares rocketed higher earlier this summer. Tesla and Meta Platforms now have market capitalizations of less then $1 trillion, but have passed that milestone previously, while Amazon, Apple, Microsoft, and Alphabet have been consistently above $1 trillion for years now. These dynamic technology stocks have crushed the market in recent years, providing life-changing returns for many of their long-term investors.
But what about the next stock that might join the trillion-dollar club? This is perhaps a more valuable question for investors to consider. You don't make money owning a stock based on what it has done in the past. I think payments network operator Visa (NYSE: V) is the most likely company to join the trillion-dollar market cap club within the next few years. Here's why.
Dominant competitive position, industry tailwinds
Visa operates the leading credit card and digital payments network around the world, processing $14.1 trillion in transaction volume in its fiscal 2022. It currently has more than 4 billion credit and debit cards in circulation. Because it is only a payments network, not a credit card issuer, Visa earns tiny fees on every payment transaction made through its network, but it takes minimal lending risks.
With around a 40% market share of global credit card transactions, Visa has a competitive advantage that's nearly insurmountable, which should keep it insulated from any upstart networks. According to the company, more than 100 million merchant locations accept Visa cards. Merchants are unlikely to add a raft of new payment options for their customers unless they love wasting time and confusing shoppers. They generally choose to accept Visa because of its ubiquity. And consumers and banks favor it because they know virtually every merchant in the world will accept a Visa card.
Cashless forms of payment have multiple tailwinds that Visa should be able to ride for the foreseeable future. Most important is the steady transition of consumer activity away from physical cash. More and more people around the globe are using credit cards and mobile phone apps to pay for things, which means more payments flowing through the Visa network. The company also benefits from inflation as it earns a percentage on every dollar processed through the Visa network. If inflation is 3% a year and Visa maintains its market share, that will add about 3% to its annual revenue growth.
The math behind a $1 trillion valuation
Outside of periods of market frothiness, high-quality businesses of Visa's caliber typically trade at price-to-earnings ratios in the 25 to 30 range. Today, Visa trades at the top of that range. It has a market cap of $493 billion, so it would need to roughly double to breach the $1 trillion threshold.
Let's assume Visa will trade at about the same earnings ratio in the coming years as it does today. That means it would need to double its net income to join the trillion-dollar market cap club. I think it can do so in five years.
How? First, I predict that it will be able to increase revenue at about 10% annually as it rides the transition to digital payments and benefits from global inflation. Second, with close to 100% incremental margins on new revenue, Visa has incredible operating leverage. That should lead to margin expansion as it grows. Today, its operating margin is an impressive 67%, but there is still room for it to go higher.
With a combination of 10% annualized revenue growth and margin expansion, Visa could grow its bottom line by 15% per annum. At that pace, it would double its earnings in five years. Considering that most companies outside of the big tech realm are far away from a trillion-dollar market cap, I think this gives Visa a good chance at being the next company to hit that milestone.
Data source: YCharts.
Who could beat Visa?
Visa is currently the 11th-largest company in the world by market cap. Two stocks ahead of it that haven't crossed the $1 trillion mark yet are the pharmaceutical giant Eli Lilly and Warren Buffett's diversified conglomerate Berkshire Hathaway.
I wouldn't be too afraid of Berkshire Hathaway getting there first, because it focuses on slower growing, steady value investments. Eli Lilly could be a wild card as sales of its new weight-loss drugs are growing like gangbusters and are projected to hit $100 billion annually by 2035. However, it does trade at a price-to-earnings ratio of about 80, which gives it much more downside risk than Visa.
Another strong candidate is Taiwan Semiconductor Manufacturing, which has a market cap slightly lower than Visa's. The leading third-party computer chip foundry is growing quickly and has huge industry tailwinds at its back. As long as geopolitical threats from China don't kill the business, there's a possibility it will beat Visa to the $ trillion milestone. But the geopolitical risks are real for Taiwan Semi, which leads me to think Visa has a better chance of crossing the threshold first.
At the end of the day, it doesn't matter if Visa is the next company to join the trillion-dollar market cap club. All that matters to shareholders is whether Visa is increasing its earnings per share and building value. Over the long term, those things will lead to stock price appreciation and wealth accumulation for its investors.
10 stocks we like better than Visa
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet and Amazon.com. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dominant competitive position, industry tailwinds Visa operates the leading credit card and digital payments network around the world, processing $14.1 trillion in transaction volume in its fiscal 2022. The math behind a $1 trillion valuation Outside of periods of market frothiness, high-quality businesses of Visa's caliber typically trade at price-to-earnings ratios in the 25 to 30 range. Two stocks ahead of it that haven't crossed the $1 trillion mark yet are the pharmaceutical giant Eli Lilly and Warren Buffett's diversified conglomerate Berkshire Hathaway.
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Dominant competitive position, industry tailwinds Visa operates the leading credit card and digital payments network around the world, processing $14.1 trillion in transaction volume in its fiscal 2022. First, I predict that it will be able to increase revenue at about 10% annually as it rides the transition to digital payments and benefits from global inflation. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Visa.
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I think payments network operator Visa (NYSE: V) is the most likely company to join the trillion-dollar market cap club within the next few years. Dominant competitive position, industry tailwinds Visa operates the leading credit card and digital payments network around the world, processing $14.1 trillion in transaction volume in its fiscal 2022. At the end of the day, it doesn't matter if Visa is the next company to join the trillion-dollar market cap club.
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I think payments network operator Visa (NYSE: V) is the most likely company to join the trillion-dollar market cap club within the next few years. Dominant competitive position, industry tailwinds Visa operates the leading credit card and digital payments network around the world, processing $14.1 trillion in transaction volume in its fiscal 2022. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Visa.
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13165.0
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2023-10-11 00:00:00 UTC
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Is WisdomTree U.S. Total Dividend ETF (DTD) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-wisdomtree-u.s.-total-dividend-etf-dtd-a-strong-etf-right-now-9
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nan
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nan
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A smart beta exchange traded fund, the WisdomTree U.S. Total Dividend ETF (DTD) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Wisdomtree, DTD has amassed assets over $1.05 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the WisdomTree U.S. 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.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.28% for DTD, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.62%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 17.10% of the portfolio. Financials and Healthcare round out the top three.
When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 22.62% of DTD's total assets under management.
Performance and Risk
So far this year, DTD return is roughly 1.41%, and is up about 12.20% in the last one year (as of 10/11/2023). During this past 52-week period, the fund has traded between $55 and $64.29.
DTD has a beta of 0.91 and standard deviation of 14.73% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 823 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Total Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $48.05 billion in assets, Vanguard Value ETF has $98.33 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). 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 iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the WisdomTree U.S. Total Dividend ETF (DTD) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report WisdomTree U.S. 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 iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives WisdomTree U.S. Total Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report WisdomTree U.S. 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 iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). A smart beta exchange traded fund, the WisdomTree U.S. Total Dividend ETF (DTD) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Exxon Mobil Corp (XOM) accounts for about 3.51% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). 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 iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. A smart beta exchange traded fund, the WisdomTree U.S. Total Dividend ETF (DTD) debuted on 06/16/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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13166.0
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2023-10-11 00:00:00 UTC
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Should iShares S&P 100 ETF (OEF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-100-etf-oef-be-on-your-investing-radar-8
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nan
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nan
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The iShares S&P 100 ETF (OEF) was launched on 10/23/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $8.58 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
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%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.33%.
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 33.80% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 44.61% of total assets under management.
Performance and Risk
OEF seeks to match the performance of the S&P 100 Index before fees and expenses. The S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500 and consists of blue chip stocks from diverse industries in the S&P 500 with exchange listed options & the Index represented approximately 45% of the market capitalization of listed U.S. equities.
The ETF has gained about 21.13% so far this year and was up about 27.29% in the last one year (as of 10/11/2023). In the past 52-week period, it has traded between $161.29 and $214.20.
The ETF has a beta of 0.98 and standard deviation of 18.34% for the trailing three-year period, making it a medium risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 100 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, OEF 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 $348.81 billion in assets, SPDR S&P 500 ETF has $402.61 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.
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 S&P 100 ETF (OEF): 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 10.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The iShares S&P 100 ETF (OEF) was launched on 10/23/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares S&P 100 ETF (OEF): 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 10.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). The iShares S&P 100 ETF (OEF) was launched on 10/23/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares S&P 100 ETF (OEF): 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 10.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Sector Exposure and Top Holdings Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The iShares S&P 100 ETF (OEF) was launched on 10/23/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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13167.0
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2023-10-11 00:00:00 UTC
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Is It Too Late to Buy Amazon Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-amazon-stock-8
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nan
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nan
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Amazon (NASDAQ: AMZN) has been a company to watch this year, with its e-commerce business rebounding from a disastrous 2022 and an increasing position in artificial intelligence (AI). The retail giant's stock has risen some 55% since Jan. 1, as Wall Street has grown increasingly bullish over its long-term prospects.
Founded nearly 30 years ago in 1994, Amazon has come a long way since starting out as an online book retailer out of Seattle. Its online marketplace has made it a household name worldwide, with its stock rising about 700% over the last decade. The company has stumbled over the last year, having to contend with macroeconomic headwinds and declines in consumer spending. However, a return to profitability in its e-commerce business and a burgeoning AI division could take it far over the next five to 10 years.
So, is it still worth buying Amazon stock, or is it too late? Let's find out.
Solid long-term prospects
Amazon had one of its most challenging years in 2022, with an economic downturn leading to steep profit losses in its retail business. However, the company has given investors plenty to rally over since the start of this year. Its North American segment returned to profitability in the first quarter of 2023 and hit over $3 billion in operating income in Q2 2023, a massive improvement from the $627 million in losses it reported in the year-ago period.
The boost to profits comes after various restructuring moves, such as closing dozens of warehouses, layoffs, and sunsetting unprofitable platforms like Amazon Care. The company's swift action and year-over-year growth illustrate management's ability to react appropriately during economically challenging conditions, making its stock a compelling long-term buy.
Amazon remains the leader in the e-commerce market in multiple countries and will likely continue profiting from its growth for years.
Moreover, one of the best reasons to invest in Amazon is its dominance in the cloud market and what that could mean for its future in AI. After appearing to fall behind Microsoft in AI last year, Amazon has pivoted large parts of its business to the booming sector.
In 2023, the retail giant has added several new AI tools to its cloud platform, Amazon Web Services (AWS), and announced a venture in chip development, which could see it challenge Nvidia. Then, last month, news broke Amazon will invest up to $4 billion in AI firm Anthropic, a rival to ChatGPT developer OpenAI.
Increased interest in AI has sent demand skyrocketing for services that allow businesses and consumers to boost productivity with the technology. As a result, the AI market is projected to expand at a compound annual growth rate (CAGR) of 37% through 2030. With a leading market share in the cloud market, Amazon has massive potential in the industry over the long term.
It's not too late, but there are cheaper options
It's not too late to buy Amazon stock, with its lucrative prospects in e-commerce and AI. In fact, those are excellent reasons to buy its shares now and hold over many years. However, its price-to-earnings (P/E) ratio of 101 indicates Amazon's stock is trading at an expensive price point. Meanwhile, cheaper options are too hard to ignore.
AMZN PE Ratio data by YCharts.
The chart above shows Microsoft, Alphabet, and Apple all have significantly lower P/Es and offer alternative ways to invest in cloud computing, AI, and even e-commerce with Apple's role in consumer tech. Out of these companies, Microsoft is probably the best alternative to Amazon's stock for those looking to add an AI/cloud stock to their portfolio. The Windows company holds the second-largest market share in cloud computing after Amazon. Meanwhile, Microsoft's 49% stake in OpenAI gives similar, if not more, potential in AI.
Additionally, Microsoft's stock tumble of 29% in 2022 compared to Amazon's 50% suggests Microsoft is less vulnerable to economic headwinds, which could make it a more reliable option.
So, it's not too late to invest in Amazon. However, it might be a good idea to consider other options first and come back to its stock when it's trading at a more attractive price.
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 2, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its North American segment returned to profitability in the first quarter of 2023 and hit over $3 billion in operating income in Q2 2023, a massive improvement from the $627 million in losses it reported in the year-ago period. The company's swift action and year-over-year growth illustrate management's ability to react appropriately during economically challenging conditions, making its stock a compelling long-term buy. In 2023, the retail giant has added several new AI tools to its cloud platform, Amazon Web Services (AWS), and announced a venture in chip development, which could see it challenge Nvidia.
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With a leading market share in the cloud market, Amazon has massive potential in the industry over the long term. It's not too late, but there are cheaper options It's not too late to buy Amazon stock, with its lucrative prospects in e-commerce and AI. The Windows company holds the second-largest market share in cloud computing after Amazon.
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Amazon (NASDAQ: AMZN) has been a company to watch this year, with its e-commerce business rebounding from a disastrous 2022 and an increasing position in artificial intelligence (AI). It's not too late, but there are cheaper options It's not too late to buy Amazon stock, with its lucrative prospects in e-commerce and AI. Out of these companies, Microsoft is probably the best alternative to Amazon's stock for those looking to add an AI/cloud stock to their portfolio.
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Amazon (NASDAQ: AMZN) has been a company to watch this year, with its e-commerce business rebounding from a disastrous 2022 and an increasing position in artificial intelligence (AI). Solid long-term prospects Amazon had one of its most challenging years in 2022, with an economic downturn leading to steep profit losses in its retail business. That's right -- they think these 10 stocks are even better buys.
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13168.0
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2023-10-11 00:00:00 UTC
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Better Growth Stock: Apple vs. AMD
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AAPL
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https://www.nasdaq.com/articles/better-growth-stock%3A-apple-vs.-amd-0
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nan
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nan
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) mostly operate in different areas of the tech market, with one dominating consumer products and the other a leading chipmaker. These companies have some similarities, with Apple venturing into chip production in 2020 after ending its partnership with Intel in favor of homegrown hardware. Meanwhile, AMD's client segment includes income from chip sales directly to consumers, which are popular among PC gamers.
These companies have also gained a reputation of being attractive growth stocks. In fact, Apple's annual revenue has climbed 52% over the last five years, while AMD's soared 265%. And in the same period, both tech giants have delivered stock growth above 200%.
A boom in artificial intelligence (AI) this year has brought further comparisons between these companies, with Apple and AMD heavily investing in the high-growth sector. As a result, you might be wondering whether established tech behemoth Apple or up-and-coming chipmaker AMD makes a better investment.
So, let's assess whether Apple or AMD is the better growth stock this month.
Apple: The king of reliability
As the most valuable company in the world, with a market cap of $2.7 trillion, Apple has long been regarded as one of the most reliable tech stocks. The company became a haven for investors amid last year's economic downturn, consistently outperforming the market and its peers. The chart below illustrates this, with Apple shares experiencing a more moderate decline than some of the biggest names in tech (including AMD) and the Nasdaq Composite index throughout 2022.
Data by YCharts
Apple's resilience has continued into 2023 despite conditions proving more challenging than last year. Macroeconomic headwinds have caught up with the iPhone company, which posted three consecutive quarters of revenue declines as hikes in inflation caused reductions in consumer spending. Yet, its stock has risen 37% since Jan. 1. The company's years of market dominance and consistent growth mean investors are more likely to hold Apple stock during uncertain times.
Wall Street's faith in Apple's long-term future isn't unfounded. Despite tech market challenges, the company continued to deliver higher product sales than its competitors in smartphones and personal computers. Meanwhile, its digital services segment has proven less vulnerable to macroeconomic headwinds, reporting stellar growth over the last year.
Alongside expanding positions in AI and virtual/augmented reality, Apple has much to offer investors once economic hurdles subside.
Advanced Micro Devices: Recent volatility but massive growth potential
AMD investors have been on a roller coaster in recent years. Its stock hit record highs during 2021 when COVID-19 lockdowns led to increased sales of its consumer chips, and hybrid working styles meant higher demand for cloud computing hardware.
However, rises in interest rates and the cost of living last year brought AMD's stock crashing back down. Its business proved particularly vulnerable to macroeconomic headwinds, burdened by steep declines in the PC market.
In 2023, shares in AMD once again moved the opposite way, climbing about 66% year to date. While the company's PC-centered business still has yet to improve, its stock benefited from increased interest in AI. AMD has pivoted its business to the booming market and could become a major player in AI over the long term.
AMD's biggest competitor, Nvidia, took the lead in AI in 2023, becoming the go-to chip supplier for the market. Lack of competition allowed Nvidia to massively profit from increased demand for graphics processing units (GPUs), with AMD left playing catch-up.
However, AMD has plans to challenge Nvidia in 2024 with the launch of a new GPU. Meanwhile, AMD's CEO Lisa Su promised that five years from now, "you will see AI in every single product at AMD, and it will be the largest growth driver."
AMD has a mountain to climb in getting its PC business back on track as it continues to contend with market declines. However, the company's focus on AI could mean a lucrative future over the long term.
Is Apple or AMD the better growth stock?
Apple and AMD enjoyed considerable stock growth this year as advances in tech reignited optimism in the market. However, both companies also experienced repeated declines in revenue. As a result, it's wise to be cautious with these stocks and choose the more reliable option. And in this case, the clear choice is Apple.
These companies may continue to suffer from economic challenges in the short term. However, there's a clear difference between Apple's current position atop the consumer tech industry and AMD's plans to take on Nvidia in AI.
Apple's dominance will likely prove an asset once the market rebounds, with its expanding services business strengthening its earnings potential. Meanwhile, there are too many variables to have the same confidence that AMD can definitely steal significant market share from Nvidia.
Find out why Apple is one of the 10 best stocks to buy now
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) mostly operate in different areas of the tech market, with one dominating consumer products and the other a leading chipmaker. Macroeconomic headwinds have caught up with the iPhone company, which posted three consecutive quarters of revenue declines as hikes in inflation caused reductions in consumer spending. Its stock hit record highs during 2021 when COVID-19 lockdowns led to increased sales of its consumer chips, and hybrid working styles meant higher demand for cloud computing hardware.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) mostly operate in different areas of the tech market, with one dominating consumer products and the other a leading chipmaker. Despite tech market challenges, the company continued to deliver higher product sales than its competitors in smartphones and personal computers. Advanced Micro Devices: Recent volatility but massive growth potential AMD investors have been on a roller coaster in recent years.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) mostly operate in different areas of the tech market, with one dominating consumer products and the other a leading chipmaker. Apple: The king of reliability As the most valuable company in the world, with a market cap of $2.7 trillion, Apple has long been regarded as one of the most reliable tech stocks. The company's years of market dominance and consistent growth mean investors are more likely to hold Apple stock during uncertain times.
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Apple (NASDAQ: AAPL) and Advanced Micro Devices (NASDAQ: AMD) mostly operate in different areas of the tech market, with one dominating consumer products and the other a leading chipmaker. Is Apple or AMD the better growth stock? The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon.com, Apple, and Nvidia.
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13169.0
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2023-10-11 00:00:00 UTC
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1 "Magnificent Seven" Stock to Buy Hand Over Fist in October and 1 to Avoid
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AAPL
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https://www.nasdaq.com/articles/1-magnificent-seven-stock-to-buy-hand-over-fist-in-october-and-1-to-avoid
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When examined over extended periods, Wall Street is a wealth-building machine. But over shorter timelines, the stock market is far less predictable. Since this decade began, all three major indexes have vacillated between bear and bull markets.
When volatility and uncertainty creep into the picture, investors have a tendency to flock to time-tested industry leaders. In 2023, that's been the "Magnificent Seven."
Image source: Getty Images.
When I say, Magnificent Seven, I'm referring to:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Tesla (NASDAQ: TSLA)
Meta Platforms (NASDAQ: META)
These seven juggernauts are responsible for almost the entirety of the S&P 500's 12.2% year-to-date gains, as of Oct. 6, with the remaining 493 companies collectively just above the breakeven line.
AAPL data by YCharts.
In addition to their outperformance, the Magnificent Seven bring clear-cut competitive advantages or sustained moats to the table for their shareholders:
Apple holds a majority share of smartphone sales in the U.S. and has repurchased in the neighborhood of $600 billion worth of its common stock since the start of 2013.
Microsoft's legacy operating system, Windows, still dominates globally, while Azure ranks second globally in cloud infrastructure service share.
Alphabet's Google accounts for nearly 92% of worldwide internet search share, while Google Cloud ranks behind Azure as the global No. 3 in cloud infrastructure service share.
Amazon's online marketplace is responsible for roughly $0.40 of every $1 in online retail sales in the United States. Meanwhile, Amazon Web Services sits ahead of Azure and Google Cloud in cloud infrastructure service market share.
Nvidia controls the lion's share of artificial intelligence (AI)-driven graphics processing units being used in high-compute data centers.
Tesla is North America's leading electric-vehicle (EV) manufacturer and the only pure-play EV maker that's achieved recurring profitability on the basis of generally accepted accounting principles (GAAP).
Meta Platforms owns many of the top social media platforms in the world and attracted nearly 3.9 billion monthly active users in the June-ended quarter.
But while the Magnificent Seven have dominated their respective industries to this point, their outlooks meaningfully differ. As we move forward into October, one Magnificent Seven stock stands out for its exceptionally inexpensive valuation, while another appears priced for perfection.
The Magnificent Seven stock to buy hand over fist in October: Meta Platforms
Among these historically dominant stocks, it's social media giant Meta Platforms that stands head and shoulders above its peers as the Magnificent Seven component to buy hand over fist in October.
As with every publicly traded company, Meta Platforms isn't immune to potential headwinds. The biggest threat shareholders should be aware of is the health of the U.S. economy. Although job creation remains strong and the unemployment rate sits below 4%, a host of economic datapoints and predictive indicators suggest a U.S. recession is likely in the not-too-distant future.
Recessions are typically bad news for most sectors and industries. However, economic downturns can be particularly rough on ad-driven businesses. Advertisers are quick to pare back their spending at the first signs of potential trouble. Through the first six months of 2023, 98.3% of Meta's $60.6 billion in revenue came from advertising.
However, this is one side of a disproportionate coin. While recessions are both a normal and inevitable part of the economic cycle, they're not known for lasting long. Of the 12 recessions that have occurred following World War II, just three have lasted at least 12 months, and none have surpassed 18 months. By comparison, most economic expansions last for years, if not a full decade. It means the advertising industry is thriving far more than it's on the defensive.
To add to this, Meta Platforms has some of the most-desirable social media assets on the planet. Facebook, WhatsApp, Instagram, and Facebook Messenger are consistently among the most-downloaded social apps worldwide. Meta also launched Threads in early July as a direct competitor to X, the platform formerly known as Twitter. It took Threads just five days to surpass 100 million users.
With 3.88 billion monthly active users across its family of apps, as of June 30, advertisers are well aware that Meta gives them the best chance to reach a broad and/or targeted audience. In other words, Meta often possesses substantial ad-pricing power over merchants.
Additionally, CEO Mark Zuckerberg is positioning Meta for longer-term success by diversifying its revenue stream. Aggressive spending on augmented/virtual reality devices and metaverse innovations via the company's Reality Labs segment is costing billions of dollars each quarter. But if Zuckerberg's vision for the future is correct, Meta will secure its place as a core on-ramp to the metaverse.
Furthermore, Meta is one of the few companies with the luxury to take chances thanks to its cash-rich balance sheet and highly profitable operating model. Even with Reality Labs pacing a greater than $15 billion operating loss in 2023, Meta is on track to generate close to $49 billion in income from its family of apps this year, and the company is sitting on more than $53 billion in cash, cash equivalents, and marketable securities.
Lastly, Meta's valuation is still highly attractive. Despite more than tripling from its 2022 bear market low set less than a year ago, shares can be purchased for about 11 times estimated cash flow for 2024. That's well below the multiple of nearly 16 times cash flow Meta has traded at (as of year-end) over the past five years.
Tesla's flagship Model 3 has endured multiple price cuts since the year began. Image source: Tesla.
The Magnificent Seven stock to avoid in October: Tesla
Although the Magnificent Seven have held true to their name through the first nine months and change of 2023, the future for at least one component looks anything but magnificent. In October, the one Magnificent Seven stock to avoid is electric-vehicle maker Tesla.
Tesla's $827 billion market cap is a reflection of its leading role in the EV industry. It's the first auto company in well over a half-century to have built itself from the ground up to mass production. The company is aiming to produce 1.8 million EVs this year and has the capacity to eventually top 2 million EVs, combined, at its four existing gigafactories.
As noted, it's also the only pure-play EV maker that's generating a recurring GAAP profit. Tesla has reported a full-year GAAP profit in each of the past three years, and looks to be well on its way to making it a fourth consecutive year in 2023.
Unfortunately, everything from the company's pricing strategy to its leadership are reasons to steer clear.
One of the prevailing Tesla bull investment theses is that the company's production efficiencies should allow it to undercut its competitors on price. When Tesla kicked off a price war with other EV producers at the beginning of the year, some investors speculated that it could be the company's production efficiencies coming to fruition.
However, CEO Elon Musk noted during the company's annual shareholder meeting that his company's pricing strategy is dictated by demand. With Tesla reducing the price of its four production models on more than a half-dozen occasions in 2023, it signals that inventory levels remain stubbornly high and/or demand for its EVs is declining. Tesla's aggressive price cuts have nearly halved its operating margin in a nine-month stretch (Sept. 30, 2022 – June 30, 2023).
To build on this point, competition is only becoming fiercer in the EV space. Tesla lacks the branding power of legacy automakers, some of which have more than 100 years of history and customer engagement they can lean on.
Another reason for concern is Elon Musk, who may be more of a liability than benefit for North America's leading EV company. While optimists strongly support Musk and his innovations, it's difficult to ignore that Musk has, on numerous occasions, drawn the ire of securities regulators. Musk also regularly promises the rollout of new innovations and products only to have those dates kicked further down the line. Tesla's valuation is bloated by Musk's unfulfilled promises.
Finally, there's Tesla's valuation, which makes no sense for an automaker. While Tesla enthusiasts would point to the company's numerous ancillary operating segments (e.g., supercharger network, energy storage, and so on) as justification for the company's aggressive earnings premium, I'd argue that Tesla has struggled to become anything more than an auto stock. Energy storage revenue actually fell in the June-ended quarter from the sequential first quarter, while its solar business has been losing money since day one.
Tesla's profitability is almost entirely dependent on selling and leasing EVs. Whereas most auto stocks trade at a mid-to-high-single-digit price-to-earnings ratio, Tesla is commanding a multiple of 78 times forecast earnings this year. That makes no sense for a company in a highly cyclical industry.
10 stocks we like better than Meta Platforms
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*Stock Advisor returns as of October 2, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say, Magnificent Seven, I'm referring to: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) These seven juggernauts are responsible for almost the entirety of the S&P 500's 12.2% year-to-date gains, as of Oct. 6, with the remaining 493 companies collectively just above the breakeven line. AAPL data by YCharts. In addition to their outperformance, the Magnificent Seven bring clear-cut competitive advantages or sustained moats to the table for their shareholders: Apple holds a majority share of smartphone sales in the U.S. and has repurchased in the neighborhood of $600 billion worth of its common stock since the start of 2013.
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When I say, Magnificent Seven, I'm referring to: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) These seven juggernauts are responsible for almost the entirety of the S&P 500's 12.2% year-to-date gains, as of Oct. 6, with the remaining 493 companies collectively just above the breakeven line. AAPL data by YCharts. Microsoft's legacy operating system, Windows, still dominates globally, while Azure ranks second globally in cloud infrastructure service share.
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When I say, Magnificent Seven, I'm referring to: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) These seven juggernauts are responsible for almost the entirety of the S&P 500's 12.2% year-to-date gains, as of Oct. 6, with the remaining 493 companies collectively just above the breakeven line. AAPL data by YCharts. The Magnificent Seven stock to buy hand over fist in October: Meta Platforms Among these historically dominant stocks, it's social media giant Meta Platforms that stands head and shoulders above its peers as the Magnificent Seven component to buy hand over fist in October.
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When I say, Magnificent Seven, I'm referring to: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) These seven juggernauts are responsible for almost the entirety of the S&P 500's 12.2% year-to-date gains, as of Oct. 6, with the remaining 493 companies collectively just above the breakeven line. AAPL data by YCharts. The Magnificent Seven stock to buy hand over fist in October: Meta Platforms Among these historically dominant stocks, it's social media giant Meta Platforms that stands head and shoulders above its peers as the Magnificent Seven component to buy hand over fist in October.
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13170.0
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2023-10-11 00:00:00 UTC
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How to Find Strong Computer and Technology Stocks Slated for Positive Earnings Surprises
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AAPL
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https://www.nasdaq.com/articles/how-to-find-strong-computer-and-technology-stocks-slated-for-positive-earnings-11
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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Apple?
The final step today is to look at a stock that meets our ESP qualifications. Apple (AAPL) earns a #3 (Hold) 22 days from its next quarterly earnings release on November 2, 2023, and its Most Accurate Estimate comes in at $1.40 a share.
By taking the percentage difference between the $1.40 Most Accurate Estimate and the $1.39 Zacks Consensus Estimate, Apple has an Earnings ESP of +0.91%. Investors should also know that AAPL is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AAPL is just one of a large group of Computer and Technology stocks with a positive ESP figure. Jabil (JBL) is another qualifying stock you may want to consider.
Slated to report earnings on December 21, 2023, Jabil holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.61 a share 71 days from its next quarterly update.
The Zacks Consensus Estimate for Jabil is $2.36, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +10.69%.
AAPL and JBL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL and JBL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Apple (AAPL) earns a #3 (Hold) 22 days from its next quarterly earnings release on November 2, 2023, and its Most Accurate Estimate comes in at $1.40 a share. Investors should also know that AAPL is one of a large group of stocks with positive ESPs.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) earns a #3 (Hold) 22 days from its next quarterly earnings release on November 2, 2023, and its Most Accurate Estimate comes in at $1.40 a share. Investors should also know that AAPL is one of a large group of stocks with positive ESPs.
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Apple (AAPL) earns a #3 (Hold) 22 days from its next quarterly earnings release on November 2, 2023, and its Most Accurate Estimate comes in at $1.40 a share. Investors should also know that AAPL is one of a large group of stocks with positive ESPs. AAPL is just one of a large group of Computer and Technology stocks with a positive ESP figure.
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AAPL and JBL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report. Apple (AAPL) earns a #3 (Hold) 22 days from its next quarterly earnings release on November 2, 2023, and its Most Accurate Estimate comes in at $1.40 a share. Investors should also know that AAPL is one of a large group of stocks with positive ESPs.
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13171.0
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2023-10-11 00:00:00 UTC
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Will Apple’s (NASDAQ;AAPL) Hardware Sales Disappoint Again?
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AAPL
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https://www.nasdaq.com/articles/will-apples-nasdaqaapl-hardware-sales-disappoint-again
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nan
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After witnessing a decline in hardware sales in the third quarter of Fiscal 2023, Apple (NASDAQ:AAPL) may again disappoint with its Q4 numbers. Barclays analyst Tim Long believes that AAPL's hardware sales could fall short of analysts’ expectations. Further, he views the consensus forecast for iPhone unit sales as overly optimistic.
The analyst added that the supply chain tracker suggests a low-single-digit miss for Apple's September quarter hardware revenue with shortfalls across iPhone units, Macs, and iPads. Long attributed the lower-than-expected hardware revenue to the weakness in demand in China and supply constraints. The analyst maintained a Hold rating on Apple stock on October 8, citing the weak demand environment and the extended replacement cycles.
It’s worth highlighting that iPhone sales fell 2% in the second quarter. Meanwhile, its Mac and iPad revenues declined by 7% and 20% in the June-end quarter. Moreover, the U.S. government’s antitrust trial involving Google is generating negative headlines for Apple. Citing the ongoing trial, Bernstein analyst Toni Sacconaghi warned that Apple might be hit hard if the court delivers an unfavorable verdict against Google.
As Apple faces short-term headwinds, let’s look at what the Street recommends for AAPL stock.
Is Apple a Buy, Sell, or Hold?
Given the short-term headwinds, analysts are cautiously optimistic about Apple stock. It has received 20 Buy and nine Sell recommendations for a Moderate Buy consensus rating.
Despite weak hardware sales, Apple stock has gained about 38% year-to-date. Moreover, analysts’ average price target of $207.69 implies 16.42% upside potential from current levels.
Bottom Line
The short-term concerns over product sales keep analysts cautiously optimistic about Apple stock. However, its installed base reached an all-time high across all geographic segments during the second quarter of Fiscal 2023, bringing significant growth opportunities to upsell and cross-sell its products. Moreover, its Services revenues remains strong, providing a solid platform for long-term growth.
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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After witnessing a decline in hardware sales in the third quarter of Fiscal 2023, Apple (NASDAQ:AAPL) may again disappoint with its Q4 numbers. Barclays analyst Tim Long believes that AAPL's hardware sales could fall short of analysts’ expectations. As Apple faces short-term headwinds, let’s look at what the Street recommends for AAPL stock.
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After witnessing a decline in hardware sales in the third quarter of Fiscal 2023, Apple (NASDAQ:AAPL) may again disappoint with its Q4 numbers. Barclays analyst Tim Long believes that AAPL's hardware sales could fall short of analysts’ expectations. As Apple faces short-term headwinds, let’s look at what the Street recommends for AAPL stock.
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After witnessing a decline in hardware sales in the third quarter of Fiscal 2023, Apple (NASDAQ:AAPL) may again disappoint with its Q4 numbers. Barclays analyst Tim Long believes that AAPL's hardware sales could fall short of analysts’ expectations. As Apple faces short-term headwinds, let’s look at what the Street recommends for AAPL stock.
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After witnessing a decline in hardware sales in the third quarter of Fiscal 2023, Apple (NASDAQ:AAPL) may again disappoint with its Q4 numbers. Barclays analyst Tim Long believes that AAPL's hardware sales could fall short of analysts’ expectations. As Apple faces short-term headwinds, let’s look at what the Street recommends for AAPL stock.
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13172.0
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2023-10-11 00:00:00 UTC
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3 Dividend Stocks to Buy Before They Skyrocket
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AAPL
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https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-before-they-skyrocket
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nan
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Finding a reliable dividend stock that can supplement income is a wonderful thing. But finding a stock that can power your passive income and unlock growth potential -- now that's a one-two punch that's hard to pass up.
Here's why Cognex (NASDAQ: CGNX), Estée Lauder (NYSE: EL), and Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) stand out as three dividend stocks worth buying for investors who like dividends but want added upside potential as well.
Image source: Getty Images.
Buy growth stocks when they dip
Lee Samaha (Cognex): Now, I know what you are thinking, and you would be right. Machine vision company Cognex's yearly dividend per share of $0.28 (currently yielding 0.67%) isn't anything to write home about. Still, that's not the point. The fact that Cognex pays dividends affirms management's intent to return value to shareholders.
As a growth stock, the company's primary focus should be reinvesting in the business, and Cognex has ample opportunity to generate long-term value. The dip in the share price (down 10% in 2023 and 59% from its all-time high) is indicative of the near-term pressure the company is under.
The company can do little about its challenging end markets this year. Its main three end markets are consumer electronics, automotive, and logistics (mainly e-commerce fulfillment). Consumer electronics and automotive are interest-rate-sensitive industries, and logistics customers are pausing after a few years of torrid investment growth. As such, Wall Street expects Cognex's sales to decline 16.5% this year.
Still, the slowdown is likely to prove temporary. Cognex's solutions bring about significant improvements in productivity and quality control. Moreover, consumer electronics companies (Apple is an important customer of Cognex) will always need to develop new products; automotive manufacturers are investing heavily in electric vehicles (Cognex's EV-related revenue grew 30% in the last quarter) and no one disputes the long-term growth of e-commerce investment.
All told, Cognex is set to generate plenty of long-term value for shareholders, and as it matures investors can expect it to increase its dividend accordingly.
Estée Lauder is making the right moves to reward shareholders
Daniel Foelber (Estée Lauder): The market may be making a mistake by pounding the sell button on Estée Lauder stock.
The cosmetic conglomerate has done an excellent job developing and acquiring top brands and then leveraging its supply chain and resources to take a brand to new heights. The company has an excellent mix of timeless classics like the namesake Estée Lauder, as well as La Mer, M.A.C., Aveda, and others. But what makes the company unique is its ability to have sustained success with a luxury brand like Jo Malone, which it bought in 1999, and then go out and acquire up-and-coming brands like DECIEM Beauty Group's The Ordinary. In sum, Estée Lauder has a unique mix of classic brands, luxury brands, affordable brands, and niche/edgy brands. And that positions the company to target a wide audience across different demographics.
Aside from featuring its products online and in traditional brick-and-mortar stores, Estée Lauder is targeting a massive audience through airports, particularly international travel. If you've traveled internationally recently, chances are you have seen an Estée Lauder outlet store in the airport. Unlike a mall or a stand-alone store, where folks are there to shop, the majority of folks passing through an airport probably don't care to buy any Estée Lauder products. But Estée Lauder is playing a numbers game.
As an example, I recently passed through the Paris Charles De Gaulle Airport, one of the busiest airports in all of Europe. In June 2023, over 6.5 million people filtered through the airport. And in 2022, 57.46 million people used the airport. The Estée Lauder store was impossible to miss.
The way I view the company's strategy, it's similar to an advertisement at a sports stadium or the sponsorship of a sports team. It's a strategy centered on casting a wide net and getting a lot of exposure. I didn't buy anything at the Paris airport Estée Lauder store. But I certainly took some mental notes of some things I may get as holiday gifts for friends and family this year.
The strategy won't appeal to all investors. And it certainly has its weaknesses, especially if the global economy takes a turn for the worse and travel slows. Therefore, before considering the stock I think it's important for investors to accept the company's strategy and understand its motives.
Investors who like Estée Lauder's strategy may want to take a closer look at the stock, especially now that it is down over 40% year-to-date and has a yield close to 2%.
Brookfield Infrastructure's robust portfolio helps investors procure plenty of passive income
Scott Levine (Brookfield Infrastructure): From natural gas storage to data centers to toll roads and more, Brookfield Infrastructure operates a diverse range of infrastructure assets around the world. With the consistent cash flows that it generates through these assets, Brookfield Infrastructure has developed an impressive track record of returning capital to shareholders, as well as completing strategic acquisitions that contribute to the company's growth. While some investors are bearish on Brookfield Infrastructure's outlook, patient investors have a great opportunity to scoop up this 4.3% forward-yielding stock.
Between ongoing inflation and high interest rates, some investors are pessimistic about Brookfield Infrastructure's ability to achieve growth in the near term. But bears aren't the only ones paying this infrastructure stock attention. In fact, some analysts see ample upside to the company's stock. For example, Frederic Bastien, an analyst at Raymond James, recently upgraded the stock to strong buy from outperform and maintained a price target of $45, representing upside of about 50%.
Although the company's portfolio includes a variety of assets, its pursuit of greater exposure to data centers is a strategy that will benefit shareholders greatly in the future. As artificial intelligence solutions are increasingly adopted, data centers will serve an important function, making Brookfield Infrastructure's portfolio that much more robust. Furthermore, data centers provide long-term, steady cash flows with a weighted average contract length of 10 years. Plus, management forecasts data centers to provide an even greater internal rate of return (IRR) than the 12% to 15% IRR that it targets in acquisitions. While data centers accounted for $35 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2023, management forecasts they will contribute EBITDA of $175 million in 2028.
Over the past 14 years, Brookfield Infrastructure has increased its distributions at a compound annual growth rate of 8%, and further growth seems to be in the cards. In the coming years, management is targeting 5% to 9% annual distribution increases.
10 stocks we like better than Cognex
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 Cognex 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 2, 2023
Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Cognex. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With the consistent cash flows that it generates through these assets, Brookfield Infrastructure has developed an impressive track record of returning capital to shareholders, as well as completing strategic acquisitions that contribute to the company's growth. For example, Frederic Bastien, an analyst at Raymond James, recently upgraded the stock to strong buy from outperform and maintained a price target of $45, representing upside of about 50%. Although the company's portfolio includes a variety of assets, its pursuit of greater exposure to data centers is a strategy that will benefit shareholders greatly in the future.
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In sum, Estée Lauder has a unique mix of classic brands, luxury brands, affordable brands, and niche/edgy brands. Brookfield Infrastructure's robust portfolio helps investors procure plenty of passive income Scott Levine (Brookfield Infrastructure): From natural gas storage to data centers to toll roads and more, Brookfield Infrastructure operates a diverse range of infrastructure assets around the world. Plus, management forecasts data centers to provide an even greater internal rate of return (IRR) than the 12% to 15% IRR that it targets in acquisitions.
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Here's why Cognex (NASDAQ: CGNX), Estée Lauder (NYSE: EL), and Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) stand out as three dividend stocks worth buying for investors who like dividends but want added upside potential as well. Estée Lauder is making the right moves to reward shareholders Daniel Foelber (Estée Lauder): The market may be making a mistake by pounding the sell button on Estée Lauder stock. Brookfield Infrastructure's robust portfolio helps investors procure plenty of passive income Scott Levine (Brookfield Infrastructure): From natural gas storage to data centers to toll roads and more, Brookfield Infrastructure operates a diverse range of infrastructure assets around the world.
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If you've traveled internationally recently, chances are you have seen an Estée Lauder outlet store in the airport. I didn't buy anything at the Paris airport Estée Lauder store. Brookfield Infrastructure's robust portfolio helps investors procure plenty of passive income Scott Levine (Brookfield Infrastructure): From natural gas storage to data centers to toll roads and more, Brookfield Infrastructure operates a diverse range of infrastructure assets around the world.
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13173.0
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2023-10-11 00:00:00 UTC
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The 3 Best Defensive Stocks for Nervous Investors
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AAPL
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https://www.nasdaq.com/articles/the-3-best-defensive-stocks-for-nervous-investors
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nervous investors are turning to defensive stocks, and there’s plenty of reason to be among their ranks. The U.S. Federal Reserve’s continuing battle to control inflation is the primary reason catalyzing increasing nervousness. A few weeks ago, the Fed signaled that rates will be held higher for longer. That introduced new fear into the markets.
Unexpectedly strong jobs figures complicate the Fed’s future decisions. High numbers suggest more people will have more money making it more difficult to tamp down inflation. However, earnings data showed that wage growth is slowing. That implies that the Fed’s efforts are working and that aggressive, potentially destabilizing moves are less likely. That volatility makes defensive stocks a logical consideration for investors tired of the whipsaw.
AbbVie (ABBV)
Source: Valeriya Zankovych / Shutterstock.com
AbbVie (NYSE:ABBV) shares are relatively inexpensive at the moment. That low price, in combination with other factors, makes the stock a buy for defensive-minded investors.
Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature. Beyond that, and more importantly, AbbVie’s shares remain close to their price when it last released earnings.
The reason that’s important is that AbbVie has shown that it won’t be bogged down by declining Humira sales. Instead, the company has found a way to rejuvenate its immunology portfolio with strong growth from Rinvoq and Skyrizi.
As mentioned, share prices have been stagnant since then. That’s due more to structural market factors than anything. Investors continue to prefer tech and other AI growth related shares making defensive shares less attractive by comparison. That can and will change and ABBV is as good a defensive stock as there is for that shift.
Walmart (WMT)
Source: Tupungato / Shutterstock.com
Walmart (NYSE:WMT) is an interesting stock for many, many reasons. It remains the largest global retailer, the largest grocery retailer and has a burgeoning eCommerce opportunity among those many reasons.
It’s also interesting for a reason you may not expect: Weight loss drugs like Wegovy, Ozempic, and Mounjaro are spiking pharmacy revenues. Some reports have suggested that popular weight loss drugs pose a direct threat to Walmart. The thinking is that they are so highly prescribed and effective as to have a material impact on Walmart’s food sales.
The fact that the company raised its full-year guidance following its Q3 earnings report seems to directly contradict those fears. Instead of contracting, Walmart appears to be thriving. There was no mention of the effects of those drugs on its performance in the earnings release and it remains one of the first defensive stocks investors will flock to at the first signs of bigger trouble.
Berkshire Hathaway (BRK-B)
Source: Jonathan Weiss / Shutterstock.com
The general consensus is that Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) stock simply offers strong risk-protection to investors. It’s a well diversified representation of the U.S. economy at large. That makes it a bet on the continued strength of the economy while also being low risk as evidenced by a 0.87 beta.
Berkshire Hathaway’s performance over the last year perfectly exemplifies those characteristics I just mentioned. Its earnings in Q2 2022 went negative as the economy tumbled. U.S. firms were crushed by higher rates and that translated to large losses. However, BRK-B shares hardly winced in terms of share prices. Fast forward a year and earnings are strongly positive as the market has rebounded. Shares are up but only modestly. Investors are relatively protected by investing in BRK-B shares and thus, nervous investors should pay attention to Berkshire Hathaway. Stay in the market but protect yourself.
Interested readers can check out the firm’s holding here. Apple (NASDAQ:AAPL) contributes roughly half of its overall value.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post The 3 Best Defensive Stocks for Nervous Investors appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) contributes roughly half of its overall value. It’s also interesting for a reason you may not expect: Weight loss drugs like Wegovy, Ozempic, and Mounjaro are spiking pharmacy revenues. There was no mention of the effects of those drugs on its performance in the earnings release and it remains one of the first defensive stocks investors will flock to at the first signs of bigger trouble.
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Apple (NASDAQ:AAPL) contributes roughly half of its overall value. AbbVie (ABBV) Source: Valeriya Zankovych / Shutterstock.com AbbVie (NYSE:ABBV) shares are relatively inexpensive at the moment. Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature.
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Apple (NASDAQ:AAPL) contributes roughly half of its overall value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nervous investors are turning to defensive stocks, and there’s plenty of reason to be among their ranks. Generally speaking, defensive investors are likely to be attracted to ABBV shares simply because the company is a well-known healthcare firm and healthcare stocks are defensive in nature.
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Apple (NASDAQ:AAPL) contributes roughly half of its overall value. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nervous investors are turning to defensive stocks, and there’s plenty of reason to be among their ranks. Walmart (WMT) Source: Tupungato / Shutterstock.com Walmart (NYSE:WMT) is an interesting stock for many, many reasons.
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13174.0
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2023-10-11 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-3
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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
Excess Returns Investing 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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13175.0
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2023-10-11 00:00:00 UTC
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After Hours Most Active for Oct 11, 2023 : PFE, H, AAPL, BNDX, NCLH, KO, NI, SQQQ, VICI, LI, AMZN, TLT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-11-2023-%3A-pfe-h-aapl-bndx-nclh-ko-ni-sqqq-vici-li-amzn-tlt
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The NASDAQ 100 After Hours Indicator is up 20.42 to 15,261.54. The total After hours volume is currently 70,084,074 shares traded.
The following are the most active stocks for the after hours session:
Pfizer, Inc. (PFE) is -0.02 at $33.09, with 2,511,368 shares traded. PFE's current last sale is 74.36% of the target price of $44.5.
Hyatt Hotels Corporation (H) is unchanged at $108.29, with 2,142,305 shares traded. H's current last sale is 86.63% of the target price of $125.
Apple Inc. (AAPL) is +0.35 at $180.15, with 2,101,409 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Vanguard Total International Bond ETF (BNDX) is -0.005 at $48.01, with 2,041,552 shares traded. This represents a 2.43% increase from its 52 Week Low.
Norwegian Cruise Line Holdings Ltd. (NCLH) is +0.02 at $15.68, with 1,708,494 shares traded. NCLH's current last sale is 78.4% of the target price of $20.
Coca-Cola Company (The) (KO) is +0.03 at $53.74, with 1,565,877 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
NiSource, Inc (NI) is unchanged at $26.05, with 1,431,988 shares traded. As reported by Zacks, the current mean recommendation for NI is in the "strong buy range".
ProShares UltraPro Short QQQ (SQQQ) is -0.12 at $18.25, with 1,399,279 shares traded. This represents a 11.42% increase from its 52 Week Low.
VICI Properties Inc. (VICI) is -0.01 at $29.35, with 1,358,483 shares traded. As reported by Zacks, the current mean recommendation for VICI is in the "buy range".
Li Auto Inc. (LI) is +0.05 at $35.47, with 1,334,696 shares traded. As reported by Zacks, the current mean recommendation for LI is in the "buy range".
Amazon.com, Inc. (AMZN) is +0.25 at $132.08, with 1,275,576 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is +0.1 at $88.57, with 1,233,021 shares traded. This represents a 5.37% increase from its 52 Week Low.
The views and 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 +0.35 at $180.15, with 2,101,409 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Vanguard Total International Bond ETF (BNDX) is -0.005 at $48.01, with 2,041,552 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.35 at $180.15, with 2,101,409 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
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Apple Inc. (AAPL) is +0.35 at $180.15, with 2,101,409 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 70,084,074 shares traded.
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Apple Inc. (AAPL) is +0.35 at $180.15, with 2,101,409 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for KO is in the "buy range".
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13176.0
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2023-10-11 00:00:00 UTC
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3 Breakout Small-Cap Stocks Outperforming the Market
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AAPL
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https://www.nasdaq.com/articles/3-breakout-small-cap-stocks-outperforming-the-market
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nan
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nan
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Small-cap stocks have lagged the rest of the market by a significant margin so far in 2023. This is evidenced by the fact that the small-cap focused Russell 2000 Index (RUT) is roughly flat on the year, while the Nasdaq Composite ($NASX) has gained about 30%, and the S&P 500 Index ($SPX) is more than 13% higher.
That small-cap underperformance has continued in recent months, too, as heightened volatility has pressured markets lower across the board. Since the start of August, the RUT is off more than 11%, while the Nasdaq and S&P have pulled back about 5% each in this time frame.
Against this backdrop, the positive price action we've seen lately in the three small-cap stocks featured below is truly impressive. Here's what Wall Street is expecting next for these relative strength standouts.
Uranium Energy
Founded in 2003, Uranium Energy (UEC) is a Texas-based uranium mining and exploration company. It has a portfolio of uranium projects in the U.S., including two in situ recovery (ISR) uranium production facilities in Wyoming, and two ISR uranium projects under development in Texas.
Commanding a market cap of about $2.07 billion, Uranium Energy shares have rallied nearly 46% just since the beginning of August. That coincides with a ramp higher in uranium futures (UXZ23), as well, with a new bull market in place for the commodity - and forecasts looking bullish.
www.barchart.com
In its latest results, for the quarter ended in July, Uranium Energy reported revenue of $164 million after it sold 3.15 million pounds of uranium. It recorded gross profits of $49.6 million, with an adjusted loss of $0.02 per share.
Meanwhile, the company has been fortifying its portfolio with some notable acquisitions, chief among them being the purchase of Canadian exploration projects from Rio Tinto for CAD$1.5 million. The deal will add an additional ~44k acres to UEC's land holdings in the Basin, which now totals more than 1M acres. Further, the company also completed the buyout of Canada-based UEX Corp in June, and in October, it purchased the Roughrider uranium development project from Rio in a $150 million cash and stock deal.
Notably, the company also announced the completion of the Restart Program at its Christensen Ranch ISR project in Wyoming.
All four analysts covering the stock have a “Strong Buy” rating with a mean target price of $6.62. This indicates an upside potential of about 25% from current levels.
www.barchart.com
Peabody Energy
We continue our list with Peabody Energy (BTU), a leading global coal producer. Peabody mines and sells coal to utilities and industrial customers in more than 25 countries, which is then used to generate electricity, produce steel and other industrial products, and make cement and other building materials.
The company currently commands a market cap of $3.46 billion and offers shareholders a dividend yield of 0.57%.
Peabody Energy stock is up more than 15% since the start of August, extending a longer-term rise off its May lows.
www.barchart.com
For its latest quarter ended June 2023, the company reported lower revenue and earnings - like most energy companies, due to softer commodity prices. Revenues of $1.27 billion were down 4% from the prior year, while EPS came in at $1.16 - missing consensus expectations for $1.72.
Looking ahead, strength in coal prices could be key for BTU. Bank of America says prices likely bottomed in July, and the October futures contract (LQV23) just set a higher low earlier this month. Plus, ongoing conflict between Russia and Ukraine could stoke European demand this winter.
Analysts have assigned a “Strong Buy” rating for the stock with a mean target price of $30.25, which denotes an upside potential of about 16% from current levels. Out of four analysts covering the stock, 3 have a “Strong Buy” rating and 1 has a “Hold” rating.
www.barchart.com
Cinemark Holdings
We round out our list with the leading global cinema chain, Cinemark (CNK). Founded in 1984, the chain has 530 theaters and 5,969 screens in 11 countries. Cinemark operates theatres under several brands, including its flagship Cinemark, Century Theatres, Tinseltown, CinéArts, and Rave Cinemas.
Currently commanding a market cap of $2.29 billion, its shares have rallied massively in 2023, gaining 112% as audiences flocked back to theaters. Since the start of August alone, CNK is up 10.5%.
www.barchart.com
Cinemark reported stellar results for the second quarter that ended June, highlighted by a significant increase in revenue and a swing to profitability. Revenues of $942.3 million were up 26.6% year over year, aided by a substantial rise in admissions and concessions revenue. Meanwhile, EPS of $0.80 comfortably outpaced the consensus estimate of $0.54, and also compared favorably to the previous year's loss of $0.61 per share.
Growth in average ticket prices (up 1.2% YoY) and operating cash flows (up 445% YoY) further fueled investors' enthusiastic reaction to the results.
Analysts remain cautiously optimistic about the stock, with a consensus “Moderate Buy” rating and a mean target price of $19.65. This denotes an upside potential of only about 6.4% from current levels - although the Street-high target price of $24 suggests an impressive upside potential of nearly 30%.
Out of 10 analysts covering the stock, 5 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, 3 have a “Hold” rating, and 1 has a “Strong Sell” 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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Meanwhile, the company has been fortifying its portfolio with some notable acquisitions, chief among them being the purchase of Canadian exploration projects from Rio Tinto for CAD$1.5 million. Further, the company also completed the buyout of Canada-based UEX Corp in June, and in October, it purchased the Roughrider uranium development project from Rio in a $150 million cash and stock deal. Analysts have assigned a “Strong Buy” rating for the stock with a mean target price of $30.25, which denotes an upside potential of about 16% from current levels.
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www.barchart.com Peabody Energy We continue our list with Peabody Energy (BTU), a leading global coal producer. www.barchart.com For its latest quarter ended June 2023, the company reported lower revenue and earnings - like most energy companies, due to softer commodity prices. Out of 10 analysts covering the stock, 5 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, 3 have a “Hold” rating, and 1 has a “Strong Sell” rating.
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Uranium Energy Founded in 2003, Uranium Energy (UEC) is a Texas-based uranium mining and exploration company. www.barchart.com In its latest results, for the quarter ended in July, Uranium Energy reported revenue of $164 million after it sold 3.15 million pounds of uranium. Out of 10 analysts covering the stock, 5 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, 3 have a “Hold” rating, and 1 has a “Strong Sell” rating.
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Uranium Energy Founded in 2003, Uranium Energy (UEC) is a Texas-based uranium mining and exploration company. Commanding a market cap of about $2.07 billion, Uranium Energy shares have rallied nearly 46% just since the beginning of August. www.barchart.com Peabody Energy We continue our list with Peabody Energy (BTU), a leading global coal producer.
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13177.0
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2023-10-11 00:00:00 UTC
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I Think You'll Like These 2 Five-Day Losers
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AAPL
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https://www.nasdaq.com/articles/i-think-youll-like-these-2-five-day-losers
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nan
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nan
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I was scratching my head, thinking of a subject to write about today. It may be worthwhile to continue writing about down-and-out stocks ready to make a comeback.
Yesterday, it was stocks hitting 52-week lows. Today, I’ll cover two stocks down for at least five consecutive days. I thought there would be more stocks in the down camp relative to the up camp. I was wrong. Not even close.
According to Barchart.com data, 17 stocks are down at least five consecutive days, compared to 200 that are up. It makes sense, considering that the S&P 500 is up 2.2% over the past five days. When the index is up, that’s usually a sign stocks are also. When the index is down over five days, that ratio likely flips.
Anyway, back to the subject at hand. I’ve to provide readers with two names in the down camp that should be able to rebound. Here are my choices.
CPI Card Group
CPI Card Group (PMTS) is down 11.30% over the past five days and 57% year-to-date. That’s not very good.
Admittedly, I haven’t spent much time studying the provider of payment technology solutions in recent months. However, I saw an article from early August by the Motley Fool’s Rich Smith discussing the Colorado company's surprisingly good Q2 2023 results from the Colorado company. Its shares jumped 21% on the news.
Smith pointed out that the tiny company’s tied at the hip to the banking industry. With most of the industry in the ratings agencies' bad books, the odds of PMTS stock maintaining an upward trajectory were low.
He was right. PMTS stock is down 42% since its 21% spike on Aug. 8. It’s trading where it did in September 2022.
The important thing I take away from CPI Card Group’s second-quarter results is that it expects sales and adjusted EBITDA growth in 2023 despite working with a banking industry that’s taken it on the chip in 2023.
In addition, it expects its free cash flow in 2023 to double. In the first six months, they were $3.73 million, considerably better than -$16.33 million a year ago. In 2022, its free cash flow was $13.47 million.
If it doubles, that’s $26.94 million in 2024. Given its current enterprise value of $470 million, it has a free cash flow yield of 5.7%. I consider anything between 4-8% to be a fair and reasonable value.
As for its enterprise value to EBITDA, it hasn’t been this low in the past decade. It’s not a slam dunk, mind you, but its products remain in demand by its banking customers.
Sonos
Sonos (SONO) is down 5.2% over the past five days and 29% year-to-date. It's flatlined over the past five years, losing nearly 5% compared to a 58% gain for the S&P 500.
Sonos remains a mystery stock. Its multi-room audio products, by all accounts, work amazingly well and sound great. Yet, its stock never seems to be able to sustain any momentum.
Since it went public in 2018, it’s had just one significant run between March 2020 (big market correction) and its all-time high of $44.72 in April 2021, 13 months later. That’s been it for momentum.
During this time, its revenue has grown from $1.14 billion in 2018 (September year-end) to $1.75 billion in 2022, a compound annual growth rate of 11.3%. Sure, it’s not 20%+, but double digits are still good for a product with serious competition.
The biggest knock against the company is its inability to make a decent profit. In 2021, Sonos’ operating margin was 9.0% on $1.72 billion in sales. Apple’s (AAPL) sales were 30.3% in fiscal 2022 (September year-end). You can’t get much better than that.
Analysts tend to like the stock. Of the seven covering it, according to Barchart.com data, rate it a Strong Buy (4.43 out of 5) with a mean target price of $20.83, 74% higher than its current share price.
Its profits can be inconsistent, but its products remain popular with audio enthusiasts because they’ve worked hard to provide an excellent streaming experience. That’s a winner in my books.
I do a lot of writing about options. I see several interesting possibilities as I look at the unusual options activity for Wednesday.
However, if you want to use options to bet on its recovery, I’d either buy the June 21/2024 $15 call or sell the Jan. 19/2024 $12.50 put.
The call’s ask price is $1.10, which is only 7.3% of its strike price, which gives a relatively low downpayment. To exercise your right to buy the 100 shares in 254 days, SONO will have to appreciate by at least 34% over the next 254 days. That might be a tall order.
However, with a delta of 0.39249, the shares need only increase by $2.80 for you to double your money by selling the call before expiry. So, the risk is relatively low.
As for the put, it has 100 days to expiration. The annualized yield based on a $12 share price is a healthy 39.4%. The downside is it’s currently in the money. If it drops below $11.20, you’re in the red on this bet. However, if it stays between $12 and $12.50, and it’s put to you, you get the shares at a reasonable price. If it expires above $12.50, you get a healthy return on your premium income.
In the five years that Sonos has been a public company, its shares have only traded in single digits once, for two months in March 2020. The odds of losing your shirt on the put are low.
Sonos is the bet I’d be more confident about of the two.
More Stock Market News from Barchart
Unusual Options Activity in Virtu Financial Highlights Its 5.4% Dividend Yield
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Will New Weight-Loss Drugs Change Consumer Buying Habits?
Netflix: Can the Worst-Performing FAANG Stock of 2023 Rebound in Q4?
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple’s (AAPL) sales were 30.3% in fiscal 2022 (September year-end). With most of the industry in the ratings agencies' bad books, the odds of PMTS stock maintaining an upward trajectory were low. The important thing I take away from CPI Card Group’s second-quarter results is that it expects sales and adjusted EBITDA growth in 2023 despite working with a banking industry that’s taken it on the chip in 2023.
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Apple’s (AAPL) sales were 30.3% in fiscal 2022 (September year-end). CPI Card Group CPI Card Group (PMTS) is down 11.30% over the past five days and 57% year-to-date. The important thing I take away from CPI Card Group’s second-quarter results is that it expects sales and adjusted EBITDA growth in 2023 despite working with a banking industry that’s taken it on the chip in 2023.
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Apple’s (AAPL) sales were 30.3% in fiscal 2022 (September year-end). Sonos Sonos (SONO) is down 5.2% over the past five days and 29% year-to-date. To exercise your right to buy the 100 shares in 254 days, SONO will have to appreciate by at least 34% over the next 254 days.
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Apple’s (AAPL) sales were 30.3% in fiscal 2022 (September year-end). It makes sense, considering that the S&P 500 is up 2.2% over the past five days. To exercise your right to buy the 100 shares in 254 days, SONO will have to appreciate by at least 34% over the next 254 days.
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13178.0
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2023-10-11 00:00:00 UTC
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Will Intel Stock Recover To Pre-Inflation Shock Highs?
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AAPL
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https://www.nasdaq.com/articles/will-intel-stock-recover-to-pre-inflation-shock-highs
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nan
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nan
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Intel stock (NASDAQ:INTC) currently trades at $36 per share, about 47% below the levels seen on April 9, 2021 (pre-inflation shock high). Intel saw its stock trading at around $37 at the end of June 2022, just before the Fed started increasing rates, and has lost about 4% since. In comparison, the S&P 500 gained close to 15% during this period. Intel has seen demand pull back as the PC market has declined meaningfully after seeing a big demand surge through Covid-19. Moreover, the increasing prominence of graphics processors also appears to be threatening Intel as these chips – which are seen as core to artificial intelligence-related workloads – could make the CPU’s Intel sells less prominent in the AI era. That said, Intel stock has recovered by about 44% from a low of $25 seen on October 11, 2022.
Interestingly, INTC stock has a Sharpe Ratio of 0.1 since early 2017, lower than 0.5 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
Now, returning to the pre-inflation shock level would mean that Intel stock will have to gain about 89% from here. However, we estimate Intel’s valuation to be around $35 per share, roughly in line with the current market price, due to a risk of headwinds from an uncertain macro environment and mounting competition from the likes of AMD in the server processor market that the company currently dominates. That said, Intel could see an upside from its upcoming data center chips and its cost-cutting plans, which could see the company cut expenses by $3 billion in 2023 and up to $10 billion by the end of 2025. Over Q2, the company reported net income of about $1.5 billion, beating expectations.
Our detailed analysis of Intel’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers were unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses
Since August 2023: Fed has kept interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards.
In contrast, here’s how Intel’s stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
Intel and S&P 500 Performance During 2007-08 Crisis
Intel stock declined from a little over $26 in September 2007 to just $12 as of March 2009 (as the markets bottomed out), implying INTC stock lost nearly 52% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $20.40 in early 2010, rising roughly 60% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
Intel Fundamentals Over Recent Years
Intel’s revenues rose from around $72 billion in 2019 to about $79 billion in 2021 led by surging demand for computing products through the early phase of the Covid-19 pandemic. However, sales declined considerably over 2022 to about $64 billion, as demand, particularly for the company’s client computing group, cooled off with PC sales moderating post-Covid-19 lockdowns. Intel’s net income also declined from around $4.77 per share in 2019 to under $2 in 2022 due to the decline in sales.
Does Intel Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
Intel’s total debt has increased from $29 billion in 2019 to $49 billion now, while its total cash stood at $24 billion. It also garnered about $15 billion in cash flows from operations in 2022. The company’s financial position is reasonably healthy, and it appears to be in a good position to meet its near-term obligations.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe Intel stock has the potential for good gains once fears of a potential recession are allayed. That said, fears of a potential recession and concerns about competition could weigh on the company’s returns in the near term.
Returns Oct 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
INTC Return 1% 36% -1%
S&P 500 Return 1% 13% 94%
Trefis Reinforced Value Portfolio 0% 23% 529%
[1] Month-to-date and year-to-date as of 10/9/2023
[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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Intel stock (NASDAQ:INTC) currently trades at $36 per share, about 47% below the levels seen on April 9, 2021 (pre-inflation shock high). However, we estimate Intel’s valuation to be around $35 per share, roughly in line with the current market price, due to a risk of headwinds from an uncertain macro environment and mounting competition from the likes of AMD in the server processor market that the company currently dominates. Our detailed analysis of Intel’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022.
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2022 Inflation Shock Timeline of Inflation Shock So Far: 2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers were unable to match up. July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since August 2023: Fed has kept interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Intel and S&P 500 Performance During 2007-08 Crisis Intel stock declined from a little over $26 in September 2007 to just $12 as of March 2009 (as the markets bottomed out), implying INTC stock lost nearly 52% of its pre-crisis value.
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July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since August 2023: Fed has kept interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Intel and S&P 500 Performance During 2007-08 Crisis Intel stock declined from a little over $26 in September 2007 to just $12 as of March 2009 (as the markets bottomed out), implying INTC stock lost nearly 52% of its pre-crisis value. Total [2] INTC Return 1% 36% -1% S&P 500 Return 1% 13% 94% Trefis Reinforced Value Portfolio 0% 23% 529% [1] Month-to-date and year-to-date as of 10/9/2023 [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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Now, returning to the pre-inflation shock level would mean that Intel stock will have to gain about 89% from here. It recovered post the 2008 crisis to levels of around $20.40 in early 2010, rising roughly 60% between March 2009 and January 2010. Intel’s net income also declined from around $4.77 per share in 2019 to under $2 in 2022 due to the decline in sales.
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13179.0
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2023-10-11 00:00:00 UTC
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Notable Wednesday Option Activity: AAPL, AMGN, MRNA
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AAPL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aapl-amgn-mrna
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. That amounts to about 69.3% of AAPL's average daily trading volume over the past month of 59.2 million shares. Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange:
Amgen Inc (Symbol: AMGN) options are showing a volume of 17,221 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 68% of AMGN's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $230 strike put option expiring January 19, 2024, with 1,570 contracts trading so far today, representing approximately 157,000 underlying shares of AMGN. Below is a chart showing AMGN's trailing twelve month trading history, with the $230 strike highlighted in orange:
And Moderna Inc (Symbol: MRNA) saw options trading volume of 23,866 contracts, representing approximately 2.4 million underlying shares or approximately 63.7% of MRNA's average daily trading volume over the past month, of 3.7 million shares. Particularly high volume was seen for the $140 strike put option expiring October 20, 2023, with 3,640 contracts trading so far today, representing approximately 364,000 underlying shares of MRNA. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for AAPL options, AMGN options, or MRNA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Best High Yield Stocks
TUEM Videos
ETFs Holding DTSI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. That amounts to about 69.3% of AAPL's average daily trading volume over the past month of 59.2 million shares.
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Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange: Amgen Inc (Symbol: AMGN) options are showing a volume of 17,221 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. That amounts to about 69.3% of AAPL's average daily trading volume over the past month of 59.2 million shares.
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Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: For the various different available expirations for AAPL options, AMGN options, or MRNA options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares.
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13180.0
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2023-10-11 00:00:00 UTC
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META Stock Price Predictions: What Can Investors Expect in 2024?
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AAPL
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https://www.nasdaq.com/articles/meta-stock-price-predictions%3A-what-can-investors-expect-in-2024
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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) has staged an impressive comeback from its lows last year, gaining over 250% to climb back above the $300 level. After the stock’s sharp ascent, some investors are wondering whether this rally has been overdone, and if this stock is due for a pullback. That’s especially the case if broader market sentiment turns more bearish. While I share some of those concerns over the near-term, I believe META stock is a “hold” at current levels for most investors.
One of my earliest ratings on META stock was a “buy,” back when it was trading around $112 per share last year. This was due to the company’s valuation dipping below $300 billion, making it intriguing.
However, that call was primarily based on its historically low valuation at the time. For new investors today, with the stock near $320 per share, I think there are better options in the short-term. Meta does not pay a dividend, unlike many mature tech stocks, and its valuation seems fair based on 2023 estimates. If Meta did return cash to shareholders instead of investing heavily in its metaverse vision, a dividend could make it more appealing for long-term investors.
In the near-0term, I won’t speculate on Meta’s price swings, as technical analysis depends heavily on overall market sentiment and does not offer value to long-term investors. So, for the long-term, I see META stock potentially appreciating to more than $400 sometime in 2025, barring a recession. That target aligns with Gurufocus’ estimated fair value. On average, Wall Street analysts forecast Meta rising to $376 over the next 12 months, representing 18% upside from today’s levels. While not insignificant, other tech stocks likely offer greater return potential.
Fundamentals Support Meta’s Comeback, But Headwinds Remain
Meta has rebounded sharply from last year’s crash that shaved nearly 70% from its value. Several factors drove this comeback.
First, Meta’s valuation became attractive, below 10-times forward earnings after the pullback. Investors saw the opportunity in a dominant, profitable social media leader. To add to that, Meta also delivered solid results in 2022 despite the challenging environment. Last year’s revenue barely declined, and operating margins stayed strong at 25% as Meta controlled costs amid the slowdown. In the latest quarter, we are seeing low-double-digit growth in Meta’s top line, along with steady user growth and improved monetization of formats like Reels. That’s quite the difference from when Facebook started to lose users in 2021.
Regardless, the icing on the cake that is really driving the stock is Meta’s investments in AI, like large language models like LLaMA. However, risks remain. A worsening macroeconomic environment could pressure digital advertising spending and Meta’s revenue growth. For example, Apple’s (NASDAQ:AAPL) tracking restrictions continue hampering Meta’s ad targeting and measurement capabilities. And as always, competition from TikTok in short-form video remains fierce.
For now, Meta appears fairly valued, in my opinion. The stock doesn’t look overpriced after its run back above $300. But with ongoing uncertainty, I don’t see Meta as a table-pounding “buy” either. For investors seeking tech exposure, other faster-growing names likely offer greater upside. Meta seems best-suited for long-term investors willing to wait for the AI and metaverse narratives to materialize into stronger growth in the years ahead.
Bull Case Sees Meta Climbing Above $400, But Patience Is Required
Looking further out, Meta has an upside potential above $400 by 2024. Here is my bull case for Meta in the long term:
Meta continues adapting to Apple’s privacy changes, strengthening ad targeting and measurement. New formats boost revenue growth.
Meta makes progress monetizing its metaverse investments in VR/AR, and establishes a long-term platform for the next computing paradigm.
AI boosts user experiences, content quality, and safety across Meta’s family of apps, expanding its total addressable market.
Operating margins remain strong at 25%+ as revenue growth rebounds and Meta’s efficiency gains trim cost increases to sub-inflation levels.
Meta starts returning excess cash to shareholders through dividends.
In my opinion, the biggest boost by far would come if TikTok was banned. It is in the cards for sure, and that would take tremendous pressure off of Facebook.
Under these assumptions, Meta could potentially reach even $500 by the end of 2025. However, this bull case depends on Meta successfully executing on initiatives like metaverse monetization that remain long-term and uncertain.
In the meantime, META stock will likely trade rangebound, and track broader tech and social media sentiment. The company must prove to investors that the AI and metaverse investments will enhance, not hinder, Meta’s growth in its core digital advertising business. Until tangible progress shows up in its results, many investors will take a “show me” approach to valuing Meta’s future opportunities.
The Bottom Line
For investors with a time horizon beyond two to three years, Meta offers an appealing risk/reward proposition at today’s levels. However, near-term patience will be required as Meta continues evolving its business for the next era of computing and social experiences. Any pullbacks driven by macroeconomic factors or other short-term issues could offer appealing entry points for long-term shareholders aligned with Meta’s vision. I rate this stock as a “hold.” If the company spent its metaverse capital on dividends instead, it would be a “buy” for sure.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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The post META Stock Price Predictions: What Can Investors Expect in 2024? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For example, Apple’s (NASDAQ:AAPL) tracking restrictions continue hampering Meta’s ad targeting and measurement capabilities. In the near-0term, I won’t speculate on Meta’s price swings, as technical analysis depends heavily on overall market sentiment and does not offer value to long-term investors. Operating margins remain strong at 25%+ as revenue growth rebounds and Meta’s efficiency gains trim cost increases to sub-inflation levels.
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For example, Apple’s (NASDAQ:AAPL) tracking restrictions continue hampering Meta’s ad targeting and measurement capabilities. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meta Platforms (NASDAQ:META) has staged an impressive comeback from its lows last year, gaining over 250% to climb back above the $300 level. If Meta did return cash to shareholders instead of investing heavily in its metaverse vision, a dividend could make it more appealing for long-term investors.
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For example, Apple’s (NASDAQ:AAPL) tracking restrictions continue hampering Meta’s ad targeting and measurement capabilities. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Meta Platforms (NASDAQ:META) has staged an impressive comeback from its lows last year, gaining over 250% to climb back above the $300 level. Fundamentals Support Meta’s Comeback, But Headwinds Remain Meta has rebounded sharply from last year’s crash that shaved nearly 70% from its value.
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For example, Apple’s (NASDAQ:AAPL) tracking restrictions continue hampering Meta’s ad targeting and measurement capabilities. If Meta did return cash to shareholders instead of investing heavily in its metaverse vision, a dividend could make it more appealing for long-term investors. Bull Case Sees Meta Climbing Above $400, But Patience Is Required Looking further out, Meta has an upside potential above $400 by 2024.
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13181.0
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2023-10-11 00:00:00 UTC
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US STOCKS-Nasdaq rises as long-term Treasury yields retreat, Fed minutes awaited
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-rises-as-long-term-treasury-yields-retreat-fed-minutes-awaited
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 11 (Reuters) - The Nasdaq rose on Wednesday as easing long-term U.S. Treasury yields boosted megacap stocks, while investors shrugged off hotter-than-expected inflation data and awaited minutes from the Federal Reserve's last policy meeting.
U.S. producer prices increased more than expected in September amid higher costs for energy products, but underlying inflation pressures at the factory gate continued to moderate.
Yield on the benchmark 10-year notes fell to a roughly two-week low as prices rose on safe-haven flows due to fighting in the Middle East that has persisted for a fifth straight day.
"The massive increase in bond yields in the last few weeks has clearly tightened financing conditions," said Raphael Olszyna-Marzys, international economist at J Safra Sarasin.
"If this tightening is sustained, then the Fed itself doesn't have to increase rates further given that the market is doing the Fed's job."
Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O and Meta Platforms META.O advanced between 0.3% and 1.7%.
Fed Governor Michelle Bowman repeated her view that the U.S. central bank will probably need to tighten monetary policy further, while Fed Governor Christopher Waller said the central bank is in a position to watch and see what happens with interest rates.
Focus will now be on minutes from the Fed's September meeting at 2 p.m. ET and Thursday's consumer inflation data for clues on the interest rate outlook.
For the day, real estate .SPLRCR and communication services .SPLRCL were the top S&P 500 sector gainers.
Energy stocks .SPNY were the worst hit, hurt by a 4.6% fall in Exxon Mobil XOM.N as the oil and gas producer agreed to buy rival Pioneer Natural Resources PXD.N in an all-stock deal valued at $59.5 billion. Pioneer was up 1.0%.
At 11:54 a.m. ET, the Dow Jones Industrial Average .DJI was down 2.08 points, or 0.01%, at 33,737.22, the S&P 500 .SPX was up 3.99 points, or 0.09%, at 4,362.23, and the Nasdaq Composite .IXIC was up 50.91 points, or 0.38%, at 13,613.76.
Meanwhile, the conflict in Middle East raged on as Israel pounded Gaza to root out Hamas and deployed forces north of the densely populated Palestinian enclave, where the militants said they were still fighting after their cross-border assault.
Israel's death toll rose to 1,200 with over 2,700 wounded, its military said, while retaliatory strikes on the blockaded enclave have killed 1,055 people and wounded 5,184, according to Gaza's Hamas authorities.
The debut of German luxury sandal maker Birkenstock HoldingBIRK.N on the New York Stock Exchange will also be keenly watched. The company's shares are indicated to open in the range of $39 to $41 versus its IPO price of $46.
Walgreens Boots AllianceWBA.O rose 1.4% after the pharmacy chain operator said it has appointed Tim Wentworth as its new chief executive.
Drugmaker Eli Lilly LLY.N gained 3.8% following the early success of Danish rival Novo Nordisk's NOVOb.COOzempic in a trial to treat kidney failure, while dialysis firms DaVita DVA.N and Baxter International BAX.N slumped 18.8% and 9.0%, respectively.
Advancing issues outnumbered decliners for a 1.51-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.10-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and seven new lows, while the Nasdaq recorded 38 new highs and 124 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((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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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O and Meta Platforms META.O advanced between 0.3% and 1.7%. By Shashwat Chauhan and Ankika Biswas Oct 11 (Reuters) - The Nasdaq rose on Wednesday as easing long-term U.S. Treasury yields boosted megacap stocks, while investors shrugged off hotter-than-expected inflation data and awaited minutes from the Federal Reserve's last policy meeting. Energy stocks .SPNY were the worst hit, hurt by a 4.6% fall in Exxon Mobil XOM.N as the oil and gas producer agreed to buy rival Pioneer Natural Resources PXD.N in an all-stock deal valued at $59.5 billion.
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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O and Meta Platforms META.O advanced between 0.3% and 1.7%. By Shashwat Chauhan and Ankika Biswas Oct 11 (Reuters) - The Nasdaq rose on Wednesday as easing long-term U.S. Treasury yields boosted megacap stocks, while investors shrugged off hotter-than-expected inflation data and awaited minutes from the Federal Reserve's last policy meeting. Advancing issues outnumbered decliners for a 1.51-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.10-to-1 ratio on the Nasdaq.
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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O and Meta Platforms META.O advanced between 0.3% and 1.7%. By Shashwat Chauhan and Ankika Biswas Oct 11 (Reuters) - The Nasdaq rose on Wednesday as easing long-term U.S. Treasury yields boosted megacap stocks, while investors shrugged off hotter-than-expected inflation data and awaited minutes from the Federal Reserve's last policy meeting. Fed Governor Michelle Bowman repeated her view that the U.S. central bank will probably need to tighten monetary policy further, while Fed Governor Christopher Waller said the central bank is in a position to watch and see what happens with interest rates.
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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O and Meta Platforms META.O advanced between 0.3% and 1.7%. By Shashwat Chauhan and Ankika Biswas Oct 11 (Reuters) - The Nasdaq rose on Wednesday as easing long-term U.S. Treasury yields boosted megacap stocks, while investors shrugged off hotter-than-expected inflation data and awaited minutes from the Federal Reserve's last policy meeting. Yield on the benchmark 10-year notes fell to a roughly two-week low as prices rose on safe-haven flows due to fighting in the Middle East that has persisted for a fifth straight day.
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13182.0
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2023-10-11 00:00:00 UTC
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Is Apple Priced to Perfection, Based on Its Current P/E?
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AAPL
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https://www.nasdaq.com/articles/is-apple-priced-to-perfection-based-on-its-current-p-e
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nan
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nan
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Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good?
The largest S&P 500 component has notched small gains in recent weeks, but is down 6% in the past three months.
Even so, the stock has a price-to-earnings ratio of 30, indicating that it still may be priced too high.
However, take a look at MarketBeat’s Apple analyst ratings. The consensus view is “moderate buy” with a price target of $200.54, an upside of 12.42%.
If Apple achieves that level in the next 12 to 18 months, which is well within the realm of possibility, it would have cleared its current consolidation, below a buy point of $198.33.
Digging into the ratings a little more, you see that the majority of analysts have a price target above the stock’s current price, although brokerage firm Sanford C. Bernstein has a target of $167, and Morningstar estimates fair value at $150 a share.
Single-Digit Revenue Growth
Morningstar’s Brian Colello says he views shares as undervalued, and that he foresees “only mid-single-digit revenue growth for the company over the next few years.”
That revenue growth rate is key to the stock’s potential for price appreciation. Revenue slowed in each of the past three quarters, the company’s longest sales slump since 2016.
Analysts have been lowering their revenue estimates in recent months. This year, Wall Street expects earnings to decline by 1% to $6.07 a share.
One culprit behind the slowdown: The new iPhone 15, released on September 22, got off to a somewhat disappointing start, amid a global slowdown in smartphone sales.
Sales of all iPhones fell by 2.4% in the most recent quarter, coming in $500 million below analysts’ forecasts of $40.2 billion.
PC Sales Declined in Q3
Meanwhile, market intelligence firm IDC found that global personal computer sales declined in the third quarter. “While most of the top 5 vendors experienced double-digit declines during the quarter, Apple's outsized decline was the result of unfavorable year-over-year comparisons as the company recovered from a COVID-related halt in production during 3Q22,” IDC said in an October 9 report.
IDC reported that Apple Mac shipments fell 23.1% in the third quarter.
P/E Aligned with Growth Expectations?
A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment.
In the priced-to-perfection scenario, the P/E ratio aligns with the company's growth prospects, implying that investors anticipate consistent and robust earnings growth. When that happens, the stock’s P/E ratio is often at the higher end of its historical range or industry average.
For example, Apple’s historical P/E, over the past decade, is 19.5. It peaked at 35.19 in December 2020. You could consider the current P/E as being pretty close to that high, although that’s happening while revenue and earnings expectations are being lowered.
But here’s a big problem when revenue and earnings are dropping, and the P/E remains fairly high: In that situation, with any stock, not just Apple, investors believe the company can sustain its growth trajectory without hiccups, making it a compelling investment.
Perfectly Priced, or Vulnerable to Decline?
However, any deviation from these rosy expectations can lead to a sharp correction, underscoring the fine line between perfection and vulnerability.
So what would it take for Apple to go back into strong rally mode?
One thing that will continue to attract investors is the Apple dividend. The stock’s yield is 0.54%, not the best of the bunch, but it’s an additional incentive for investors to hold shares, as they get paid even while they wait for the next uptrend.
In addition, Apple is among an elite group of quintessential institutional quality stocks. Analysts expect earnings growth to resume in 2024, with a gain of 8%, to $6.57 a share. Wall Street expects part of that growth to come from an uptick in sales of the iPhone 15.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment. But here’s a big problem when revenue and earnings are dropping, and the P/E remains fairly high: In that situation, with any stock, not just Apple, investors believe the company can sustain its growth trajectory without hiccups, making it a compelling investment.
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Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? Analysts have been lowering their revenue estimates in recent months. PC Sales Declined in Q3 Meanwhile, market intelligence firm IDC found that global personal computer sales declined in the third quarter.
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Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? Single-Digit Revenue Growth Morningstar’s Brian Colello says he views shares as undervalued, and that he foresees “only mid-single-digit revenue growth for the company over the next few years.” That revenue growth rate is key to the stock’s potential for price appreciation. A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment.
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Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? Analysts have been lowering their revenue estimates in recent months. A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment.
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13183.0
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2023-10-11 00:00:00 UTC
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Global PC Shipment Falls in Q3: Recovery Expected Soon
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AAPL
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https://www.nasdaq.com/articles/global-pc-shipment-falls-in-q3%3A-recovery-expected-soon
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nan
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nan
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The decline in global personal computer (PC) shipments continues for the eighth consecutive quarter, according to the latest data compiled by Gartner. Per the preliminary data released by the market research firm, PC shipments in the July-September 2023 quarter plunged 9% year over year to 64.3 million units.
Q3 Data Shows Signs of Stabilization
The third-quarter shipment data shows a strong improvement from the second quarter when PC vendors had shipped 59.7 million units. The sequential improvement in PC shipments can be seen as an initial sign of stabilization in the PC market.
Mikako Kitagawa, the Director Analyst at Gartner, stated, “There is evidence that the PC market’s decline has finally bottomed out.” She further noted, “Vendors also made consistent progress towards reducing PC inventory, with inventory expected to return to normal by the end of 2023, as long as holiday sales do not collapse.”
Computer - Mini computers Industry 5YR % Return
Computer - Mini computers Industry 5YR % Return
In 2020 and 2021, PC manufacturers had benefited from the increased demand amid the pandemic-induced remote-working and online learning wave. The pandemic necessitated using PC systems for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, consumers have become more cautious about their spending due to inflationary pressure, rising interest rates and fears of a possible recession. Furthermore, enterprises are delaying their large IT spending amid macroeconomic challenges.
Vendor-Wise Performance
Per the data compiled by Gartner, all top vendors, except HP Inc. HPQ, registered a decline in their PC shipments in the third quarter. HP Inc. delivered 13.53 million PCs in the third quarter, reflecting a 6.4% increase from the year-ago quarter.
Apple AAPL registered the steepest decline, with PC shipments falling 24.2% year over year to $6.27 million units. The decline was mainly due to a tough year-over-year comparison as the company witnessed a strong increase in volume growth in the third quarter of 2022, driven by improved supply-chain issues due to lockdown ease in China.
Dell Technologies’ DELL shipment fell 14.2% year over year to 10.32 million units, mainly due to weakness in enterprise PC demand, where it has a strong presence. Lenovo LNVGY shipped 16.15 million PCs during the quarter, down 4.4% from the year-earlier quarter.
ASUS and Acer both registered a year-over-year decline in their PC shipments. While ASUS’ PC shipments fell 11.5% to 4.88 million units, Acer’s shipments dropped 2.4% to 4.39 million PCs.
Per Gartner, Lenovo continues to hold the top spot on the vendor list, followed by HP and Dell with a market share of 25.1%, 21% and 16.1%, respectively. Apple, ASUS and Acer ended the July-September quarter with a market share of 9.7%, 7.6% and 6.8%, respectively.
PC Market Recovery Expected Soon
Gartner pointed out that the worst could be over for vendors by the end of 2023, and PC market recovery can be seen in 2024 due to increased demand, driven by the PC refreshment cycle. Mikako stated, “The business PC market is ready for the next replacement cycle, driven by the Windows 11 upgrades. Consumer PC demand should also begin to recover as PCs purchased during the pandemic are entering the early stages of a refresh cycle.”
Garter forecast that PC shipments would grow 4.9% in 2024, driven by increased shipments across both the business and consumer segments.
Additionally, we believe that inventories coming near healthy levels and the growing interest in generative artificial intelligence-enabled PCs might give a fresh boost to PC demand in the years ahead.
Of the leading vendors, Dell sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, Apple and HP Inc. each have a Zacks Rank #3 (Hold). Lenovo carries a Zacks Rank #4 (Sell).
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL registered the steepest decline, with PC shipments falling 24.2% year over year to $6.27 million units. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. The decline in global personal computer (PC) shipments continues for the eighth consecutive quarter, according to the latest data compiled by Gartner.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL registered the steepest decline, with PC shipments falling 24.2% year over year to $6.27 million units. Q3 Data Shows Signs of Stabilization The third-quarter shipment data shows a strong improvement from the second quarter when PC vendors had shipped 59.7 million units.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL registered the steepest decline, with PC shipments falling 24.2% year over year to $6.27 million units. Mikako Kitagawa, the Director Analyst at Gartner, stated, “There is evidence that the PC market’s decline has finally bottomed out.” She further noted, “Vendors also made consistent progress towards reducing PC inventory, with inventory expected to return to normal by the end of 2023, as long as holiday sales do not collapse.” Computer - Mini computers Industry 5YR % Return Computer - Mini computers Industry 5YR % Return In 2020 and 2021, PC manufacturers had benefited from the increased demand amid the pandemic-induced remote-working and online learning wave.
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Apple AAPL registered the steepest decline, with PC shipments falling 24.2% year over year to $6.27 million units. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Per the preliminary data released by the market research firm, PC shipments in the July-September 2023 quarter plunged 9% year over year to 64.3 million units.
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13184.0
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2023-10-10 00:00:00 UTC
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My #1 Dividend Strategy to Profit as Rates Surge (It's Not Bonds)
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AAPL
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https://www.nasdaq.com/articles/my-1-dividend-strategy-to-profit-as-rates-surge-its-not-bonds
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nan
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nan
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The 10-year Treasury yield's latest journey to the stars is setting up a terrific opportunity for us to "lock in" historically high dividend yields--and upside, too.
The time to make our move is now. Here's why: the surging yield on the "long bond" has hit stocks--especially dividend stocks--hard. But this surge is completely unsustainable.
Look, over the last few weeks, I've been saying the 10-year would bump its head on the "4.3% ceiling" and retreat. The fact that it's blown through that ceiling only means its coming fall will be that much harder--and our favorite dividend stocks will rip that much higher in response!
We don't need to get too far into the economic weeds here: GDP, CPI, PCE--it's all TMI!
Here's the upshot: this latest run in the 10-year yield is overdone because inflation isn't really in a spiral higher. In fact, it's the opposite. Core PCE (personal consumption expenditures--ok, we do have to talk at least one economic indicator) is falling fast:
Inflation Spiking? Fed-Preferred Measure Says the Opposite
This is the Fed's preferred inflation indicator, which excludes food and energy prices. Which, some argue, is not appropriate because oil prices are high again.
I disagree that high oil is worrisome for inflation. Future inflation, that is. Fact is, high crude slows the economy. It probably already has, which is why we've seen crude fall off in the last few days. And the Fed's rate-hiking mission will bring a recession.
Then, when the economy slows, the Fed will ease rates. And rate-sensitive stocks (read: dividend payers) will skyrocket from their current lows.
Here are two that have been (overly) washed out in the 10-year Treasury yield's rise, making now a tempting time to buy and lock in their (temporarily) elevated yields.
This Dividend-Growth REIT Is Flashing 3 Proven Buy Indicators
In the short-term, REITs trade like bonds, which is why they've taken a header in the latest rate jump. But they're even better because they're real businesses with predictable cash flows, and dividends that often grow.
These days, we're particularly keen on industrial REITs for one reason: the onshoring (mega)trend, which is driving more companies to pull out of basket cases like China and Russia and return to friendly US shores. They're also nicely positioned as online shopping--the Energizer Bunny of investing trends--keeps on growing.
The biggest of the warehouse-owning bunch is Prologis (PLD), which has a staggering 1.2 billion square feet of manufacturing and warehouse space across the US. PLD yields 3.1%, which is okay, but focusing on that number misses the point.
Here's the real story on that yield: it's the highest it's been in five years--and since yields move in opposition to prices, it's our first indicator that this one is overly washed out.
That fact becomes clearer when you see that its payout growth has found another gear lately. Check out the two larger-than-normal hikes on the right side of the chart below.
PLD's Dividend Magnet Keeps Getting Stronger
Those confident payout hikes from management are our second indicator. There's something else about this chart I want to draw your attention to, as well.
See how every time the stock drops below the payout trendline, it quickly bounces back?
The fact that PLD's price is again behind its payout growth is our third indicator that it's undervalued. Once the extreme fear we're seeing bleeds out of the market, investors will bid the price back up above the payout, pushing the yield back down to its normal level in the mid-2% range.
Of course, we can't talk about REITs without addressing borrowing costs, as they tend to carry a fair amount of debt to build and maintain their properties. This is why first-level investors often shun REITs when rates are high, and that's been the case with PLD, which is about 3% below where it started the year.
But PLD's balance sheet is tight, with debt amounting to just 25% of its market cap and 30% of assets. Those kinds of numbers are rare in REIT-land, and they're enough on their own to wash away any worries about high rates.
It gets better: PLD pays a weighted average interest rate of just 2.9%, with a weighted average term of 9.7 years. And it has no major debt maturing until 2026.
Which brings us back to onshoring, which has had PLD's warehouses 97% occupied as of the end of August. And the REIT's steady rent hikes, thanks to a lack of warehouse space in the US, are expected to boost cash flow by about 8% this year.
All of this makes the stock's latest pullback a buying opportunity. But that will end fast once the 10-year Treasury yield starts its descent back to earth.
This Big-Tech Dividend Is Finally on Our Radar
Normally, big-tech dividends don't excite us here at Contrarian Outlook. Their current yields are just too small! But Apple (AAPL) is grabbing our attention after tumbling a stunning 10% from its all-time high, which it just hit on July 28, 2023:
Apple's Overdone Plunge
See the stock's momentum picking up on the right side of that chart? It's a clear sign the herd is starting to pick up on that fact--and that nicely sets us up for quick gains here.
To be sure, the Cupertino colossus is no star on the yield front, paying around 0.6%. That's the price of popularity!
But it's tough to argue that Apple is not a value-creation machine. Share buybacks? Check. Tim Cook & Co. continued to repurchase the company's stock, thereby lowering the number outstanding (purple line below) through the 2022 mess, at a sweet bargain, too.
Apple Knows Its Own Stock Better Than Anyone
That move looks particularly smart now, after the stock was caught up in the AI-powered run-up this year.
More impressive, the company manages to fund these buybacks and grow its payout (up 120% in the last decade) while funding the massive R&D spend it needs to keep leading the tech sector: from its 2015 fiscal year through fiscal 2022, it's boosted research spending more than threefold, from $6 billion to $26 billion.
Apple's Relentless R&D Spend
To be sure, this one doesn't look cheap on a P/E basis, trading around 29-times trailing-12-month earnings as I write this.
But when a reliable cash generator like this (free cash flow is up 128% in the last decade) with a massive cash hoard ($165 billion as of April) takes a 10% header in weeks, it's got to be on your radar. Especially as Treasury yields ease off, throwing a big lift under the rate-sensitive tech sector--and its undisputed leader.
Incredible Income Play Could Send You $1,000 in CASH in Days
As I write this, one of my top dividend plays is drawing up a list of savvy investors lined up for its next massive payout.
You do not want to be left off of it!
With a reasonable upfront investment here, you could trigger a regular monthly payout of $1,000. Invest more and you could see that shoot up to $2,000, $3,000 and beyond!
Like the two stocks above, this income play's shares are primed to rip higher as the 10-year Treasury yield cools. The time to buy--and lock in this fund's life-changing dividend payout--is now!
Simply click here and I'll give you the backstory on this amazing income fund--you'll also get to download a free Special Report revealing its name and ticker.
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But Apple (AAPL) is grabbing our attention after tumbling a stunning 10% from its all-time high, which it just hit on July 28, 2023: Apple's Overdone Plunge These days, we're particularly keen on industrial REITs for one reason: the onshoring (mega)trend, which is driving more companies to pull out of basket cases like China and Russia and return to friendly US shores. Of course, we can't talk about REITs without addressing borrowing costs, as they tend to carry a fair amount of debt to build and maintain their properties.
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But Apple (AAPL) is grabbing our attention after tumbling a stunning 10% from its all-time high, which it just hit on July 28, 2023: Apple's Overdone Plunge The 10-year Treasury yield's latest journey to the stars is setting up a terrific opportunity for us to "lock in" historically high dividend yields--and upside, too. Like the two stocks above, this income play's shares are primed to rip higher as the 10-year Treasury yield cools.
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But Apple (AAPL) is grabbing our attention after tumbling a stunning 10% from its all-time high, which it just hit on July 28, 2023: Apple's Overdone Plunge The 10-year Treasury yield's latest journey to the stars is setting up a terrific opportunity for us to "lock in" historically high dividend yields--and upside, too. Here's why: the surging yield on the "long bond" has hit stocks--especially dividend stocks--hard.
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But Apple (AAPL) is grabbing our attention after tumbling a stunning 10% from its all-time high, which it just hit on July 28, 2023: Apple's Overdone Plunge Here's the real story on that yield: it's the highest it's been in five years--and since yields move in opposition to prices, it's our first indicator that this one is overly washed out. The fact that PLD's price is again behind its payout growth is our third indicator that it's undervalued.
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13185.0
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2023-10-10 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-1
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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
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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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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13186.0
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2023-10-10 00:00:00 UTC
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RSP ETF: Invest in the S&P 500 Without Heavy Tech Exposure
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AAPL
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https://www.nasdaq.com/articles/rsp-etf%3A-invest-in-the-sp-500-without-heavy-tech-exposure
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nan
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nan
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The Invesco S&P 500 Equal Weight ETF (NYSEARCA:RSP) offers investors equally weighted exposure to the S&P 500 (SPX) index. In other words, it's not overly concentrated in one particular sector or stock. Why is this something investors might be interested in? Let’s find out.
What is an Equal-Weight S&P 500 ETF?
RSP can be thought of as an alternative way to invest in the S&P 500, the index that tracks the performance of 500 of the largest publicly-listed companies in the United States and, in many ways, serves as a proxy for the U.S. stock market as a whole.
Most ETFs that track an index like the S&P 500 are weighted by market cap, meaning that stocks with large market valuations like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) will account for a higher percentage of the fund’s holdings compared to stocks with lower market caps. These stocks will thus command outsized influence on the results of the fund.
Conversely, RSP uses an equal-weight strategy for the stocks in the S&P 500 Index, meaning that it invests the same amount in each stock and rebalances on a quarterly basis. Because of this process, no individual stock has a disproportionate or overwhelming influence on the overall results of the fund.
Why Go Equal Weight?
While investing in a typical S&P 500 fund offers investors decent diversification, as this type of ETF owns 500 stocks, these ETFs are not as diversified as they might appear on the surface, given the high concentration they have in their top holdings. For example, the largest S&P 500 ETF, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), owns 504 stocks, but SPY's top 10 holdings make up nearly one-third of assets. This is because mega-cap tech stocks like Apple and Microsoft account for large positions in this market-weighted fund, given their immense market caps.
Below, you can take a look at SPY’s top 10 holdings, which account for 31.4% of the fund.
This isn’t necessarily a bad thing, as these stocks have been strong performers this year, but it does leave investors with more concentration risk and more exposure to just a handful of stocks.
Conversely, because they all start with a weighting of 0.2% each quarter, RSP’s top 10 holdings make up just a minuscule 2.3% of the fund. This shields investors from concentration risk and gives them more exposure to smaller components of the S&P 500, which can otherwise be crowded out by the mega-cap tech stocks in market-weighted S&P 500 ETFs. Below, you can take a look at RSP’s top 10 holdings.
Furthermore, if Apple, Microsoft, or big tech as a whole experience a pullback, this will have more of a pronounced effect on SPY than it will on RSP, where these stocks are weighted equally with every other stock in the S&P 500.
A lot has been written of the fact that the "Magnificent Seven" stocks like Apple, Microsoft, and their fellow mega-cap tech peers have driven much of the market’s gains this year. For example, Apple is up 41.9% year-to-date, Microsoft is up 36.6% year-to-date, and Nvidia (NASDAQ:NVDA) is up an incredible 219.7% in 2023. Because of this, some analysts and observers feel that these mega-cap tech stocks are due for a pullback after the tremendous runs they have enjoyed in 2023.
At the very least, there could be some reversion to the mean as other stocks catch up with the market’s current leaders, so an equal-weighted fund like RSP could be the right type of ETF to own in the current climate.
Performance Comparison
As you might guess, RSP has underperformed the S&P 500 so far this year (with a total return of 1.3% versus 14.8% for the S&P 500), given that by design, it doesn’t have as much exposure to the Magnificent Seven stocks that have done much of the heavy lifting for the market this year.
However, RSP has still put up a solid return, and when you zoom out beyond the past year, there is much less of a disparity. For example, over the past three years (as of the end of September), RSP has actually outperformed the S&P 500 with a total return of 11.5% versus a total return of 10.2% for the S&P 500 Index.
RSP has slightly underperformed the S&P 500 over the past five and 10 years, with annualized five- and 10-year returns of 8.0% and 10.2%, respectively, versus annualized returns of 9.9% and 11.9% for the S&P 500 over the same respective time frames.
So, RSP has outperformed the S&P 500 over the past three years, and while it has underperformed it slightly over the past five and 10 years, it could be well-positioned against the market-weighted index in a market environment where the mega-cap tech stocks revert to the mean.
Is RSP Stock a Buy, According to Analysts?
Turning to Wall Street, RSP earns a Moderate Buy consensus rating based on 403 Buys, 93 Holds, and eight Sell ratings assigned in the past three months. The average RSP stock price target of $169.82 implies 19.5% upside potential.
Reasonable Expense Ratio
Additionally, RSP is a cost-effective option for investors, with a reasonable expense ratio of 0.20%. This means that an investor allocating $10,000 into the ETF would pay $20 in fees during their first year of investing in the fund. Assuming that the expense ratio remains at 0.20% and that the fund returns 5% per year going forward, this investor would pay $255 in fees over the course of a 10-year investment.
The Takeaway
Investing in RSP gives investors many of the same benefits that they get from investing in the S&P 500 -- exposure to over 500 of the United States’ best and brightest companies. However, it does so with much less concentration risk than the typical market-weighted S&P 500 fund, as it isn’t dominated by the big tech stocks like these funds are.
I view RSP as an interesting and sensible ETF that can allow investors to gain exposure to the S&P 500 while hedging against the risk of a reversion to the mean of the market’s big year-to-date winners.
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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Most ETFs that track an index like the S&P 500 are weighted by market cap, meaning that stocks with large market valuations like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) will account for a higher percentage of the fund’s holdings compared to stocks with lower market caps. This is because mega-cap tech stocks like Apple and Microsoft account for large positions in this market-weighted fund, given their immense market caps. A lot has been written of the fact that the "Magnificent Seven" stocks like Apple, Microsoft, and their fellow mega-cap tech peers have driven much of the market’s gains this year.
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Most ETFs that track an index like the S&P 500 are weighted by market cap, meaning that stocks with large market valuations like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) will account for a higher percentage of the fund’s holdings compared to stocks with lower market caps. The Invesco S&P 500 Equal Weight ETF (NYSEARCA:RSP) offers investors equally weighted exposure to the S&P 500 (SPX) index. For example, the largest S&P 500 ETF, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), owns 504 stocks, but SPY's top 10 holdings make up nearly one-third of assets.
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Most ETFs that track an index like the S&P 500 are weighted by market cap, meaning that stocks with large market valuations like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) will account for a higher percentage of the fund’s holdings compared to stocks with lower market caps. Furthermore, if Apple, Microsoft, or big tech as a whole experience a pullback, this will have more of a pronounced effect on SPY than it will on RSP, where these stocks are weighted equally with every other stock in the S&P 500. So, RSP has outperformed the S&P 500 over the past three years, and while it has underperformed it slightly over the past five and 10 years, it could be well-positioned against the market-weighted index in a market environment where the mega-cap tech stocks revert to the mean.
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Most ETFs that track an index like the S&P 500 are weighted by market cap, meaning that stocks with large market valuations like Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) will account for a higher percentage of the fund’s holdings compared to stocks with lower market caps. While investing in a typical S&P 500 fund offers investors decent diversification, as this type of ETF owns 500 stocks, these ETFs are not as diversified as they might appear on the surface, given the high concentration they have in their top holdings. Furthermore, if Apple, Microsoft, or big tech as a whole experience a pullback, this will have more of a pronounced effect on SPY than it will on RSP, where these stocks are weighted equally with every other stock in the S&P 500.
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13187.0
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2023-10-10 00:00:00 UTC
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Australia unveils draft law to regulate digital payment providers
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AAPL
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https://www.nasdaq.com/articles/australia-unveils-draft-law-to-regulate-digital-payment-providers
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nan
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nan
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SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay.
Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system.
The proposed rules would enable the Reserve Bank of Australia (RBA) to monitor digital wallet payments in the same way as credit card networks and other transactions. It would also give powers to the treasurer to order regulators to check if any payment platforms pose risks to the country.
"(The) government is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition and spur innovation," Treasurer Jim Chalmers said in a statement.
The draft law would expand the definitions of "payment system" and "participant" in Australia's existing laws, treasury documents showed.
Payments infrastructure and the regulatory framework have not kept pace with transitions in finance, particularly in Australia's digital economy and payments.
In a June report, the Australian Banking Association said it was witnessing a "phenomenal shift" in payment preferences in recent years, with the number of mobile wallet transactions in the country surging to 2.4 billion in 2022, from 29.2 million in 2018.
Google and Apple have been opposing the government's move to designate them as payment providers, saying customers only use their phones to use cards issued by banks to make payments.
Apple declined to comment on the draft law and instead referred to a submission it made to the treasury in July, when it said any reforms "should be proportionate to the limited, indirect role" digital services had in the payment system. Google did not immediately respond to a request seeking comment.
The government has sought feedback from stakeholders on the draft legislation until Nov. 1. The legislation is expected to be introduced to parliament this year.
(Reporting by Renju Jose in Sydney; Editing by Stephen Coates)
((renju.jose@thomsonreuters.com; +61 29171 7126; Reuters Messaging: @renjujose))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. "(The) government is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition and spur innovation," Treasurer Jim Chalmers said in a statement. In a June report, the Australian Banking Association said it was witnessing a "phenomenal shift" in payment preferences in recent years, with the number of mobile wallet transactions in the country surging to 2.4 billion in 2022, from 29.2 million in 2018.
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SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system. "(The) government is addressing the risks posed by new digital payment services, which are currently unregulated, to protect consumers, promote competition and spur innovation," Treasurer Jim Chalmers said in a statement.
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SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system. Google and Apple have been opposing the government's move to designate them as payment providers, saying customers only use their phones to use cards issued by banks to make payments.
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SYDNEY, Oct 11 (Reuters) - The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay AAPL.O and Alphabet's GOOGL.O Google Pay. Apple Pay, Google Pay and China's WeChat Pay, which have grown rapidly in recent years, are not currently designated as payment systems, putting them outside Australia's financial regulatory system. The proposed rules would enable the Reserve Bank of Australia (RBA) to monitor digital wallet payments in the same way as credit card networks and other transactions.
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13188.0
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2023-10-10 00:00:00 UTC
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These 2 Stocks Hitting 52-Week Lows Look Enticing
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AAPL
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https://www.nasdaq.com/articles/these-2-stocks-hitting-52-week-lows-look-enticing
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nan
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nan
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I happened to read Riley Rosebee’s Popularity & Price newsletter on Sunday. The newsletter focuses on the relationship between a stock’s popularity and share price. It’s an interesting read.
The Sunday post discussed how 33 stocks hit new 52-week highs on Friday compared to 150 new lows. Further, in the previous five days of trading, the tech sector, represented by the Technology Select Sector SPDR Fund (XLK), led the way, hitting new 52-week highs on 12 occasions during the week, while the Health Care Select Sector SPDR Fund (XLV) hit new lows 52 times.
Interestingly, Rosebee also included the Stocktwits followers for each sector and stock. The idea is that in up markets, the least followed stocks with the highest relative strength are the companies to watch, while in down markets, the most followed stocks with the weakest relative strength are the most appealing.
So, based on Rosebee’s Friday data, here are two stocks that hit 52-week lows with reasonably large Stocktwit followings and look ready for a rebound.
PayPal Holdings
During Friday trading, PayPal Holdings (PYPL) hit a 52-week low of $55.86. It managed to close the week at $57.77. It’s gone sideways in the two days since. Down 31.6% over the past 52 weeks and nearly 27% over the past five years, it’s bound to heat up in the coming months.
Analysts don’t seem to have a problem with it. Of the 33 in Barchart.com’s database, 20 rate it either a Moderate Buy or Strong Buy (4.18 out of 5) with a mean target price of $87.62, 52% higher than where it’s currently trading.
What’s holding it back?
Increased competition from both Block (SQ) and Apple (AAPL), says SVB MoffattNathanson analyst Lisa Ellis. In September, Ellis downgraded PYPL stock to Market Perform from Buy.
“Looking forward, unfortunately, we expect PayPal's gross profit growth to remain lackluster, in the low- to mid-single digits,” Investor’s Business Daily reported the analyst’s comments. “We see the potential for further downside to our estimates, particularly given the strong momentum of Apple Pay, which we worry will begin to benefit from the powerful network effects in payments.
In addition, the analyst sees the company’s slowing growth from Venmo, its peer-to-peer payment app that competes with Block’s Cash App.
Trading at 2.31x sales, its lowest P/S multiple in the past decade, the contrarian in me says now's a good time to bet on the payments platform.
PYPL has 142,772 Stocktwits followers.
Paramount Global
During Friday trading, Paramount Global (PYPL) hit a 52-week low of $11.39. It managed to close out last week at $11.82. It’s gained back 5.2% in the two days since. However, down 33.0% over the past 52 weeks and 77% over the past five years, except for the March 2020 market correction, its shares haven’t been this low since October 2009.
Sanford Bernstein reinitiated coverage of seven media stocks on Oct. 5, including Paramount Global. Unlike some names that got Buy ratings, PARA got the worst at Underperform with an $11 target price, below where it’s currently trading.
“It’s not pretty and looking for a savior,” The Hollywood Reporter reported analyst Laurent Yoon’s comments. “Paramount is facing a triple whammy — 1. linear decline, 2. sub-scale DTC, and 3. a poor balance sheet.”
As investors know, broadcasting media has been in the middle of a transition from linear TV channels, such as Paramount Global’s CBS, to video streaming platforms, referred to as direct-to-consumer, such as Paramount+.
While I liked Sylvester Stallone’s show Tulsa King on Paramount+ and several others of its original shows, it does seem to have less content worth paying a monthly subscription for. The analyst also alluded that the company has always been considered a takeover candidate because it’s too small to compete against Netflix (NFLX) and Disney (DIS). To a certain extent, that has acted as an artificial floor on its share price.
However, with no deal imminent, Paramount Global will have to fight its way out of the investor doghouse.
A significant positive: Warren Buffett’s holding company, Berkshire Hathaway (BRK.B), has 15.4% of its stock. It reports Q3 2023 holdings in mid-November. It might be wise to wait until after that news is out to buy PARA stock. Any large stock sales will move the shares lower.
One bet you could make now would be to sell the Jan. 16/2026 $12.50 put. With a $2.88 bid price, as I write this, that’s an annualized yield of 10.3% over the next 829 days to expiration. You have no out-of-pocket while waiting to see how this plays out.
Worst case scenario: It falls to $6, and you’re forced to buy 100 shares at $9.62 ($12.50 strike less $2.88 in premium income), a loss of $362. It’s not the outcome you’re looking for, but it’s also not the end of the world.
The upside? It returns to the $60s, where it routinely traded before the pandemic.
More Stock Market News from Barchart
3 High-Yield Energy Picks to Invest Like "Bond King" Bill Gross
3 Top Stocks to Buy with $50
This Permian Basin Energy Stock Could Be the Next Big Oil Takeover Target
Amazon Attracts Investors Ahead of Prime Day (Oct. 11 and 12)
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Increased competition from both Block (SQ) and Apple (AAPL), says SVB MoffattNathanson analyst Lisa Ellis. So, based on Rosebee’s Friday data, here are two stocks that hit 52-week lows with reasonably large Stocktwit followings and look ready for a rebound. “Looking forward, unfortunately, we expect PayPal's gross profit growth to remain lackluster, in the low- to mid-single digits,” Investor’s Business Daily reported the analyst’s comments.
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Increased competition from both Block (SQ) and Apple (AAPL), says SVB MoffattNathanson analyst Lisa Ellis. Further, in the previous five days of trading, the tech sector, represented by the Technology Select Sector SPDR Fund (XLK), led the way, hitting new 52-week highs on 12 occasions during the week, while the Health Care Select Sector SPDR Fund (XLV) hit new lows 52 times. PayPal Holdings During Friday trading, PayPal Holdings (PYPL) hit a 52-week low of $55.86.
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Increased competition from both Block (SQ) and Apple (AAPL), says SVB MoffattNathanson analyst Lisa Ellis. Further, in the previous five days of trading, the tech sector, represented by the Technology Select Sector SPDR Fund (XLK), led the way, hitting new 52-week highs on 12 occasions during the week, while the Health Care Select Sector SPDR Fund (XLV) hit new lows 52 times. Paramount Global During Friday trading, Paramount Global (PYPL) hit a 52-week low of $11.39.
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Increased competition from both Block (SQ) and Apple (AAPL), says SVB MoffattNathanson analyst Lisa Ellis. In September, Ellis downgraded PYPL stock to Market Perform from Buy. Paramount Global During Friday trading, Paramount Global (PYPL) hit a 52-week low of $11.39.
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13189.0
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2023-10-10 00:00:00 UTC
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Agree To Buy Apple At $75, Earn 1.5% Using Options
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AAPL
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https://www.nasdaq.com/articles/agree-to-buy-apple-at-%2475-earn-1.5-using-options
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nan
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nan
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Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2026 put at the $75 strike, which has a bid at the time of this writing of $1.15. Collecting that bid as the premium represents a 1.5% return against the $75 commitment, or a 0.7% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $75 strike if doing so produced a better outcome than selling at the going market price. (Do options carry counterparty risk? This and six other common options myths debunked). So unless Apple Inc sees its shares decline 58.2% and the contract is exercised (resulting in a cost basis of $73.85 per share before broker commissions, subtracting the $1.15 from $75), the only upside to the put seller is from collecting that premium for the 0.7% annualized rate of return.
Worth considering, is that the annualized 0.7% figure actually exceeds the 0.5% annualized dividend paid by Apple Inc, based on the current share price of $178.27. And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to lose 58.23% to reach the $75 strike price.
Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $75 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2026 put at the $75 strike for the 0.7% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Apple Inc (considering the last 251 trading day closing values as well as today's price of $178.27) to be 27%. For other put options contract ideas at the various different available expirations, visit the AAPL Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 1.81M contracts, with call volume at 1.96M, for a put:call ratio of 0.92 so far for the day, which is unusually high compared to the long-term median put:call ratio of .65. In other words, there are lots more put buyers out there in options trading so far today than would normally be seen, as compared to call buyers. Find out which 15 call and put options traders are talking about today.
Top YieldBoost Puts of the Nasdaq 100 »
Also see:
Institutional Holders of STXE
Funds Holding PLND
SMMU Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield.
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Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield.
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Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield.
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In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield. Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised.
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13190.0
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2023-10-10 00:00:00 UTC
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Apple updates iPhone 12 software to address France's radiation testing
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AAPL
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https://www.nasdaq.com/articles/apple-updates-iphone-12-software-to-address-frances-radiation-testing
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nan
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nan
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By Stephen Nellis
Oct 10 (Reuters) - Apple AAPL.O said on Tuesday it planned to comply with France's radiation testing requirements by rolling out an update that will stop the iPhone 12 from using more power when the device is in contact with static surfaces.
Apple has disputed the findings of French regulators who said that the iPhone 12, which has been on the market for three years, gave off more than permissible amounts of radiation and halted sales of the device.
On Tuesday, Apple gave its fullest explanation yet of the discrepancy between France's findings and those in other countries where the iPhone 12 has been approved for sale.
In an article posted on its website, Apple said that for more than a decade, iPhones have included sensors that allow the phone to detect when it is near a user's body to keep transmission power at lower levels. When the phone is not near a body - such as when it is laid on a table - the device uses slightly higher levels of transmission power.
Apple said that the testing protocol used by L’Agence Nationale des Frequences did not take this feature into account. The company issued a software update that will become broadly available to users this month that turns off the body-detection technology, keeping the phone at lower transmission power levels at all times.
In a statement, Apple said that the iPhone 12 is still safe to use even without the software update.
"We want all iPhone 12 users to know that iPhone 12 is safe to use and always has been. IPhone 12 was certified to meet applicable worldwide energy transmission regulations and standards when it first shipped in 2020 and no changes have been made since then that would affect energy transmission," Apple said in the statement.
(Reporting by Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila and Lisa Shumaker)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Oct 10 (Reuters) - Apple AAPL.O said on Tuesday it planned to comply with France's radiation testing requirements by rolling out an update that will stop the iPhone 12 from using more power when the device is in contact with static surfaces. In an article posted on its website, Apple said that for more than a decade, iPhones have included sensors that allow the phone to detect when it is near a user's body to keep transmission power at lower levels. The company issued a software update that will become broadly available to users this month that turns off the body-detection technology, keeping the phone at lower transmission power levels at all times.
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By Stephen Nellis Oct 10 (Reuters) - Apple AAPL.O said on Tuesday it planned to comply with France's radiation testing requirements by rolling out an update that will stop the iPhone 12 from using more power when the device is in contact with static surfaces. In an article posted on its website, Apple said that for more than a decade, iPhones have included sensors that allow the phone to detect when it is near a user's body to keep transmission power at lower levels. The company issued a software update that will become broadly available to users this month that turns off the body-detection technology, keeping the phone at lower transmission power levels at all times.
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By Stephen Nellis Oct 10 (Reuters) - Apple AAPL.O said on Tuesday it planned to comply with France's radiation testing requirements by rolling out an update that will stop the iPhone 12 from using more power when the device is in contact with static surfaces. In an article posted on its website, Apple said that for more than a decade, iPhones have included sensors that allow the phone to detect when it is near a user's body to keep transmission power at lower levels. IPhone 12 was certified to meet applicable worldwide energy transmission regulations and standards when it first shipped in 2020 and no changes have been made since then that would affect energy transmission," Apple said in the statement.
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By Stephen Nellis Oct 10 (Reuters) - Apple AAPL.O said on Tuesday it planned to comply with France's radiation testing requirements by rolling out an update that will stop the iPhone 12 from using more power when the device is in contact with static surfaces. On Tuesday, Apple gave its fullest explanation yet of the discrepancy between France's findings and those in other countries where the iPhone 12 has been approved for sale. In an article posted on its website, Apple said that for more than a decade, iPhones have included sensors that allow the phone to detect when it is near a user's body to keep transmission power at lower levels.
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13191.0
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2023-10-10 00:00:00 UTC
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US STOCKS-Wall Street gains as Fed officials strike dovish tone
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-gains-as-fed-officials-strike-dovish-tone-0
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East.
Following the comments from top Fed officials on Monday, Atlanta Fed President Raphael Bostic said the U.S. central bank does not need to raise interest rates any further, and sees no recession ahead.
The 10-year Treasury yield US10YT=RR came off its 16-year peak on Tuesday, on track for its steepest single-day drop in nearly seven months, as trading resumed in the U.S. bond market after Columbus Day, also known as Indigenous Peoples' Day.
"The larger picture is that the Fed is clearly shifting away from the prospect of a November rate hike," said Thierry Wizman, global FX and interest rates strategist at Macquarie.
Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%.
At 12:00 p.m. ET, the Dow Jones Industrial Average .DJI was up 267.48 points, or 0.80%, at 33,872.13, the S&P 500 .SPX was up 47.13 points, or 1.09%, at 4,382.79, and the Nasdaq Composite .IXIC was up 165.62 points, or 1.23%, at 13,649.86.
Traders put the chance of interest rates remaining unchanged in November and December at around 88% and 74%, respectively, according to CME's FedWatch tool.
Remarks from a few more Fed officials including Minneapolis' Neel Kashkari, San Francisco's Mary Daly and Board Governor Christopher Waller are also expected during the day.
All 11 major S&P 500 sectors were trading higher, with consumer discretionary .SPLRCD leading gains, while energy .SPNY and healthcare .SPXHC lagged.
Israel hammered the Gaza Strip with the fiercest air strikes in its 75-year conflict with the Palestinians, razing entire districts despite a threat from Hamas militants to execute a captive for each home hit.
Israel's embassy in Washington said the death toll from the weekend Hamas attacks had surpassed 1,000, while Gaza's health ministry said Israel's retaliatory strikes had killed at least 830 people.
Later in the week, focus will turn to inflation readings including September producer price and consumer price indexes as well as the Fed's September meeting minutes.
Among stocks, PepsiCoPEP.O rose 1.5% after the company raised its annual profit forecast for a third time this year. Rival Coca-Cola KO.N was also up 2.3%.
Truist FinancialTFC.N gained 6.7% after a report said the bank is in talks to sell its insurance brokerage unit to private equity firm Stone Point for about $10 billion.
Rivian Automotive RIVN.O advanced 5.4% after UBS upgraded the EV maker's stock to "buy" from "neutral".
Advancing issues outnumbered decliners for a 5.30-to-1 ratio on the NYSE and a 3.22-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and two new lows, while the Nasdaq recorded 46 new highs and 129 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Additional reporting by Terence Gabriel; Editing by Arun Koyyur and Shounak Dasgupta)
((Shashwat.Chauhan@thomsonreuters.com; Ankika.Biswas@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. By Shashwat Chauhan and Ankika Biswas Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East. Remarks from a few more Fed officials including Minneapolis' Neel Kashkari, San Francisco's Mary Daly and Board Governor Christopher Waller are also expected during the day.
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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. Later in the week, focus will turn to inflation readings including September producer price and consumer price indexes as well as the Fed's September meeting minutes. The S&P index recorded 10 new 52-week highs and two new lows, while the Nasdaq recorded 46 new highs and 129 new lows.
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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. By Shashwat Chauhan and Ankika Biswas Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East. Following the comments from top Fed officials on Monday, Atlanta Fed President Raphael Bostic said the U.S. central bank does not need to raise interest rates any further, and sees no recession ahead.
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Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. By Shashwat Chauhan and Ankika Biswas Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East. The 10-year Treasury yield US10YT=RR came off its 16-year peak on Tuesday, on track for its steepest single-day drop in nearly seven months, as trading resumed in the U.S. bond market after Columbus Day, also known as Indigenous Peoples' Day.
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13192.0
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2023-10-10 00:00:00 UTC
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Will Apple (AAPL) Beat Estimates Again in Its Next Earnings Report?
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AAPL
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https://www.nasdaq.com/articles/will-apple-aapl-beat-estimates-again-in-its-next-earnings-report
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry.
When looking at the last two reports, this maker of iPhones, iPads and other products has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 5.72%, on average, in the last two quarters.
For the last reported quarter, Apple came out with earnings of $1.26 per share versus the Zacks Consensus Estimate of $1.19 per share, representing a surprise of 5.88%. For the previous quarter, the company was expected to post earnings of $1.44 per share and it actually produced earnings of $1.52 per share, delivering a surprise of 5.56%.
For Apple, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Apple currently has an Earnings ESP of +0.91%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on November 2, 2023.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When looking at the last two reports, this maker of iPhones, iPads and other products has recorded a strong streak of surpassing earnings estimates.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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It is worth considering Apple (AAPL), which belongs to the Zacks Computer - Mini computers industry. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
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13193.0
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2023-10-10 00:00:00 UTC
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EU legislation on Big Tech funding 5G rollout likely for next Commission, sources say
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AAPL
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https://www.nasdaq.com/articles/eu-legislation-on-big-tech-funding-5g-rollout-likely-for-next-commission-sources-say
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nan
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By Foo Yun Chee
BRUSSELS, Oct 10 (Reuters) - EU industry chief Thierry Breton will likely set out a strategy next year requiring Big Tech to help fund the rollout of 5G and broadband across Europe, leaving it to the next European Commission to decide whether to adopt legislation, people familiar with the matter said on Tuesday.
Europe's telecoms operators say Alphabet's Google GOOGL.O, Meta's META.O Facebook, Netflix NFLX.O, Microsoft MSFT.O and Amazon AMZN.O should bear some of the costs because they make up a huge part of internet traffic.
Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI call it fair-share funding while Big Tech says it amounts to an internet tax.
There had been expectations that Breton would propose legislation after seeking feedback from both sides earlier this year on what he said is a 200-billion-euro ($212.4 billion)investment gap.
The French commissioner, a former chief executive at France Telecom and supporter of the operators' push, faced pushback from some of his fellow commissioners and some EU countries.
There is no final decision and a legislative proposal on the funding issue could still pop up on the Commission's work programme to be announced on Oct. 18 that will lay out the EU executive's long-term objectives, one of the sources said.
($1 = 0.9418 euros)
(Reporting by Foo Yun Chee; Editing by Tomasz Janowski and Mark Porter)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee BRUSSELS, Oct 10 (Reuters) - EU industry chief Thierry Breton will likely set out a strategy next year requiring Big Tech to help fund the rollout of 5G and broadband across Europe, leaving it to the next European Commission to decide whether to adopt legislation, people familiar with the matter said on Tuesday. Europe's telecoms operators say Alphabet's Google GOOGL.O, Meta's META.O Facebook, Netflix NFLX.O, Microsoft MSFT.O and Amazon AMZN.O should bear some of the costs because they make up a huge part of internet traffic. There is no final decision and a legislative proposal on the funding issue could still pop up on the Commission's work programme to be announced on Oct. 18 that will lay out the EU executive's long-term objectives, one of the sources said.
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By Foo Yun Chee BRUSSELS, Oct 10 (Reuters) - EU industry chief Thierry Breton will likely set out a strategy next year requiring Big Tech to help fund the rollout of 5G and broadband across Europe, leaving it to the next European Commission to decide whether to adopt legislation, people familiar with the matter said on Tuesday. Europe's telecoms operators say Alphabet's Google GOOGL.O, Meta's META.O Facebook, Netflix NFLX.O, Microsoft MSFT.O and Amazon AMZN.O should bear some of the costs because they make up a huge part of internet traffic. ($1 = 0.9418 euros) (Reporting by Foo Yun Chee; Editing by Tomasz Janowski and Mark Porter) ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee BRUSSELS, Oct 10 (Reuters) - EU industry chief Thierry Breton will likely set out a strategy next year requiring Big Tech to help fund the rollout of 5G and broadband across Europe, leaving it to the next European Commission to decide whether to adopt legislation, people familiar with the matter said on Tuesday. The French commissioner, a former chief executive at France Telecom and supporter of the operators' push, faced pushback from some of his fellow commissioners and some EU countries. There is no final decision and a legislative proposal on the funding issue could still pop up on the Commission's work programme to be announced on Oct. 18 that will lay out the EU executive's long-term objectives, one of the sources said.
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By Foo Yun Chee BRUSSELS, Oct 10 (Reuters) - EU industry chief Thierry Breton will likely set out a strategy next year requiring Big Tech to help fund the rollout of 5G and broadband across Europe, leaving it to the next European Commission to decide whether to adopt legislation, people familiar with the matter said on Tuesday. Europe's telecoms operators say Alphabet's Google GOOGL.O, Meta's META.O Facebook, Netflix NFLX.O, Microsoft MSFT.O and Amazon AMZN.O should bear some of the costs because they make up a huge part of internet traffic. Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Telefonica TEF.MC and Telecom Italia TLIT.MI call it fair-share funding while Big Tech says it amounts to an internet tax.
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13194.0
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2023-10-10 00:00:00 UTC
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Warren Buffett Just Sold $619 Million of This Stock in 3 Weeks. Here's Why.
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-just-sold-%24619-million-of-this-stock-in-3-weeks.-heres-why.
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nan
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Warren Buffett might be one of the greatest stock investors of all time, but not everything he buys turns out to be a winner.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) bought a major stake in a leading computing brand at the start of last year. Less than two years later, the Oracle of Omaha is selling a good portion of that investment, seemingly taking a loss.
And more share sales may be yet to come.
The Buffett stock getting cut from Berkshire's portfolio
Over a three-week period from Sept. 11 through Oct. 3, Buffett's Berkshire Hathaway sold more than 23 million shares of Hewlett Packard (NYSE: HPQ) valued at over $619 million.
The sales reduce Berkshire's stake in the PC and printer maker by roughly 20%.
It's worth pointing out that this information comes from disclosures required by the U.S. Securities and Exchange Commission (SEC). Shareholders with a stake larger than 10% in any company must disclose any trades in that stock within three business days. That's why we didn't have to wait around for Berkshire's quarterly 13F filing.
But with its last reported HP sale on Oct. 3, Berkshire's stake in the company fell below that 10% threshold. So, it's possible Buffett could continue to sell the shares without having to report those sales. And since we're already in the fourth quarter, we may have to wait until February before we find out if Buffett sold more of Berkshire's position.
Why is Buffett cutting his losses?
Buffett bought the bulk of his shares of Hewlett Packard when it was trading in the mid-30s. He sold his shares at an average price of just $26.84, almost certainly taking a loss.
So, why did Buffett change his tune on HP?
While HP benefited from a surge in demand for its PCs and printers at the start of the pandemic, sales have dropped off a cliff over the past year. Sales over the trailing 12 months have fallen below pre-pandemic levels after HP pulled forward a lot of sales into 2021.
More importantly, the outlook doesn't look that bright.
Chief Executive Officer Enrique Lores warned investors in HP's Q3 earnings release, "the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result."
Indeed, the International Data Corporation (IDC) forecasts an decline of almost 14% in PC sales this year. What's more, it only sees the market rising by 3.7% in 2024. Longer term, it sees a 3.1% growth rate in shipments between 2023 and 2027, but it sees Apple taking market share in that time, especially as Microsoft's support for Windows 10 expires in 2025.
The outlook for printing isn't much better. As more and more businesses push toward a paperless future, and the ability to e-sign documents becomes more common, demand for printers and printer supplies is declining. Still, theglobal marketcould grow, led by Asia, with Mordor Intelligence expecting a 4.55% annual growth rate through 2028.
On top of that, macroeconomic factors have been weighing on demand and pushing down prices. As a result, HP has seen its operating margin contract over the past year, falling from 8.6% in Q3 2022 to just 7.2% last quarter. Again, that number is below pre-pandemic levels, and there's no clear sign of a turnaround.
When Buffett bought HP, it was coming off booming, pandemic-driven sales. There was no doubt that it would see a return to normal over the coming years. But sales and profits are falling rather than stabilizing, which makes it a much less appealing investment.
Even with shares trading at a valuation of just 7.4 times next year's consensus-earnings estimate and yielding over 4% with its dividend, it's not the most attractive stock in the market. It's cheap for a reason. There are better investment opportunities, and Buffett is selling his stake to go out and buy those instead.
10 stocks we like better than HP
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Adam Levy has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, 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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While HP benefited from a surge in demand for its PCs and printers at the start of the pandemic, sales have dropped off a cliff over the past year. Chief Executive Officer Enrique Lores warned investors in HP's Q3 earnings release, "the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result." Even with shares trading at a valuation of just 7.4 times next year's consensus-earnings estimate and yielding over 4% with its dividend, it's not the most attractive stock in the market.
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) bought a major stake in a leading computing brand at the start of last year. The Buffett stock getting cut from Berkshire's portfolio Over a three-week period from Sept. 11 through Oct. 3, Buffett's Berkshire Hathaway sold more than 23 million shares of Hewlett Packard (NYSE: HPQ) valued at over $619 million. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, HP, and Microsoft.
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The Buffett stock getting cut from Berkshire's portfolio Over a three-week period from Sept. 11 through Oct. 3, Buffett's Berkshire Hathaway sold more than 23 million shares of Hewlett Packard (NYSE: HPQ) valued at over $619 million. While HP benefited from a surge in demand for its PCs and printers at the start of the pandemic, sales have dropped off a cliff over the past year. Sales over the trailing 12 months have fallen below pre-pandemic levels after HP pulled forward a lot of sales into 2021.
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And more share sales may be yet to come. Longer term, it sees a 3.1% growth rate in shipments between 2023 and 2027, but it sees Apple taking market share in that time, especially as Microsoft's support for Windows 10 expires in 2025. * They just revealed what they believe are the ten best stocks for investors to buy right now... and HP wasn't one of them!
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13195.0
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2023-10-10 00:00:00 UTC
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Should Vanguard Mega Cap Growth ETF (MGK) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-mega-cap-growth-etf-mgk-be-on-your-investing-radar-9
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nan
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nan
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The Vanguard Mega Cap Growth ETF (MGK) was launched on 12/17/2007, 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 $14.13 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 typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. 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
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 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.52%.
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 46.20% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 59.88% of total assets under management.
Performance and Risk
MGK seeks to match the performance of the CRSP U.S. Mega Cap Growth Index before fees and expenses. The CRSP US Mega Cap Growth Index is a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of mega-capitalization growth stocks in the United States.
The ETF has added roughly 36.10% so far this year and it's up approximately 33.50% in the last one year (as of 10/10/2023). In the past 52-week period, it has traded between $168.21 and $243.78.
The ETF has a beta of 1.11 and standard deviation of 23.91% for the trailing three-year period, making it a medium risk choice in the space. With about 96 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mega Cap 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, MGK is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $91.57 billion in assets, Invesco QQQ has $201.09 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Vanguard Mega Cap Growth ETF (MGK): 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 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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 $14.13 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard Mega Cap Growth ETF (MGK) was launched on 12/17/2007, 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 Mega Cap Growth ETF (MGK): 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 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard Mega Cap Growth ETF (MGK) was launched on 12/17/2007, 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 15.98% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Mega Cap Growth ETF (MGK): 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. The Vanguard Mega Cap Growth ETF (MGK) was launched on 12/17/2007, 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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13196.0
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2023-10-10 00:00:00 UTC
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Should SPDR Portfolio S&P 500 ETF (SPLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-etf-splg-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 SPDR Portfolio S&P 500 ETF (SPLG) is a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $19.48 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.02%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.56%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.30% 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 29.86% of total assets under management.
Performance and Risk
SPLG seeks to match the performance of the Russell 1000 Index before fees and expenses. The S&P 500 Index is designed to measure the performance of the large-capitalization segment of the U.S. equity market.
The ETF has added roughly 14.28% so far this year and it's up approximately 20.98% in the last one year (as of 10/10/2023). In the past 52-week period, it has traded between $41.93 and $53.81.
The ETF has a beta of 1 and standard deviation of 17.67% for the trailing three-year period. With about 506 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio 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, SPLG is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $346.33 billion in assets, SPDR S&P 500 ETF has $402.97 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
SPDR Portfolio S&P 500 ETF (SPLG): 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 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 SPDR Portfolio S&P 500 ETF (SPLG) is a passively managed exchange traded fund launched on 11/08/2005.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 7.06% 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 SPDR Portfolio S&P 500 ETF (SPLG) is a passively managed exchange traded fund launched on 11/08/2005.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives SPDR Portfolio 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 7.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): 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 0.02%, making it one of the least expensive products in the space.
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13197.0
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2023-10-10 00:00:00 UTC
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Amazon, Walmart court early holiday shoppers in US with limited-time deals
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AAPL
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https://www.nasdaq.com/articles/amazon-walmart-court-early-holiday-shoppers-in-us-with-limited-time-deals
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nan
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nan
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By Arriana McLymore
NEW YORK, Oct 10 (Reuters) - Amazon AMZN.O, Walmart WMT.N, Target TGT.N and other large retailers launched U.S. sales on Monday and Tuesday, dangling discounts on narrow selections of merchandise more than six weeks before Black Friday, one of the biggest shopping days of the year.
Total sales of merchandise between November and January is expected to rise by 3.5% to 4.6%, reaching $1.54 trillion to $1.56 trillion, according to Deloitte.
In recent years, retailers like Amazon and Walmart have sought to boost their bottom lines and spread out demand by hosting holiday shopping events online in early October.
With its Prime Big Deal Days, which started on Tuesday, Amazon invited shoppers to sign up for pop-up deals and sales on limited-quantity items including air fryers, sparkling water makers and men's watches.
Neil Saunders, managing director at GlobalData, said retailers' use of flash sales and invite-only deals is an attempt to recreate the momentum seen in "door buster deals" that encouraged shoppers to line up outside stores to make impulse purchases on Black Fridays of prior years.
Inflation remains a top concern for holiday shoppers, according to a KPMG survey, leading some to seek out deals on possible gifts.
KPMG Consumer and Retail National Sector Leader Matt Kramer said shoppers have "the savviness" to research more discounts and coupons before purchasing.
Some shoppers in search of bargains may sit out the October shopping events, waiting to buy big-ticket items like tablets, laptops and televisions until Black Friday, the day after U.S. Thanksgiving, and Cyber Monday, the Monday after Thanksgiving.
Walmart, which revealed discounts for its four-day Holiday Kickoff event at midday on Monday, posted deals on Dyson vacuums, HP HPE.N laptops and Apple AAPL.O products, much like Amazon and Target.
Target launched seven days worth of deals during the first week of October with hopes that shoppers would opt for its discounts on Lego toy sets, Apple Watches and home goods. The Target Circle event started nearly a week earlier than its October sales event in 2022.
(Reporting by Arriana McLymore in New York; Editing by Jamie Freed)
((arriana.mclymore@thomsonreuters.com; 917-667-8733; Reuters Messaging: Twitter: @Arriana))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Walmart, which revealed discounts for its four-day Holiday Kickoff event at midday on Monday, posted deals on Dyson vacuums, HP HPE.N laptops and Apple AAPL.O products, much like Amazon and Target. By Arriana McLymore NEW YORK, Oct 10 (Reuters) - Amazon AMZN.O, Walmart WMT.N, Target TGT.N and other large retailers launched U.S. sales on Monday and Tuesday, dangling discounts on narrow selections of merchandise more than six weeks before Black Friday, one of the biggest shopping days of the year. In recent years, retailers like Amazon and Walmart have sought to boost their bottom lines and spread out demand by hosting holiday shopping events online in early October.
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Walmart, which revealed discounts for its four-day Holiday Kickoff event at midday on Monday, posted deals on Dyson vacuums, HP HPE.N laptops and Apple AAPL.O products, much like Amazon and Target. By Arriana McLymore NEW YORK, Oct 10 (Reuters) - Amazon AMZN.O, Walmart WMT.N, Target TGT.N and other large retailers launched U.S. sales on Monday and Tuesday, dangling discounts on narrow selections of merchandise more than six weeks before Black Friday, one of the biggest shopping days of the year. With its Prime Big Deal Days, which started on Tuesday, Amazon invited shoppers to sign up for pop-up deals and sales on limited-quantity items including air fryers, sparkling water makers and men's watches.
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Walmart, which revealed discounts for its four-day Holiday Kickoff event at midday on Monday, posted deals on Dyson vacuums, HP HPE.N laptops and Apple AAPL.O products, much like Amazon and Target. By Arriana McLymore NEW YORK, Oct 10 (Reuters) - Amazon AMZN.O, Walmart WMT.N, Target TGT.N and other large retailers launched U.S. sales on Monday and Tuesday, dangling discounts on narrow selections of merchandise more than six weeks before Black Friday, one of the biggest shopping days of the year. With its Prime Big Deal Days, which started on Tuesday, Amazon invited shoppers to sign up for pop-up deals and sales on limited-quantity items including air fryers, sparkling water makers and men's watches.
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Walmart, which revealed discounts for its four-day Holiday Kickoff event at midday on Monday, posted deals on Dyson vacuums, HP HPE.N laptops and Apple AAPL.O products, much like Amazon and Target. By Arriana McLymore NEW YORK, Oct 10 (Reuters) - Amazon AMZN.O, Walmart WMT.N, Target TGT.N and other large retailers launched U.S. sales on Monday and Tuesday, dangling discounts on narrow selections of merchandise more than six weeks before Black Friday, one of the biggest shopping days of the year. Target launched seven days worth of deals during the first week of October with hopes that shoppers would opt for its discounts on Lego toy sets, Apple Watches and home goods.
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13198.0
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2023-10-10 00:00:00 UTC
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US STOCKS-Futures rise on dovish Fed tone, Middle East tensions weigh
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-on-dovish-fed-tone-middle-east-tensions-weigh
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.17%, S&P 0.17%, Nasdaq 0.20%
Oct 10 (Reuters) - U.S. stock index futures ticked higher on Tuesday following the dovish comments from Federal Reserve policymakers, though caution prevailed amid escalating tensions in the Middle East.
Top ranking Fed officials indicated that rising yields on long-term U.S. Treasury bonds could steer the central bank from further increases in its short-term policy rate.
Yield on the U.S. 10-year note US10YT=RR came off its 16-year peak on Tuesday as trading resumed in the U.S. bond market after the Columbus Day, also known as Indigenous Peoples' Day holiday.
"The shift in gears from bear steepening to bull flattening translates only into a fractional easing in financial conditions after the abrupt tightening since mid-September," strategists at Societe Generale said in a note.
"For some, the change begs the question if bond yields, on both sides of the Atlantic, have now peaked."
Traders put the chance of interest rates remaining unchanged in November and December at 87% and around 71%, respectively, according to CME's FedWatch tool.
Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Nvidia NVDA.O and Meta Platforms META.O, added between 0.1% and 0.4% in premarket trading.
Investors would keenly watch remarks from Fed Governor Christopher Waller and Fed Bank of Minneapolis President Neel Kashkari during the day.
Meanwhile, Israel said it had re-established control over the Gaza border and was planting mines where Hamas militants had toppled the barrier during their bloody weekend assault, after another night of relentless Israeli air raids on the enclave.
Israel's latest round of air strikes came after Hamas threatened to execute an Israeli captive every time it bombed a Palestinian home without warning.
All three major stock indexes closed higher in the previous session, shrugging off initial uncertainty with energy .SPNY leading gains among the S&P 500 sectors. Supply worries ignited by Middle East conflict had sent crude prices soaring on Monday.
Later in the week, investors would look out for inflation readings including September producer price and consumer price indexes as well as the Fed's September meeting minutes.
Toward the end of the week, big U.S. banks - including JPMorgan Chase JPM.N, Wells Fargo WFC.N and Citigroup C.N -would kick off the earnings season.
At 5:07 a.m. ET, Dow e-minis 1YMcv1 were up 59 points, or 0.17%, S&P 500 e-minis EScv1 were up 7.25 points, or 0.17%, and Nasdaq 100 e-minis NQcv1 were up 30.25 points, or 0.2%.
Among stocks, PepsiCo PEP.O edged 0.8% higher ahead of the beverage maker's third-quarter results.
UnityU.N jumped 6.4% after the video-game software maker said its CEO John Riccitiello would retire.
Rivian Automotive RIVN.O added 3.2% on a report that UBS upgraded the EV maker's stock to "buy" from "neutral".
U.S.-listed shares of Chinese firms, including Alibaba Group Holding BABA.N, JD.com JD.O, PDD Holdings PDD.O and Baidu BIDU.O, rose between 1.1% and 2.4% on a report Beijing is considering new stimulus to meet annual growth target.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur)
((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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Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Nvidia NVDA.O and Meta Platforms META.O, added between 0.1% and 0.4% in premarket trading. Top ranking Fed officials indicated that rising yields on long-term U.S. Treasury bonds could steer the central bank from further increases in its short-term policy rate. "The shift in gears from bear steepening to bull flattening translates only into a fractional easing in financial conditions after the abrupt tightening since mid-September," strategists at Societe Generale said in a note.
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Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Nvidia NVDA.O and Meta Platforms META.O, added between 0.1% and 0.4% in premarket trading. Futures up: Dow 0.17%, S&P 0.17%, Nasdaq 0.20% Oct 10 (Reuters) - U.S. stock index futures ticked higher on Tuesday following the dovish comments from Federal Reserve policymakers, though caution prevailed amid escalating tensions in the Middle East. Later in the week, investors would look out for inflation readings including September producer price and consumer price indexes as well as the Fed's September meeting minutes.
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Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Nvidia NVDA.O and Meta Platforms META.O, added between 0.1% and 0.4% in premarket trading. Futures up: Dow 0.17%, S&P 0.17%, Nasdaq 0.20% Oct 10 (Reuters) - U.S. stock index futures ticked higher on Tuesday following the dovish comments from Federal Reserve policymakers, though caution prevailed amid escalating tensions in the Middle East. Yield on the U.S. 10-year note US10YT=RR came off its 16-year peak on Tuesday as trading resumed in the U.S. bond market after the Columbus Day, also known as Indigenous Peoples' Day holiday.
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Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Nvidia NVDA.O and Meta Platforms META.O, added between 0.1% and 0.4% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Investors would keenly watch remarks from Fed Governor Christopher Waller and Fed Bank of Minneapolis President Neel Kashkari during the day.
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13199.0
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2023-10-10 00:00:00 UTC
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Curb Your Enthusiasm With Apple Stock. Here’s Why.
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AAPL
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https://www.nasdaq.com/articles/curb-your-enthusiasm-with-apple-stock.-heres-why.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re a long-term investor – as in, you like to keep stocks for five years or longer – then you’ll probably do just fine holding Apple (NASDAQ:AAPL) stock. However, right now it’s not a risk-free investment. Even if Apple has been “magnificent” in the past, the company’s near-term future success isn’t assured.
As we’ll discuss, Apple is an international business and is susceptible to problems abroad. At the end of the day, you might choose to wait until the Apple share price pulls back in order to get a better risk-reward balance.
You Don’t ‘Need’ to Own AAPL Stock Now
With Treasury bond yields rising, today’s investors should be selective with their portfolio holdings. Famous Mad Money host Jim Cramer has some advice for times like this, but you might not agree with everything he has to say.
In particular, Cramer recently asked the rhetorical question, “You want to make it through this difficult moment?” Of course, we all do. Cramer’s answer was, “You need the Magnificent Seven, and then the rest.”
It’s unknown what “the rest” are exactly. However, we know that the “Magnificent Seven” names include mega-cap technology companies such as Apple.
To that, a skeptical commentator might respond that with higher-than-sector-median trailing price-to-earnings, price-to-sales and price-to-book ratios, Apple isn’t a company that everyone “needs” to invest in right now. It’s perfectly fine to wait for AAPL stock to decline somewhat after its substantial run up this year.
Apple Could Have Trouble in China
Furthermore, KeyBanc analyst Brandon Nispel doesn’t seem to view Apple shares as an absolute must-own. Citing concerns about Apple’s valuation and a muted iPhone 15 upgrade cycle, Nispel downgraded Apple from “overweight” to “sector weight.”
Speaking of iPhones, Apple may have difficulty commercializing its smartphones and other devices in China. This is a vast and significant market for Apple.
As you may recall, authorities in China prohibited government workers from using iPhones at work. Also, it’s been reported that smartphone consumption has slowed down in China.
Apple has challenges just like any other company. Commentators might choose to call Apple “magnificent.” In some respects, Apple deserves that designation. However, prudent investors should assess the company’s problems along with its opportunities.
AAPL Stock: It’s Fine to Wait for Lower Prices
Apple will probably offer good value to its shareholders in the long run. Yet, it’s not an absolute requirement to include Apple shares in your portfolio today.
Therefore, you don’t have to agree with the idea that you “need the Magnificent Seven, and then the rest.”
Moreover, some investors might choose to wait until Apple’s valuation multiples and AAPL stock come down. Then, you can decide whether a share position in Apple is appropriate for your portfolio.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The post Curb Your Enthusiasm With Apple Stock. Here’s Why. appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You Don’t ‘Need’ to Own AAPL Stock Now With Treasury bond yields rising, today’s investors should be selective with their portfolio holdings. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re a long-term investor – as in, you like to keep stocks for five years or longer – then you’ll probably do just fine holding Apple (NASDAQ:AAPL) stock. It’s perfectly fine to wait for AAPL stock to decline somewhat after its substantial run up this year.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re a long-term investor – as in, you like to keep stocks for five years or longer – then you’ll probably do just fine holding Apple (NASDAQ:AAPL) stock. Therefore, you don’t have to agree with the idea that you “need the Magnificent Seven, and then the rest.” Moreover, some investors might choose to wait until Apple’s valuation multiples and AAPL stock come down. You Don’t ‘Need’ to Own AAPL Stock Now With Treasury bond yields rising, today’s investors should be selective with their portfolio holdings.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re a long-term investor – as in, you like to keep stocks for five years or longer – then you’ll probably do just fine holding Apple (NASDAQ:AAPL) stock. You Don’t ‘Need’ to Own AAPL Stock Now With Treasury bond yields rising, today’s investors should be selective with their portfolio holdings. It’s perfectly fine to wait for AAPL stock to decline somewhat after its substantial run up this year.
|
InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re a long-term investor – as in, you like to keep stocks for five years or longer – then you’ll probably do just fine holding Apple (NASDAQ:AAPL) stock. Therefore, you don’t have to agree with the idea that you “need the Magnificent Seven, and then the rest.” Moreover, some investors might choose to wait until Apple’s valuation multiples and AAPL stock come down. You Don’t ‘Need’ to Own AAPL Stock Now With Treasury bond yields rising, today’s investors should be selective with their portfolio holdings.
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