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13200.0
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2023-10-10 00:00:00 UTC
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3 Stocks That Can Help Build Generational Wealth for Patient Investors
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-can-help-build-generational-wealth-for-patient-investors
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nan
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Many folks are lured into the stock market by tales of getting rich quick through explosive growth stocks. But there's a far simpler, less stressful way of building generational wealth that also helps you rest easy at night. And that method is through investing in quality companies that have a track record of rewarding shareholders and, more importantly, have a long runway for future growth.
Here's why Apple (NASDAQ: AAPL), Deere (NYSE: DE), and Starbucks (NASDAQ: SBUX) stand out as three top blue-chip stocks worth considering now.
Image source: Getty Images.
Slowing iPhone growth won't derail Apple
Apple is experiencing something that investors aren't used to -- slowing growth. Its revenue and net income are flatlining. There are a few factors at play. Some are macroeconomic, like declining consumer discretionary spending and higher financing costs, which pressure consumers to spend within their means and delay big-ticket purchases.
AAPL Revenue (TTM) data by YCharts
Another headwind is that a lot of Apple's sales were pulled forward during the worst of the COVID-19 pandemic as consumers turned to goods purchases since service options were hindered.
Another fear is that incremental improvements in product performance won't be able to justify price hikes. iPhone sales are slightly declining. And Apple may not be able to raise prices as easily as it had in the past given a variety of competing products and a cost-conscious consumer.
The good news is that Apple's services segment has grown to become a high-margin cash cow. Last quarter, services revenue reached an all-time high. And for the nine months ended July 1, services contributed over a third of Apple's gross profit.
Apple also used buybacks to its advantage. It has reduced its outstanding share count by 37.4% over the last decade, which has artificially boosted earnings per share, making Apple stock a better value.
AAPL Shares Outstanding data by YCharts
All told, Apple has plenty of cash to keep investing throughout market cycles. And it can lean on its services segment and earnings-per-share growth from buybacks even if iPhone demand continues to stall. Apple has been a millionaire-maker stock. And there's every reason to believe it should remain a reliable investment going forward.
Deere: Poised to benefit from an agricultural revolution
Shares of Deere are down over 10% in the past month. But despite the sell-off, Deere is still crushing the performance of the S&P 500 over the past three-year, five-year, and 10-year time frames. After back-to-back guidance increases, Deere is on track to post record earnings in fiscal 2023. The growth has been incredible as Deere has benefited from increased spending from customers across its core markets. It has also demonstrated pricing power, which has helped combat inflation. And finally, the overall agriculture industry has been in a growth cycle.
To illustrate the sheer scale of Deere's growth, consider that fiscal 2023 full-year profits are expected to come in between $9.75 billion and $10 billion compared to just $2.8 billion in fiscal 2020. But the stock market is always forward-looking. And the fear is that future growth will certainly stall or even be negative, given that Deere operates in a highly cyclical industry that just underwent a period of expansion.
However, Deere deserves credit for accurately forecasting customer demand and making product improvements that customers want. It is also entering fiscal 2024 with a healthy amount of inventory, so it won't be hung out to dry if demand slows faster than expected.
If we zoom out and focus on the big picture, there's every reason to believe that Deere has what it takes to continue compounding returns for investors. Like Apple, the company pays a rather small dividend and prefers to return value to shareholders through buybacks.
Deere also has plenty of long-term growth outlets. Deere is betting big on the growing importance of automation and artificial intelligence in the agriculture and construction industries. A few strong years of outsized returns have given Deere extra dry powder to fund these opportunities.
Even if earnings come down, Deere will still be a reasonably priced stock. But the best way to view Deere is through the lens of its long-term investment thesis, which centers around a strong and established brand, effective execution, and an attractive and growing product mix that increasingly relies on software. Investors who believe in the growing importance of technology in the industrial sector should take a closer look at Deere stock.
Starbucks and the era of fast coffee
Starbucks has spent the last decade or so transitioning from a top growth stock to a reliable dividend stock. As evidenced by its buybacks, Starbucks is directly returning value to shareholders and has plenty of extra cash to repurchase shares.
However, one of the more underappreciated aspects of Starbucks stock is its dividend. Starbucks just raised its dividend to a record high. The dividend has more than doubled in the last six years.
Starbucks' dividend growth is outpacing the growth in its stock price, which has allowed the forward dividend yield to increase to 2.5%. It's not a high-yield dividend stock by any means. But Starbucks' steady growth, paired with its commitment to its dividend, opens the door to a reliable passive income stream that could last a lifetime.
Unlike Apple and Deere, which are facing periods of slowing growth, Starbucks has exited a pandemic-induced downturn in its business and is firing on all cylinders. Starbucks Rewards member additions during the pandemic have proven sticky, and Starbucks continues to grow its rewards program and its mobile ordering at a torrid rate.
Starbucks helped pioneer the cozy coffee house/internet café business model in the U.S. However, the future of Starbucks will likely look far different. Starbucks is no longer the only game in town. It has to compete with a swath of cool coffee shops, many of which arguably do a better job with ambiance than your typical Starbucks. But Starbucks can gain an edge over the competition through convenience, customization, and speed. The rewards program and mobile pickup feed into Starbucks' strengths.
This new chapter for Starbucks will likely result in more small stores focused exclusively on mobile ordering. And we've already seen a heightened focus on drive-thrus to boost order volumes. In sum, Starbucks has a massive opportunity ahead of it that should drive earnings growth, and in turn, a rewarding dividend.
Roadmaps for future growth
Apple, Deere, and Starbucks are in completely different industries. But all three companies have executed sizable stock repurchase programs. They also each represent a leading brand in their respective industries. Each company also has a well-defined path toward future growth -- which is essential for supporting future buybacks and dividend raises.
All told, these are three quality companies that are worth owning for many years to come.
Find out why Apple is one of the 10 best stocks to buy now
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*Stock Advisor returns as of October 2, 2023
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Starbucks. The Motley Fool recommends Deere. 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 Revenue (TTM) data by YCharts Another headwind is that a lot of Apple's sales were pulled forward during the worst of the COVID-19 pandemic as consumers turned to goods purchases since service options were hindered. Here's why Apple (NASDAQ: AAPL), Deere (NYSE: DE), and Starbucks (NASDAQ: SBUX) stand out as three top blue-chip stocks worth considering now. AAPL Shares Outstanding data by YCharts All told, Apple has plenty of cash to keep investing throughout market cycles.
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AAPL Shares Outstanding data by YCharts All told, Apple has plenty of cash to keep investing throughout market cycles. Here's why Apple (NASDAQ: AAPL), Deere (NYSE: DE), and Starbucks (NASDAQ: SBUX) stand out as three top blue-chip stocks worth considering now. AAPL Revenue (TTM) data by YCharts Another headwind is that a lot of Apple's sales were pulled forward during the worst of the COVID-19 pandemic as consumers turned to goods purchases since service options were hindered.
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Here's why Apple (NASDAQ: AAPL), Deere (NYSE: DE), and Starbucks (NASDAQ: SBUX) stand out as three top blue-chip stocks worth considering now. AAPL Revenue (TTM) data by YCharts Another headwind is that a lot of Apple's sales were pulled forward during the worst of the COVID-19 pandemic as consumers turned to goods purchases since service options were hindered. AAPL Shares Outstanding data by YCharts All told, Apple has plenty of cash to keep investing throughout market cycles.
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Here's why Apple (NASDAQ: AAPL), Deere (NYSE: DE), and Starbucks (NASDAQ: SBUX) stand out as three top blue-chip stocks worth considering now. AAPL Revenue (TTM) data by YCharts Another headwind is that a lot of Apple's sales were pulled forward during the worst of the COVID-19 pandemic as consumers turned to goods purchases since service options were hindered. AAPL Shares Outstanding data by YCharts All told, Apple has plenty of cash to keep investing throughout market cycles.
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13201.0
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2023-10-10 00:00:00 UTC
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Will Weak Earnings Follow Tesla's Mixed Delivery Report?
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AAPL
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https://www.nasdaq.com/articles/will-weak-earnings-follow-teslas-mixed-delivery-report
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nan
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nan
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Tesla (NASDAQ:TSLA) is expected to publish its Q3 2023 earnings on October 18, reporting on a quarter that saw the company’s deliveries take a hit due to planned factory shutdowns which reduced production. We expect Tesla’s revenues to come in at $24.3 billion, slightly ahead of consensus estimates and about 11% ahead of last year. Earnings are likely to come in at about $0.78 per share, slightly ahead of the consensus and a decline of about 25% versus last year. See our interactive dashboard analysis on Tesla Earnings Preview for more details on how Tesla’s revenues and earnings are likely to trend for the quarter. So, what are some of the trends that are likely to drive Tesla’s results?
We note that TSLA stock has had a Sharpe Ratio of 0.9 since early 2017, which is better 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.
Tesla delivered a total of 435,059 vehicles in Q3, down about 7% sequentially, although this was about 26% higher compared to last year. For perspective, Tesla scaled back on production at its Austin, Texas factory as it preps to manufacture the Cybertruck. The company held back on production in China as it worked to launch an upgraded version of its Model 3 sedan. While Tesla expects to pick up the slack in the fourth quarter, as it reiterated its target of delivering 1.8 million vehicles this year, Q3 revenues will be impacted. Separately, Tesla has also reduced the pricing of its vehicles in the U.S. and China over the last few quarters and this is likely to impact average pricing and margins. For example, the Model Y presently sells at more than 20% below last year’s prices. Over Q2 average prices for Tesla vehicles stood at $45,600 down from about $57,000 in Q2 2022. Automotive gross margins over Q2 2023 stood at 19%, compared to almost 28% in the year-ago quarter and we should see a similar year-over-year decline over Q3 as well.
We currently remain relatively neutral on Tesla stock, with a $263 price estimate, which is 2% ahead of the current market price. We continue to believe that Tesla will remain a big beneficiary of the long-term transition to cleaner transportation and energy generation, with the company benefiting from its well-oiled supply chain, superior battery and drive train tech, and its lead with software and self-driving technology. However, Tesla stock presently trades at over 70x forward consensus earnings, which could limit near-term upside. Competition is also mounting and Tesla’s price cuts in the United States as well as China are impacting margins. Tesla’s earnings for 2023 are projected to decline year-over-year. See our analysis on Tesla Valuation: Is TSLA Stock Expensive Or Cheap? for more details on Tesla’s valuation and how it compares with peers. For more information on Tesla’s business model and revenue trends, check out our dashboard on Tesla Revenue: How Does TSLA Make Money?
Returns Oct 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
TSLA Return 4% 112% 1729%
S&P 500 Return 0% 12% 92%
Trefis Reinforced Value Portfolio -2% 21% 522%
[1] Month-to-date and year-to-date as of 10/7/2023
[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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Tesla (NASDAQ:TSLA) is expected to publish its Q3 2023 earnings on October 18, reporting on a quarter that saw the company’s deliveries take a hit due to planned factory shutdowns which reduced production. While Tesla expects to pick up the slack in the fourth quarter, as it reiterated its target of delivering 1.8 million vehicles this year, Q3 revenues will be impacted. We continue to believe that Tesla will remain a big beneficiary of the long-term transition to cleaner transportation and energy generation, with the company benefiting from its well-oiled supply chain, superior battery and drive train tech, and its lead with software and self-driving technology.
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See our interactive dashboard analysis on Tesla Earnings Preview for more details on how Tesla’s revenues and earnings are likely to trend for the quarter. Over Q2 average prices for Tesla vehicles stood at $45,600 down from about $57,000 in Q2 2022. Total [2] TSLA Return 4% 112% 1729% S&P 500 Return 0% 12% 92% Trefis Reinforced Value Portfolio -2% 21% 522% [1] Month-to-date and year-to-date as of 10/7/2023 [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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See our interactive dashboard analysis on Tesla Earnings Preview for more details on how Tesla’s revenues and earnings are likely to trend for the quarter. For more information on Tesla’s business model and revenue trends, check out our dashboard on Tesla Revenue: How Does TSLA Make Money? Total [2] TSLA Return 4% 112% 1729% S&P 500 Return 0% 12% 92% Trefis Reinforced Value Portfolio -2% 21% 522% [1] Month-to-date and year-to-date as of 10/7/2023 [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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See our interactive dashboard analysis on Tesla Earnings Preview for more details on how Tesla’s revenues and earnings are likely to trend for the quarter. Separately, Tesla has also reduced the pricing of its vehicles in the U.S. and China over the last few quarters and this is likely to impact average pricing and margins. For example, the Model Y presently sells at more than 20% below last year’s prices.
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13202.0
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2023-10-10 00:00:00 UTC
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Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-9
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nan
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nan
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares Expanded Tech Sector ETF (IGM), a passively managed exchange traded fund launched on 03/13/2001.
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.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.23 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.41%.
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 in the Information Technology sector--about 79% of the portfolio, followed by Telecom.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 9.02% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
The top 10 holdings account for about 51.63% of total assets under management.
Performance and Risk
Year-to-date, the iShares Expanded Tech Sector ETF has added about 41.04% so far, and is up roughly 40.66% over the last 12 months (as of 10/10/2023). IGM has traded between $266.47 and $412.97 in this past 52-week period.
The ETF has a beta of 1.16 and standard deviation of 26.35% for the trailing three-year period, making it a medium risk choice in the space. With about 285 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $49.14 billion in assets, Vanguard Information Technology ETF has $51.20 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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 Expanded Tech Sector ETF (IGM): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 9.02% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.23 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 9.02% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 9.02% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 9.02% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares Expanded Tech Sector ETF (IGM), a passively managed exchange traded fund launched on 03/13/2001.
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13203.0
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2023-10-10 00:00:00 UTC
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Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-8
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nan
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nan
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A smart beta exchange traded fund, the John Hancock Multifactor Large Cap ETF (JHML) debuted on 09/28/2015, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by John Hancock, JHML has amassed assets over $746.99 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the John Hancock Dimensional Large Cap Index.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
This ETF has heaviest allocation in the Information Technology sector - about 23.30% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
Performance and Risk
So far this year, JHML has added about 8.90%, and is up roughly 16.65% in the last one year (as of 10/10/2023). During this past 52-week period, the fund has traded between $45.55 and $56.65.
JHML has a beta of 1.01 and standard deviation of 17.30% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 776 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $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%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). A smart beta exchange traded fund, the John Hancock Multifactor Large Cap ETF (JHML) debuted on 09/28/2015, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). A smart beta exchange traded fund, the John Hancock Multifactor Large Cap ETF (JHML) debuted on 09/28/2015, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
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13204.0
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2023-10-09 00:00:00 UTC
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Arm gets Wall Street's 'buy' on royalty plan, cloud expansion
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AAPL
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https://www.nasdaq.com/articles/arm-gets-wall-streets-buy-on-royalty-plan-cloud-expansion
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nan
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nan
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By Aditya Soni and Roshan Abraham
Oct 9 (Reuters) - Several Wall Street brokerages started coverage of Arm Holdings ARM.O with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth.
The flurry of recommendations marked the end of the quiet period for the nearly 30 banks that underwrote Arm's initial public offering, which raised $4.87 billion for owner SoftBank Group last month in the biggest listing of the year.
The "buy" or equivalent ratings, from brokerages including J.P. Morgan and Goldman Sachs, are a vote of confidence for Arm's plan to grow revenue by charging higher royalty fees and increasing its share of the cloud and automotive markets.
The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices.
"We expect Arm to not only expand on its presence in the smartphone market primarily through higher royalty rates, but to also extend its reach across applications to which it is under-indexed," Goldman Sachs said, setting a price target of $62.
Other brokerages including Citi, Deutsche Bank, Mizuho and TD Cowen set price targets in the range of $60 to $70, with the most bullish view coming from J.P. Morgan. Arm shares last closed at $54.08, about two dollars below their IPO price.
TD Cowen said Arm faces some challenges from the weak smartphone market, but its current revenue represented an "under-monetization of its importance to the industry".
Citi predicted that Arm could become one of the fastest-growing large chip companies with a compounded annual revenue increase of 18% through fiscal year 2027.
Such growth would benefit SoftBank, which told investors ahead of the Arm IPO that it plans to remain the majority owner in the company it considers its crown jewel.
But some brokerages, including HSBC, urged caution, saying Arm's shares could remain range-bound as uncertainty over a smartphone market recovery pressures earnings.
Before Monday, only analysts at brokerages that did not work on Arm's IPO were allowed to offer recommendations on the stock, and their opinion was generally more skeptical. Three of them initiated Arm with a "hold" rating and the other one with a "strong sell," LSEG data showed.
But by 8 am ET on Monday, at least 15 brokerages started covering Arm with a mean rating of "buy" and a $60 median price target.
(Reporting by Roshan Abraham in Bengaluru; Editing by Savio D'Souza and Anil D'Silva)
((Roshan.Abraham@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 British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. By Aditya Soni and Roshan Abraham Oct 9 (Reuters) - Several Wall Street brokerages started coverage of Arm Holdings ARM.O with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth. The flurry of recommendations marked the end of the quiet period for the nearly 30 banks that underwrote Arm's initial public offering, which raised $4.87 billion for owner SoftBank Group last month in the biggest listing of the year.
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The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. The "buy" or equivalent ratings, from brokerages including J.P. Morgan and Goldman Sachs, are a vote of confidence for Arm's plan to grow revenue by charging higher royalty fees and increasing its share of the cloud and automotive markets. "We expect Arm to not only expand on its presence in the smartphone market primarily through higher royalty rates, but to also extend its reach across applications to which it is under-indexed," Goldman Sachs said, setting a price target of $62.
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The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. By Aditya Soni and Roshan Abraham Oct 9 (Reuters) - Several Wall Street brokerages started coverage of Arm Holdings ARM.O with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth. The "buy" or equivalent ratings, from brokerages including J.P. Morgan and Goldman Sachs, are a vote of confidence for Arm's plan to grow revenue by charging higher royalty fees and increasing its share of the cloud and automotive markets.
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The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. By Aditya Soni and Roshan Abraham Oct 9 (Reuters) - Several Wall Street brokerages started coverage of Arm Holdings ARM.O with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth. Other brokerages including Citi, Deutsche Bank, Mizuho and TD Cowen set price targets in the range of $60 to $70, with the most bullish view coming from J.P. Morgan.
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13205.0
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2023-10-09 00:00:00 UTC
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Arm gets Wall Street's 'buy' on royalty plan, cloud expansion
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AAPL
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https://www.nasdaq.com/articles/arm-gets-wall-streets-buy-on-royalty-plan-cloud-expansion-0
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nan
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nan
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By Aditya Soni and Roshan Abraham
Oct 9 (Reuters) - Several Wall Street brokerages started coverage of Arm Holdings ARM.O with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth.
The flurry of recommendations marked the end of the quiet period for the nearly 30 banks that underwrote Arm's initial public offering, which raised $4.87 billion for owner SoftBank Group last month in the biggest listing of the year.
The "buy" or equivalent ratings, from brokerages including J.P.Morgan and Goldman Sachs, are a vote of confidence in Arm's plan to grow revenue by charging higher royalty fees and increasing its share of the cloud and automotive markets.
The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices.
"We expect Arm to not only expand on its presence in the smartphone market primarily through higher royalty rates, but to also extend its reach across applications to which it is under-indexed," Goldman Sachs said, setting a price target of $62.
Other brokerages including Citi, Deutsche Bank, Mizuho and TD Cowen set price targets in the range of $57 to $85, with the most bullish view coming from Rosenblatt Securities. Arm shares last closed at $54.08, compared with the IPO price of $51.
They were up 0.6% on Monday, defying broader market weakness.
TD Cowen said Arm faces some challenges from the weak smartphone market, but its current revenue represented an "under-monetization of its importance to the industry".
Citi predicted that Arm could become one of the fastest-growing large chip companies with a compounded annual revenue increase of 18% through fiscal year 2027.
Such growth would benefit SoftBank, which told investors ahead of the Arm IPO that it plans to remain the majority owner in the company it considers its crown jewel.
But some brokerages, including HSBC, urged caution, saying Arm's shares could remain range-bound as uncertainty over a smartphone market recovery pressures earnings.
Before Monday, only those brokerages that did not work on Arm's IPO were allowed to offer recommendations on the stock, and their opinion was generally more skeptical. Three of them had initiated Arm with a "hold" rating and one with a "strong sell," LSEG data showed.
But by 9:40 am ET on Monday, at least 17 brokerages started covering Arm, with an average rating of "buy" and a median price target of $63.50.
(Reporting by Roshan Abraham in Bengaluru; Editing by Savio D'Souza and Anil D'Silva)
((Roshan.Abraham@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.
|
The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. By Aditya Soni and Roshan Abraham Oct 9 (Reuters) - Several Wall Street brokerages started coverage of Arm Holdings ARM.O with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth. The flurry of recommendations marked the end of the quiet period for the nearly 30 banks that underwrote Arm's initial public offering, which raised $4.87 billion for owner SoftBank Group last month in the biggest listing of the year.
|
The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. The "buy" or equivalent ratings, from brokerages including J.P.Morgan and Goldman Sachs, are a vote of confidence in Arm's plan to grow revenue by charging higher royalty fees and increasing its share of the cloud and automotive markets. "We expect Arm to not only expand on its presence in the smartphone market primarily through higher royalty rates, but to also extend its reach across applications to which it is under-indexed," Goldman Sachs said, setting a price target of $62.
|
The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. By Aditya Soni and Roshan Abraham Oct 9 (Reuters) - Several Wall Street brokerages started coverage of Arm Holdings ARM.O with their top ratings on Monday, saying the chip designer's dominance in the smartphone market and potential for expansion into data centers could power earnings growth. The "buy" or equivalent ratings, from brokerages including J.P.Morgan and Goldman Sachs, are a vote of confidence in Arm's plan to grow revenue by charging higher royalty fees and increasing its share of the cloud and automotive markets.
|
The British company's growth has been shackled in the past year by a slump in the smartphone market, in which it has a 99% share across Google's Android and Apple's AAPL.O iOS devices. TD Cowen said Arm faces some challenges from the weak smartphone market, but its current revenue represented an "under-monetization of its importance to the industry". Before Monday, only those brokerages that did not work on Arm's IPO were allowed to offer recommendations on the stock, and their opinion was generally more skeptical.
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13206.0
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2023-10-09 00:00:00 UTC
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Should new tech rules apply to Microsoft's Bing, Apple's iMessage, EU asks
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AAPL
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https://www.nasdaq.com/articles/should-new-tech-rules-apply-to-microsofts-bing-apples-imessage-eu-asks
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday.
The European Commission in September opened investigations to assess whether Microsoft's Bing, Edge and Microsoft Advertising as well as Apple's iMessage should be subject to the Digital Markets Act (DMA).
The probes came after the companies contested the EU competition regulator labelling these services as core platform services under the DMA.
The DMA requires Microsoft, Apple, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta Platforms META.O and ByteDance to allow for third-party apps or app stores on their platforms and to make it easier for users to switch from default apps to rivals, among other obligations.
The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services.
The people familiar with the matter said the EU watchdog asked if there was anything specific to the services that business users rely on and how they fit into the companies' ecosystems.
It also asked for the number of users using the services.
Respondents were given less than a week to provide feedback. The Commission wants to complete its investigation within five months.
(Reporting by Foo Yun Chee, editing by Deborah Kyvrikosaios and Angus MacSwan)
((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 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The people familiar with the matter said the EU watchdog asked if there was anything specific to the services that business users rely on and how they fit into the companies' ecosystems. (Reporting by Foo Yun Chee, editing by Deborah Kyvrikosaios and Angus MacSwan) ((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 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The probes came after the companies contested the EU competition regulator labelling these services as core platform services under the DMA. The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services.
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By Foo Yun Chee BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The DMA requires Microsoft, Apple, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta Platforms META.O and ByteDance to allow for third-party apps or app stores on their platforms and to make it easier for users to switch from default apps to rivals, among other obligations. The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services.
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By Foo Yun Chee BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services. The people familiar with the matter said the EU watchdog asked if there was anything specific to the services that business users rely on and how they fit into the companies' ecosystems.
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13207.0
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2023-10-09 00:00:00 UTC
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Stock Market News for Oct 9, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-oct-9-2023
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nan
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nan
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U.S. stocks ended sharply higher on Friday as investors assessed a monthly jobs report that showed robust job additions in September as well as slowing wage growth. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 0.9% or 288.01 points to end at 33,407.58 points.
The S&P 500 jumped 1.2% or 50.31 points, to close at 4,308.50 points. Tech and communication services stocks were the best performers.
The Technology Select Sector SPDR (XLK) jumped 1.9%, while the Communication Services Select Sector SPDR (XLC) rose 1.8%. Ten of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq rose 1.6% or 211.51 points to close at 13,431.34 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.62 % to 17.45. A total of 10.58 billion shares were traded on Friday, lower than the last 20-session average of 10.72 billion. Advancers outnumbered decliners on the NYSE by a 1.96-to-1 ratio. On the Nasdaq, a 1.73-to-1 ratio favored advancing issues.
Stocks Rebound on Favorable Jobs Data
Stocks made a solid rebound on Friday after initially declining following the release of the robust monthly jobs report. The Dow was down more than 270 points at one point before jumping by 400 points at its session’s peak.
The U.S. economy added 336,000 jobs in September, the Bureau of Labor Statistics said. The numbers came in a lot higher than the consensus estimate of 176,000. Also, job gains in July and August were revised higher.
Investors had been worrying that solid job additions would mean higher wage growth, which could add to the ongoing inflationary pressures that could compel the Fed to go for more interest rate hikes and keep rates higher for a longer period.
However, the jobs report also had some positives as data showed wage growth slowed in September. Average hourly wages rose a modest 0.2% in September. This brings the 12-month rate of change through September to 4.2%, which was slower than the 4.3% year-over-year rate seen in August.
This lifted investors’ sentiments, leading stocks to make a turnaround.
Meanwhile, Federal-funds-futures traders are once again optimistic that the Federal Reserve could keep its benchmark interest rates unchanged at the existing range of 5.25%-5.5%.
Also, the yield on the 10-year Treasury note increased 6.8 basis points to 4.783% on Friday after trading at almost its highest level in 16 years. Tech stocks were the biggest gainers following the pullback in treasury yields from its day’s high.
Shares of Apple Inc. (AAPL) rose 1.5%, while Microsoft Corporation (MSFT) jumped 2.5%. Shares of NVIDIA Corporation (NVDA) gained 2.4%. NVIDIA sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
The jobs report also showed that the unemployment rate remained unchanged at 3.8% in September, higher than the consensus estimate of 3.7%.
Weekly Roundup
For the week, the Dow ended 0.3% down, declining for the third straight week. The S&P 500 bounced back in the green to finish 0,5% higher for the week, ending its four-week losing streak. The Nasdaq ended 1.6% higher, recording its second straight week of gains.
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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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Shares of Apple Inc. (AAPL) rose 1.5%, while Microsoft Corporation (MSFT) jumped 2.5%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Federal-funds-futures traders are once again optimistic that the Federal Reserve could keep its benchmark interest rates unchanged at the existing range of 5.25%-5.5%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) rose 1.5%, while Microsoft Corporation (MSFT) jumped 2.5%. U.S. stocks ended sharply higher on Friday as investors assessed a monthly jobs report that showed robust job additions in September as well as slowing wage growth.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) rose 1.5%, while Microsoft Corporation (MSFT) jumped 2.5%. U.S. stocks ended sharply higher on Friday as investors assessed a monthly jobs report that showed robust job additions in September as well as slowing wage growth.
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Shares of Apple Inc. (AAPL) rose 1.5%, while Microsoft Corporation (MSFT) jumped 2.5%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended sharply higher on Friday as investors assessed a monthly jobs report that showed robust job additions in September as well as slowing wage growth.
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13208.0
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2023-10-09 00:00:00 UTC
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Technology Sector Update for 10/09/2023: PSN, AAPL, GOOG, GOOGL, BRQS, XLK, XSD
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-09-2023%3A-psn-aapl-goog-googl-brqs-xlk-xsd
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nan
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nan
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Technology stocks were mixed pre-bell Monday, with the Technology Select Sector SPDR Fund (XLK) 0.7% lower and the SPDR S&P Semiconductor ETF (XSD) 0.1% higher recently.
Parsons (PSN) was climbing more than 1% after saying it was awarded a task order of up to $53 million by the US Department of Defense's Defense Threat Reduction Agency for the International Counterproliferation Program and Proliferation Security Initiative.
Apple (AAPL) and Alphabet's (GOOG, GOOGL) Google are facing potential fines of 20.5 billion South Korean won ($15.2 million) and 47.5 billion won, respectively, over allegedly unfair practices, including forcing specific payment methods on app market operators, South Korea's telecommunications regulator said. Apple and Alphabet were slightly declining in recent premarket activity.
Borqs Technologies (BRQS) was over 1% lower after saying its board has approved a 1-for-12 reverse split of its common stock.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) and Alphabet's (GOOG, GOOGL) Google are facing potential fines of 20.5 billion South Korean won ($15.2 million) and 47.5 billion won, respectively, over allegedly unfair practices, including forcing specific payment methods on app market operators, South Korea's telecommunications regulator said. Parsons (PSN) was climbing more than 1% after saying it was awarded a task order of up to $53 million by the US Department of Defense's Defense Threat Reduction Agency for the International Counterproliferation Program and Proliferation Security Initiative. Borqs Technologies (BRQS) was over 1% lower after saying its board has approved a 1-for-12 reverse split of its common stock.
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Apple (AAPL) and Alphabet's (GOOG, GOOGL) Google are facing potential fines of 20.5 billion South Korean won ($15.2 million) and 47.5 billion won, respectively, over allegedly unfair practices, including forcing specific payment methods on app market operators, South Korea's telecommunications regulator said. Technology stocks were mixed pre-bell Monday, with the Technology Select Sector SPDR Fund (XLK) 0.7% lower and the SPDR S&P Semiconductor ETF (XSD) 0.1% higher recently. Parsons (PSN) was climbing more than 1% after saying it was awarded a task order of up to $53 million by the US Department of Defense's Defense Threat Reduction Agency for the International Counterproliferation Program and Proliferation Security Initiative.
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Apple (AAPL) and Alphabet's (GOOG, GOOGL) Google are facing potential fines of 20.5 billion South Korean won ($15.2 million) and 47.5 billion won, respectively, over allegedly unfair practices, including forcing specific payment methods on app market operators, South Korea's telecommunications regulator said. Technology stocks were mixed pre-bell Monday, with the Technology Select Sector SPDR Fund (XLK) 0.7% lower and the SPDR S&P Semiconductor ETF (XSD) 0.1% higher recently. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) and Alphabet's (GOOG, GOOGL) Google are facing potential fines of 20.5 billion South Korean won ($15.2 million) and 47.5 billion won, respectively, over allegedly unfair practices, including forcing specific payment methods on app market operators, South Korea's telecommunications regulator said. Technology stocks were mixed pre-bell Monday, with the Technology Select Sector SPDR Fund (XLK) 0.7% lower and the SPDR S&P Semiconductor ETF (XSD) 0.1% higher recently. Parsons (PSN) was climbing more than 1% after saying it was awarded a task order of up to $53 million by the US Department of Defense's Defense Threat Reduction Agency for the International Counterproliferation Program and Proliferation Security Initiative.
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13209.0
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2023-10-09 00:00:00 UTC
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US STOCKS-Wall St eyes lower open on Middle East conflict
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-on-middle-east-conflict
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 9 (Reuters) - Wall Street's main indexes were set for a lower open on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%.
Fighters were still holed up in several locations inside Israel two days after they burst across from Gaza killing 700 Israelis and seized hostages, while the country responded with its heaviest ever bombardment of the Gaza Strip, killing about 500 people.
Israel said it had called up an unprecedented 300,000 reservists and warned residents of parts of the Gaza Strip to leave, in the latest signs it could be planning a ground assault.
U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
At 8:34 a.m. ET, Dow e-minis 1YMcv1 were down 168 points, or 0.5%, S&P 500 e-minis EScv1 were down 27 points, or 0.62%, and Nasdaq 100 e-minis NQcv1 were down 115.75 points, or 0.77%.
The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 19.05, reflecting investor anxiety.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
"We expect short-term volatility in the stock market and oil market as investors digest the heightened tensions in the Middle East," said James Demmert, chief investment officer, Main Street Research.
Energy companies Chevron CVX.N, Exxon Mobil XOM.N, Marathon Oil MRO.N and Occidental Petroleum OXY.N jumped between 2.6% and 3.9% in premarket trading.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. The airlines' shares were down more than 2% each.
Defense companies Northrop Grumman NOC.N, RTX RTX.N, General Dynamics GD.N and Lockheed Martin LMT.N advanced between 3.2% and 3.9%.
Major technology stocks Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell 0.5% to 2.1%.
The U.S. bond market was shut on Monday for Columbus Day.
The Nasdaq .IXIC and the S&P 500 .SPX posted weekly gains on Friday as mixed jobs reports kept investors on edge around the Federal Reserve's interest rate outlook.
For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Fed's September meeting minutes will be in focus.
Later on Monday, investors will keep an eye on speeches by Fed Vice Chair Philip Jefferson and Vice Chair for Supervision Michael Barr.
Focus will also be on the upcoming quarterly earnings from major banks including JPMorgan Chase JPM.N, Wells Fargo WFC.N, Citigroup C.N as well as asset manager BlackRock BLK.N.
TeslaTSLA.O shed 1.6% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year ago.
Disney DIS.N gained 1.5% on a report Nelson Peltz's Trian Fund Management has increased its stake in the media giant, with the activist investor expected to request multiple board seats, including for himself.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; 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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Major technology stocks Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell 0.5% to 2.1%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes were set for a lower open on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
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Major technology stocks Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell 0.5% to 2.1%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes were set for a lower open on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
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Major technology stocks Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell 0.5% to 2.1%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes were set for a lower open on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. "We expect short-term volatility in the stock market and oil market as investors digest the heightened tensions in the Middle East," said James Demmert, chief investment officer, Main Street Research.
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Major technology stocks Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell 0.5% to 2.1%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes were set for a lower open on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
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13210.0
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2023-10-09 00:00:00 UTC
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1 FAANG Stock That's a No-Brainer Buy in October and 1 to Avoid Like the Plague
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AAPL
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https://www.nasdaq.com/articles/1-faang-stock-thats-a-no-brainer-buy-in-october-and-1-to-avoid-like-the-plague
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nan
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nan
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Short-term unpredictability is one of the few guarantees Wall Street brings to the table. Since this decade began, the three major stock indexes have ping-ponged between bear and bull markets.
When volatility picks up, both new and tenured investors tend to seek out the safety of industry-leading businesses that offer a track record of outperformance. For the past decade, the FAANG stocks have definitely met this description.
When I say "FAANG stocks," I'm referring to:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Amazon (NASDAQ: AMZN)
Apple (NASDAQ: AAPL)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Image source: Getty Images.
The FAANG stocks do two things really well: Dominate their respective industries and run circles around the broader market. With regard to the former, these five companies bring meaningful competitive advantages and moats to the table.
Meta Platforms owns the top social media real estate on the planet (Facebook, Instagram, WhatsApp, Facebook Messenger, and Threads). The company's family of apps (Threads wasn't introduced until July) had nearly 3.9 billion monthly active users visit its sites each month during the June-ended quarter.
Amazon accounts for an astounding 40% of U.S. online retail sales, and its cloud infrastructure service segment, Amazon Web Services (AWS), is No. 1 globally with an estimated 30% share of cloud infrastructure service spending.
Apple's iPhone has laid claim to around 50% (or more) of U.S. smartphone market share since introducing a 5G-capable version in late 2020. Further, its capital-return program is unmatched among public companies -- around $600 billon in cumulative share buybacks since the beginning of 2013.
Netflix is the domestic and international leader in streaming, and is behind more original streaming content than any other media company.
Alphabet's Google has a nearly 90-percentage-point market-share lead over its next-closest competitor in internet search, and it owns the world's No. 3 cloud infrastructure service provider (Google Cloud).
These companies are also outperformers:
META data by YCharts.
Whereas the benchmark S&P 500 has gained a healthy 129% over the trailing 10 years, as of Oct. 3, 2023, the FAANG stocks have delivered returns ranging from 375% to 799%.
However, the outlook for the FAANG stocks does vary significantly. With volatility picking up in recent weeks, one FAANG stock stands out as a no-brainer buy in October, while another is worth avoiding like the plague.
The FAANG stock that's a no-brainer buy in October: Alphabet
Out of the five time-tested FAANG stocks, it's Alphabet, the parent of Google, streaming platform YouTube, and autonomous vehicle company Waymo, among others, which is a no-brainer buy in October.
Every single publicly traded company, no matter how much of a stellar buy it might appear, contends with potential headwinds. For Alphabet, the biggest concern is the health of the U.S. economy in the coming quarters. With a multitude of economic datapoints pointing to slower growth or a potential recession, the company's advertising-driven operating segments could see a sales slowdown. Advertisers are often quick to pare back their spending at the first signs of trouble.
Additionally, faster-growing businesses might choose to lower their cloud-based spending until the economic climate is more certain. This would likely slow the growth rate for Google Cloud.
Despite these very near-term challenges, there's nothing to suggest that Alphabet's long-term growth trajectory has been altered.
As noted, we're talking about a veritable monopoly in internet search. Based on data from GlobalStats, you'd have to go back to March 2015 to find the last time Google didn't account for at least 90% of worldwide monthly search share. There's no question Google is the go-to for advertisers seeking to reach a broad audience or target their marketing campaign. Translation: Alphabet's Google possesses exceptionally strong pricing power during long-winded periods of economic expansion.
While Google serves as a steady cash-flow foundation for Alphabet, it's the company's ancillary operating segments that are far more exciting for long-term investors. For instance, Google Cloud has generated an operating profit in each of the past two quarters after years of losses. Traditionally, cloud services generate considerably higher margins than advertising. If Google Cloud continues to grow by a double-digit pace, which seems feasible given that enterprise cloud spending is still in its early innings, this segment could become Alphabet's leading cash-flow driver within a couple of years.
Don't overlook YouTube, either. The introduction of Shorts (short-form videos often lasting less than 60 seconds) has ballooned viewership and created new advertising opportunities. YouTube trails only Facebook as the world's most-visited social site.
Lastly, Alphabet's valuation is historically cheap, which makes its stock ripe for the picking. As of the closing bell on Oct. 3, 2023, shares of Alphabet could be purchased for just below 20 times forward-year earnings and roughly 14 times forward-year cash flow. Over the past five years, Alphabet has averaged a valuation of 25 times forward-year earnings and 18 times forward-year cash flow.
Image source: Apple.
The FAANG stock to avoid like the plague in October: Apple
However, not all of the FAANG stocks are positioned to be winners in the coming quarters. The FAANG stock I'd suggest avoiding like the plague in October is none other than the United States' largest publicly traded company by market cap, Apple.
To be perfectly clear, I'm not saying Apple is a bad company. It's a dominant force, domestically, in smartphones, and CEO Tim Cook is overseeing the very successful transformation of Apple into a platforms company. Focusing on a variety of subscription services should minimize the sales lumpiness often associated with major physical product replacement cycles, as well as lift Apple's operating margin over the long run.
It should also be noted that Apple has an exceptionally loyal customer base and well-recognized brand. The trustworthiness of the Apple brand and its management team is one of the core reasons why billionaire investor Warren Buffett has nearly 47% of Berkshire Hathaway's $337 billion investment portfolio tied up in Apple stock.
But it's not all peaches and cream for the world's top tech company.
For instance, iPhone 14 failed to wow consumers or investors. Modest initial sales caused Apple to rethink its plan to boost production last year. Through the first nine months of fiscal 2023 (Apple's fiscal year ends in late September), iPhone sales are down almost $6.1 billion, relative to the comparable period in fiscal 2022.
It's a similar story for the remainder of the company's physical products. Mac sales have been hit hardest (down 24%), while iPad (down 1%) and wearable, home, and accessories (down 3%) sales are modestly lower through nine months.
Apple also looks to be somewhat dropping the ball when it comes to artificial intelligence (AI). In June, the company unveiled its augmented reality device known as the Vision Pro. Apple was expected to deliver 1 million units of this practically $3,500 headset in 2024. However, a report from Financial Times, based on internal sources, now suggests Apple is targeting just 400,000 headsets next year.
But perhaps most damning of all is Apple's valuation. For more than a half-decade leading up to the end of fiscal 2018, shares of Apple could be purchased for roughly 10 to 15 times forward earnings. What made the company so attractive is that it consistently grew sales by a double-digit percentage.
As of this very moment, Apple isn't a growth company. Even though its services segment is expanding, revenue declines from all of its physical products are expected to result in a low-single-digit drop in both the company's sales and profits in fiscal 2023. Despite this decline, investors are paying 26 times forward earnings. That's very close to the upper end of Apple's valuation range over the past decade, and all the more reason to avoid Apple like the plague in October.
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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. 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 Meta Platforms. The Motley Fool recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Based on data from GlobalStats, you'd have to go back to March 2015 to find the last time Google didn't account for at least 90% of worldwide monthly search share. Focusing on a variety of subscription services should minimize the sales lumpiness often associated with major physical product replacement cycles, as well as lift Apple's operating margin over the long run.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. Over the past five years, Alphabet has averaged a valuation of 25 times forward-year earnings and 18 times forward-year cash flow. The Motley Fool recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, and Netflix.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. The FAANG stock that's a no-brainer buy in October: Alphabet Out of the five time-tested FAANG stocks, it's Alphabet, the parent of Google, streaming platform YouTube, and autonomous vehicle company Waymo, among others, which is a no-brainer buy in October. The FAANG stock to avoid like the plague in October: Apple However, not all of the FAANG stocks are positioned to be winners in the coming quarters.
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When I say "FAANG stocks," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Image source: Getty Images. The FAANG stock to avoid like the plague in October: Apple However, not all of the FAANG stocks are positioned to be winners in the coming quarters. As of this very moment, Apple isn't a growth company.
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13211.0
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2023-10-09 00:00:00 UTC
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Analysts Expect IYW To Hit $125
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AAPL
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https://www.nasdaq.com/articles/analysts-expect-iyw-to-hit-%24125-0
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares U.S. Technology ETF (Symbol: IYW), we found that the implied analyst target price for the ETF based upon its underlying holdings is $124.68 per unit.
With IYW trading at a recent price near $107.97 per unit, that means that analysts see 15.48% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Although PATH has traded at a recent price of $16.72/share, the average analyst target is 17.05% higher at $19.57/share. Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. Below is a twelve month price history chart comparing the stock performance of PATH, AAPL, and PINS:
Combined, PATH, AAPL, and PINS represent 18.35% of the iShares U.S. Technology ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares U.S. Technology ETF IYW $107.97 $124.68 15.48%
UiPath Inc PATH $16.72 $19.57 17.05%
Apple Inc AAPL $177.49 $206.03 16.08%
Pinterest Inc PINS $28.08 $32.46 15.59%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
SLCT Videos
ONCS YTD Return
DXCM 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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iShares U.S. Technology ETF IYW $107.97 $124.68 15.48% UiPath Inc PATH $16.72 $19.57 17.05% Apple Inc AAPL $177.49 $206.03 16.08% Pinterest Inc PINS $28.08 $32.46 15.59% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08.
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Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. iShares U.S. Technology ETF IYW $107.97 $124.68 15.48% UiPath Inc PATH $16.72 $19.57 17.05% Apple Inc AAPL $177.49 $206.03 16.08% Pinterest Inc PINS $28.08 $32.46 15.59% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Below is a twelve month price history chart comparing the stock performance of PATH, AAPL, and PINS: Combined, PATH, AAPL, and PINS represent 18.35% of the iShares U.S. Technology ETF.
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Below is a twelve month price history chart comparing the stock performance of PATH, AAPL, and PINS: Combined, PATH, AAPL, and PINS represent 18.35% of the iShares U.S. Technology ETF. Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08.
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13212.0
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2023-10-09 00:00:00 UTC
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US STOCKS-Futures lower as Middle East conflict sparks run for safe-haven assets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-lower-as-middle-east-conflict-sparks-run-for-safe-haven-assets
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%.
Israel's troops were still fighting to clear out Hamas gunmen who killed 700 Israelis and seized hostages, even as the country responded with its heaviest ever bombardment of the Gaza Strip, killing about 500 people.
Israel has acknowledged that the battle was taking longer than expected, more than two days after the militants burst across the fence from Gaza on a deadly rampage.
U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were down 152 points, or 0.45%, S&P 500 e-minis EScv1 were down 24.25 points, or 0.56%, and Nasdaq 100 e-minis NQcv1 were down 109.5 points, or 0.72%.
The CBOE volatility index .VIX, Wall Street's "fear gauge," also rose to 19.10, reflecting investor anxiety.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while growing uncertainty pushed crude prices higher.
"We're seeing a classic safe-haven move, but I would suggest no real sign of panic yet," said Stuart Cole, chief macro economist at Equiti Capital.
"A lot will depend on whether the conflict spreads ... and any disruptions to oil supplies."
Energy companies, including Chevron CVX.N, Exxon Mobil XOM.N, Marathon Oil MRO.N and Occidental Petroleum OXY.N jumped around 3% each in premarket trading.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. Their shares were down more than 2% each.
Gold miner Newmont NEM.N and U.S.-listed shares of Barrick Gold GOLD.Nrose 1.7% and 2.4%, respectively.
Defense companies Northrop Grumman NOC.N, RTX RTX.N, General Dynamics GD.N and Lockheed Martin LMT.N advanced between 2.9% and 4.7%.
The U.S. bond market was shut on Monday for Columbus Day.
Major technology stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O dipped 0.9% to 1.2%.
Chip stocks Intel INTC.O, Nvidia NVDA.O, Qualcomm QCOM.O and Advanced Micro Devices AMD.O also lost between 1.0% and 2.2%.
The Nasdaq .IXIC and the S&P 500 .SPX posted weekly gains on Friday as mixed jobs reports kept investors on edge around the Federal Reserve's interest rate outlook.
For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Fed's September meeting minutes will be in focus.
Later on Monday, investors will keep an eye on speeches by Fed Vice Chair Philip Jefferson and Vice Chair for Supervision Michael Barr.
Focus will also be on the upcoming quarterly earnings from major banks including JPMorgan Chase JPM.N, Wells Fargo WFC.N, Citigroup C.N as well as asset manager BlackRock BLK.N.
TeslaTSLA.O shed 1.7% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year ago.
Disney DIS.N gained 0.8% on a report Nelson Peltz's Trian Fund Management has increased its stake in the media giant, with the activist investor expected to request multiple board seats, including for himself.
(Reporting by Shashwat Chauhan 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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Major technology stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O dipped 0.9% to 1.2%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. The Nasdaq .IXIC and the S&P 500 .SPX posted weekly gains on Friday as mixed jobs reports kept investors on edge around the Federal Reserve's interest rate outlook.
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Major technology stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O dipped 0.9% to 1.2%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while growing uncertainty pushed crude prices higher.
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Major technology stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O dipped 0.9% to 1.2%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Fed's September meeting minutes will be in focus.
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Major technology stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O dipped 0.9% to 1.2%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - U.S. stock index futures fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 4%. Israel's troops were still fighting to clear out Hamas gunmen who killed 700 Israelis and seized hostages, even as the country responded with its heaviest ever bombardment of the Gaza Strip, killing about 500 people.
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13213.0
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2023-10-09 00:00:00 UTC
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US STOCKS-Futures down as Middle East conflict sparks run for safe-haven assets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-down-as-middle-east-conflict-sparks-run-for-safe-haven-assets
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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 down: Dow 0.45%, S&P 0.54%, Nasdaq 0.64%
Oct 9 (Reuters) - U.S. stock index futures slipped on Monday as a growing conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 3%.
Israel's troops were still fighting to recapture towns from Hamas gunmen who killed 700 Israelis and seized hostages, even as the country responded with its heaviest ever bombardment of the Gaza strip, killing more than 400 people.
Israel has acknowledged that the battle was taking longer than expected, more than two days after the militants burst across the fence from Gaza on a deadly rampage.
U.S Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while the growing uncertainty pushed crude prices higher.
"The scale of the attack and loss of lives imply that the response is likely to last for a few months, potentially till year-end," said Mohit Kumar, chief economist Europe at Jefferies.
At 5:04 a.m. ET, Dow e-minis 1YMcv1 were down 152 points, or 0.45%, S&P 500 e-minis EScv1 were down 23.5 points, or 0.54%, and Nasdaq 100 e-minis NQcv1 were down 96.5 points, or 0.64%.
U.S. energy companies, including Chevron CVX.N, Exxon Mobil XOM.N, Marathon Oil MRO.N and Occidental Petroleum OXY.N, jumped between 2.1% and 3.7% in premarket trading as oil prices rose more than $3 a barrel.
Defense companies Northrop Grumman NOC.N, RTX GD.N and Lockheed Martin LMT.N advanced between 4.1% and 5%.
Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dipped 0.3% to 2.1%.
The Nasdaq .IXIC and the S&P 500 .SPX had posted weekly gains on Friday as mixed jobs reports kept investors on edge around the Federal Reserve's interest rate outlook.
Data would take center stage once again this week with September producer price index and consumer price inflation readings due on Wednesday and Thursday, respectively.
Later in the day, investors will also keep an eye on speeches by Fed Vice Chair Philip Jefferson and Vice Chair for Supervision Michael Barr.
Over the weekend, Federal Reserve Governor Michelle Bowman reiterated that inflation continues to be too high despite "considerable" progress in lowering it, and the U.S. central bank will likely need to further tighten monetary policy.
Focus will also be on the upcoming quarterly earnings from major banks including JPMorgan Chase JPM.N, Wells Fargo WFC.N, Citigroup C.N as well as asset manager BlackRock BLK.N.
Among individual stocks, TeslaTSLA.O dipped 1.6% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year ago.
Shares of cancer drugmaker Mirati TherapeuticsMRTX.O were down 2% after Bristol-Myers Squibb BMY.N said on Sunday it will acquire the company in a up to $5.8 billion deal.
(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, Nvidia NVDA.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dipped 0.3% to 2.1%. U.S Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support. "The scale of the attack and loss of lives imply that the response is likely to last for a few months, potentially till year-end," said Mohit Kumar, chief economist Europe at Jefferies.
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Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dipped 0.3% to 2.1%. Futures down: Dow 0.45%, S&P 0.54%, Nasdaq 0.64% Oct 9 (Reuters) - U.S. stock index futures slipped on Monday as a growing conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 3%. Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while the growing uncertainty pushed crude prices higher.
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Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dipped 0.3% to 2.1%. Futures down: Dow 0.45%, S&P 0.54%, Nasdaq 0.64% Oct 9 (Reuters) - U.S. stock index futures slipped on Monday as a growing conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 3%. U.S. energy companies, including Chevron CVX.N, Exxon Mobil XOM.N, Marathon Oil MRO.N and Occidental Petroleum OXY.N, jumped between 2.1% and 3.7% in premarket trading as oil prices rose more than $3 a barrel.
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Megacap stocks, including Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Meta Platforms META.O, Alphabet GOOGL.O and Amazon.com AMZN.O, dipped 0.3% to 2.1%. Futures down: Dow 0.45%, S&P 0.54%, Nasdaq 0.64% Oct 9 (Reuters) - U.S. stock index futures slipped on Monday as a growing conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped close to 3%. Israel's troops were still fighting to recapture towns from Hamas gunmen who killed 700 Israelis and seized hostages, even as the country responded with its heaviest ever bombardment of the Gaza strip, killing more than 400 people.
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13214.0
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2023-10-09 00:00:00 UTC
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Bull of the Day: NVIDIA (NVDA)
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AAPL
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https://www.nasdaq.com/articles/bull-of-the-day%3A-nvidia-nvda-7
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nan
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nan
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I last wrote about NVIDIA (NVDA) as the Bull of the Day in early September when it seemed like estimates had surged so much that they couldn’t go any higher.
This was two weeks after the company’s August 23 quarterly report and most analysts had made their upward revisions based on strong guidance from Jensen Huang & Co.
But the full wrath (and math) of the AI tsunami that NVIDIA has given life to is still being underestimated by Wall Street analysts and investors.
And that means the sales and profit estimates for NVDA keep getting revised upwards.
For perspective, here was the update I gave on September 6...
Because look what happened with the Starship Jensen’s results and guidance: They blew the roof off with a roughly $2 billion beat on the Q2 top line and then forecasted almost a $4 billion beat for the current Q3.
This means that the crowd of spreadsheet jockeys (Wall Street analysts), who have been underestimating NVIDIA’s growth in hyper-scale accelerated computing, have spent the last two weeks punching new, much more bullish assumptions into their models that keep NVDA a Zacks #1 Rank.
Here are where their consensus revenue projections stand now (9/6) on the Zacks Detailed Estimates page...
FY’24 (ends January): $53 billion for 97% growth
FY’25 (begins in Feb): $76 billion for 43% growth
And there’s profit optimism too...
FY’24 EPS consensus just moved from $7.79 to $10.46
FY'25 EPS consensus just moved from $10.77 to $15.48 (48% annual growth after the current year’s 210%+ advance!)
Based on these revenue and profit estimates for next year, NVDA trades at 30X EPS and only 16X sales. As I described in my June video and article, NVDA should continue to trade at a premium of 20X sales as it progresses to $100 billion in annual revenue...
Nvidia DGX: Workhorse of AI Will Drive NVDA to $2 Trillion
(end of excerpt from September 6 report)
The Moonshot to $100 Billion in Sales
In that June video and article, I suggested that NVIDIA sales could climb to $100 billion annually by 2026. At the time, sales estimates for next year (FY’25 which ends in January of 2025) were just beginning to breach $50 billion after their May earnings and product announcements.
Fast forward just over 3 months and here’s where the consensus views have ascended to...
FY’24 (ends January): $54.4 billion for 101.7% growth
FY’25 (begins in Feb): $80 billion for 47% growth
At a $1.1 trillion market cap, NVDA now trades under 14X next year's sales.
And the profit optimism persists too as the premier maker of GPUs commands top margins. Here’s a look at the move higher in EPS estimates just in the past four weeks since my last public report (I update for members every week)...
FY’24 EPS consensus just moved from $10.46 to $10.74
FY'25 EPS consensus just moved from $15.48 to $16.32 (52% annual growth after the current year’s 221.5%+ advance!)
$100 Billion -- Sooner Than Even I Imagined
Keep in mind that these are consensus views. The high end estimate on next year’s topline is $116 billion.
Given the surge in demand for NVIDIA systems architecture like DGX Grace Hopper 200 supercomputers, even my optimistic expectations are getting run over quickly.
To wit, last week KeyBanc analyst John Vinh put out a note where he explained why he was raising his price target from $670 to $750.
After the firm's quarterly supply-chain channel checks, his top takeaway is that AI data center demand remained extremely strong, outstripping supply by about 20%.
In his model, that computes to datacenter revenue of $45 billion for fiscal year 2024, up over 100%.
Vinh reported that while China’s demand remained weak, it didn’t deteriorate significantly. More importantly, Vinh sees a new opportunity for Nvidia in the second half, driven by “very strong” demand for L40S, a GPU designed for datacenter workloads like generative AI and large language model inference and training.
He estimates a revenue contribution of $2.25 billion to $3 billion from this next-gen GPU.
I haven't talked much about the new L40S platform yet because we're still in a revenue phase driven by a mix shift from Ampere 100 chipsets to the higher ASP (average selling price) Grace Hopper 100 "admirals."
A DGX system which holds eight GPUs, can command a price tag between $200,000 and $300,000 depending on configuration and availability (i.e., demand outstripping supply).
But the L40S will be another game-changer for NVIDIA in datacenters because the workload capacities are hyper-industrial strength.
Breaking down why Vinh sees NVIDIA DC doing $45 billion this year, he predicts that the Microsoft/Open AI alliance will procure 450,000 Nvidia GPUs this year, translating to $11 billion in revenue, and 1.6 million GPUs next year, contributing $40 billion in revenue.
These estimates are based on ASPs for GPUs of about $25,000, which is really the low end in this demand-driven environment. The real market is closer to $40K each.
And Apple (AAPL) is expected to purchase 200,000 H100 GPUs next year, representing $5 billion in revenue.
“We believe NVDA has order and backlog visibility through 1H24 at this point and have not heard of any order cuts from its major CSP customers,” Vinh said.
To wit, KeyBanc expects Nvidia's data center revenue of $101 billion for fiscal year 2025, up 124%.
CUDA the Kraken
In my September report, I reviewed the “killer app” that makes NVIDIA GPUs so special...
For the past seven years since I first learned about what Jensen was creating from GPU gaming cards, I’ve said that the key to NVIDIA innovation dominating the world of hyperscale accelerated computing revolved around three factors...
1) The capabilities of GPU stacks creating "massively parallel architectures" for harnessing big-data with modeling, automation, and simulation
2) The CUDA (Compute Unified Device Architecture) hardware + software stack that enables fast training and deployment of machine learning and deep learning models
3) The evangelism of thousand of developers who get ingrained in the platform tools and never want to leave that ecosystem
Long-time Apple evangelist Gene Munster recently said the same thing...
“CUDA has created a moat around Nvidia's chip business. It would be difficult to get developers to switch to a different platform.”
And that’s why observers like me and Dan Ives of Wedbush think that this is the "iPhone moment" for NVIDIA and its AI tools.
In conclusion, let's hear from the AI wizard himself, Jensen Huang...
"The world has something along the lines of about a trillion dollars' worth of data centers installed in the cloud and enterprise. And that trillion dollars of data centers is in the process of transitioning into accelerated computing and generative AI."
I think this translates into NVIDIA hitting $100 billion per year in revenue much sooner than my 2026 projection in June. So don’t miss your chance to buy NVDA under $450 again. I’m pretty sure you won’t see it below $400 ever again.
(end of excerpt from Sep 6)
As I write this on Friday afternoon, NVDA shares are popping back above $450 after a trip down to $410 on September 21. And I also see a new article by the Wall Street Journal’s Dan Gallagher in his Heard on the Street column titled “How Nvidia Got Huge — and Almost Invincible.”
Here’s a quote that sums up the built-in invincibility of the developer moat…
Over time, CUDA has grown to encompass 250 software libraries used by AI developers. That breadth effectively makes Nvidia the go-to platform for AI developers; Credit Suisse analysts said those libraries "provide a starting point for AI projects that aren't available on non-NVDA systems, " in a report earlier this year. During a speech at the Computex conference in May, Nvidia's Huang said CUDA was downloaded 25 million times over the last year, which was more than double the software's life-to-date downloads prior to that.
Looks like I wasn't crazy optimistic enough calling for $100 billion in sales in 2025. Let’s make that call $125 billion now.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis 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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And Apple (AAPL) is expected to purchase 200,000 H100 GPUs next year, representing $5 billion in revenue. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This means that the crowd of spreadsheet jockeys (Wall Street analysts), who have been underestimating NVIDIA’s growth in hyper-scale accelerated computing, have spent the last two weeks punching new, much more bullish assumptions into their models that keep NVDA a Zacks #1 Rank.
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Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And Apple (AAPL) is expected to purchase 200,000 H100 GPUs next year, representing $5 billion in revenue. FY’24 (ends January): $53 billion for 97% growth FY’25 (begins in Feb): $76 billion for 43% growth
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Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And Apple (AAPL) is expected to purchase 200,000 H100 GPUs next year, representing $5 billion in revenue. Breaking down why Vinh sees NVIDIA DC doing $45 billion this year, he predicts that the Microsoft/Open AI alliance will procure 450,000 Nvidia GPUs this year, translating to $11 billion in revenue, and 1.6 million GPUs next year, contributing $40 billion in revenue.
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And Apple (AAPL) is expected to purchase 200,000 H100 GPUs next year, representing $5 billion in revenue. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Based on these revenue and profit estimates for next year, NVDA trades at 30X EPS and only 16X sales.
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13215.0
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2023-10-09 00:00:00 UTC
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Israel's tech sector could face disruptions after attacks -investors
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AAPL
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https://www.nasdaq.com/articles/israels-tech-sector-could-face-disruptions-after-attacks-investors
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nan
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nan
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By Max A. Cherney, Mica Rosenberg and Steven Scheer
SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others.
High-tech industries have for a few decades been the fastest growing sector in Israel and crucial for economic growth, accounting for 14% of jobs and almost a fifth of gross domestic product.
Israeli stock and bond prices slid and many businesses were closed on Sunday after gunmen from the Palestinian group Hamas rampaged through Israeli towns on Saturday and militants also fired thousands of rockets into Israel in a surprise attack.
Some rockets reached as far as Tel Aviv, prompting airlines to suspend flights to and from Israel.
Israel retaliated with air strikes on Hamas targets in Gaza, and hundreds of people have died.
"It is a huge disruption to business as usual," said Jack Ablin, chief investment officer and founding partner at Cresset Wealth Advisors. He said in the short-term resources could be diverted if the conflict expands, such as staff at tech companies being called up as military reservists.
Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said there will likely be a "tremendous effort" to guard physical installations for companies based in Israel from attacks because some technology spending is tied to the military.
A spokesperson for chipmaker Intel Corp INTC.O, Israel's largest private employer and exporter, said on Sunday the company was "closely monitoring the situation in Israel and taking steps to safeguard and support our workers." The spokesperson declined to say whether chip production has been affected by the situation.
Nvidia NVDA.O, the world's largest maker of chips used for artificial intelligence and computer graphics, said it had canceled an AI summit scheduled for Tel Aviv next week, where its CEO Jensen Huang was due to speak.
Israel-based Tower SemiconductorTSEM.TA, which provides customers with analog and mixed-signal semiconductors, mainly for the automotive and consumer industries, said it was operating as usual.
Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. Microsoft MSFT.O declined to comment.
Israel's technology sector had already been facing a slowdown in 2023, exacerbated by internal political conflict and protests. A growing number of Israel's tech startups have been incorporating in the United States.
MILITARY, AI SPENDING BOOST
Israel's tech sector dates back to 1974 when Intel established a presence, but the start-up scene took off in the 1990s, earning a reputation as the world's second-largest tech center outside of Silicon Valley, with thousands of companies and developing a significant ecosystem.
There are now 500 multinationals operating in Israel - mainly research and development centers after buying Israeli start-ups - from Intel to IBM, Apple, Microsoft, Google and Facebook.
In June, Prime Minister Benjamin Netanyahu said Intel was planning to spend $25 billion on a new factory in the southern city of Kiryat Gat some 42 km (26 miles) from Gaza.
Due to open in 2027, he called it the largest-ever international investment in the country that could employ thousands of people and would add to its chip plants and design centers there.
In the longer term, the tech and AI sector, where Israel has been a leader, could see increased investment because of the industries' close tie-in with military spending, LPL's Krosby said.
"They will probably increase the investment in AI," Krosby said. "When a country is caught literally off guard the first thing they look at - beside the obvious problems with intelligence - is what was missed within the security systems."
"It could bolster support for more financial resources for tech for the military, which then ultimately transitions to the private sector tech companies," Krosby added.
The tech sector has shown resilience in the past, overcoming a number of conflicts with Hamas in Gaza.
Apjit Walia the Managing Director at DVN Capital said the Israeli tech sector "has historically bounced back from geopolitical tragedies."
(Reporting by Max A. Cherney in Francisco, Mica Rosenberg in New York and Steven Scheer in Jerusalem; Editing by Kenneth Li, Megan Davies and Jamie Freed)
((mica.rosenberg@thomsonreuters.com; (646) 223-6735;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. By Max A. Cherney, Mica Rosenberg and Steven Scheer SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others. Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said there will likely be a "tremendous effort" to guard physical installations for companies based in Israel from attacks because some technology spending is tied to the military.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. By Max A. Cherney, Mica Rosenberg and Steven Scheer SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others. In the longer term, the tech and AI sector, where Israel has been a leader, could see increased investment because of the industries' close tie-in with military spending, LPL's Krosby said.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. By Max A. Cherney, Mica Rosenberg and Steven Scheer SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others. Israel's tech sector dates back to 1974 when Intel established a presence, but the start-up scene took off in the 1990s, earning a reputation as the world's second-largest tech center outside of Silicon Valley, with thousands of companies and developing a significant ecosystem.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. By Max A. Cherney, Mica Rosenberg and Steven Scheer SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others. "It could bolster support for more financial resources for tech for the military, which then ultimately transitions to the private sector tech companies," Krosby added.
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13216.0
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2023-10-09 00:00:00 UTC
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Apple (AAPL) Expands Apple TV+ Portfolio With World War II Drama
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-expands-apple-tv-portfolio-with-world-war-ii-drama
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nan
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nan
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Apple AAPL is expanding Apple TV+ content with the unveiling of the first images of its upcoming World War II drama, Masters of the Air. The nine-episode limited series will make its global debut on Jan 26, 2024.
Masters of the Air follows the true story of an American bomber group in World War II. 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.
Masters of the Air is based on Donald L. Miller’s book of the same name and the show is scripted by John Orloff. It follows the men of the 100th Bomb Group as they conduct bombing raids over Nazi Germany amid frigid conditions, lack of oxygen and sheer terror of combat conducted at 25,000 feet in the air.
Apple TV+ Gaining From Robust Portfolio
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+.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple shares have outperformed Netflix and Disney but underperformed Amazon. Apple shares have returned 36.6% while Amazon and Netflix shares have returned 52.3% and 29.4%, respectively. Disney shares have declined 4.5% year to date.
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.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL is expanding Apple TV+ content with the unveiling of the first images of its upcoming World War II drama, Masters of the Air. 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 is expanding its footprint in the entertainment industry with plans to spend $1 billion on producing movies, per Bloomberg.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is expanding Apple TV+ content with the unveiling of the first images of its upcoming World War II drama, Masters of the Air. Apple TV+ Gaining From Robust Portfolio 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 is expanding Apple TV+ content with the unveiling of the first images of its upcoming World War II drama, Masters of the Air. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Apple shares have outperformed Netflix and Disney but underperformed Amazon.
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Apple AAPL is expanding Apple TV+ content with the unveiling of the first images of its upcoming World War II drama, Masters of the Air. 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 Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Apple shares have outperformed Netflix and Disney but underperformed Amazon.
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13217.0
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2023-10-09 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq fall on Middle East conflict
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-fall-on-middle-east-conflict
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%.
Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
The Israeli military said it had called up an unprecedented 300,000 reservists and was imposing a total blockade of the Gaza Strip, signs it could be planning a ground assault.
U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
At 9:40 a.m. ET, the Dow Jones Industrial Average .DJI was down 12.14 points, or 0.04%, at 33,395.44, the S&P 500 .SPX was down 14.98 points, or 0.35%, at 4,293.52, and the Nasdaq Composite .IXIC was down 127.02 points, or 0.95%, at 13,304.33.
The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.59, reflecting investor anxiety.
Major technology stocks Apple AAPL.O, Microsoft MSFT.O Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.5% and 2.3%.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
"We expect short-term volatility in the stock market and oil market as investors digest the heightened tensions in the Middle East," said James Demmert, chief investment officer, Main Street Research.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. The airlines' shares were down around 5% each, dragging the S&P 500 Passenger Airlines index .SPLRCALI 4.4% lower.
Energy .SPNY was the top S&P 500 sector gainer with a near 3% rise, while consumer discretionary .SPLRCD and information technology .SPLRCT were the worst hit.
Defense companies Northrop Grumman NOC.N, RTX RTX.N, General Dynamics GD.N and Lockheed Martin LMT.N rose between 5.5% and 8.5%.
Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.6% and 4.4%, respectively.
For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Federal Reserve's September meeting minutes will be in focus.
Dallas Fed President Lorie Logan said the recent rise in long-term U.S. Treasury yields and tighter financial conditions more generally could mean less need for the U.S. central bank to raise interest rates further.
The U.S. bond market was shut on Monday for Columbus Day.
Focus will also be on the upcoming quarterly earnings from major banks including JPMorgan Chase JPM.N, Wells Fargo WFC.N, Citigroup C.N as well as asset manager BlackRock BLK.N.
TeslaTSLA.O shed 2.5% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year ago.
Declining issues outnumbered advancers for a 1.45-to-1 ratio on the NYSE and a 2.40-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and six new lows, while the Nasdaq recorded 16 new highs and 113 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; 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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Major technology stocks Apple AAPL.O, Microsoft MSFT.O Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.5% and 2.3%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
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Major technology stocks Apple AAPL.O, Microsoft MSFT.O Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.5% and 2.3%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.59, reflecting investor anxiety.
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Major technology stocks Apple AAPL.O, Microsoft MSFT.O Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.5% and 2.3%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.6% and 4.4%, respectively.
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Major technology stocks Apple AAPL.O, Microsoft MSFT.O Alphabet GOOGL.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.5% and 2.3%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - The S&P 500 and the Nasdaq fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped over 3%. Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
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13218.0
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2023-10-09 00:00:00 UTC
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Bernstein Reiterates Apple (AAPL) Market Perform Recommendation
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AAPL
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https://www.nasdaq.com/articles/bernstein-reiterates-apple-aapl-market-perform-recommendation
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nan
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nan
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Fintel reports that on October 9, 2023, Bernstein reiterated coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation.
Analyst Price Forecast Suggests 14.69% Upside
As of October 5, 2023, the average one-year price target for Apple is 203.55. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 14.69% from its latest reported closing price of 177.49.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 436,698MM, an increase of 13.74%. The projected annual non-GAAP EPS is 6.93.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6426 funds or institutions reporting positions in Apple. This is an increase of 22 owner(s) or 0.34% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. Total shares owned by institutions increased in the last three months by 0.18% to 9,939,375K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on October 9, 2023, Bernstein reiterated coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on October 9, 2023, Bernstein reiterated coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on October 9, 2023, Bernstein reiterated coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on October 9, 2023, Bernstein reiterated coverage of Apple (NASDAQ:AAPL) with a Market Perform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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13219.0
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2023-10-09 00:00:00 UTC
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iShares Core S&P 500 ETF Experiences Big Inflow
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AAPL
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https://www.nasdaq.com/articles/ishares-core-sp-500-etf-experiences-big-inflow-8
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.5 billion dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 791,750,000 to 797,650,000). Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 0.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average:
Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $430.24. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Funds Holding JFBR
Funds Holding MRCY
ALTO Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 0.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.5%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 0.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.5%. For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $430.24. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 0.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.5 billion dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 791,750,000 to 797,650,000). For a complete list of holdings, visit the IVV Holdings page » The chart below shows the one year price performance of IVV, versus its 200 day moving average: Looking at the chart above, IVV's low point in its 52 week range is $349.53 per share, with $461.88 as the 52 week high point — that compares with a last trade of $430.24.
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Among the largest underlying components of IVV, in trading today Apple Inc (Symbol: AAPL) is off about 0.3%, Microsoft Corporation (Symbol: MSFT) is off about 0.2%, and Amazon.com Inc (Symbol: AMZN) is lower by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P 500 ETF (Symbol: IVV) where we have detected an approximate $2.5 billion dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 791,750,000 to 797,650,000). Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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13220.0
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2023-10-09 00:00:00 UTC
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SNAP Announces New Phantom House Experience for Halloween
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AAPL
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https://www.nasdaq.com/articles/snap-announces-new-phantom-house-experience-for-halloween
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nan
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nan
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Snap Inc. SNAP recently launched an immersive Halloween experience spanning across Snapchat’s Chat, Camera, Stories and Spotlight tabs. In this series, digital creators like Tony Talks, Sofie Dossi and Ezee will be featured as they race against time to escape the Phantom House.
Snapchatters can follow the story weekly and contribute to the adventure by assisting the creators in gathering clues and solving puzzles. They can share their experiences with friends using AR Lenses and AI-generated Dreams selfies inspired by the Phantom House.
Snapchat highlights that 80% of Snapchatters intend to use the platform during Halloween, presenting it as an exciting way to embrace the spooky season and generate some thrilling enjoyment through a mystery that can only be unraveled with the assistance of Snapchatters.
Phantom House will come during Advertising Week New York through a takeover of out-of-home spaces, featuring other prominent brands as well. Additionally, there was a live activation allowing SNAP’s partners to personally experience the Halloween enchantment on Snapchat.
Snapchatters are able to participate in the Phantom House mystery on Snapchat, alongside their beloved creators, from Oct 8.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Snapchat’s New Updates to Boost Daily Active Users Globally
Snapchat has unveiled a set of new updates for its app, with a focus on enhancing the protection of teenage users. The company's goal is to make it more challenging for strangers to connect with teenagers, offer age-appropriate content, enforce stricter controls on accounts promoting inappropriate material and enhance educational resources for teen users. These updates are expected to boost Snap’s daily active users (DAUs) as well as revenues in the upcoming quarters.
The Zacks Consensus Estimate for SNAP’s 2023 DAUs globally is pegged at 412.85 million, indicating year-over-year growth of 121.9%. The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, indicating a year-over-year decline of 2.13%.
This announcement comes nearly two years after Snap faced scrutiny from Congress regarding its 13+ age rating on the App Store, as some U.S. senators considered its content unsuitable for younger users due to sexualized content, ads, articles on alcohol, pornography and more.
Snapchat introduced a three-strike system for Stories and Spotlight, which are areas where users can discover public content with a wider reach. Under this new system, Snapchat will promptly remove any inappropriate content that is either detected proactively or reported to the company. Furthermore, if an account attempts to bypass Snapchat's rules, it will face a ban.
Shares of this Zacks Rank #3 (Hold) company have declined 3.6% in the past year against the Zacks Computer and Technology sector’s rise of 36.6% due to the tough competition from Meta Platforms’ META Instagram, Google’s GOOGL YouTube and Apple AAPL.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Instagram is a photo and video-sharing app that serves as a notable alternative to Snapchat. Instagram offers features like built-in filters, a store and live functions. Unlike Snapchat, Instagram is accessible across various platforms, including iOS, Android, Windows Phone, desktops, tablets and MacOS. However, META’s Instagram lacks the feature of self-destructing messages and snaps, which is a distinct characteristic of Snapchat.
Established in 2005, YouTube has a long history in the realm of online video content. It remains a dominant platform in this regard. Unlike platforms like Instagram Reels and Snapchat, YouTube offers a significantly longer time limit. By default, users can upload videos up to 15 minutes in duration. However, by verifying their Google Account, the users gain the ability to upload and share videos as long as 12 hours.
AAPL’s iMessages refer to instant messages, including text, photos, or videos, sent between iPhone or iOS users. When the message is exchanged between such devices, it appears as blue text bubbles. However, if the message appears as green, it signifies SMS texts, indicating that the recipient might not be using iMessage and possibly has a different type of smartphone.
Both iMessage and Snapchat are competing to attract and retain users from the Generation Z demographic. This competition suggests that Snapchat and Apple are targeting the same age group in their marketing efforts.
4 Oil Stocks with Massive Upsides
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Apple Inc. (AAPL) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of this Zacks Rank #3 (Hold) company have declined 3.6% in the past year against the Zacks Computer and Technology sector’s rise of 36.6% due to the tough competition from Meta Platforms’ META Instagram, Google’s GOOGL YouTube and Apple AAPL. AAPL’s iMessages refer to instant messages, including text, photos, or videos, sent between iPhone or iOS users. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Shares of this Zacks Rank #3 (Hold) company have declined 3.6% in the past year against the Zacks Computer and Technology sector’s rise of 36.6% due to the tough competition from Meta Platforms’ META Instagram, Google’s GOOGL YouTube and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL’s iMessages refer to instant messages, including text, photos, or videos, sent between iPhone or iOS users.
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Shares of this Zacks Rank #3 (Hold) company have declined 3.6% in the past year against the Zacks Computer and Technology sector’s rise of 36.6% due to the tough competition from Meta Platforms’ META Instagram, Google’s GOOGL YouTube and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. AAPL’s iMessages refer to instant messages, including text, photos, or videos, sent between iPhone or iOS users.
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Shares of this Zacks Rank #3 (Hold) company have declined 3.6% in the past year against the Zacks Computer and Technology sector’s rise of 36.6% due to the tough competition from Meta Platforms’ META Instagram, Google’s GOOGL YouTube and Apple AAPL. AAPL’s iMessages refer to instant messages, including text, photos, or videos, sent between iPhone or iOS users. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here.
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13221.0
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2023-10-09 00:00:00 UTC
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Barclays Reiterates Apple (AAPL) Equal-Weight Recommendation
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AAPL
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https://www.nasdaq.com/articles/barclays-reiterates-apple-aapl-equal-weight-recommendation-0
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nan
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nan
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Fintel reports that on October 9, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 14.69% Upside
As of October 5, 2023, the average one-year price target for Apple is 203.55. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 14.69% from its latest reported closing price of 177.49.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 436,698MM, an increase of 13.74%. The projected annual non-GAAP EPS is 6.93.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6426 funds or institutions reporting positions in Apple. This is an increase of 22 owner(s) or 0.34% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. Total shares owned by institutions increased in the last three months by 0.18% to 9,939,375K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on October 9, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on October 9, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on October 9, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on October 9, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 7.01%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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13222.0
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2023-10-09 00:00:00 UTC
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Almost Half of Warren Buffett's $337 Billion Portfolio Is Invested in Only 1 Stock
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AAPL
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https://www.nasdaq.com/articles/almost-half-of-warren-buffetts-%24337-billion-portfolio-is-invested-in-only-1-stock
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nan
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nan
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Warren Buffett has one of the best and longest track records and is considered by many to be the greatest investor ever. Even at 93 years old, his mind seems as sharp as ever.
The average investor could boost their portfolio returns by looking at the stocks Berkshire Hathaway owns. If a company passes Buffett's test, it may be worth considering.
As of this writing, Apple (NASDAQ: AAPL) makes up a notable 47.5% of the conglomerate's portfolio. Clearly, the Oracle of Omaha thinks highly of the dominant tech business. Let's take a closer look at what attributes drew Buffett to Apple and what prospective investors should do right now.
It's easy to see why Buffett bought shares
Berkshire first purchased shares in Apple during the first quarter of 2016. Although additional purchases were made after that point, that initial investment paid off extremely well. From the start of 2016 to Oct. 5 of this year, Apple stock has soared 565%, a gain that crushes the major indices.
Anyone who follows Buffett knows that his investing philosophy focuses on finding high-quality businesses at reasonable valuations. Apple's valuation was very attractive when he first bought the stock, and this certainly helped boost returns. During the first three months of 2016, shares traded at an average price-to-earnings (P/E) of just 10.6. That seems like a steal in hindsight and shows that perhaps the market was a bit too pessimistic about Apple back then.
Buffett has long been notorious for avoiding companies in the tech sector, so it was surprising when Apple was added to Berkshire's portfolio. But I think after studying the business, he realized that the key to Apple's story was its strong brand and incredible customer loyalty. Buffett has an appreciation for powerful brands, as evidenced by Berkshire's stakes in Coca-Cola and American Express, for example. Apple's gross margin of 44% in the latest quarter (Q3 2023, ended July 1) is indicative of its brand presence.
By offering some of the most innovative and easy-to-use products on the market, like the iPhone, Watch, AirPods, and MacBook, Apple has proven pricing power due to what seems like unlimited demand. And because of a burgeoning services segment, customers are essentially locked into the ecosystem. From an investment perspective, this is wonderful to see.
All of this results in tremendous financial performance. In fiscal 2015 (ended Sept. 26 of that year), Apple posted an operating margin of 30.5% and generated free cash flow of $70 billion, figures that have grown rapidly since then.
Another part of Buffett's criteria is ensuring the company has a talented CEO. After the death of Steve Jobs, many wondered whether Apple would be as successful. But Tim Cook has performed exceedingly well, as shown by the stock price. And Buffett hasn't been shy to voice his support of Apple's leader.
Is Apple a smart buy today?
Apple has worked out as one of Berkshire's best investments ever, but how does that affect investors who have been sitting on the sidelines up until now? I think two main factors should influence your decision about wanting to buy the stock today.
With such strong share-price performance in recent years, Apple isn't even close to being as cheap as it was more than seven years ago. The stock currently trades at a P/E multiple of 29.4. That's a steep premium that limits the potential for market-beating returns.
Besides the valuation, investors must think about Apple's growth prospects. This is a massive and mature enterprise nowadays, so it's hard to see where the outsize gains could come from to justify paying an expensive P/E ratio. Moreover, smartphone sales, which still represent about half of the overall company, could be saturating, especially in the U.S.
Apple is a wonderful business, but it might not be such a great idea to buy 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.
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*Stock Advisor returns as of October 2, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As of this writing, Apple (NASDAQ: AAPL) makes up a notable 47.5% of the conglomerate's portfolio. By offering some of the most innovative and easy-to-use products on the market, like the iPhone, Watch, AirPods, and MacBook, Apple has proven pricing power due to what seems like unlimited demand. In fiscal 2015 (ended Sept. 26 of that year), Apple posted an operating margin of 30.5% and generated free cash flow of $70 billion, figures that have grown rapidly since then.
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As of this writing, Apple (NASDAQ: AAPL) makes up a notable 47.5% of the conglomerate's portfolio. It's easy to see why Buffett bought shares Berkshire first purchased shares in Apple during the first quarter of 2016. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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As of this writing, Apple (NASDAQ: AAPL) makes up a notable 47.5% of the conglomerate's portfolio. It's easy to see why Buffett bought shares Berkshire first purchased shares in Apple during the first quarter of 2016. Buffett has long been notorious for avoiding companies in the tech sector, so it was surprising when Apple was added to Berkshire's portfolio.
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As of this writing, Apple (NASDAQ: AAPL) makes up a notable 47.5% of the conglomerate's portfolio. The average investor could boost their portfolio returns by looking at the stocks Berkshire Hathaway owns. From an investment perspective, this is wonderful to see.
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13223.0
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2023-10-09 00:00:00 UTC
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After Hours Most Active for Oct 9, 2023 : STRO, MSFT, T, C, CSX, AAPL, KVUE, NU, KURA, QQQ, SCHW, KO
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-9-2023-%3A-stro-msft-t-c-csx-aapl-kvue-nu-kura-qqq-schw-ko
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nan
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The NASDAQ 100 After Hours Indicator is down -4.02 to 15,043.13. The total After hours volume is currently 60,718,460 shares traded.
The following are the most active stocks for the after hours session:
Sutro Biopharma, Inc. (STRO) is unchanged at $3.83, with 3,996,892 shares traded. As reported by Zacks, the current mean recommendation for STRO is in the "buy range".
Microsoft Corporation (MSFT) is +0.11 at $329.93, with 1,564,600 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
AT&T Inc. (T) is -0.05 at $14.68, with 1,427,539 shares traded. T's current last sale is 73.4% of the target price of $20.
Citigroup Inc. (C) is +0.02 at $40.76, with 1,390,338 shares traded.C is scheduled to provide an earnings report on 10/13/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1.26 per share, which represents a 150 percent increase over the EPS one Year Ago
CSX Corporation (CSX) is unchanged at $31.08, with 1,389,605 shares traded. As reported by Zacks, the current mean recommendation for CSX is in the "buy range".
Apple Inc. (AAPL) is -0.09 at $178.90, with 1,329,134 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Kenvue Inc. (KVUE) is +0.01 at $19.88, with 1,327,497 shares traded. As reported by Zacks, the current mean recommendation for KVUE is in the "buy range".
Nu Holdings Ltd. (NU) is unchanged at $7.31, with 1,239,229 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Kura Oncology, Inc. (KURA) is unchanged at $9.06, with 1,067,589 shares traded. As reported in the last short interest update the days to cover for KURA is 9.854909; this calculation is based on the average trading volume of the stock.
Invesco QQQ Trust, Series 1 (QQQ) is +0.09 at $366.65, with 1,022,097 shares traded. This represents a 44.2% increase from its 52 Week Low.
The Charles Schwab Corporation (SCHW) is unchanged at $51.75, with 1,008,325 shares traded.SCHW is scheduled to provide an earnings report on 10/16/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.76 per share, which represents a 110 percent increase over the EPS one Year Ago
Coca-Cola Company (The) (KO) is +0.02 at $52.90, with 845,106 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.09 at $178.90, with 1,329,134 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Citigroup Inc. (C) is +0.02 at $40.76, with 1,390,338 shares traded.C is scheduled to provide an earnings report on 10/13/2023, for the fiscal quarter ending Sep2023.
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Apple Inc. (AAPL) is -0.09 at $178.90, with 1,329,134 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 1.26 per share, which represents a 150 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.09 at $178.90, with 1,329,134 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is -0.05 at $14.68, with 1,427,539 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 -0.09 at $178.90, with 1,329,134 shares traded. AT&T Inc. (T) is -0.05 at $14.68, with 1,427,539 shares traded.
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13224.0
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2023-10-09 00:00:00 UTC
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Apple (AAPL) Rises Higher Than Market: Key Facts
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-rises-higher-than-market%3A-key-facts
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nan
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nan
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Apple (AAPL) closed the most recent trading day at $178.99, moving +0.85% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.
The the stock of maker of iPhones, iPads and other products has fallen by 0.39% in the past month, leading the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.
Market participants will be closely following the financial results of Apple in its upcoming release. The company plans to announce its earnings on November 2, 2023. It is anticipated that the company will report an EPS of $1.39, marking a 7.75% rise compared to the same quarter of the previous year. 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% downward. Apple is currently a Zacks Rank #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 26.98. This denotes a premium relative to the industry's average Forward P/E of 11.86.
It is also worth noting that AAPL currently has a PEG ratio of 2.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Computer - Mini computers industry was having an average PEG ratio of 2.38.
The Computer - Mini computers industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 201, placing it within the bottom 21% of over 250 industries.
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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The views and 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) closed the most recent trading day at $178.99, moving +0.85% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.38. 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. Apple (AAPL) closed the most recent trading day at $178.99, moving +0.85% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.38.
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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. Apple (AAPL) closed the most recent trading day at $178.99, moving +0.85% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.38.
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Apple (AAPL) closed the most recent trading day at $178.99, moving +0.85% from the previous trading session. It is also worth noting that AAPL currently has a PEG ratio of 2.38. 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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13225.0
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2023-10-09 00:00:00 UTC
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7 Options Trades to Make You Money in a Flat Market
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AAPL
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https://www.nasdaq.com/articles/7-options-trades-to-make-you-money-in-a-flat-market
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite the surprisingly robust September jobs report that just came out, Wall Street hasn’t been that impressive overall, thus necessitating a discussion about options trades for a flat market. Listen, as much as I love talking about safe dividend stocks to buy for a tumultuous market, if the waste matter truly hits the proverbial fan, even the most trusted idea could temporarily falter.
Another factor that bolsters the case for options trades for a flat market is the added avenues for profitable efficiencies. For example, how many times have you thought to yourself: I’d buy XYZ Corp but only if it got down to X price. If it did drop there, you buy. But what if XYZ never got to that magic price point? My goodness – you would have wasted your time.
However, with cash-secured put selling, you can collect maximum premiums if your target security never falls to the underlying contract strike price. Conversely, you can conduct covered call writing to collect premiums on a security that you own but don’t believe will rise materially.
With options trades for a flat market, you can profit from practically any circumstance, just like the smart money.
Apple (AAPL)
Source: askarim / Shutterstock
Based on the latest trends, Apple (NASDAQ:AAPL) appears a tempting prospect for options trades for a flat market. Specifically, if I already own AAPL stock, I’d be interested in collecting a premium by writing (selling) call options. Remember, you want to own the underlying security in case the trade works against you; otherwise, you’d suffer (theoretically) unlimited losses.
Here’s the rationale. As one of the most popular companies in the world, Apple commands incredible pricing power. Just look at how its gross margins rise despite challenges to the consumer economy. People will pay for the latest Apple gadgets and gizmos. However, because it’s such a predictable business, investors don’t anticipate robust growth for AAPL stock.
Yes, shares gained 42% since the January opener. However, they’re flat on a trailing-month basis. If you don’t believe much upside for AAPL remains, writing covered calls will allow you to pick up a premium and make your holdings more “productive.”
Of course, the risk is that if AAPL pops, you may be obligated to sell your holdings. For that, analysts project AAPL hitting $207.69 over the next 12 months.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
While options trades for a flat market (or any market cycle) carry distinct risks, you must educate yourself on how they can be shrewd tools to profit from whatever the market throws at you. A case in point is Amazon (NASDAQ:AMZN). Another company that needs no introduction, Amazon continues to dominate the broader e-commerce ecosystem. It’s predictable and trustworthy but that also comes with problems.
Basically, because it’s such a great investment, Wall Street doesn’t really anticipate much upside from here. Yeah, sure, it’s up 49% since the January opener. But in the past one-month period, AMZN slipped more than 7%. Further, its valuation makes seem unlikely that much upside beckons for the industry stalwart. Right now, AMZN trades at a trailing earnings multiple of nearly 101X.
So, if you already own AMZN – keeping in mind that each options contract represents 100 shares – why not collect some income? Again, it just seems unlikely that AMZN will move higher. Here, you can check Fintel’s implied volatility (IV) curve, which seems to indicate that options traders generally anticipate a higher probability of downside than upside.
If you want to do this trade, analysts project AMZN hitting $176.02 in the next 12 months.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
One of the big winners in the market, Nvidia (NASDAQ:NVDA) – while presenting risks – may also be a strong candidate for options trades for a flat market. Yes, that almost sounds sacrilegious. After all, Nvidia’s processors help empower artificial intelligence and machine learning protocols. Currently, it appears that everyone is getting on the AI/ML bandwagon. With NVDA behind the wheel, it’s up, up, and away, right?
Eh, maybe not. Certainly, I don’t want to get into any heated NVDA debates with ardent fans. However, just look at the performance. True, NVDA gained nearly 220% since the beginning of this year. However, in the trailing six-month period, this performance slips to 66%. And in the past 30 (calendar) days, it’s actually down – yeah, a shocker – 1%.
So, if you want your NVDA holdings to be productive and simultaneously believe that shares have peaked, writing covered calls may make sense. Of course, one of the key risks is that if NVDA swings decisively higher, you may absorb an opportunity cost (because you’d be forced to fulfill the call option holder’s exercising of the contract).
Overall, analysts project that NVDA will hit $647.04 over the next one-year period.
Sempra (SRE)
Source: Michael Vi / Shutterstock.com
Switching strategies, utility giant Sempra (NYSE:SRE) may be an ideal candidate for options trades for a flat market. Here, cash-secured put selling may be appropriate, depending of course on your risk profile. With covered call writing, the core risk centers on the obligation to sell the underlying security. Again, that’s why you want to own the stock. If you engage in naked (i.e. uncovered) call writing, you may risk devastating financial pain.
Now, let’s flip it around. If you really believe in a particular company – and most importantly have the cash if forced to buy it – then cash-secured calls give you a possible best-of-both-worlds scenario. If the target security never goes in the money, you collect the maximum premium. But if it does, you will simply buy your desired security at a price with which you’re comfortable.
For Sempra, the beauty here is its natural monopoly. Frankly, no one’s going to oust it from its lofty position. And because Sempra serves much of the lucrative Southern California market, SRE should eventually recover even if it hits a downcycle.
If you’re interested in income collection, the low-side analyst target for SRE is $78.
Tesla (TSLA)
Source: Arina P Habich / Shutterstock.com
For all the political controversies that Tesla (NASDAQ:TSLA) CEO Elon Musk generates, it’s undeniable that TSLA represents a powerhouse. Of course, no one can guarantee which electric vehicle brand may survive 10 or 20 years from now. However, given the mass popularity and social integration of Tesla and other Musk ventures – much of which has been supported by government subsidies – TSLA may stand supreme.
However, it’s not moving that much right now. Yes, shares gained 141% since the beginning of this year, an incredible performance. But in the past six months, this stat slips to a bit over 41%. In the trailing one-month period, TSLA gained a very pedestrian 3.6%. So, it’s possible – especially with rising consumer challenges – that Tesla could lose equity value.
Still, as history demonstrates, TSLA tends to bounce back from such negativity. If you believe in the long-term potential of the EV maker, a cash-secured put could be enticing. Just be aware that you should truly pick a strike price with which you’re absolutely comfortable.
To better gauge this comfort point, analysts project the low-side target to be $85.
Five Below (FIVE)
Source: Jonathan Weiss / Shutterstock.com
As a discount retailer, Five Below (NASDAQ:FIVE) could be an extremely intriguing idea for options trades for a flat market. Offering products with price targets mostly up to $5 – and few that rise to $25 – Five Below offers a little something for everyone. Let’s face it, even if you’re reasonably well off, inflation touches everything. So, we could all use a discount.
With that core fundamental catalyst in mind, it’s possible that retail investors believe FIVE could swing higher. Unlike other discount retailers, Five Below hasn’t conspicuously sacrificed profitability for higher-volume sales. Its gross margin remains relatively robust, meaning that it’s well-positioned to handle an economic storm. Because of this framework, investors may want to buy FIVE.
You on the other hand may believe in FIVE stock but not in its valuation. For instance, it trades at a forward earnings multiple of 23.95X, worse than 81.64% of its peers. Yikes! So, while you’re waiting for a more de-risked profile, why not collect some premiums? If you believe in this company, it could be a win-win no matter what happens.
For those interested in a cash-secured put sale, the analyst low-side target sits at $175.
Airbnb (ABNB)
Source: Kaspars Grinvalds / Shutterstock
For temporary homestays and experiences marketplace provider Airbnb (NASDAQ:ABNB), we’ll dive into a riskier options strategy called the iron condor. This advanced strategy involves selling an out-of-money (OTM) put and an OTM call. Simultaneously, you’re also buying a further OTM put and a further OTM call. These “outer” options represent risk hedging. Should the underlying security remain between the two “inner” strikes, you’ll realize a profit.
To be clear, my discussion of the iron condor assumes that you’re symmetrically buying the same number of contracts for the inner and outer options. Otherwise, if your outer contracts are fewer than the inner, if the security moves against the trade to the upside, you may incur unlimited losses.
What might make ABNB a candidate for advanced options trades for a flat market is that it hasn’t gone anywhere (on a net basis) since late June of this year. Initially, the enthusiasm for ongoing revenge travel sentiments lifted shares. However, investors appear to be digesting whether this narrative will pan out or not.
Also, the analyst rating of ABNB – while standing at moderate buy – is heavily mixed: we’re talking 12 buys, 16 holds and three sells. So, it could just go flat and you’d be able to profit if so.
On the date of publication, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The post 7 Options Trades to Make You Money in a Flat Market 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 Based on the latest trends, Apple (NASDAQ:AAPL) appears a tempting prospect for options trades for a flat market. Specifically, if I already own AAPL stock, I’d be interested in collecting a premium by writing (selling) call options. However, because it’s such a predictable business, investors don’t anticipate robust growth for AAPL stock.
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Apple (AAPL) Source: askarim / Shutterstock Based on the latest trends, Apple (NASDAQ:AAPL) appears a tempting prospect for options trades for a flat market. Specifically, if I already own AAPL stock, I’d be interested in collecting a premium by writing (selling) call options. However, because it’s such a predictable business, investors don’t anticipate robust growth for AAPL stock.
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Apple (AAPL) Source: askarim / Shutterstock Based on the latest trends, Apple (NASDAQ:AAPL) appears a tempting prospect for options trades for a flat market. Specifically, if I already own AAPL stock, I’d be interested in collecting a premium by writing (selling) call options. However, because it’s such a predictable business, investors don’t anticipate robust growth for AAPL stock.
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Specifically, if I already own AAPL stock, I’d be interested in collecting a premium by writing (selling) call options. However, because it’s such a predictable business, investors don’t anticipate robust growth for AAPL stock. Apple (AAPL) Source: askarim / Shutterstock Based on the latest trends, Apple (NASDAQ:AAPL) appears a tempting prospect for options trades for a flat market.
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13226.0
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2023-10-09 00:00:00 UTC
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Is It Time to Buy the Apple Downgrade Dip?
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AAPL
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https://www.nasdaq.com/articles/is-it-time-to-buy-the-apple-downgrade-dip
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) got the wind knocked out of its sails last week when KeyBanc Capital Markets analyst Brandon Nispel downgraded AAPL stock from Overweight to Sector Weight, the equivalent of Buy to Hold.
It wasn’t a big deal as Apple finished the week up nearly 4%. However, since hitting a 52-week high of $198.23 at the end of July, it’s lost almost 11% of its value. When you’re a three-trillion company, that’s not a small amount of market cap disappearing.
The Keybanc analysts had four reasons for caution: valuation, struggling U.S. sales, international sales are also iffy, and analyst estimates for future earnings don’t have much room to go higher.
Many are wondering if this is a buy-on-the-dip moment. The best moment to buy AAPL stock is whenever you have the cash in the bank and can afford to hold it for 3-5 years.
Here’s how I’d play the Apple downgrade dip.
The Counterargument to the Analyst Arguments
To me, there are only three arguments because the first (valuation) and last (earnings estimates) are two sides of the same coin.
Keybanc argues that Apple is valued at 26.3 times its 2024 earnings per share, near a record high and higher than its average multiple of 23.5. It also trades at 25x its estimated 2024 free cash flow. On the other side, Keybanc feels its top-line revenue and EPS estimates are as high as they go in the near- to medium-term.
“You’re paying a premium for a company that’s not really going to grow,” Nispel told Barron’s writer Eric Savitz.
MarketWatch says the 44 analysts who cover its stock give it a 2024 EPS estimate of $6.55, while 33 analysts, according to Yahoo Finance, have a 2024 revenue estimate of $406.23 billion, 6% higher than 2023.
The other thing to consider is what Apple does with artificial intelligence. At the moment it’s miles behind its peers. However, historically, it has always been late to the party, a move that’s done partly to ensure the products it delivers are what consumers really want.
A big announcement on the AI front over the next 12 months will help keep valuations higher than historical averages.
U.S. and International Growth Stalling
In June, UBS analyst David Vogt warned that iPhone sales were softening. For example, in May, sell-through on its iPhones was 2% lower than a year earlier.
However, BGR reported in August that Apple has increased its iPhone production plan for 2023 by 3.2 million units. It plans to produce 85.6 million iPhone 14 units and 86.3 million iPhone 15 models. It plans to build 200,000 fewer iPhone 13 units this year. The increase should result in higher revenues than expected.
Apple has plans to open 15 new retail stores in Asia through 2027, four new locations in Europe and the Middle East, and four in the U.S. and Canada. It also plans to revamp another 30.
India and China are a big part of Apple’s international growth. At the moment, Apple has 520 stores worldwide, with approximately 260 in the U.S. Over the past year, the Asia/Pacific region generated $130 billion in revenue or one-third of its total.
With its first two stores in India opening earlier in 2023, it would be easy to imagine the region accounting for half its sales by the time it completes the 21 new or revamped stores planned for Asia/Pacific by 2027.
There’s a good chance that its U.S. and international growth will turn out better than analysts expect.
The Buy-the-Dip Move
Assuming you have the cash and can afford to hold AAPL stock for 3-5 years, here’s what you might do as the stock faces headwinds.
First, you buy 100 shares for around $177, where it currently trades.
Secondly, you sell the April 19/2024 $140 put. On Oct. 6, the put had a volume of 3,059, 2.14x its open interest. The annualized yield on that put is 2.2% over the next 195 days. While that’s not a great yield in this high-rate environment, the whole reason for making this play is to give you a potential opportunity to average down.
If the Apple share price moves higher over the next 28 weeks, you don’t have the shares put to you, and you pocket the $219 in income. If you buy shares at a net price of $137.81, your average cost for 200 shares would be $157.65, 11.2% lower than its Oct. 6 closing price of $177.49.
One thing to keep in mind with puts is that you don’t have a choice when selling them. If they’re put to you, you must buy at the strike price, even if the shares have dropped to $120. That’s the risk you face with selling puts.
However, since July 2021, Apple shares have only traded below $140 on two occasions: May to July 2022 and December 2022 to early February 2022.
Buy on the dip with a twist for AAPL stock.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post Is It Time to Buy the Apple Downgrade Dip? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) got the wind knocked out of its sails last week when KeyBanc Capital Markets analyst Brandon Nispel downgraded AAPL stock from Overweight to Sector Weight, the equivalent of Buy to Hold. The best moment to buy AAPL stock is whenever you have the cash in the bank and can afford to hold it for 3-5 years. The Buy-the-Dip Move Assuming you have the cash and can afford to hold AAPL stock for 3-5 years, here’s what you might do as the stock faces headwinds.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) got the wind knocked out of its sails last week when KeyBanc Capital Markets analyst Brandon Nispel downgraded AAPL stock from Overweight to Sector Weight, the equivalent of Buy to Hold. The best moment to buy AAPL stock is whenever you have the cash in the bank and can afford to hold it for 3-5 years. The Buy-the-Dip Move Assuming you have the cash and can afford to hold AAPL stock for 3-5 years, here’s what you might do as the stock faces headwinds.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) got the wind knocked out of its sails last week when KeyBanc Capital Markets analyst Brandon Nispel downgraded AAPL stock from Overweight to Sector Weight, the equivalent of Buy to Hold. The best moment to buy AAPL stock is whenever you have the cash in the bank and can afford to hold it for 3-5 years. The Buy-the-Dip Move Assuming you have the cash and can afford to hold AAPL stock for 3-5 years, here’s what you might do as the stock faces headwinds.
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The best moment to buy AAPL stock is whenever you have the cash in the bank and can afford to hold it for 3-5 years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) got the wind knocked out of its sails last week when KeyBanc Capital Markets analyst Brandon Nispel downgraded AAPL stock from Overweight to Sector Weight, the equivalent of Buy to Hold. The Buy-the-Dip Move Assuming you have the cash and can afford to hold AAPL stock for 3-5 years, here’s what you might do as the stock faces headwinds.
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2023-10-09 00:00:00 UTC
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Israel's tech sector could face disruptions after attacks - investors
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AAPL
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https://www.nasdaq.com/articles/israels-tech-sector-could-face-disruptions-after-attacks-investors-0
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nan
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nan
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By Max A. Cherney, Mica Rosenberg and Steven Scheer
SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, as the Israeli military shifted to a war footing that may include a full-scale invasion of the Gaza Strip.
High-tech industries have for a few decades been the fastest growing sector in Israel and crucial for economic growth, accounting for 14% of jobs and almost a fifth of gross domestic product.
Israeli stock and bond prices slidon Monday after gunmen from the Palestinian group Hamas rampaged through Israeli towns on Saturday. Militants also fired thousands of rockets into Israel in a surprise attack. Some rockets reached as far as Tel Aviv, prompting airlines to suspend flights to and from Israel.
Israel retaliated with air strikes on Hamas targets in Gaza, and hundreds of people have died.
"It is a huge disruption to business as usual," said Jack Ablin, chief investment officer and founding partner at Cresset Wealth Advisors. He said in the short-term resources could be diverted if the conflict expands, such as staff at tech companies being called up as military reservists.
Israel has already said it would call up an unprecedented 300,000 reservists, many of which could come from U.S.-based tech operations.
“We’re preparing for this to take a while,” said Noam Schwartz, the Israeli-born founder and chief executive of ActiveFence, "a tech firm that specializes in online threats with headquarters in New York and Tel Aviv.
His company will keep serving customers during the conflict, he said, even as he expects to return to Israel for military duty. “We have enough people worldwide to make sure everyone is in check.”
Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said there will likely be a "tremendous effort" to guard physical installations for companies based in Israel from attacks because some technology spending is tied to the military.
U.S. tech shares were largely down, including bellwethers with large operations in Israel.
A spokesperson for chipmaker Intel INTC.O, Israel's largest private employer and exporter, said the company was "closely monitoring the situation in Israel and taking steps to safeguard and support our workers."
The spokesperson declined to say whether chip production has been affected by the situation. Intel's shares fell 0.5% on Monday.
Nvidia NVDA.O, the world's largest maker of chips used for artificial intelligence and computer graphics, said it had canceled an AI summit scheduled for Tel Aviv next week, where its CEO Jensen Huang was due to speak.
Israel-based Tower SemiconductorTSEM.TA, which provides customers with analog and mixed-signal semiconductors, mainly for the automotive and consumer industries, said it was operating as usual. Its New York-listed shares fell 4.9%.
Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. Microsoft MSFT.O declined to comment.
Israel's technology sector had already been facing a slowdown in 2023, exacerbated by internal political conflict and protests. A growing number of Israel's tech startups have been incorporating in the United States.
MILITARY, AI SPENDING BOOST
Israel's tech sector dates back to 1974 when Intel established a presence, but the start-up scene took off in the 1990s, earning a reputation as the world's second-largest tech center outside of Silicon Valley, with thousands of companies and developing a significant ecosystem.
There are now 500 multinationals operating in Israel - mainly research and development centers after buying Israeli start-ups - from Intel to IBM, Apple, Microsoft, Google and Facebook.
Prime Minister Benjamin Netanyahu in June said Intel was planning to spend $25 billion on a new factory in the southern city of Kiryat Gat some 42 km (26 miles) from Gaza.
Due to open in 2027, he called it the largest-ever international investment in the country that could employ thousands of people and would add to its chip plants and design centers there.
In the longer term, the tech and AI sector, where Israel has been a leader, could see increased investment because of the industries' close tie-in with military spending, LPL's Krosby said.
"They will probably increase the investment in AI," Krosby said. "When a country is caught literally off guard the first thing they look at - beside the obvious problems with intelligence - is what was missed within the security systems."
Israel-exposed stocks fall amid investor worries over Middle East conflict
FACTBOX-What are global firms with presence in Israel doing after Hamas attacks
ANALYST VIEW-Middle East violence rattles markets, oil jumps
TIMELINE-Conflict between Israel and Palestinians in Gaza
INSIGHT-How Israel was duped as Hamas planned devastating assault
GRAPHIC-Oil price rise on Middle East conflict https://tmsnrt.rs/45kfV0J
GRAPHIC-Gold price rise on uncertainty in Middle East https://tmsnrt.rs/3LTW7ut
GRAPHIC-Dollar rises on flight to safety https://tmsnrt.rs/3RRvDgO
Listen now: Inside Hamas' planning and Israel's response https://link.reuters.com/Oqd0bGZRKDb
WRAPUP 11-Israel on war footing, Hamas threatens to kill captives
(Reporting by Max A. Cherney in San Francisco, Mica Rosenberg and Helen Coster in New York, and Steven Scheer in Jerusalem; Editing by Kenneth Li, Megan Davies, Jamie Freed and Nick Zieminski)
((mica.rosenberg@thomsonreuters.com; (646) 223-6735;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. By Max A. Cherney, Mica Rosenberg and Steven Scheer SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, as the Israeli military shifted to a war footing that may include a full-scale invasion of the Gaza Strip. “We have enough people worldwide to make sure everyone is in check.” Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said there will likely be a "tremendous effort" to guard physical installations for companies based in Israel from attacks because some technology spending is tied to the military.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. By Max A. Cherney, Mica Rosenberg and Steven Scheer SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, as the Israeli military shifted to a war footing that may include a full-scale invasion of the Gaza Strip. In the longer term, the tech and AI sector, where Israel has been a leader, could see increased investment because of the industries' close tie-in with military spending, LPL's Krosby said.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. By Max A. Cherney, Mica Rosenberg and Steven Scheer SAN FRANCISCO/JERUSALEM Oct 9 (Reuters) - Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, as the Israeli military shifted to a war footing that may include a full-scale invasion of the Gaza Strip. Israel's tech sector dates back to 1974 when Intel established a presence, but the start-up scene took off in the 1990s, earning a reputation as the world's second-largest tech center outside of Silicon Valley, with thousands of companies and developing a significant ecosystem.
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Other tech giants, Meta Platforms META.O, Alphabet GOOGL.O and Apple AAPL.O did not respond to requests for comment. Some rockets reached as far as Tel Aviv, prompting airlines to suspend flights to and from Israel. U.S. tech shares were largely down, including bellwethers with large operations in Israel.
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13228.0
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2023-10-09 00:00:00 UTC
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Apple Is Blowing Away Amazon, Google, Microsoft, and Nvidia on This Key Metric
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AAPL
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https://www.nasdaq.com/articles/apple-is-blowing-away-amazon-google-microsoft-and-nvidia-on-this-key-metric
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nan
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nan
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How does Apple (NASDAQ: AAPL) compare against the other four stocks that trade on U.S. exchanges with market caps of more than $1 trillion? It depends on which measurement you use.
Apple certainly beats Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA) based on market cap and profits. However, its stock performance so far in 2023 has lagged behind all members of the $1 trillion club except Microsoft.
But there's another important area where Apple absolutely dominates. It's blowing away Amazon, Google, Microsoft, and Nvidia on one key metric.
Apple is rocking the $1 trillion club on ROIC
For most companies, a return on invested capital (ROIC) of 10% or more is usually viewed positively by investors. Most of the members of the $1 trillion club easily surpass that level. But Apple is head and shoulders above its mega-cap peers.
Image source: The Motley Fool.
What exactly is ROIC? In a nutshell, it measures how well a company is investing its capital. ROIC is calculated by dividing net operating profit after taxes (NOPAT) by invested capital. NOPAT comes from a company's income statement using the following formula:
NOPAT = earnings before interest and taxes (EBIT) * (1-the company's tax rate)
Invested capital comes from the company's balance sheet. It can be calculated by first subtracting non-interest-bearing current liabilities (for example, accrued expenses) from current assets to determine the company's net working capital. All operating assets including goodwill and property, plants, and equipment are then added to the net working capital to get its invested capital. (New Constructs, the analytics firm that provided the data in the chart, goes deep into the SEC filings to account for every footnote, so your results might differ. But no matter how you compute it, Apple's ROIC is impressive.)
You probably noticed that the above chart also includes another metric: weighted average cost of capital (WACC). This number represents the weighted average of the cost of equity as a percentage of the weighted average of the cost of debt. The lower the WACC, the better. When a company generates more ROIC than WACC, it's creating value for shareholders with its investments.
Why Apple's high ROIC is so important
A high ROIC means that Apple is delivering a bigger bang for the buck with its investments. That's tremendously important in the fast-moving world of technology. It also means that the company can reward its shareholders through dividends and stock buybacks.
Apple's high ROIC also makes it a more attractive pick for careful investors. It's not surprising that Apple ranks as Berkshire Hathaway's largest holding by far. Berkshire chairman and CEO Warren Buffett once defined a great business as one that has "a high return on capital for a long period of time, where we think management will treat us right."
Buffett's inclusion of the words "for a long period of time" brings to mind another key point. Apple's big lead in ROIC over Amazon, Google, Microsoft, and Nvidia right now isn't a fluke. The company has consistently generated high ROIC since the introduction of the iPhone in 2007. It has also beaten the other current members of the $1 trillion club on ROIC during most of the past 10 years.
Does an impressive ROIC make Apple stock a no-brainer buy?
As critical as ROIC is, this one metric doesn't make Apple stock a no-brainer buy all by itself. There are other things to consider, notably including the competitive landscape, growth prospects, and valuation.
However, Apple remains highly competitive in all of the markets where it competes. Artificial intelligence (AI) and mixed reality could give the company new growth opportunities. And while Apple's shares trade at a relatively steep forward earnings multiple of 26, its high ROIC makes that valuation more reasonable than it would otherwise be.
It's possible for a stock with a high ROIC to be a bad pick for investors. I think, though, that Apple continues to be one of the best stocks in the $1 trillion club to buy.
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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. Keith Speights has positions in Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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How does Apple (NASDAQ: AAPL) compare against the other four stocks that trade on U.S. exchanges with market caps of more than $1 trillion? (New Constructs, the analytics firm that provided the data in the chart, goes deep into the SEC filings to account for every footnote, so your results might differ. Berkshire chairman and CEO Warren Buffett once defined a great business as one that has "a high return on capital for a long period of time, where we think management will treat us right."
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How does Apple (NASDAQ: AAPL) compare against the other four stocks that trade on U.S. exchanges with market caps of more than $1 trillion? Apple certainly beats Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA) based on market cap and profits. You probably noticed that the above chart also includes another metric: weighted average cost of capital (WACC).
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How does Apple (NASDAQ: AAPL) compare against the other four stocks that trade on U.S. exchanges with market caps of more than $1 trillion? Apple certainly beats Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA) based on market cap and profits. Apple is rocking the $1 trillion club on ROIC For most companies, a return on invested capital (ROIC) of 10% or more is usually viewed positively by investors.
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How does Apple (NASDAQ: AAPL) compare against the other four stocks that trade on U.S. exchanges with market caps of more than $1 trillion? Apple is rocking the $1 trillion club on ROIC For most companies, a return on invested capital (ROIC) of 10% or more is usually viewed positively by investors. Why Apple's high ROIC is so important A high ROIC means that Apple is delivering a bigger bang for the buck with its investments.
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13229.0
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2023-10-09 00:00:00 UTC
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US STOCKS-Wall Street declines on Middle East conflict
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-declines-on-middle-east-conflict
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nan
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nan
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By Shashwat Chauhan and Ankika Biswas
Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%.
Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
The Israeli military said it had called up an unprecedented 300,000 reservists and was imposing a total blockade of the Gaza Strip, signs it could be planning a ground assault.
U.S. Defense Secretary Lloyd Austin said the United States will send multiple military ships and aircraft closer to Israel as a show of support.
At 11:33 a.m. ET, the Dow Jones Industrial Average .DJI was down 13.18 points, or 0.04%, at 33,394.40, the S&P 500 .SPX was down 6.67 points, or 0.15%, at 4,301.83, and the Nasdaq Composite .IXIC was down 75.77 points, or 0.56%, at 13,355.57.
The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.54, reflecting investor anxiety.
A recent surge in U.S. Treasury yields had pressured equities. The U.S. bond market was shut on Monday for Columbus Day.
Major technology stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.2% and 2.7%.
Traditional safe-haven assets including goldXAU= and the U.S. dollar=USD gained, while crude prices increased.
"It's not surprising that the market would open with considerable volatility given these shocking events over the weekend and the speculation as to whether or not this will evolve into something more complicated," said Peter Andersen, founder of Andersen Capital Management in Boston.
Energy .SPNY was the top S&P 500 sector gainer, jumping 3.6% and on track for its best single-day performance in six months.
United Airlines UAL.O, Delta Air Lines DAL.N and American Airlines AAL.Osuspended direct flights to Tel Aviv. The airlines' shares were down around 5% each, dragging the S&P 500 Passenger Airlines index .SPLRCALI down 4.5% to its lowest in a year.
Defense companies Northrop Grumman NOC.N, RTX RTX.N, General Dynamics GD.N, L3harris LHX.N and Lockheed Martin LMT.N rose between 4.3% and 8.7%. The broader S&P 500 Aerospace & Defense index .SPLRCAERO jumped 4.9%.
Consumer discretionary .SPLRCD and consumer staples stocks .SPLRCS were the worst hit on Monday.
Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.8% and 4.6%, respectively.
For the week, key inflation readings including September's producer price and consumer price indexes, as well as the Federal Reserve's September meeting minutes will be in focus.
TeslaTSLA.O fell 2.5% as data showed the company's China-made EV sales volume for September decreased 10.9% from a year earlier.
Advancing issues outnumbered decliners for a 1.20-to-1 ratio on the NYSE, while declining issues outnumbered advancers for a 1.61-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 18 new lows, while the Nasdaq recorded 24 new highs and 236 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; 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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Major technology stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.2% and 2.7%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Israel said its troops backed by helicopters had killed a number of armed infiltrators entering the country from Lebanon, raising fears fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.
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Major technology stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.2% and 2.7%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. The CBOE volatility index .VIX, Wall Street's "fear gauge", also rose to 18.54, reflecting investor anxiety.
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Major technology stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.2% and 2.7%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Exchange-traded funds exposed to Israel including iShares MSCI Israel ETF EIS.N and the ARK Israel Innovative Technology ETF IZRL.N slid 7.8% and 4.6%, respectively.
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Major technology stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 0.2% and 2.7%. By Shashwat Chauhan and Ankika Biswas Oct 9 (Reuters) - Wall Street's main indexes fell on Monday as a deepening conflict between Israel and the Palestinian Islamist group Hamas roiled global markets and pushed investors toward safe-haven assets, while crude prices jumped around 4%. Consumer discretionary .SPLRCD and consumer staples stocks .SPLRCS were the worst hit on Monday.
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13230.0
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2023-10-09 00:00:00 UTC
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Time to Bank on Big Tech Again
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AAPL
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https://www.nasdaq.com/articles/time-to-bank-on-big-tech-again
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nan
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nan
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Broadly speaking, large- and mega-cap tech stocks are far from bear market territory. But the Nasdaq-100 Index (NDX) closed 6% below its 52-week high last Friday.
These days, that could qualify as a pullback among stalwart growth stocks. It could also signal a buying opportunity with ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Both funds follow the aforementioned NDX.
Within the Invesco ETFs, marquee holdings such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA), just to name a few, are off recent highs. Their pullbacks have been deeper of those experienced by QQQ and QQQM.
Big Tech May Be on Cusp of Resurgence
Those retrenchments are prompting some market observers to speculate big tech may be resurging.
Perhaps the biggest headwind that’s recently confounded the Invesco ETFs is soaring 10-year Treasury yields. Yields on the benchmark U.S. government closed at 4.78% last Friday, stirring concern that 5% is right around the corner. As was seen in 2022, rising interest rates harm growth stocks because it makes their future cash flows less appealing to investors.
“Enter the bull case. It starts with the fact that the rise in yields is likely to slow down from here,” reported Jacob Sonenshine for Barron’s. “They just can’t keep rising at the same pace, particularly because they’re already reflecting the Federal Reserve’s plan to keep rates higher for longer. A drop in yields, of course, would lift tech stocks—and the entire stock market, for that matter—but even just a slower increase would be helpful.”
Goldman Sachs analysis referenced in the Barron’s article indicates that if 10-year yields can hold steady over the near term, the “magnificent seven” cohort, which includes the aforementioned quintet along with Alphabet (NASDAQ: GOOG) and Meta Platforms (NASDAQ: META), could outperform the rest of the S&P 500. That’s relevant to investors considering QQQ and QQQM because the magnificent seven combine for approximately 43% of the ETFs’ rosters. Plus, those darling stocks are less expensive than they were just a few months ago.
“The stocks are also far cheaper than they were just a few months ago. The seven now trade at an aggregate 27 times earnings estimates for 2024, down from 34 times at this year’s peak. Yes, that’s more expensive than the S&P 500, but it’s not a commanding valuation, given the stocks’ expected profit growth,” according to Barron’s.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Within the Invesco ETFs, marquee holdings such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA), just to name a few, are off recent highs. Broadly speaking, large- and mega-cap tech stocks are far from bear market territory. As was seen in 2022, rising interest rates harm growth stocks because it makes their future cash flows less appealing to investors.
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Within the Invesco ETFs, marquee holdings such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA), just to name a few, are off recent highs. It could also signal a buying opportunity with ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). As was seen in 2022, rising interest rates harm growth stocks because it makes their future cash flows less appealing to investors.
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Within the Invesco ETFs, marquee holdings such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA), just to name a few, are off recent highs. It could also signal a buying opportunity with ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). A drop in yields, of course, would lift tech stocks—and the entire stock market, for that matter—but even just a slower increase would be helpful.” Goldman Sachs analysis referenced in the Barron’s article indicates that if 10-year yields can hold steady over the near term, the “magnificent seven” cohort, which includes the aforementioned quintet along with Alphabet (NASDAQ: GOOG) and Meta Platforms (NASDAQ: META), could outperform the rest of the S&P 500.
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Within the Invesco ETFs, marquee holdings such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA), just to name a few, are off recent highs. But the Nasdaq-100 Index (NDX) closed 6% below its 52-week high last Friday. It could also signal a buying opportunity with ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM).
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13231.0
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2023-10-09 00:00:00 UTC
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Alphabet (GOOGL) Boosts Virtual Assistant Capabilities With Bard
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-boosts-virtual-assistant-capabilities-with-bard
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nan
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nan
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Alphabet’s GOOGL Google is leaving no stone unturned to bolster its generative AI capabilities on the back of its chatbot, Bard.
This is evident from its latest announcement where Google revealed its plans to launch Assistant with Bard, infusing Bard AI technology to its virtual assistant.
Reportedly, the new AI enhancement in Google Assistant will assist users in tasks like trip planning and email management, offering personalized reasoning and generative functions.
Upon integration of Assistant with Bard into mobile phone cameras and microphones, users will be able to input images or audio for query assistance.
The new offering, initially to be launched in a test phase, is set to be made available to the general public in the coming months.
We note that the latest move will likely aid Google in further penetrating the booming virtual assistant market.
A Technavio report estimates the global virtual assistant market share to increase $2.69 billion, witnessing a CAGR of 37.3% between 2022 and 2027.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Stiff Competition
The latest move is likely to aid Google’s competitive position against peers like Apple AAPL and Amazon AMZN, which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants.
Reportedly, Apple is working to add its AI-powered large language model (LLM) Ajax GPT into its voice assistant Siri.
Also, Apple increased its AI research and development budget, focusing on creating conversational chatbot features for Siri.
Meanwhile, Amazon announced a generative AI update to its virtual assistant, Alexa.
Notably, the new update will allow Alexa to resume conversations without a wake word, respond quickly, learn user preferences, field follow-up questions, change tone and even offer opinions on Oscar-winning movies.
Growing Focus on Generative AI
We note that the latest move is in sync with GOOGL’s efforts to integrate generative AI capabilities into its offerings.
Notably, Google introduced AI-powered features to YouTube, including Dream Screen for seamless video backgrounds, production tools for editing short and long-form videos, and YouTube Create for AI-enabled editing, captioning, voiceover, filters and royalty-free music.
Further, Google launched Duet AI, a generative-AI-backed helper for Gmail, Drive and Docs, available for organizations using Google Workspace, offering meeting assistance, document summarizer and personalization for Gmail's smart replies.
Additionally, GOOGL is also set to release its conversational AI software Gemini, comprising extensive language models that offer chatbot optimization, text summarization, content generation, email drafts, music lyrics and news articles, enabling users to create personalized content.
Moreover, we believe that all the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.
Per a Fortune Business Insights report, the global generative AI market size is expected to hit $43.87 billion in 2023 and reach $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.
Strength in the promising generative AI market will likely aid this Zacks Rank #3 (Hold) company to strengthen its overall financial performance in the upcoming period and instill investor optimism in the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our model estimate for 2023 total revenues stands at $300.45 billion, indicating growth of 6.2% from 2022.
Notably, Alphabet has gained 55.9% on a year-to-date basis compared with the industry’s growth of 53.5%.
Moreover, growing generative AI capabilities position Alphabet well to compete with Microsoft MSFT, which has taken the world by storm on the back of ChatGPT.
In addition, Microsoft’s integration of OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains noteworthy.
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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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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition The latest move is likely to aid Google’s competitive position against peers like Apple AAPL and Amazon AMZN, which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Notably, the new update will allow Alexa to resume conversations without a wake word, respond quickly, learn user preferences, field follow-up questions, change tone and even offer opinions on Oscar-winning movies.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition The latest move is likely to aid Google’s competitive position against peers like Apple AAPL and Amazon AMZN, which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, GOOGL is also set to release its conversational AI software Gemini, comprising extensive language models that offer chatbot optimization, text summarization, content generation, email drafts, music lyrics and news articles, enabling users to create personalized content.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition The latest move is likely to aid Google’s competitive position against peers like Apple AAPL and Amazon AMZN, which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Reportedly, the new AI enhancement in Google Assistant will assist users in tasks like trip planning and email management, offering personalized reasoning and generative functions.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition The latest move is likely to aid Google’s competitive position against peers like Apple AAPL and Amazon AMZN, which are also making continuous efforts to integrate generative AI capabilities into their virtual assistants. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Reportedly, the new AI enhancement in Google Assistant will assist users in tasks like trip planning and email management, offering personalized reasoning and generative functions.
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13232.0
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2023-10-08 00:00:00 UTC
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The Nasdaq Might Bottom in October, According to This Wall Street Veteran -- 2 Super Stocks to Buy Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/the-nasdaq-might-bottom-in-october-according-to-this-wall-street-veteran-2-super-stocks-to
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nan
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The stock market has entered October after two very difficult months, particularly for the technology sector. August and September delivered a combined 7.4% loss for the technology-laden Nasdaq Composite.
But those months tend to be weak each year due to seasonal factors. Many Wall Street bankers and fund managers are away on vacation, leaving fewer buyers to step in and support dips in the market. Investors are also navigating a surge in interest rates, especially in government bonds, which could trigger weakness in the broader economy.
But in an interview with CNBC earlier this week, Wall Street veteran Art Cashin described October as "the month of bottoms." He would know! He's the Director of Floor Operations at the New York Stock Exchange for UBS, and he has worked on the Street since 1959.
Interestingly, October also marked the end of a major decline in stocks in 2022. And research by analyst Eric Krull suggests October has the best track record for forming new bullish trends. If Cashin -- and history -- are correct, here are two stocks investors will want in their portfolios.
Image source: Getty Images.
1. Apple: Keep it simple!
There's no need to get adventurous during such a turbulent period in the stock market. Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. Plus, Apple just released a slate of hot new products that could drive growth into the new year.
Its flagship iPhone 15 smartphone, which was unveiled on Sept. 12, appears to be in high demand. Early projections suggest initial sales could top 80 million units, and that would be a 6% improvement over the launch of the iPhone 14 last year. The iPhone 15 comes with the new A17 chip, which is Apple's most powerful ever, and it could even be the most powerful in the entire smartphone market right now.
The A17 is capable of rapidly handling predictive processes when using the keyboard, the camera, and Siri, for example, which are features underpinned by artificial intelligence (AI). Similarly, Apple's latest S9 chip allows its smartwatches to recognize finger gestures which introduces a whole new dynamic to the platform. Both chips process AI on-device rather than in the cloud, which leads to more responsive results.
Apple is coming off three consecutive quarters of declining revenue which, combined with the recent market sell-off, is the reason its stock is down 12% from its all-time high. But Wall Street is forecasting a return to growth on an annual basis in fiscal 2024 (which just began in October). Apple could generate $403 billion for the year, which would be a 6% increase from the $383 billion in fiscal 2023 revenue that analysts expect to see when the company reports its final results later this month.
But one of the best reasons to own Apple stock is because it returns truckloads of money to shareholders -- it's one of Warren Buffett's favorite things about the company, in fact. Through the first nine months of fiscal 2023 (ended July 1), Apple has paid $11.2 billion in dividends to its investors, and it has spent a whopping $56.5 billion on share buybacks.
The latter is key because share buybacks can serve as a support mechanism for Apple's stock price. The company is consistently purchasing billions of dollars' worth of its own shares to shrink the float and, theoretically, increase the price per share.
Apple's fundamentals look solid going into the new year on the back of its recent product releases, but the company's focus on shareholders is a great feature to have in an investment during an uncertain time in the market.
2. Oracle: A great investment in the future of technology
With technology stocks suffering broad declines, this might also be a great time for investors to set their portfolios up for the future. Oracle (NYSE: ORCL) offers a great opportunity to do just that, and it's anchored by a track record spanning almost five decades because the company has been at the forefront of the tech sector since it was founded in 1977.
Oracle has come a long way since its origins in developing database management software because today, it's a leading provider of cloud computing infrastructure and technology. It offers an entire portfolio of cloud-based software applications for businesses in just about every industry, from healthcare to retail to financial services. However, the company has also invested heavily in best-in-class data center infrastructure, which is serving as a foundation for its entry into the emerging artificial intelligence industry.
AI has been a focus for Oracle this year as it races to compete with other tech giants jostling for leadership positions in the space. AI applications are developed, trained, and deployed in the cloud, so Oracle has partnered with leading semiconductor giant Nvidia to build advanced data center hardware specifically for those activities.
Oracle's co-founder and chairman, Larry Ellison, says the company's interconnected Nvidia superclusters can train AI models at twice the speed and half the cost of other cloud providers. Its investments in this area are already paying off because, in the recent second quarter of 2023 (ended June 30), Oracle said it had secured $4 billion in commitments from generative AI developers for its new Gen2 Cloud infrastructure -- that number doubled from $2 billion in just three months.
But demand from developers might still be in the early stages because, according to Cathie Wood's Ark Investment Management, AI software companies will be fighting over a revenue pie worth $14 trillion by 2030, so they'll need all the computing power they can get.
In Q2, Oracle said it had $65 billion worth of remaining performance obligations across its business, but demand is far outpacing supply, so it's racing to build more data centers, which it says should lead to an acceleration in its revenue growth toward the end of 2023.
Oracle stock hit an all-time high this year, but it's trading 18% below that level amid the broader tech sell-off. That's a great opportunity for investors to take a long-term position.
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 2, 2023
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Nvidia, and Oracle. 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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Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. AI applications are developed, trained, and deployed in the cloud, so Oracle has partnered with leading semiconductor giant Nvidia to build advanced data center hardware specifically for those activities. But demand from developers might still be in the early stages because, according to Cathie Wood's Ark Investment Management, AI software companies will be fighting over a revenue pie worth $14 trillion by 2030, so they'll need all the computing power they can get.
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Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. Apple is coming off three consecutive quarters of declining revenue which, combined with the recent market sell-off, is the reason its stock is down 12% from its all-time high. Apple's fundamentals look solid going into the new year on the back of its recent product releases, but the company's focus on shareholders is a great feature to have in an investment during an uncertain time in the market.
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Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. Apple is coming off three consecutive quarters of declining revenue which, combined with the recent market sell-off, is the reason its stock is down 12% from its all-time high. Apple could generate $403 billion for the year, which would be a 6% increase from the $383 billion in fiscal 2023 revenue that analysts expect to see when the company reports its final results later this month.
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Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. The stock market has entered October after two very difficult months, particularly for the technology sector. If Cashin -- and history -- are correct, here are two stocks investors will want in their portfolios.
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13233.0
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2023-10-08 00:00:00 UTC
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The 3 Top Emerging Markets to Invest in Right Now
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AAPL
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https://www.nasdaq.com/articles/the-3-top-emerging-markets-to-invest-in-right-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One of the secrets of wealth creation is portfolio diversification. Within any specific geography, portfolio diversification is in the form of exposure to blue-chip, growth, and penny stocks. Further, identifying sectors with tailwinds can help boost portfolio returns. Considering a broader approach, exposure to different geographies can help in portfolio diversification and wealth creation. When it comes to geographic diversification, it’s impossible to ignore emerging markets.
An emerging market economy is the financial footing of a country that has headroom for significant growth considering the impending development in overall infrastructure. Developed and emerging economies can be clearly differentiated by looking at the GDP per capita.
To make things simpler, a developed economy can be likened to a blue-chip stock. On the other hand, an emerging economy is like a growth stock. In general, developed economy equities will provide stable returns. However, over a period of five or ten years, emerging market equities will outperform the developed market. That has been the case in the past.
Let’s explore the top emerging markets that look attractive from an investment perspective.
India
Source: Shutterstock
India is perhaps among the best emerging markets to invest for the long term. Even amidst challenges for several emerging markets, the NIFTY 50 (benchmark index) has trended higher by 8% for year to date (YTD). It looks to perform even better in 2024.
A big reason to be bullish on India is the fact that all major U.S. companies are looking at manufacturing diversification away from China. This affords India a big opportunity as the country pitches itself as an alternative to Chinese manufacturing.
Of course, China will remain a major manufacturing hub. However, companies seeking risk diversification are investing in India. This is likely to boost GDP growth and benefit some of the major local corporations. Some heavyweight companies focused on India include Apple (NASDAQ:AAPL) and Boeing (NYSE:BA).
In terms of price action in Indian stocks, MakeMyTrip (NASDAQ:MMYT) stock has trended higher by 43% for YTD. In fact, two bullish stocks that have consolidated in the last 12 months, Infosys (NYSE:INFY) and HDFC Bank (NYSE:HDB), look poised for a breakout rally in 2024.
China
Source: Shutterstock
To be sure, the Chinese economy is going through a stressful phase. The real estate sector is clearly in a recession, while the financial sector is feeling pressure. However, even with economic headwinds, two important points avail.
First, China’s GDP growth is projected at 5.2% in 2023. The economy is expected to “headline growth to trend consistently below 5% over the remainder of the 2020s”. Even with these estimates, it is poised to be well above the potential growth for developed economies.
Further, China is a large economy with some sectors in a recession and others performing well. Careful stock selection is likely to profitable especially since several value creators from China will surface in the coming years.
Prime examples include Li Auto (NASDAQ:LI) and Miniso Group (NYSE:MNSO), both of whose stock is surging by 63% and 123% YTD respectively. Yet, if growth decelerates further, expect a stimulus-driven rally for the Chinese markets.
Indonesia
Source: Manu Galdamez/ShutterStock.com
For an investor with a time horizon of five to ten years, it’s impossible to ignore the Southeast Asian markets. Indonesia is one of the major markets in the region that can create value from the perspective of portfolio diversification.
In fact, real GDP is likely to slow down to 4.7% in 2023. However, growth will accelerate to 5.1% in 2024. Even beyond this period, growth in Indonesia is likely to remain robust.
Investors will question the rationale for choosing Indonesia among Southeast Asian economies. Reports indicate that upskilling can potentially boost Southeast Asia’s GDP by 4% or $250 billion by 2030. Of the new jobs created in the region, Indonesia is likely to unlock 50% of the potential regional additional employment in 2030.
Therefore, as job creation accelerates and the living standards improve, multiple industries can enjoy ample growth. The prominent ones will be consumption, real estate, and financial services.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post The 3 Top Emerging Markets to Invest in Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some heavyweight companies focused on India include Apple (NASDAQ:AAPL) and Boeing (NYSE:BA). Even amidst challenges for several emerging markets, the NIFTY 50 (benchmark index) has trended higher by 8% for year to date (YTD). Indonesia Source: Manu Galdamez/ShutterStock.com For an investor with a time horizon of five to ten years, it’s impossible to ignore the Southeast Asian markets.
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Some heavyweight companies focused on India include Apple (NASDAQ:AAPL) and Boeing (NYSE:BA). Within any specific geography, portfolio diversification is in the form of exposure to blue-chip, growth, and penny stocks. However, over a period of five or ten years, emerging market equities will outperform the developed market.
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Some heavyweight companies focused on India include Apple (NASDAQ:AAPL) and Boeing (NYSE:BA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips One of the secrets of wealth creation is portfolio diversification. An emerging market economy is the financial footing of a country that has headroom for significant growth considering the impending development in overall infrastructure.
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Some heavyweight companies focused on India include Apple (NASDAQ:AAPL) and Boeing (NYSE:BA). However, over a period of five or ten years, emerging market equities will outperform the developed market. First, China’s GDP growth is projected at 5.2% in 2023.
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13234.0
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2023-10-08 00:00:00 UTC
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These Stocks Turned $10,000 Into $13 Million (or More) and Are Not Done Rising Yet
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AAPL
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https://www.nasdaq.com/articles/these-stocks-turned-%2410000-into-%2413-million-or-more-and-are-not-done-rising-yet
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nan
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Growth investors often lament that if they had just put $10,000 in one of the more successful tech giants, they would be millionaires today. Knowing that, they will often buy what they think are stocks that will soar in the future in the hope of earning such a return years later.
Admittedly, these giant companies have probably grown too large to achieve another 1,300-fold gain or greater. Nonetheless, a trio of tech titans are probably not done growing yet and appear capable of making new investors considerably richer. Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN).
The stock market king has plenty of gas left in the tank.
Jake Lerch (Apple): A relatively modest investment of $10,000 in Apple when Steve Jobs returned to the company in February 1997 would have grown to more than $14 million today.
AAPL total return level data by YCharts.
Most of that astonishing return can be chalked up to the iPhone. Introduced in 2007, it launched Apple into the stratosphere, making it America's largest company by market cap by 2011.
However, if Apple is to stay on top, it will need to evolve. Hardware revenue is declining: In its most recent quarter (ending on June 30), Apple reported iPhone sales of $39.7 billion, down 2.4% from a year earlier. Mac sales dropped 7.3%, and iPad revenue plummeted almost 20%.
Image source: Apple
What rode to the rescue was Apple's services segment -- and wearables to a much lesser extent. Services generated $21.2 billion in revenue. This unit, which includes sales from features like iCloud, iTunes, and Apple TV+, grew 8.2% year over year and cut the company's total sales contraction to just 1.4%.
The services unit, which also includes revenue generated through the App Store, advertising (including on Apple News), and extended warranties, should continue to grow in importance. Not only is the segment driving revenue growth, but it also has fantastic margins. In its most recent quarter, it had gross margins above 70%, roughly double the hardware unit's 35%.
Apple remains a solid investment, but maybe not for the reason many investors think. Nowadays, it is as much about services -- if not more -- as it is about hardware.
Don't underestimate one of Wall Street's tech leaders
Justin Pope (Oracle): Oracle has been around for decades, successfully evolving from database software to a mix of cloud computing products and services. A modest $10,000 investment would have grown to nearly $21 million, and the stock has trounced the broader market over the past five years, so this stock still has juice.
ORCL total return level data by YCharts.
Artificial intelligence (AI) requires processing tremendous amounts of data to train models, and this is potentially a catalyst for Oracle. Co-founder and current chief technical officer Larry Ellison said on the company's fiscal 2024 first-quarter earnings call that its interconnected Nvidia superclusters, groups of powerful computers that share computing power, can train AI models twice as fast for less than half the cost of competitors. He also announced that Elon Musk's xAI company has signed on to train its models with Oracle.
The company wants to grow its revenue from $50 billion in fiscal 2023 to $65 billion in fiscal 2026, a 30% increase over the next three years. It is already a cash cow, converting between 15% and 30% of sales into free cash flow in a given year. That money tends to wind up in shareholders' pockets via dividends, or it grows the company via bolt-on acquisitions.
The above chart paints a clear track record of value creation for investors. While 30% growth over three years isn't as exciting as some other stocks on Wall Street, Oracle is a slow and steady performer that long-term investors should feel good about holding on to.
The e-commerce company that has a bright future transforming tech
Will Healy (Amazon): Amazon has served its shareholders well for most of its history, but the totality of this e-commerce pioneer's gains might surprise some investors. Those who invested $10,000 in Amazon's May 1997 initial public offering and held on now own shares worth almost $13 million.
AMZN total return level data by YCharts.
Most companies that have reached a $1.3 trillion market cap are past their days of rapid growth. But that might not be the case with Amazon. After building a first-mover advantage in e-commerce, it pioneered the cloud computing industry through Amazon Web Services (AWS).
And it has leveraged its e-commerce site to build faster-growing advertising, subscription, and third-party seller businesses. Online selling remains its largest revenue source, but the financial statements imply that this part of the business loses money.
Nonetheless, net income should grow rapidly thanks to the higher profit margins of its comparatively smaller AWS business, which has typically earned the majority of Amazon's operating income. Although it does not break out earnings for advertising, subscriptions, or third-party selling, such businesses usually yield higher margins.
Moreover, Amazon has recovered from the lows of 2022, when it had fallen about 55% from the all-time high set in 2021. And even with the recovery, the cloud stock trades at an approximate 33% discount from that record.
Ultimately, growth-focused investors should start looking at Amazon as a tech name rather than a retailer. Yes, it should remain a popular e-commerce site, but the company derives its present growth potential from AWS and the ancillary businesses tied to its website.
As long as the growth of those enterprises continues, Amazon's investors will likely want to stick with it regardless of when they bought shares.
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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Amazon.com. Justin Pope has no position in any of the stocks mentioned. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Oracle. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. While 30% growth over three years isn't as exciting as some other stocks on Wall Street, Oracle is a slow and steady performer that long-term investors should feel good about holding on to.
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Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. Don't underestimate one of Wall Street's tech leaders Justin Pope (Oracle): Oracle has been around for decades, successfully evolving from database software to a mix of cloud computing products and services.
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Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. Jake Lerch (Apple): A relatively modest investment of $10,000 in Apple when Steve Jobs returned to the company in February 1997 would have grown to more than $14 million today.
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Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. A modest $10,000 investment would have grown to nearly $21 million, and the stock has trounced the broader market over the past five years, so this stock still has juice.
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13235.0
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2023-10-08 00:00:00 UTC
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Warren Buffett Has More Invested in This Than He Does in Bank of America, American Express, Coca-Cola, and Chevron Combined -- and It's Not Apple
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-has-more-invested-in-this-than-he-does-in-bank-of-america-american-express
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Kids (and many adults) enjoy trying to find a character named Waldo in different settings in the children's book series Where's Waldo?. It can sometimes take a little time to find Waldo, but the challenge isn't too difficult.
Some investors play a different game that you could call, "Where's Warren's money?" I'm referring, of course, to legendary investor Warren Buffett. He has achieved such tremendous success through the years that the holdings in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio serve as an idea list for some.
So where is Warren's money these days? Berkshire's holdings include dozens of great stocks. But Buffett has more invested in one asset than he does in Bank of America (NYSE: BAC), American Express (NYSE: AXP), The Coca-Cola Company (NYSE: KO), and Chevron (NYSE: CVX) combined.
A billion here, a billion there...
First things first: It's not Apple (NASDAQ: AAPL). Yes, the tech giant is by far the largest position in Berkshire Hathaway's portfolio. Apple makes up more than 47% of the conglomerate's total holdings. Buffett's stake in the company has a current valuation of over $158 billion.
Bank of America ranks as Berkshire's second-largest holding, making up a little under 8% of its total portfolio. American Express is in third place, followed by Coca-Cola and Chevron.
These four runners-up together account for close to 27% of Berkshire's equity holdings. The combined value of Berkshire's positions in the four stocks totals more than $90 billion. However, Buffett has put a much greater amount of Berkshire's cash into another investment -- U.S. Treasury bills.
As of June 30, 2023, Berkshire's short-term investments in U.S. Treasury bills topped $97 billion. The company also held another $24.5 billion in U.S. Treasury bills with maturities of three months or less. In total, Berkshire owned nearly $122 billion in Treasuries.
By the way, we don't have to stop with only Bank of America, American Express, Coca-Cola, and Chevron. We could also add in Berkshire's stakes in Occidental Petroleum and Kraft Heinz. Buffett's amount invested in Treasuries is still greater than its positions in all of those stocks combined.
Why Buffett is so heavily invested in Treasuries
Berkshire's policy is to always maintain at least $30 billion in cash, cash equivalents, and U.S. Treasury bills. But why is Buffett so much more heavily invested in Treasuries right now? There are three main reasons.
First (and arguably most important), the legendary investor doesn't think there are better alternatives available right now. Buffett has stated in the past that he prefers to have most of Berkshire's money in stocks. When stock valuations aren't attractive enough, though, he doesn't buy. It's no coincidence that Buffett has been a net seller of stocks so far in 2023.
Second, Treasuries are offering significantly higher yields than they have in the recent past. For example, all of the U.S. Treasury bills with maturities of one year or less currently boast yields of at least 5.39%.
Third, there isn't a safer place to park money than Treasuries. They're backed by the full faith and credit of the U.S. government. Political shenanigans in Washington D.C. might scare investors from time to time. However, representatives won't allow the government to default on its debt payments because they understand just how dire the consequences of doing so would be.
Should you follow his lead?
Your investment goals could be quite different from a huge conglomerate like Berkshire Hathaway. It's not a good idea to blindly follow Buffett's lead all the time. I think, though, that owning U.S. Treasuries could be a smart move for many investors in the current environment.
Keep in mind that U.S. Treasury bills are, by definition, short-term with a maturity of one year or less. Longer-dated Treasury bonds could expose you to added risks. For example, if you need the cash sooner than the maturity date, you could lose money if the bond prices fall as a result of higher interest rates. Buffett doesn't tie up much of Berkshire's money in longer-term Treasury bonds for this reason.
Short-term Treasuries, though, can allow you to make money in a safe way when you can't find stocks that you like. When you do find them, you won't have to wait long to free up the cash to buy them.
10 stocks we like better than Berkshire Hathaway
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of October 2, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron, Kraft Heinz, and Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A billion here, a billion there... First things first: It's not Apple (NASDAQ: AAPL). However, representatives won't allow the government to default on its debt payments because they understand just how dire the consequences of doing so would be. For example, if you need the cash sooner than the maturity date, you could lose money if the bond prices fall as a result of higher interest rates.
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A billion here, a billion there... First things first: It's not Apple (NASDAQ: AAPL). But Buffett has more invested in one asset than he does in Bank of America (NYSE: BAC), American Express (NYSE: AXP), The Coca-Cola Company (NYSE: KO), and Chevron (NYSE: CVX) combined. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway.
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A billion here, a billion there... First things first: It's not Apple (NASDAQ: AAPL). But Buffett has more invested in one asset than he does in Bank of America (NYSE: BAC), American Express (NYSE: AXP), The Coca-Cola Company (NYSE: KO), and Chevron (NYSE: CVX) combined. Why Buffett is so heavily invested in Treasuries Berkshire's policy is to always maintain at least $30 billion in cash, cash equivalents, and U.S. Treasury bills.
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A billion here, a billion there... First things first: It's not Apple (NASDAQ: AAPL). The combined value of Berkshire's positions in the four stocks totals more than $90 billion. Why Buffett is so heavily invested in Treasuries Berkshire's policy is to always maintain at least $30 billion in cash, cash equivalents, and U.S. Treasury bills.
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13236.0
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2023-10-08 00:00:00 UTC
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3 Stocks to Add to Your Portfolio in a Market Pullback
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-add-to-your-portfolio-in-a-market-pullback-8
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The market has been wobbly over the past month as high interest rates continued to drive investors from stocks toward fixed-income investments. But the S&P 500 is still up 11% year to date, so we have yet to encounter a true market pullback.
But when that market pullback happens, investors should be ready to pick up some shares of well-run companies at discount valuations. These three underappreciated stocks deserve to be on that shopping list: Rivian Automotive (NASDAQ: RIVN), Apple (NASDAQ: AAPL), and Lululemon Athletica (NASDAQ: LULU). Here's why.
Image source: Getty Images.
1. Rivian Automotive
Rivian sells three types of electric vehicles (EVs): the R1T pickup truck, the R1S SUV, and an electric delivery van (EDV) for its top investor Amazon. Unlike many other new EV makers struggling to ramp up their production in a tough market, Rivian already produces tens of thousands of vehicles every year. In 2022, Rivian manufactured 24,337 vehicles and delivered 20,332 vehicles. It expects to more than double its production to 52,000 vehicles this year.
Yet Rivian's stock still trades more than 70% below its IPO price, for three reasons. First, it repeatedly reduced its production targets as it grappled with supply chain constraints. Second, it issued several safety-related recalls. Lastly, it continued to rack up steep losses while increasing its leverage with more convertible debt offerings. All of those weaknesses made it an easy target for the bears in a high interest rate environment.
With an enterprise value of $17.5 billion, Rivian doesn't seem expensive at 4 times this year's sales. By comparison, Tesla trades at 8 times this year's sales. But Rivian's stock could get even cheaper in a market pullback, since it still hasn't proven it can scale its business or generate stable profits. That said, Rivian could be a screaming bargain for daring investors if it gets cut in half -- since it expects to significantly ramp up its production over the next two years.
2. Apple
Over the past decade, the bears claimed Apple's high-growth days were over, it was too dependent on the aging iPhone, and it was starved for innovation. Yet during those 10 years, Apple's stock has delivered a total return of over 1,000%.
Apple crushed the market because its users stayed loyal to its brand, it locked them in with its expanding ecosystem of services, and it bought back nearly 40% of its shares. It ended its latest quarter with $166 billion in cash and marketable securities, which gives it plenty of room for fresh investments and acquisitions. Its forward dividend yield of 0.6% might seem paltry, but its low payout ratio of 16% gives it plenty of room for future dividend hikes.
Apple's stable growth, fortress-like balance sheet, brand appeal, and sticky ecosystem all drove Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to allocate a whopping 47% of its entire portfolio to Apple. It's probably a good idea to follow the Oracle of Omaha's lead here and also make Apple one of your top holdings.
Apple might seem a bit pricey right now at 26 times forward earnings, especially since it's bracing for a near-term slowdown in iPhone sales, but its valuations could become a lot more attractive during a market downturn.
3. Lululemon
Back in 2019, Lululemon declared it would double its digital revenue, double its men's revenue, and quadruple its international revenue from fiscal 2018 (which ended in February 2019) to fiscal 2023 through its "Power of Three" growth plan.
Lululemon achieved its digital and men's goals ahead of schedule in fiscal 2021, even as it temporarily closed its stores during the pandemic, and surpassed its international target in fiscal 2022. That success drove it to launch a new "Power of Three x2" plan last April, which set the same goals of doubling its digital and men's revenues and quadrupling its international revenue from fiscal 2021 to fiscal 2026. It reiterated those targets during its latest conference call in August.
Lululemon's robust growth was fueled by three catalysts: its sticky brand loyalty, the expansion of its direct-to-consumer channel, and its overseas growth. Analysts expect its revenue and earnings to grow 18% and 21%, respectively, in fiscal 2023, even as inflation curbs consumer spending and squeezes its gross margins.
Lululemon looks reasonably valued at 27 times forward earnings, but a market downturn could compress its valuations and make it an undervalued growth stock. If that happens, I'd definitely add it to my portfolio as a leading retail play.
10 stocks we like better than Rivian Automotive
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Rivian Automotive 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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon.com and Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Lululemon Athletica, 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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These three underappreciated stocks deserve to be on that shopping list: Rivian Automotive (NASDAQ: RIVN), Apple (NASDAQ: AAPL), and Lululemon Athletica (NASDAQ: LULU). Unlike many other new EV makers struggling to ramp up their production in a tough market, Rivian already produces tens of thousands of vehicles every year. Apple might seem a bit pricey right now at 26 times forward earnings, especially since it's bracing for a near-term slowdown in iPhone sales, but its valuations could become a lot more attractive during a market downturn.
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These three underappreciated stocks deserve to be on that shopping list: Rivian Automotive (NASDAQ: RIVN), Apple (NASDAQ: AAPL), and Lululemon Athletica (NASDAQ: LULU). Apple's stable growth, fortress-like balance sheet, brand appeal, and sticky ecosystem all drove Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to allocate a whopping 47% of its entire portfolio to Apple. Lululemon Back in 2019, Lululemon declared it would double its digital revenue, double its men's revenue, and quadruple its international revenue from fiscal 2018 (which ended in February 2019) to fiscal 2023 through its "Power of Three" growth plan.
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These three underappreciated stocks deserve to be on that shopping list: Rivian Automotive (NASDAQ: RIVN), Apple (NASDAQ: AAPL), and Lululemon Athletica (NASDAQ: LULU). Lululemon Back in 2019, Lululemon declared it would double its digital revenue, double its men's revenue, and quadruple its international revenue from fiscal 2018 (which ended in February 2019) to fiscal 2023 through its "Power of Three" growth plan. See the 10 stocks *Stock Advisor returns as of October 2, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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These three underappreciated stocks deserve to be on that shopping list: Rivian Automotive (NASDAQ: RIVN), Apple (NASDAQ: AAPL), and Lululemon Athletica (NASDAQ: LULU). It expects to more than double its production to 52,000 vehicles this year. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Rivian Automotive wasn't one of them!
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13237.0
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2023-10-07 00:00:00 UTC
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Meta Platforms (NASDAQ:META): A Must-Watch Stock for AI Investors
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-nasdaq%3Ameta%3A-a-must-watch-stock-for-ai-investors
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nan
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nan
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Social media company Meta Platform's (NASDAQ:META) efforts to strengthen its position in the AI (artificial intelligence) race have gained significant traction in recent months. The stock has risen by 162% year-to-date, outperforming the S&P 500's (SPX) 12% gain, and analysts see more upside ahead. Meta's attempt to strengthen and monetize its already popular social media platforms by adopting generative AI could boost its revenue and earnings in the next few quarters. Hence, I am bullish on META stock now.
Meta Platforms: Gearing Up for Another Strong Quarter
Meta (formerly Facebook) is a part of the big tech FAANG group, which also includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Alphabet (formerly Google) (NASDAQ:GOOGL).
Meta Platforms owns social media platforms Facebook, WhatsApp, Instagram, Messenger, the recently launched Threads, and others. These fall under one of its segments, Family of Apps (FoA). Its augmented and virtual reality-related products and services fall under its other reportable segment, Reality Labs (RL).
Reality Labs hasn’t been profitable for the company. In Q2, it reported a $3.7 billion operating loss, however, thanks to its FoA segment, which is making up for the damage done. It brought in $31.7 billion in revenue, accounting for a chunk of total revenue, resulting in a $13.1 billion operating profit.
CEO Mark Zuckerberg had set 2023 as the "year of efficiency" and has been working hard to make that happen. It entailed layoffs, reducing spending on less significant projects, and focusing on more AI-related projects. During its Q2earnings call the company discussed how its AI-related investments over the years are finally paying off.
Meta Stock: Powering Through AI Innovations
Certainly, it has been a year of efficiency. Most recently, at Meta's Connect conference, CEO Mark Zuckerberg unveiled the company's new generative AI products, which sparked market excitement. Meta AI is an advanced conversational assistant that can generate text responses and photo-realistic images and is integrated with Meta's popular products, WhatsApp, Messenger, and Instagram.
Meta AI is powered by Llama 2, its large language model, which it released in July in collaboration with Microsoft (NASDAQ:MSFT). The company intends to incorporate Meta AI into its mixed reality headset, Quest 3, and another new offering, a new generation of Ray-Ban Meta smart glasses. The company will launch Quest 3 on October 10.
Zuckerberg described Quest 3 as the best value in the industry for combining digital and real-world experiences at a low cost. Indeed, it is low-cost, priced at $500, while competing with Apple's Vision Pro Headset, which will come with a price tag of around $3,500. Apple's headset is set to hit the market in early 2024.
What's more, its new generation of Ray-Ban Meta smart glasses, in collaboration with EssilorLuxottica, are priced at $299. The glasses will be launched in the third week of October. Meta claims the glasses can take pictures, record videos, and connect to social media.
Along with these, Meta has added generative AI stickers to its messaging apps. It could use AI to unlock more monetary potential in the wildly popular messaging app WhatsApp, which it purchased for $19 billion in 2014. More features from the company include its monthly subscription charges for ad-free Instagram and Facebook app use in Europe, which could be around 10 euros ($10.60 at current exchange rates).
CFO Susan Li stated that the company's capital expenditures could rise in 2024 as it navigates AI and metaverse opportunities by expanding its workforce with more technical roles.
Looking ahead, management anticipates revenue in the third quarter to be in the $32 billion to $34.5 billion range, representing an impressive 16% to 25% increase over Q3 2022. Meanwhile, analysts expect its revenue to be in the $29 billion to $34 billion range, with earnings estimates ranging from $2.27 to $4.27 per share, with the consensus EPS estimate landing at $3.59. On October 25, Meta will report its third-quarter earnings.
Additionally, Meta closed its Q2 with a hefty cash balance of $53.5 billion and $18.3 billion in long-term debt. Given the company's rapid growth in revenue and profits, repaying the debt shouldn't be hard. Furthermore, it generated a sizable $11 billion in free cash flow in the quarter, which should aid in debt repayment and future project financing.
While in pursuit of getting ahead in the AI race, Meta also believes this technology is still in its early stages and thus intends to build it responsibly.
Is META Stock a Buy, According to Analysts?
Turning to Wall Street, TipRanks rates Meta as a Strong Buy, with 40 Buys, two Holds, and no Sell ratings assigned in the past three months. The average META stock price target of $376.47 implies 19.35% upside potential. The highest price target for the stock stands at $435, while the lowest is at $285 per share.
The Takeaway
Summing up, sitting at a market cap of $811.6 billion, Meta is very close to joining the $1 trillion club. With Meta's efforts to monetize its social media apps and capitalize on the massive growth brought about by AI, the company is well-positioned to achieve this goal. Though the AI niche is enticing, it is also susceptible to market fluctuations. But for now, I share Wall Street's optimism about META stock's outstanding long-term prospects.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meta Platforms: Gearing Up for Another Strong Quarter Meta (formerly Facebook) is a part of the big tech FAANG group, which also includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Alphabet (formerly Google) (NASDAQ:GOOGL). Meta's attempt to strengthen and monetize its already popular social media platforms by adopting generative AI could boost its revenue and earnings in the next few quarters. CFO Susan Li stated that the company's capital expenditures could rise in 2024 as it navigates AI and metaverse opportunities by expanding its workforce with more technical roles.
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Meta Platforms: Gearing Up for Another Strong Quarter Meta (formerly Facebook) is a part of the big tech FAANG group, which also includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Alphabet (formerly Google) (NASDAQ:GOOGL). Social media company Meta Platform's (NASDAQ:META) efforts to strengthen its position in the AI (artificial intelligence) race have gained significant traction in recent months. Meta Platforms owns social media platforms Facebook, WhatsApp, Instagram, Messenger, the recently launched Threads, and others.
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Meta Platforms: Gearing Up for Another Strong Quarter Meta (formerly Facebook) is a part of the big tech FAANG group, which also includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Alphabet (formerly Google) (NASDAQ:GOOGL). Social media company Meta Platform's (NASDAQ:META) efforts to strengthen its position in the AI (artificial intelligence) race have gained significant traction in recent months. The company intends to incorporate Meta AI into its mixed reality headset, Quest 3, and another new offering, a new generation of Ray-Ban Meta smart glasses.
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Meta Platforms: Gearing Up for Another Strong Quarter Meta (formerly Facebook) is a part of the big tech FAANG group, which also includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), and Alphabet (formerly Google) (NASDAQ:GOOGL). Meta Platforms owns social media platforms Facebook, WhatsApp, Instagram, Messenger, the recently launched Threads, and others. Additionally, Meta closed its Q2 with a hefty cash balance of $53.5 billion and $18.3 billion in long-term debt.
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13238.0
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2023-10-07 00:00:00 UTC
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Forget Disney. Apple (NASDAQ:AAPL) Should Buy Nintendo to Jolt iPhone, Vision Pro Sales
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AAPL
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https://www.nasdaq.com/articles/forget-disney.-apple-nasdaq%3Aaapl-should-buy-nintendo-to-jolt-iphone-vision-pro-sales
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nan
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nan
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It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. Though there are many ways Disney could enhance Apple's ecosystem, I'd argue that the iPhone maker would be better off buying Japanese video game maker Nintendo (OTC:NTDOY) to potentially jolt the iPhone and Vision Pro as it looks to move further into the gaming waters. Either way, I am bullish on Apple stock as shares cool for autumn.
Undoubtedly, there are some serious troubles at the House of Mouse right now. The stock is heavily discounted, now down around 60% from its all-time high hit back in 2021. Still, the $152 billion behemoth isn't just too large to be an acquisition target (maybe except by titans like Apple), but there are too many moving parts to the business, and they don't appear to be moving gracefully together these days.
Add succession issues into the equation, as CEO Bob Iger looks to turn the tides under yet another tenure, and it's clear that Disney may not be the juiciest Apple (please forgive the pun) of Apple's eye at this point in time.
Why Apple Probably Won't Buy Disney in Whole
The Apple Vision Pro reveal gave a bit of time to Disney and its top boss, Bob Iger, to discuss the possibilities for Disney in the age of spatial computing. And while Disney's streaming platform, deep library of content, and ESPN sports channel would fit well in the Apple TV+ arsenal, we can't forget about the Theme Parks and Cruises business, which isn't precisely within Apple's circle of competence!
Even if bought Disney in whole, what would it do with parks? I'm not so sure it wants to get into that business. Though, I suppose anything is possible if the price is right.
Iger recently announced the firm's intention to double down on its Parks business, which seems like a pretty wise move, given that it seems to need to do more to justify ticket price hikes. In any case, I wouldn't get my hopes up for a Disney-Apple deal, as it doesn't seem to make a lot of sense, in my humble opinion. However, I do think pursuing ESPN could prove wise, given how incredible the sports content looked on Vision Pro during its big reveal back in June.
Back to Nintendo. Nintendo seems to "rhyme" with Disney but in the world of video games. The company has a strong, time-tested library of content, characters, and expertise. And though it has Nintendo World theme parks, which recently opened in Universal Studios Hollywood earlier this year, I'd argue that parks are an incredibly small part of the overall pie, at least compared to Disney.
Video Gaming Could be More of a Game-Changer for Apple
I view gaming as an area that could mean the difference between a mild Vision Pro launch and a scorching hot one. Additionally, it's hard to look past the graphical capabilities of the iPhone 15 Pro and iPhone 15 Pro Max. With console-worthy game titles (like Resident Evil 4 and Resident Evil Village) now playable on the iPhone 15, Apple seems to have advanced on the hardware front such that it now makes sense to double-down in the realm of triple-A gaming to make the most of the hardware.
Indeed, the latest line of console-grade games look impressive when played on the latest iPhone. However, there's one small thing that could prevent the iPhone from eating into the share of the PC or console gaming market -- a lack of titles.
Apple could acquire its way to solve the problem. Given that Nintendo has a ton of impressive family-friendly exclusives that we all know and love, I view Nintendo as the perfect piece to the puzzle.
It's not just the iPhone that could be a disruptive triple-A gaming platform. The Vision Pro's hardware looks to be best-in-class, but on the front of gaming, I'm sure you could give the edge to Meta Platforms (NASDAQ:META) and its Meta Quest 3 headset.
A recent FastCompany article I came across gave praise to Meta's plan to beat Apple, noting that Meta's offering is cheaper, faster, and more fun. In the power versus affordability debate, I think power wins every step of the way (one point for Apple Vision Pro). Still, at this juncture, it's hard to deny that Meta's offering looks more fun, given how much emphasis was placed on gaming. Apple has the power to change things, however, and all it could take is a few major partnerships or one big acquisition.
Is Apple Stock a Buy, According to Analysts?
On TipRanks, AAPL stock comes in as a Moderate Buy. Out of 29 analyst ratings, there are 20 Buys and nine Holds. The average Apple stock price target is $207.69, implying upside potential of 17%. Analyst price targets range from a low of $167.00 per share to a high of $240.00 per share.
The Bottom Line
Buying Disney would give Apple a nice edge as it continues investing in its Apple TV+ business. Still, I'd argue Nintendo would give the iPhone maker a better bang for its buck, as exclusive games and characters would enable the firm to better showcase the potential of its graphically-capable hardware.
Additionally, the only thing that may stop the Vision Pro from being a mainstream success may be how "fun" it is for users. Sure, its $3,500 sticker price is a shocker, but if it has some exclusive games on it, I'd bet a lot of people will be itching to get their hands on one anyway.
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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It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. Iger recently announced the firm's intention to double down on its Parks business, which seems like a pretty wise move, given that it seems to need to do more to justify ticket price hikes.
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It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. Though there are many ways Disney could enhance Apple's ecosystem, I'd argue that the iPhone maker would be better off buying Japanese video game maker Nintendo (OTC:NTDOY) to potentially jolt the iPhone and Vision Pro as it looks to move further into the gaming waters.
|
It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. Though there are many ways Disney could enhance Apple's ecosystem, I'd argue that the iPhone maker would be better off buying Japanese video game maker Nintendo (OTC:NTDOY) to potentially jolt the iPhone and Vision Pro as it looks to move further into the gaming waters.
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It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. And while Disney's streaming platform, deep library of content, and ESPN sports channel would fit well in the Apple TV+ arsenal, we can't forget about the Theme Parks and Cruises business, which isn't precisely within Apple's circle of competence!
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13239.0
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2023-10-07 00:00:00 UTC
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Is It Too Late to Buy Apple Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-apple-stock-7
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nan
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nan
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Apple (NASDAQ: AAPL) has a long history of dominating the tech industry. The company isn't always the first to a market, but has a proven talent at taking existing technology and using its custom design language to skyrocket the product into mainstream use. Smartphones, tablets, smartwatches, and even Bluetooth headphones saw rapid spikes in widespread adoption once Apple launched their own versions. As a result, the company holds leading market shares in each of these product categories.
The tech giant's success over the years has seen its stock soar 900% over the last decade. For some companies, that kind of growth could suggest its shares don't have much to offer new investors. However, tech is an ever-expanding industry that grants innovative companies consistent gains over the long term. As one of the biggest names in the market, Apple shares are an attractive investment for patient buyers.
So here's why it's not too late to buy Apple stock.
A tech market sell-off
All eyes were on tech in the first half of this year, with Wall Street rallying over the potential of burgeoning markets like artificial intelligence (AI) and virtual/augmented reality (VR/AR). However, excitement seems to have hit a peak, leading to a slight sell-off in the tech market that saw the Nasdaq-100 Technology Sector tumble 6% since the start of August.
Apple shares have dipped 9% in the same period, with many of its peers experiencing similar declines. Investors are increasingly wary of how macroeconomic headwinds could affect the market over the next year.
Apple was left mostly unscathed amid last year's economic downturn. However, 2023 has seen it report three consecutive quarters of revenue declines after significant reductions in consumer spending. In the third quarter of 2023, Apple's revenue fell 1% year over year as net sales decreased in three of its four product segments.
One of the few silver linings of the sell-off is that Apple's price-to-earnings ratio (P/E) of 29 is at one of its lowest points in the last three months. P/E is a helpful metric in determining a stock's value, with a P/E of 20 or below usually considered a bargain. While Apple's is above this figure, its P/E is lower than those of competitors like Microsoft, Amazon, or Meta. As a result, Apple could be one of the best-valued stocks in big tech.
Economic challenges won't last forever, making Apple an attractive long-term investment that could pay off significantly in a market recovery.
Apple's services business is booming
Apple's products segment may be under strain, but its services business has proved far less vulnerable to macro factors. The company's services segment includes income from its App Store and subscription-based platforms like Apple TV+, Music, and iCloud. The digital business has continued delivering stellar growth over the last year, earning the second-largest portion of revenue and often outpacing the iPhone -- the company's highest-earning segment.
In fiscal 2022, services revenue grew 14% year over, double that of the iPhone's growth. Then, in Apple's most recent quarter (Q3 2023), services net sales rose 8%, while the tech giant's smartphone segment declined 2%. Services could be on track to eventually surpass the iPhone, which is a promising trajectory for the company.
In addition to being less vulnerable to economic challenges, services offer attractive profit margins. The segment regularly hits profit margins of 70%, while products are around 35%.
Apple has aggressively expanded its subscription services, launching Apple TV+, Arcade, News+, and Fitness+ in 2019. Meanwhile, the company has recently moved into fintech, teaming up with Goldman Sachs to offer consumers a credit card, savings account, and a buy now pay later program.
Services are a lucrative area for Apple, allowing it to lean less on product sales when faced with short-term headwinds. The company's success and expansion in the digital market only strengthen the argument for its stock, with its diversification likely to offer consistent gains over the long term.
Find out why Apple is one of the 10 best stocks to buy now
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*Stock Advisor returns as of October 2, 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. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has a long history of dominating the tech industry. Economic challenges won't last forever, making Apple an attractive long-term investment that could pay off significantly in a market recovery. The digital business has continued delivering stellar growth over the last year, earning the second-largest portion of revenue and often outpacing the iPhone -- the company's highest-earning segment.
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Apple (NASDAQ: AAPL) has a long history of dominating the tech industry. Then, in Apple's most recent quarter (Q3 2023), services net sales rose 8%, while the tech giant's smartphone segment declined 2%. In addition to being less vulnerable to economic challenges, services offer attractive profit margins.
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Apple (NASDAQ: AAPL) has a long history of dominating the tech industry. In the third quarter of 2023, Apple's revenue fell 1% year over year as net sales decreased in three of its four product segments. Apple's services business is booming Apple's products segment may be under strain, but its services business has proved far less vulnerable to macro factors.
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Apple (NASDAQ: AAPL) has a long history of dominating the tech industry. In the third quarter of 2023, Apple's revenue fell 1% year over year as net sales decreased in three of its four product segments. Apple's services business is booming Apple's products segment may be under strain, but its services business has proved far less vulnerable to macro factors.
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13240.0
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2023-10-07 00:00:00 UTC
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5 Top Buffett Stocks to Buy and Hold for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/5-top-buffett-stocks-to-buy-and-hold-for-the-long-haul
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nan
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nan
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Warren Buffett might be the world's most famous long-term investor. He's become one of Earth's wealthiest people from a decades-long and fruitful investing career. His secret? Finding wonderful companies at fair (or better) prices and holding them.
His favorite companies are those that can steadily generate more cash profits, called free cash flow, over time. Free cash flow often leads to share repurchases and dividends, which Buffett loves.
Buffett has a known affinity for simple businesses but occasionally wades into the technology sector. Consider adding these stocks to your diversified portfolio and invest like Buffett himself.
1. Snowflake
Cloud-computing data company Snowflake (NYSE: SNOW) is one of Buffett's newest positions. His holding company, Berkshire Hathaway, participated in the company's IPO when it went public in 2020. Snowflake is a SaaS company that provides businesses with a cloud-based platform to store, organize, analyze, and share data.
SNOW Revenue (TTM) data by YCharts.
Snowflake makes money based on customer usage, potentially foreshadowing growth as society creates more data over time. This is a potential pick-and-shovel style investment for the future. The company's free cash flow has begun growing with revenue, and management has already announced a share repurchase program. Investors should see plenty more cash trickle to them as Snowflake continues growing.
2. Apple
Most people are familiar with iPhone maker Apple (NASDAQ: AAPL). Today, there are more than 1.4 billion iPhone users worldwide. While Apple has been a remarkable investment for decades, Buffett pounced on shares in 2016 because he saw value in the stock. That decision was great because it's grown into Berkshire Hathaway's largest investment since.
AAPL Revenue (TTM) data by YCharts.
Apple remains dominant today; its massive user base helps it grow complementary revenue streams like subscriber services and accessories. The resulting free cash flow is more than what most companies generate in total sales. Apple has spent billions of dollars to lower its share count 38% over the past decade. It looks like Apple is a safe bet for the long term until the day people no longer wait in lines to buy Apple's latest innovation. .
3. Amazon
E-commerce is a way of life for many consumers, primarily thanks to Amazon's (NASDAQ: AMZN) rise. While Berkshire Hathaway owns shares of the company today, Buffett has acknowledged that he should have bought in sooner. The stock has been one of the greatest investments ever, turning $10,000 into $12.8 million since IPO.
AMZN Revenue (TTM) data by YCharts.
The secret? Amazon aggressively reinvests its cash profits to build new businesses, such as Amazon Web Services, Prime, and its advertising segment. These growth opportunities still have juice left for squeezing. The stock's best investment returns might be behind it -- after all, its market cap is a whopping $1.3 trillion today. However, its proven ability to innovate and build new businesses should continue creating value for long-term investors.
4. Moody's
Buffett loves simple businesses, and Moody's Corporation (NYSE: MCO) fits the bill. The company analyzes global markets via credit ratings and research, an industry it dominates along with S&P Global. You can think of it as the credit score for the world's corporations. Moody's authority in the credit markets lines up business as corporations continually borrow to help fund growth and other ventures. Berkshire Hathaway has owned the stock for over 20 years.
MCO Revenue (TTM) data by YCharts.
Investors will love the company's juicy profit margins; Moody's has generated $1.6 billion in free cash flow on $5.5 billion in revenue, a healthy 29% conversion rate. Management takes that cash and repurchases its shares. The share count has fallen nearly 15% over the past decade, helping boost earnings per share (EPS). It's a winning formula that should continue.
5. Visa
Speaking of small groups dominating huge industries, Visa (NYSE: V) enjoys a similar position in the payments industry. It's the world's largest payments network and connects and moves money between merchants and financial institutions whenever you swipe your Visa-branded debit or credit card. You can think of Visa as the world's financial toll booth, a simple but powerful business that Buffett bought and has owned since 2011.
V Revenue (TTM) data by YCharts.
Visa is also very profitable, turning $0.58 of each revenue dollar into cash flow. That's helped the company pay a dividend and gobble up its stock, creating market-beating returns for investors. Visa should continue growing over the coming years as people, especially those in emerging markets, move further away from cash payments.
10 stocks we like better than Snowflake
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*Stock Advisor returns as of September 25, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, Moody's, S&P Global, Snowflake, 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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Apple Most people are familiar with iPhone maker Apple (NASDAQ: AAPL). AAPL Revenue (TTM) data by YCharts. Apple remains dominant today; its massive user base helps it grow complementary revenue streams like subscriber services and accessories.
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Apple Most people are familiar with iPhone maker Apple (NASDAQ: AAPL). AAPL Revenue (TTM) data by YCharts. Moody's Buffett loves simple businesses, and Moody's Corporation (NYSE: MCO) fits the bill.
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Apple Most people are familiar with iPhone maker Apple (NASDAQ: AAPL). AAPL Revenue (TTM) data by YCharts. The company's free cash flow has begun growing with revenue, and management has already announced a share repurchase program.
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Apple Most people are familiar with iPhone maker Apple (NASDAQ: AAPL). AAPL Revenue (TTM) data by YCharts. Snowflake Cloud-computing data company Snowflake (NYSE: SNOW) is one of Buffett's newest positions.
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13241.0
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2023-10-07 00:00:00 UTC
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51% of Warren Buffett's Berkshire Hathaway Portfolio Is Invested in This 1 AI Stock
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AAPL
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https://www.nasdaq.com/articles/51-of-warren-buffetts-berkshire-hathaway-portfolio-is-invested-in-this-1-ai-stock
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Fool.com contributor Parkev Tatevosian highlights his thoughts on why Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio allocate a large percentage to only one stock.
*Stock prices used were the afternoon prices of Oct. 4, 2023. The video was published on Oct. 6, 2023.
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
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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. *Stock Advisor returns as of October 2, 2023 Parkev Tatevosian, CFA has positions in Apple.
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Fool.com contributor Parkev Tatevosian highlights his thoughts on why Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio allocate a large percentage to only one stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of October 2, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway.
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*Stock Advisor returns as of October 2, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. His opinions remain his own and are unaffected by The Motley Fool.
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13242.0
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2023-10-06 00:00:00 UTC
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Why Meta Platforms Stock Still Looks Undervalued After Doubling in 2023
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AAPL
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https://www.nasdaq.com/articles/why-meta-platforms-stock-still-looks-undervalued-after-doubling-in-2023
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With a YTD gain of over 155%, Meta Platforms (META) is the best-performing FAANG stock of the year, and the second-best-performing S&P 500 Index ($SPX) stock. It’s been quite a turnaround for Meta, as the stock was the worst-performing FAANG stock in 2022, and lost almost two-thirds of its market cap.
One of the factors that drove the rally in Meta stock was its subdued valuations after last year’s crash. The stock has arguably seen a valuation reset, as is evidenced by the monstrous rally this year. However, I believe the stock still looks undervalued, especially for those to invest for the long term.
Notably, Meta stock has fallen only about 5% from its 2023 highs, which is the second-lowest among FAANG peers - behind only Alphabet (GOOG), which is still trading quite close to its 52-week highs. Even Apple (AAPL) - which most see as a pillar of stability during periods of economic turmoil, like we're in currently - has fallen in double digits from its 2023 highs.
www.barchart.com
Is Meta Platforms Stock Undervalued?
Meta Platforms currently trades at a next-12 months (NTM) price-to-earnings multiple of 19x. The multiples bottomed at 12.3x in November 2022 amid the slide in Meta stock. However, the multiple has averaged 21.4x over the last three years, and 22.2x over the last five years. Meta’s valuation multiples are also the lowest among FAANG peers, as has been the case historically.
On the face of it, Meta might appear somewhat undervalued. However, it would be prudent to put things into perspective.
First, Meta’s revenues are not growing at the same pace they did in the past. Analysts expect its sales to rise 13.6% and 12.4%, respectively, in 2023 and 2024. While that's still a big improvement from 2022, when its sales fell 1.1% - its first yearly fall in revenues – it's less than half of what the company was reporting before 2022.
Second, higher interest rates have taken a toll on the valuations of tech stocks, and Meta is no exception.
Meanwhile, though Meta’s revenue growth has slowed down, the company is trying to capitalize on several growth opportunities. I believe that despite having rallied sharply from its lows, Meta stock still looks like a decent buy. Here’s why:
1. Strong Social Media Platforms
While Meta Platforms' user growth has stagnated, Meta still has strong platforms with massive network effects. Also, while there is a global furor over targeted ads, and Apple iPhone privacy rules reduced Meta’s ability to show targeted ads to users, it is reportedly looking at an ad-free version in Europe - which would help bolster its revenues, while escaping the increasing regulatory heat in the region.
2. Effective Monetization to Drive Revenues
Meta is now looking at effective monetization of its platforms. During the Q2 2023 earnings call, it said that the annual revenue run rate of Reels – its short video format to compete with TikTok – is now at $10 billion, and has more than tripled over the last year. It is also looking at ways to increase the monetization of WhatsApp users, and has launched paid messaging and business messaging to help businesses connect with users.
Meta will also eventually monetize Threads – its X (formerly Twitter)-like platform – which will add a new line of revenue for the social media giant.
Increased monetization coupled with aggressive cost cuts should help drive the company's profits, with analysts projecting a 26% YoY rise in its 2024 net income.
www.barchart.com
3. Artificial Intelligence
Meta has started rolling out its generative AI tools to all advertisers. The company has also unveiled its Quest 3 headset, and the smart glasses that it co-developed with Ray-Ban’s parent company. Meta is among the top AI plays, as the use of generative AI will help it make the platform even better for users, while also making ads more effective from the perspective of advertisers.
4. Metaverse
Meta Platforms’ Reality Labs, which is building the metaverse, has been a cash guzzler - the segment lost $10.2 billion and $13.7 billion in 2021 and 2022, respectively. The company expects the segment’s losses to increase in 2023, and it has already reported an operating loss of $3.99 billion and $3.7 billion for Q1 and Q2, respectively – with the former representing the unit's highest quarterly loss so far.
However, Meta and its CEO Mark Zuckerberg are willing to lose that much money on building the metaverse for a reason, and management has been quite vocal about the segment’s centrality to Meta’s long-term success. While the Reality Labs segment is currently posting losses, it should eventually turn profitable if the bet plays out well.
I think of Meta as a mix of two businesses – while one is a value play on the legacy social media platforms, Reality Labs is the growth component that can add significant long-term value if the metaverse gains traction.
Meta Stock Forecast
Wall Street analysts are also quite bullish on Meta stock, and it has a consensus rating of Strong Buy. Of the 38 analysts that cover the stock, 34 rate it as a Strong Buy, while two rank it as a Moderate Buy. One analyst each rates it as a Hold and Strong Sell.
The stock’s mean target price of $361.65 is 16.8% above its current price.
www.barchart.com
The recent strength in Meta stock, despite the broad-based market sell-off, reiterates the fact that investors see value in this tech giant. The next key trigger for Meta will be the upcoming Q3 earnings report. The stock rallied smartly after the previous two earnings releases, and I don’t expect it to disappoint bulls this time either.
On the date of publication, Mohit Oberoi had a position in: AAPL , META . 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 Apple (AAPL) - which most see as a pillar of stability during periods of economic turmoil, like we're in currently - has fallen in double digits from its 2023 highs. On the date of publication, Mohit Oberoi had a position in: AAPL , META . During the Q2 2023 earnings call, it said that the annual revenue run rate of Reels – its short video format to compete with TikTok – is now at $10 billion, and has more than tripled over the last year.
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Even Apple (AAPL) - which most see as a pillar of stability during periods of economic turmoil, like we're in currently - has fallen in double digits from its 2023 highs. On the date of publication, Mohit Oberoi had a position in: AAPL , META . Strong Social Media Platforms While Meta Platforms' user growth has stagnated, Meta still has strong platforms with massive network effects.
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Even Apple (AAPL) - which most see as a pillar of stability during periods of economic turmoil, like we're in currently - has fallen in double digits from its 2023 highs. On the date of publication, Mohit Oberoi had a position in: AAPL , META . With a YTD gain of over 155%, Meta Platforms (META) is the best-performing FAANG stock of the year, and the second-best-performing S&P 500 Index ($SPX) stock.
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Even Apple (AAPL) - which most see as a pillar of stability during periods of economic turmoil, like we're in currently - has fallen in double digits from its 2023 highs. On the date of publication, Mohit Oberoi had a position in: AAPL , META . www.barchart.com Is Meta Platforms Stock Undervalued?
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13243.0
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2023-10-06 00:00:00 UTC
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3 Top U.S. Stocks to Watch in October
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AAPL
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https://www.nasdaq.com/articles/3-top-u.s.-stocks-to-watch-in-october
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U.S. stocks took a hit last year as an economic downturn led the Nasdaq and NYSE composites to tumble 33% and 12% respectively over the past 12 months. Some of the hardest-hit companies were in the tech market, as spikes in inflation led to steep declines in consumer and commercial spending. Poor market conditions highlighted the importance of holding during a sell-off, as those who cut their losses last year will not have benefited from the recovery many companies have enjoyed this year.
Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) have each delivered double-digit stock growth since Jan. 1 despite suffering significant declines in 2022. These companies dominate their respective industries and make attractive stocks to hold over many years.
So, here's why Apple, Microsoft, and Amazon are three top U.S. stocks to watch in October.
1. Apple
Apple hasn't had an easy year. Despite stock growth of 32% year to date, its shares have actually fallen 12% since the start of August after posting disappointing third quarter of 2023 earnings. The period represented the company's third consecutive quarter of revenue declines, with net sales tumbling 1% year over year.
Economic challenges seemed to catch up with the company, with decreased revenue in three of its four product segments. iPhone, Apple's highest-earning segment, reported a 2% decline in net sales. The dip concerned investors as income from its smartphones regularly accounts for close to 50% of the company's total revenue.
However, the iPhone 15 launched at the end of last month, and early data shows the new generation of smartphones could be a hit with consumers. According to Counterpoint Research, wait times for the base model iPhone 15 are nearly double that of its predecessor. Meanwhile, its most expensive smartphone, the iPhone 15 Pro Max, has wait times of 48 days compared to 39 days this time last year.
After a dip in its stock and signs of a return to growth in its highest-earning segment, Apple is worth keeping on your radar for a potential investment.
2. Microsoft
It feels like Microsoft made headlines on a nearly weekly basis this year. The company has emerged as one of the biggest names in artificial intelligence (AI), increasing its stake in ChatGPT developer OpenAI to 49% in January. Meanwhile, the tech giant is on the precipice of completing its acquisition of game developer Activision Blizzard after U.K. regulators gave preliminary approval last month. Both developments could offer Microsoft a significant boost to earnings over the long term.
Regarding AI, Microsoft is using OpenAI's technology to bring upgrades across its software lineup. Word, Excel, Azure, and Bing all offer AI features now, with more to come. In July, the company unveiled CoPilot, an AI assistant that will soon be added to Microsoft 365 and cost $30 per month on top of the regular subscription price. The new feature represents Microsoft's effort to monetize its venture into AI and see a return on its hefty investment in the market.
The company is a leader in productivity, with millions of consumers and businesses relying on its offerings daily. As interest in AI grows, it is well positioned to become the go-to for almost anyone looking to integrate the technology into their workflows. Microsoft has a solid outlook and plenty of exciting developments on the horizon, making its stock one to watch this month.
3. Amazon
Amazon has revolutionized commerce in the U.S. and the world with its online marketplace that promises quality products at low prices and fast shipping. The company's stock skyrocketed during the COVID-19 pandemic, becoming the preferred option for homebound shoppers. However, economic challenges last year caused substantial declines in its retail profits and stock price.
So when Amazon posted a return to profitability in its North American segment in the first quarter of 2023 and topped $3 billion in operating income in the second quarter, Wall Street rallied. For reference, Q2 2022 saw its North American segment report $627 million in losses. Amazon shares have soared 49% year to date as a result.
Additionally, Amazon is making inroads in AI. The company's cloud platform, Amazon Web Services, introduced several new AI tools this year and announced a venture into chip development in June. Then, last month, news broke that Amazon would invest up to $4 billion in Anthropic, a rival to ChatGPT.
The partnership will likely help Amazon retain its lead in the cloud market against competitors like Microsoft and Alphabet. Meanwhile, it can continue to attract new customers to AWS with advanced AI features.
Amazon is on a promising growth trajectory, making its stock worth a spot on your watchlist.
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
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, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) have each delivered double-digit stock growth since Jan. 1 despite suffering significant declines in 2022. Meanwhile, the tech giant is on the precipice of completing its acquisition of game developer Activision Blizzard after U.K. regulators gave preliminary approval last month. In July, the company unveiled CoPilot, an AI assistant that will soon be added to Microsoft 365 and cost $30 per month on top of the regular subscription price.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) have each delivered double-digit stock growth since Jan. 1 despite suffering significant declines in 2022. The period represented the company's third consecutive quarter of revenue declines, with net sales tumbling 1% year over year. iPhone, Apple's highest-earning segment, reported a 2% decline in net sales.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) have each delivered double-digit stock growth since Jan. 1 despite suffering significant declines in 2022. So, here's why Apple, Microsoft, and Amazon are three top U.S. stocks to watch in October. The company's cloud platform, Amazon Web Services, introduced several new AI tools this year and announced a venture into chip development in June.
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Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) have each delivered double-digit stock growth since Jan. 1 despite suffering significant declines in 2022. So, here's why Apple, Microsoft, and Amazon are three top U.S. stocks to watch in October. The period represented the company's third consecutive quarter of revenue declines, with net sales tumbling 1% year over year.
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13244.0
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2023-10-06 00:00:00 UTC
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After Hours Most Active for Oct 6, 2023 : CMCSA, KVUE, QQQ, AAPL, AMZN, PODD, VGIT, T, COTY, HLN, BAC, TFC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-6-2023-%3A-cmcsa-kvue-qqq-aapl-amzn-podd-vgit-t-coty-hln-bac
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The NASDAQ 100 After Hours Indicator is up 9.36 to 14,982.6. The total After hours volume is currently 88,357,633 shares traded.
The following are the most active stocks for the after hours session:
Comcast Corporation (CMCSA) is unchanged at $43.47, with 3,064,433 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Kenvue Inc. (KVUE) is unchanged at $20.07, with 2,876,565 shares traded. As reported by Zacks, the current mean recommendation for KVUE is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.42 at $365.12, with 2,724,556 shares traded. This represents a 43.6% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.11 at $177.60, with 2,107,906 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amazon.com, Inc. (AMZN) is +0.0611 at $128.02, with 1,883,362 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Insulet Corporation (PODD) is unchanged at $145.51, with 1,829,185 shares traded. As reported by Zacks, the current mean recommendation for PODD is in the "buy range".
Vanguard Intermediate-Term Treasury ETF (VGIT) is unchanged at $56.60, with 1,529,999 shares traded. This represents a .34% increase from its 52 Week Low.
AT&T Inc. (T) is -0.01 at $14.44, with 1,465,457 shares traded. T's current last sale is 72.2% of the target price of $20.
Coty Inc. (COTY) is unchanged at $10.55, with 1,253,945 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $0.18. COTY's current last sale is 81.15% of the target price of $13.
Haleon plc (HLN) is +0.015 at $8.47, with 1,196,722 shares traded. HLN's current last sale is 92.07% of the target price of $9.2.
Bank of America Corporation (BAC) is +0.02 at $26.09, with 1,178,595 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 $0.81. BAC's current last sale is 74.54% of the target price of $35.
Truist Financial Corporation (TFC) is +0.11 at $27.43, with 1,166,285 shares traded. TFC's current last sale is 76.19% of the target price of $36.
The views and 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 +0.11 at $177.60, with 2,107,906 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Vanguard Intermediate-Term Treasury ETF (VGIT) is unchanged at $56.60, with 1,529,999 shares traded.
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Apple Inc. (AAPL) is +0.11 at $177.60, with 2,107,906 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 CMCSA is in the "buy range".
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Apple Inc. (AAPL) is +0.11 at $177.60, with 2,107,906 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is -0.01 at $14.44, with 1,465,457 shares traded.
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Apple Inc. (AAPL) is +0.11 at $177.60, with 2,107,906 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is +0.0611 at $128.02, with 1,883,362 shares traded.
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13245.0
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2023-10-06 00:00:00 UTC
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Jim Cramer Is Pounding the Table on Magnificent 7 Stocks as Bond Yields Rise
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AAPL
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https://www.nasdaq.com/articles/jim-cramer-is-pounding-the-table-on-magnificent-7-stocks-as-bond-yields-rise
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Jim Cramer, the CNBC commentator and host of the TV show Mad Money, is urging investors to take advantage of the current market volatility. Specifically, Cramer suggests buying the mega-cap technology stocks known as the “Magnificent Seven.”
With bond yields at their highest level in 16 years and rising, Cramer is telling his viewers to double down on these stocks. The Magnificent Seven is made up of Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
In his contrarian stance, Cramer is arguing that these seven stocks, most of which have a market capitalization above $1 trillion, are best positioned to survive the current market turmoil. This is largely due to their size and the huge amounts of cash they have on hand.
What Makes The Magnificent Seven Special
Recently on Mad Money, Cramer said that most stocks are likely to get pulled lower as bond yields creep higher. However, the mega-cap tech stocks are different because of the huge amount of cash reserves they have. Cramer stressed that these tech stocks led the market rally in this year’s first half, with many of their share prices tripling. He believes they will likely continue leading in 2024.
“We’re in an unusual situation, but skyrocketing bond yields are bad news for the vast bulk of the market. The mega-cap techs are the one big exception. You want to make it through this difficult moment? You need the Magnificent Seven, and then the rest,” said the TV host and former hedge fund manager.
Cramer added that few companies in the world have balance sheets as strong as the mega-cap technology concerns. He also points out that they have best-in-class products that remain in demand, whether it be Apple’s iPhones or Nvidia graphic processing units (GPUs). The strong financial position of these companies and their overall solvency should allow them and their shareholders to sail through the current market storm.
Long-Term Winners
Yields on the benchmark 10-year U.S. Treasury continue to hover at their highest level since 2007, causing volatility among stocks. Bond yields move inversely to prices and the yields are rising now because the prices of bonds are getting crushed. U.S. Treasuries are on track to post their third straight annual loss, an historic even that is without precedence, according to Bank of America analysts.
However, the tech stocks singled out by Jim Cramer have a track record of outperformance over the past decade. Every stock in the Magnificent Seven, with the exception of Amazon, has seen its share price more than double in the last five years. Nvidia’s stock is up more than 600% over the past five years, and Tesla’s share price has increased more than 1,400% in that timeframe.
As a group, the performance of the Magnificent Seven has far exceeded the five-year gain in the benchmark S&P 500 index of 56%. Even the Nasdaq index, on which all seven stocks trade, can’t match their individual performance. The Nasdaq has gained 80% over five years. The performance of the Magnificent Seven is even more impressive if one looks back 10 years.
What’s Next
Investors in search of safe havens amid the continued market volatility might want to heed Jim Cramer’s recommendation. These mega-cap tech stocks do have a history of outperformance in both good times and bad. And many of them have a strong tailwind right now thanks to the explosion of generative artificial intelligence (AI). With uncertainty continuing, these tech stocks could be a good option.
On the date of publication, Joel Baglole held long positions in Apple, GOOGL, MSFT and NVDA. 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 Jim Cramer Is Pounding the Table on Magnificent 7 Stocks as Bond Yields Rise 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 Magnificent Seven is made up of Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). What Makes The Magnificent Seven Special Recently on Mad Money, Cramer said that most stocks are likely to get pulled lower as bond yields creep higher. 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 Magnificent Seven is made up of Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Jim Cramer, the CNBC commentator and host of the TV show Mad Money, is urging investors to take advantage of the current market volatility. Specifically, Cramer suggests buying the mega-cap technology stocks known as the “Magnificent Seven.” With bond yields at their highest level in 16 years and rising, Cramer is telling his viewers to double down on these stocks.
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The Magnificent Seven is made up of Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Jim Cramer, the CNBC commentator and host of the TV show Mad Money, is urging investors to take advantage of the current market volatility. Specifically, Cramer suggests buying the mega-cap technology stocks known as the “Magnificent Seven.” With bond yields at their highest level in 16 years and rising, Cramer is telling his viewers to double down on these stocks.
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The Magnificent Seven is made up of Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Jim Cramer, the CNBC commentator and host of the TV show Mad Money, is urging investors to take advantage of the current market volatility. Bond yields move inversely to prices and the yields are rising now because the prices of bonds are getting crushed.
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13246.0
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2023-10-06 00:00:00 UTC
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3 Top Nasdaq Stocks to Add to Your Portfolio in October
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AAPL
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https://www.nasdaq.com/articles/3-top-nasdaq-stocks-to-add-to-your-portfolio-in-october
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nan
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nan
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The Nasdaq Composite ($NASX) is a heavyweight in the world of stock indexes, tracking the performance of over 3,000 companies spanning various sectors, with a heavy dose of technology, biotech, and communications, in particular. But, like any high roller, it has its ups and downs.
In September 2023, the Nasdaq experienced its worst month of the year, dropping by 5.8%. It was the punctuation mark to a generally dismal third quarter, with the Nasdaq swallowing a 4.1% overall decline.
What caused this turbulence? Well, there's a laundry list of culprits: rising bond yields, worries about inflation and interest rates, regulatory hurdles, geopolitical tensions, and some disappointing earnings reports. The rising anxiety among investors has punished growth-driven stocks particularly hard - and even tech giants like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) all ended the month of September between 3% and 8% lower.
But it's not all bad news. The pullback can be an opportunity for value-minded investors to hunt for promising stocks to buy on the dip - plus, it can help to separate the relative strength standouts from the pack.
With this in mind, here we've got three top Nasdaq picks to consider adding to your portfolio. Analysts are singing their praises, and they have room to climb toward their price targets, with strong growth expected in the quarters ahead. Now, let's dive into why these picks are worth your attention.
CrowdStrike: The Cloud Cybersecurity Leader
CrowdStrike (CRWD), the cybersecurity superhero, shields organizations from nasty cyberattacks like ransomware, phishing, and data breaches. CRWD has a market cap of $39.46 billion - and based on its recent price action, the stock certainly qualifies as a relative strength leader.
In fact, CRWD set a new 52-week high of $176.32 earlier today, extending its year-to-date gain to an impressive 67%.
www.barchart..com
So, why should you bet on CrowdStrike? Well, first off, they're kings in the cloud cybersecurity realm, a market set to balloon with a 8.9% annual growth rate, reaching a whopping $226.2 billion by 2027. CrowdStrike's secret sauce? A cloud-native setup that's super scalable, speedy, and efficient compared to old-school on-premise solutions. Plus, they wield a massive data treasure and fancy AI to keep their customers safe.
Second, CrowdStrike isn't just sitting pretty. They've been expanding their product lineup and reaching into new markets. They recently unveiled Falcon for IT, which takes the same cybersecurity magic and applies it to everyday IT tasks like keeping tabs on assets and CPU usage. They're also gearing up for the next big thing - the Falcon platform's "Raptor" release. This is set to revolutionize how we tackle security breaches with super-fast data collection and AI muscle.
Analysts have stars in their eyes when they look at CrowdStrike. They're predicting earnings of $0.09 per share for the current quarter, a jaw-dropping 145% boost from last year's quarter. And for the next fiscal year, they're eyeing $0.62 per share, which would be a 93.75% growth spurt from this year.
www.barchart..com
On top of that, the average target price for CrowdStrike's stock is $191.95, hinting at a 16.1% potential gain from the current price. The analysts are in harmony, with 33 out of 39 giving it a "strong buy" recommendation.
www.barchart.com
So, if you're on the hunt for a top-tier Nasdaq stock to spice up your portfolio this October, CrowdStrike might just be the perfect pick, especially with its current discount.
T-Mobile: The Quiet 5G Giant
T-Mobile (TMUS), the third-largest U.S. wireless carrier by market share, boasts a subscriber base of over 104 million as of Q2 2023. They're outpacing the competition in customer growth, network performance, and innovation. Plus, they're leading the 5G race, covering over 300 million people with their nationwide 5G and 165 million with ultra-fast 5G.
Now, what about the shares? TMUS is roughly flat on a year-to-date basis, but the stock is comfortably outperforming its wireless rivals - Verizon (VZ) and AT&T (T) are both down about 16% in 2023.
More recently, TMUS has started to best the broader market. Over the past month, the stock has gained 3.9%, boosted in part by news of its first-ever dividend payment.
www.barchart.com
Plus, T-Mobile consistently beats Wall Street's financial forecasts. In Q2 2023 alone, they raked in $19.2 billion in revenue, a 13% boost from the previous year, and $1.86 per share in adjusted earnings, a 17% jump. The company also raised its full-year guidance for 2023. After adding 1.3 million customers in Q2, T-Mobile expects to add between 5 million and 5.5 million postpaid customers this year.
Also, T-Mobile is rolling out new products and services that tap into their 5G prowess and expand their reach. Take Go5G Next, for example, the only plan that guarantees you're always upgrade-ready. And there's T-Mobile Secure Access Service Edge (SASE), targeted toward securely connecting employees, systems, and endpoints to networks, corporate apps, and resources.
Analysts are optimistic on TMUS. They're looking at an average earnings estimate of $1.88 per share for the current quarter, a massive 370% increase from the same quarter last year. For the next fiscal year, they're predicting $9.64 per share, marking a 33% growth rate.
www.barchart.com
Of the 17 analysts covering the stock, 13 shout "strong buy," three say "moderate buy," and one suggests a "hold." And when it comes to target prices, the mean is $179.88, hinting at a 29% upside potential.
www.barchart.com
The Trade Desk: The Programmatic Advertising Pioneer
The Trade Desk (TTD), a big name in programmatic advertising, helps advertisers reach their audiences across digital platforms. They've got over 1,000 customers globally, including major brands and agencies.
Now, about their stock – TTD is a major standout, as evidenced by its 84% YTD gain. But after pulling back with the broader market, Trade Desk shares are now off about 10% from their late July high. This dip could be enticing for investors who believe in The Trade Desk's long-term potential.
www.barchart.com
Now, why should you be optimistic? Along with TTD's strong second-quarter results, they've been rolling out new products and services, capitalizing on their tech and data prowess.
For instance, they're on a mission to cut the cost of digital ads by offering lower prices than supply-side platforms charge for selling ads. This strategy could help them gain more market share and boost margins. They're also introducing a new product called Kokai, designed to make advertising's value more transparent and data-driven.
Analysts are pretty optimistic. They're predicting earnings of $0.13 per share for the current quarter, a whopping 333% increase from the same quarter last year. Looking ahead to the next fiscal year, they're eyeing $0.84 per share, a solid 75% growth rate from the current fiscal year.
www.barchart.com
Among 24 analysts covering the stock, 16 say "strong buy," three say "moderate buy," four recommend a "hold," and one suggests a "strong sell." The mean target price for The Trade Desk's stock is $89.09, suggesting 8% upside from the current price.
www.barchart.com
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The rising anxiety among investors has punished growth-driven stocks particularly hard - and even tech giants like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) all ended the month of September between 3% and 8% lower. The Nasdaq Composite ($NASX) is a heavyweight in the world of stock indexes, tracking the performance of over 3,000 companies spanning various sectors, with a heavy dose of technology, biotech, and communications, in particular. Well, there's a laundry list of culprits: rising bond yields, worries about inflation and interest rates, regulatory hurdles, geopolitical tensions, and some disappointing earnings reports.
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The rising anxiety among investors has punished growth-driven stocks particularly hard - and even tech giants like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) all ended the month of September between 3% and 8% lower. www.barchart..com On top of that, the average target price for CrowdStrike's stock is $191.95, hinting at a 16.1% potential gain from the current price. www.barchart.com The Trade Desk: The Programmatic Advertising Pioneer The Trade Desk (TTD), a big name in programmatic advertising, helps advertisers reach their audiences across digital platforms.
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The rising anxiety among investors has punished growth-driven stocks particularly hard - and even tech giants like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) all ended the month of September between 3% and 8% lower. www.barchart..com On top of that, the average target price for CrowdStrike's stock is $191.95, hinting at a 16.1% potential gain from the current price. Looking ahead to the next fiscal year, they're eyeing $0.84 per share, a solid 75% growth rate from the current fiscal year.
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The rising anxiety among investors has punished growth-driven stocks particularly hard - and even tech giants like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) all ended the month of September between 3% and 8% lower. T-Mobile: The Quiet 5G Giant T-Mobile (TMUS), the third-largest U.S. wireless carrier by market share, boasts a subscriber base of over 104 million as of Q2 2023. After adding 1.3 million customers in Q2, T-Mobile expects to add between 5 million and 5.5 million postpaid customers this year.
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2023-10-06 00:00:00 UTC
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S.Korea considers $50.5 mln fine against Google, Apple over app market practices
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AAPL
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https://www.nasdaq.com/articles/s.korea-considers-%2450.5-mln-fine-against-google-apple-over-app-market-practices
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nan
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nan
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Adds Google comment in paragraph 4
SEOUL, Oct 6 (Reuters) - South Korea's telecommunications regulator said on Friday that Alphabet Inc's GOOGL.O Google and Apple AAPL.O have abused their dominant app market position and warned of possible fines totalling up to $50.5 million.
The Korea Communications Commission (KCC) said in a statement that the two tech giants forced app developers into specific payment methods and caused unfair delay in app review.
The KCC is notifying the companies for corrective action, and will deliberate on the fines, the statement said.
“Since the start of the fact-finding investigation in August 2022, we have worked closely with KCC to explain how we are complying with the new law whilst ensuring that through our alternative billing, we continue to provide a safe and high-quality experience for all. What KCC has shared today is the ‘pre-notice’ and we will carefully review and submit our response. Once the final written decision is shared with us we will carefully review to evaluate the next course of action,” Google said in a statement to Reuters.
Apple did not immediately respond to Reuters' requests for comment.
In 2021, South Korea passed an amendment to the Telecommunication Business Act banning app store operators from forcing software developers to use their payments systems.
The KCC said that Google and Apple's enforcement of certain payment methods, and Apple's "discriminatory charging of fees to domestic app developers" is likely to undermine the law's purpose of promoting fair competition.
After hearing from the companies, the regulator could decide to impose fines of up to 68 billion won ($50.47 million), including 47.5 billion won for Google and 20.5 billion won for Apple, KCC said.
($1 = 1,347.3200 won)
(Reporting by Joyce Lee Editing by Shri Navaratnam and Gerry Doyle)
((joyce.lee@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds Google comment in paragraph 4 SEOUL, Oct 6 (Reuters) - South Korea's telecommunications regulator said on Friday that Alphabet Inc's GOOGL.O Google and Apple AAPL.O have abused their dominant app market position and warned of possible fines totalling up to $50.5 million. “Since the start of the fact-finding investigation in August 2022, we have worked closely with KCC to explain how we are complying with the new law whilst ensuring that through our alternative billing, we continue to provide a safe and high-quality experience for all. Once the final written decision is shared with us we will carefully review to evaluate the next course of action,” Google said in a statement to Reuters.
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Adds Google comment in paragraph 4 SEOUL, Oct 6 (Reuters) - South Korea's telecommunications regulator said on Friday that Alphabet Inc's GOOGL.O Google and Apple AAPL.O have abused their dominant app market position and warned of possible fines totalling up to $50.5 million. The Korea Communications Commission (KCC) said in a statement that the two tech giants forced app developers into specific payment methods and caused unfair delay in app review. After hearing from the companies, the regulator could decide to impose fines of up to 68 billion won ($50.47 million), including 47.5 billion won for Google and 20.5 billion won for Apple, KCC said.
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Adds Google comment in paragraph 4 SEOUL, Oct 6 (Reuters) - South Korea's telecommunications regulator said on Friday that Alphabet Inc's GOOGL.O Google and Apple AAPL.O have abused their dominant app market position and warned of possible fines totalling up to $50.5 million. The KCC said that Google and Apple's enforcement of certain payment methods, and Apple's "discriminatory charging of fees to domestic app developers" is likely to undermine the law's purpose of promoting fair competition. After hearing from the companies, the regulator could decide to impose fines of up to 68 billion won ($50.47 million), including 47.5 billion won for Google and 20.5 billion won for Apple, KCC said.
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Adds Google comment in paragraph 4 SEOUL, Oct 6 (Reuters) - South Korea's telecommunications regulator said on Friday that Alphabet Inc's GOOGL.O Google and Apple AAPL.O have abused their dominant app market position and warned of possible fines totalling up to $50.5 million. The Korea Communications Commission (KCC) said in a statement that the two tech giants forced app developers into specific payment methods and caused unfair delay in app review. Once the final written decision is shared with us we will carefully review to evaluate the next course of action,” Google said in a statement to Reuters.
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13248.0
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2023-10-06 00:00:00 UTC
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3 Top Gaming Stocks to Buy in October
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AAPL
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https://www.nasdaq.com/articles/3-top-gaming-stocks-to-buy-in-october-0
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nan
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nan
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The video game market is vast and has blown up in recent years with the introduction of new earning opportunities, including mobile games, microtransactions (in-game purchases), cloud gaming, and more. Video games are an ever-expanding industry that allows companies to profit from constant demand for new titles and upgraded hardware.
Data from Statista says the industry is worth $334 billion and is projected to have a compound annual growth rate of 9% through 2027.
As a result, many of the biggest names in tech have ventured into this consistently growing sector. Even if gaming isn't a company's main business, it can still benefit significantly from the market's reliable growth, and so can investors. Video game stocks are excellent options to hold over many years.
Here are three top video game stocks to buy in October.
1. Apple
Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. It massively profits from the industry through its App Store, where mobile games accounted for 66% of consumer spending in 2022.
The App Store has become one of the most lucrative parts of Apple's business, with the company announcing in May that the platform had generated over $1 trillion last year. The majority of that went to developers. However, the digital marketplace's success has led services to become Apple's second-highest-earning segment, behind only the iPhone.
What's more, services revenue growth is outpacing the company's smartphone business, with a 14% rise in net sales in 2022 compared to 7% for the iPhone.
The company will launch its first virtual/augmented reality (VR/AR) headset next year, which could open a new market of gaming opportunities. Alongside a long history of consistent stock growth, Apple is an attractive way to invest in video games.
2. Microsoft
Microsoft (NASDAQ: MSFT) is just after Apple in the list of world's largest game companies, coming in fourth. But it plans to leapfrog the iPhone company and become the third largest by acquiring games developer Activision Blizzard in a deal worth $69 billion.
The purchase was first announced in January 2022 and has been held up by a lengthy regulatory process and antitrust concerns. Microsoft has needed approval from regulators worldwide, with the U.K. being the last authority needed to sign off.
It's inching closer to completing the deal after the U.K. gave preliminary approval last month, releasing a statement saying the company had "substantially" addressed its concerns.
Microsoft is already one of the biggest names in gaming with its Xbox brand, and acquiring Activision will give it access to a valuable library of content, which will potentially attract millions of new subscribers to its Xbox Game Pass service and cause an uptick in console sales.
So it's not a bad idea to invest in Microsoft stock before the merger.
3. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) has garnered much attention this year thanks to its growing potential in artificial intelligence. However, the company has also had a crucial role in video games for years. Its chips are popular among PC gamers and are used to power custom-built gaming computers worldwide.
The company has suffered from a downturn in the PC market over the past year, as inflation hikes have caused reductions in consumer spending. But it could see boosts in profits over the long term as the industry recovers.
AMD is an attractive gaming stock with its diversified position in the sector, which also includes consoles. The company exclusively supplies chips to Sony's PlayStation 5 and Microsoft's Xbox Series X|S. The success of these consoles led to a 21% year-over-year rise in gaming revenue for AMD in fiscal 2022.
The company's gaming segment hasn't grown as much in the first half of 2023 as last year, but rumors of a PlayStation 5 "Pro" version have swirled for months, with similar expectations for an upgraded Xbox Series X to be released in 2024.
The updated consoles would align with past mid-generation console releases from both companies and could bolster earnings for AMD next year. It could be a smart move to add the company's stock ahead of the potential console launches.
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 Activision Blizzard, Advanced Micro Devices, Apple, Microsoft, and Tencent. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. It's inching closer to completing the deal after the U.K. gave preliminary approval last month, releasing a statement saying the company had "substantially" addressed its concerns. The company has suffered from a downturn in the PC market over the past year, as inflation hikes have caused reductions in consumer spending.
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Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. But it plans to leapfrog the iPhone company and become the third largest by acquiring games developer Activision Blizzard in a deal worth $69 billion. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) has garnered much attention this year thanks to its growing potential in artificial intelligence.
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Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. The video game market is vast and has blown up in recent years with the introduction of new earning opportunities, including mobile games, microtransactions (in-game purchases), cloud gaming, and more. Microsoft is already one of the biggest names in gaming with its Xbox brand, and acquiring Activision will give it access to a valuable library of content, which will potentially attract millions of new subscribers to its Xbox Game Pass service and cause an uptick in console sales.
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Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. It massively profits from the industry through its App Store, where mobile games accounted for 66% of consumer spending in 2022. Microsoft Microsoft (NASDAQ: MSFT) is just after Apple in the list of world's largest game companies, coming in fourth.
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13249.0
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2023-10-06 00:00:00 UTC
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Alphabet (GOOGL) Boosts Its Smartphone Offerings With Pixel 8
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-boosts-its-smartphone-offerings-with-pixel-8
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nan
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nan
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Alphabet’s GOOGL Google ended the quest for its latest Pixel smartphones with the launch of the Pixel 8 and Pixel 8 Pro.
Notably, the Pixel 8 brings a 6.2-inch Actua display, 42% brighter than the Pixel 7, and comes in Rose, Hazel and Obsidian finishes with satin metal finishes.
Google Pixel 8 Pro, on the other hand, brings a 6.70-inch Super Actua display with a 120Hz refresh rate, HDR content up to 1,600 nits and a Thermometer app for body temperature measurement.
Further, the new smartphones feature an upgraded core processor and artificial intelligence (AI)-based photography, summarizing and spam-calls-blocking features, incorporating AI technology into its consumer gadgets.
Further, the AI-focused features include the Magic Editor, Audio Magic Eraser, Video Boost, Zoom Enhance and integration of Bard AI chatbot into Google Assistant. These features aim to enhance user experience and improve video editing capabilities.
The Pixel 8 and Pixel Pro 8 will be available from Oct 12, starting at $699 and $999, respectively.
Alphabet is likely to gain a strong footprint in the smartphone industry on the back of its latest move.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
Per a Mordor Intelligence report, the smartphone market volume is expected to hit 1.45 billion units in 2023 and grow to 1.78 billion units by 2028, witnessing a CAGR of 4.1% between 2023 and 2028.
A Fortune Business Insights report shows that the global smartphone market size is expected to reach $792.51 billion by 2029, indicating a CAGR of 7.3% during the forecast period of 2022-2029.
Solidifying prospects of Alphabet in the promising smartphone market will likely instill investor optimism in the stock.
Alphabet has gained 53.1% on a year-to-date basis compared with the industry’s growth of 50.5%.
Moreover, the new launches are expected to aid the performance of the Google Services segment.
Our model projects Google Services revenues for 2023 at $267.05 billion, reflecting growth of 5.3% from 2022.
Stiff Competition With Apple
The latest Pixel smartphones are expected to aid Alphabet in competing well with Apple AAPL, which is riding on solid momentum in the iPhone.
Per an IDC report, Apple constituted 44.5 million smartphone shipments worldwide and accounted for 16.6% of the global smartphone market share in Q2 2023.
Apple is gaining well from its latest iPhone 15 series. Notably, the company launched the iPhone 15 and iPhone 15 Plus in five new colors, including pink, yellow, green, blue and black. iPhone 15 Pro and iPhone 15 Pro Max are available in four colors, black titanium, white titanium, blue titanium and natural titanium.
Additionally, the iPhone 15 Pro features a 6.10-inch touch-screen display, a hexa-core A17 Pro processor and 8GB RAM.
Reportedly, the demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Applied Materials AMAT and Asure Software ASUR, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Applied Materials have gained 43% in the year-to-date period. AMAT’s long-term earnings growth rate is currently projected at 6.10%.
Asure Software shares have lost 2.8% in the year-to-date period. The long-term earnings growth rate for ASUR is currently projected at 27%.
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 >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Asure Software Inc (ASUR) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stiff Competition With Apple The latest Pixel smartphones are expected to aid Alphabet in competing well with Apple AAPL, which is riding on solid momentum in the iPhone. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Google Pixel 8 Pro, on the other hand, brings a 6.70-inch Super Actua display with a 120Hz refresh rate, HDR content up to 1,600 nits and a Thermometer app for body temperature measurement.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stiff Competition With Apple The latest Pixel smartphones are expected to aid Alphabet in competing well with Apple AAPL, which is riding on solid momentum in the iPhone. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Per a Mordor Intelligence report, the smartphone market volume is expected to hit 1.45 billion units in 2023 and grow to 1.78 billion units by 2028, witnessing a CAGR of 4.1% between 2023 and 2028.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stiff Competition With Apple The latest Pixel smartphones are expected to aid Alphabet in competing well with Apple AAPL, which is riding on solid momentum in the iPhone. Alphabet’s GOOGL Google ended the quest for its latest Pixel smartphones with the launch of the Pixel 8 and Pixel 8 Pro.
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Stiff Competition With Apple The latest Pixel smartphones are expected to aid Alphabet in competing well with Apple AAPL, which is riding on solid momentum in the iPhone. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Per an IDC report, Apple constituted 44.5 million smartphone shipments worldwide and accounted for 16.6% of the global smartphone market share in Q2 2023.
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13250.0
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2023-10-06 00:00:00 UTC
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Microsoft Stock, Analysts Predict Double-Digit Upside
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AAPL
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https://www.nasdaq.com/articles/microsoft-stock-analysts-predict-double-digit-upside
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nan
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nan
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Microsoft (NASDAQ: MSFT) needs no introduction. After all, it's the second largest company in the world, only behind Apple (NASDAQ: AAPL), boasting a staggering market capitalization of $2.36 trillion.
It might not come as a surprise that even though the shares of Microsoft are already up an impressive 31.72% year-to-date, analysts see further upside for the tech titan.
The company has certainly earned its place on the Top-Rated Stocks list, comprising 100 companies that have garnered the most favorable average ratings from equity research analysts over the past year. Additionally, Microsoft stands out as one of the Most-Upgraded stocks, signifying that Wall Street analysts have consistently raised their outlook on the company's performance in the preceding 90 days.
So, as the fourth quarter gets underway, with shares of MSFT currently trading steadily below its all-time high set in July, is now the time to invest? Well, let’s see what analysts and the technical analysis suggest.
Analysts See Double-Digit Upside
As previously mentioned, MSFT stands out now as one of the most upgraded stocks. Given its already impressive performance YTD, helped by its previous earnings that topped estimates and projected earnings growth of 13.95%, it's understandable why analysts have remained bullish.
MSFT currently has a Moderate Buy rating based on thirty-eight analyst ratings. Five of the thirty-eight analyst ratings have the stocks at Hold, and thirty-three have it as a Buy. Impressively, the consensus analyst price target of $376.34 calls for almost 18% upside. The consensus price target for MSFT has steadily and consistently increased month over month since the beginning of the year.
A Snapshot of Microsoft’s Earnings
Microsoft announced $2.69 per share earnings in its most recent quarterly earnings report, surpassing the consensus estimate of $2.55 by $0.14. The company's quarterly revenue was $56.19 billion, exceeding the consensus estimate of $55.49 billion, marking an 8.3% increase compared to the same period last year.
Over the past year, Microsoft has achieved $9.69 in earnings per share (diluted) and currently holds a price-to-earnings ratio of 32.9. Analysts anticipate a 13.94% growth in Microsoft's earnings for the next year, projecting an increase from $10.90 to $12.42 per share. The company is expected to report earnings later this month, on Tuesday, October 24th.
Microsft Needs to Hold Above Critical Support
There are several key takeaways from the above chart. Firstly, it’s significant that the 200-day Simple Moving Average (SMA) and the shorter time-frame SMA, such as the 50-day, are beginning to grow closer. Converging key moving averages might signal that a breakout is likely in the near future. The longer the range in MSFT contracts, the odds increase for tremendous momentum and continuation once the stock breaks out.
Secondly, a wedge formation has formed in MSFT, and a critical level of support has developed and held firm throughout the recent market weakness. Going forward, if MSFT is to continue higher and potentially break out of the forming consolidation, the stock will need to firmly hold above $310 and see its buyers step higher.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After all, it's the second largest company in the world, only behind Apple (NASDAQ: AAPL), boasting a staggering market capitalization of $2.36 trillion. Additionally, Microsoft stands out as one of the Most-Upgraded stocks, signifying that Wall Street analysts have consistently raised their outlook on the company's performance in the preceding 90 days. So, as the fourth quarter gets underway, with shares of MSFT currently trading steadily below its all-time high set in July, is now the time to invest?
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After all, it's the second largest company in the world, only behind Apple (NASDAQ: AAPL), boasting a staggering market capitalization of $2.36 trillion. Impressively, the consensus analyst price target of $376.34 calls for almost 18% upside. The consensus price target for MSFT has steadily and consistently increased month over month since the beginning of the year.
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After all, it's the second largest company in the world, only behind Apple (NASDAQ: AAPL), boasting a staggering market capitalization of $2.36 trillion. The company has certainly earned its place on the Top-Rated Stocks list, comprising 100 companies that have garnered the most favorable average ratings from equity research analysts over the past year. A Snapshot of Microsoft’s Earnings Microsoft announced $2.69 per share earnings in its most recent quarterly earnings report, surpassing the consensus estimate of $2.55 by $0.14.
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After all, it's the second largest company in the world, only behind Apple (NASDAQ: AAPL), boasting a staggering market capitalization of $2.36 trillion. Analysts See Double-Digit Upside As previously mentioned, MSFT stands out now as one of the most upgraded stocks. A Snapshot of Microsoft’s Earnings Microsoft announced $2.69 per share earnings in its most recent quarterly earnings report, surpassing the consensus estimate of $2.55 by $0.14.
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2023-10-06 00:00:00 UTC
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Microsoft Invested in OpenAI. Amazon and Google Invested in Anthropic. But This Tech Giant Has Made More AI Deals Than Any of Them.
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AAPL
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https://www.nasdaq.com/articles/microsoft-invested-in-openai.-amazon-and-google-invested-in-anthropic.-but-this-tech-giant
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nan
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nan
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Let's make a deal. That's been the operating mantra for technology leaders such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) when it comes to artificial intelligence (AI).
Microsoft turned plenty of heads with its $10 billion investment in ChatGPT developer OpenAI in early 2023. Google bought DeepMind in 2014 and picked up a 10% stake in Anthropic last year. Amazon followed up with its own $4 billion investment in Anthropic only a few days ago.
But are these companies the busiest on the AI acquisitions front? Nope. One tech giant has made more AI deals than any of them over the last six years.
The quiet leader in AI acquisitions
You might say that Apple (NASDAQ: AAPL) is following the old adage espoused by Teddy Roosevelt to "speak softly and carry a big stick" with its AI efforts. Microsoft, Amazon, and Google have trumpeted their AI initiatives, but Apple executives don't talk all that much about AI.
Of course, Apple has invested heavily in AI for years. It acquired AI-powered assistant Siri way back in 2010. In the company's recent product launch, it rolled out new iPhone and Apple Watch versions that incorporated key improvements made possible by AI.
An article in The Information published last month revealed that Apple is spending millions of dollars every day on AI development. In particular, the company is reportedly building a new large language model for generative AI called Ajax.
Perhaps most tellingly, though, Apple is the clear leader in the volume of AI acquisitions completed since 2017. Market research firm Pitchbook noted that Microsoft made 12 acquisitions over the last six years, while Alphabet completed eight. But Apple is ahead of these and several other companies with 21 AI acquisitions.
Apple's biggest AI deals
The dollar amounts of all of Apple's AI investments haven't been made public. We do know, however, a little about several of the company's biggest AI deals.
For example, in 2018, Apple acquired Laserlike for $150 million. Laserlike was a start-up at the time that developed software that searches the web and delivers results using machine learning. The small company was founded by three former Google engineers.
Apple bought PullString in early 2019 for $30 million. PullString, which was started by former Pixar executives, developed AI voice technology. It originally focused on powering voice-enabled toys, such as a talking Barbie doll and Thomas the Tank Engine.
In mid-2019, Apple shelled out $77 million to scoop up Drive.ai. As you might have surmised from its name, Drive.ai developed self-driving car technology. The company was only days away from going out of business when Apple came to the rescue.
Apple closed one of its largest AI acquisitions in January 2020 with the $200 million purchase of Xnor.ai. The Seattle-based start-up developed edge-based AI tools that can run on low-power devices instead of having to operate using the cloud.
Quantity vs. quality
We can't automatically assume that Apple is quietly beating Microsoft, Google, Amazon, and others in AI just because it's made more AI acquisitions in recent years. It's the quality of the deals that matters much more than the quantity, whether we're talking about the transaction volumes or price tags.
What investors can glean from all of this, though, is that the big tech companies hold major advantages as the AI boom continues. They're not only investing a lot of money in internal AI development; they're also investing in smaller AI companies -- in many cases, acquiring those companies outright. Ten years from now, there's a good chance that Apple, Microsoft, Amazon, and Google will remain among the top leaders in AI.
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
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. Keith Speights has positions in Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The quiet leader in AI acquisitions You might say that Apple (NASDAQ: AAPL) is following the old adage espoused by Teddy Roosevelt to "speak softly and carry a big stick" with its AI efforts. In the company's recent product launch, it rolled out new iPhone and Apple Watch versions that incorporated key improvements made possible by AI. *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.
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The quiet leader in AI acquisitions You might say that Apple (NASDAQ: AAPL) is following the old adage espoused by Teddy Roosevelt to "speak softly and carry a big stick" with its AI efforts. That's been the operating mantra for technology leaders such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) when it comes to artificial intelligence (AI). Quantity vs. quality We can't automatically assume that Apple is quietly beating Microsoft, Google, Amazon, and others in AI just because it's made more AI acquisitions in recent years.
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The quiet leader in AI acquisitions You might say that Apple (NASDAQ: AAPL) is following the old adage espoused by Teddy Roosevelt to "speak softly and carry a big stick" with its AI efforts. Microsoft, Amazon, and Google have trumpeted their AI initiatives, but Apple executives don't talk all that much about AI. Apple's biggest AI deals The dollar amounts of all of Apple's AI investments haven't been made public.
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The quiet leader in AI acquisitions You might say that Apple (NASDAQ: AAPL) is following the old adage espoused by Teddy Roosevelt to "speak softly and carry a big stick" with its AI efforts. We do know, however, a little about several of the company's biggest AI deals. For example, in 2018, Apple acquired Laserlike for $150 million.
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13252.0
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2023-10-06 00:00:00 UTC
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Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-7
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nan
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nan
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of iPhones, iPads and other products have returned -1.5%, compared to the Zacks S&P 500 composite's -5.2% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has lost 7.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $1.39 per share for the current quarter, representing a year-over-year change of +7.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
For the current fiscal year, the consensus earnings estimate of $6.05 points to a change of -1% from the prior year. Over the last 30 days, this estimate has changed -0.4%.
For the next fiscal year, the consensus earnings estimate of $6.58 indicates a change of +8.8% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Apple, the consensus sales estimate of $88.87 billion for the current quarter points to a year-over-year change of -1.4%. The $382.65 billion and $405.34 billion estimates for the current and next fiscal years indicate changes of -3% and +5.9%, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $81.8 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $1.26 for the same period compares with $1.20 a year ago.
Compared to the Zacks Consensus Estimate of $81.36 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +5.88%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "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 >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $6.58 indicates a change of +8.8% from what Apple is expected to report a year ago.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
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13253.0
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2023-10-06 00:00:00 UTC
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Microsoft Stock: Don't Overlook This AI Pick Hiding in Plain Sight
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AAPL
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https://www.nasdaq.com/articles/microsoft-stock%3A-dont-overlook-this-ai-pick-hiding-in-plain-sight
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nan
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nan
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Shares of Microsoft (MSFT) have been strong this year - now up 33% year to date - thanks primarily to the artificial intelligence (AI) rush. What's more impressive than its stake in ChatGPT parent OpenAI is that the firm seems to have melded generative AI across its broader range of offerings, from its search engine Bing — which appears to be utilizing ChatGPT-4 as a weapon to be more competitive with Alphabet's (GOOG) Google Search — to its Office suite, its flagship Windows operating system, and even Azure.
Undoubtedly, there's a gigantic opportunity to monetize Microsoft's offerings further as generative AI looks poised to enhance productivity in the workplace. Even with the threat of antitrust, though, Microsoft doesn't want to hinder its pace as it preserves its first-mover advantage in the field of generative AI.
Microsoft Is the AI Play of the Day - But Alphabet Wants the Title
Of course, Microsoft isn't the only company that's aggressively pulling the AI-evolution lever. Alphabet has been introducing new AI innovations rapidly, and is ready to implant them across its everyday productivity offerings, just like Microsoft.
Certainly, the second thing (after search) that likely comes to mind when you think of Google at this point is AI. And though allowing Microsoft to be a frontrunner in AI may have its fair share of downsides, it may also have some pluses.
In its current state, even the most powerful large language models (think ChatGPT-4 and the like) are way too confident in the responses they provide - including the embarrassingly erroneous ones. Indeed, adding sources to Bing AI seems shrewd. But it's not a surefire resolution to evade "hallucinations."
In any case, it's clear that Microsoft has its fair share of rivals who are more than willing to replicate its profoundly impressive AI rollout strategy as they seek to tackle problems as they arise. But that doesn't mean they'll have any success at topping Microsoft anytime soon.
As it stands, Microsoft stock remains the AI play of the day - at least in my books.
Microsoft's Nadella Goes to Washington
Recently, Microsoft CEO Satya Nadella testified on search before the U.S. Department of Justice amid its antitrust case against Google. Though Bing has improved by leaps and bounds with the inclusion of its ChatGPT, Nadella noted that Microsoft's rival product is still having a tough time competing against Google Search.
There's no doubt that Google Search has a wide moat that may take more than just an intriguing LLM to penetrate. Further, Google has its own LLM that's every bit as capable. And that's not the only factor keeping users from "Binging" it instead of "Googling." As you may know, Google has quite an impressive ecosystem of productivity tools. Just how entrenched are its users?
Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. And let's not forget the habit of taking to Google for prompts that have been built over the course of decades. Certainly, entering “google.com” on your web browser is pretty much muscle memory for many of us at this point!
Of course, LLM's propensity to “hallucinate” is another reason to take to Google for serious searches (based on real facts) over Bing, regardless of how much better it is with ChatGPT-4 enabled.
"You get up in the morning, you brush your teeth, and you search on Google," Nadella said in front of the Department of Justice. "With that level of habit forming, the only way to change is by changing defaults."
He's right. It takes more than just AI innovation to change consumer behavior. Apple may be the company that can bring forth the real sea change in the search space. Reportedly, Microsoft pitched Bing to Apple as a replacement for its default search option way back in 2020. Ultimately, Microsoft pointed the finger at Google for the deal's ultimate demise.
So far, Nadella is doing a great job of redirecting anti-trust scrutiny away from his firm and towards one of its biggest rivals - at least in the area of search. As it stands, Bing does not look like a Google-killer, even with the power of ChatGPT on its side. It's not even close.
The Bottom Line
Microsoft stock may be one of the more "obvious" AI picks right here. The same goes for Alphabet. That said, markets may still be underestimating the behemoth's potential, especially after the latest 12% pullback in MSFT.
www.barchart.com
Wells Fargo's Michael Turrin thinks Microsoft stock is worthy of his firm's Tactical Ideas List, thanks to its "favorable path" forward and further upside due to AI. Turrin has a $400 price target, suggesting the stock could make a more than 25% upward move from here.
Turrin could be right to pound the table on shares. Microsoft may be one of the most "obvious" AI plays right now. But that doesn't mean it's not an opportunity hiding in plain sight.
On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . 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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Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . In any case, it's clear that Microsoft has its fair share of rivals who are more than willing to replicate its profoundly impressive AI rollout strategy as they seek to tackle problems as they arise.
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Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . What's more impressive than its stake in ChatGPT parent OpenAI is that the firm seems to have melded generative AI across its broader range of offerings, from its search engine Bing — which appears to be utilizing ChatGPT-4 as a weapon to be more competitive with Alphabet's (GOOG) Google Search — to its Office suite, its flagship Windows operating system, and even Azure.
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Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . What's more impressive than its stake in ChatGPT parent OpenAI is that the firm seems to have melded generative AI across its broader range of offerings, from its search engine Bing — which appears to be utilizing ChatGPT-4 as a weapon to be more competitive with Alphabet's (GOOG) Google Search — to its Office suite, its flagship Windows operating system, and even Azure.
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Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . Microsoft Is the AI Play of the Day - But Alphabet Wants the Title Of course, Microsoft isn't the only company that's aggressively pulling the AI-evolution lever.
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13254.0
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2023-10-06 00:00:00 UTC
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Warren Buffett Holds These 3 Interest Rate Sensitive Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-holds-these-3-interest-rate-sensitive-stocks
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nan
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nan
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The type of stocks an investor has in their portfolio is as important as the individual stock names. In the case of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), it's clear that he's not afraid of the interest rate cycle. In fact, he may well be investing to take advantage of excessive investor fear over the impact of the tightening cycle. In that line of thought, here are three stocks to consider to invest like Buffett.
Apple
Apple's (NASDAQ: AAPL) exposure to the interest rate cycle comes from its status as a consumer discretionary company selling relatively high-ticket items. Higher rates pressure consumer spending, including on high-end smartphones, iPads, and Macs. Moreover, spending on Apple products is naturally coming up against tough comparisons from previous years due to the boom in spending on its products caused by the lockdowns in previous years. Together, these pressures added up to a 1.4% decline in year-over-year sales in the recent third quarter, and Wall Street expects Apple's sales to decline 2.8% in 2023.
Image source: The Motley Fool.
But here's the thing. In spite of a challenging smartphone market, iPhone revenue grew on a constant currency basis in the third quarter. In addition, its services revenue (a business that has double the gross profit margin of its products revenue) grew 8.2% to $21.2 billion, representing 26% of overall revenue.
In short, Apple is generating underlying growth in its core iPhone offering and generating high-single-digit growth in its high-margin services segment. With 2 billion active devices and a near doubling of paid subscribers in three years, Apple will likely continue to grow service revenue for many years.
It all sets up the company for a return to top-line growth when the interest rate cycle eventually turns and consumer spending picks up.
Buffett buys housing-related stocks like D.R. Horton
It's always interesting when Berkshire Hathaway initiates new positions, and it's very interesting when it's in homebuilders (the other two were Lennar and NVR) at a time when the housing market is under stress.
The housing market is challenged due to higher interest rates impacting housing affordability (a reading of 92.7 means a median-income family in the U.S. has 92.7% of the income necessary to qualify for the mortgage on a median-priced home, so a lower number means less affordability) and home sales remain weak.
US Composite Housing Affordability Index data by YCharts
Still, when interest rates do eventually start to fall again, the housing market could pick up quickly. There are three metrics in favor of this argument. First, the U.S. homeownership rate remains below long-term historic levels. Second, existing home inventory remains relatively low. Third, even with slowing home sales, the months' supply of existing homes remains low.
US Home Ownership Rate data by YCharts
Of the three bought by Berkshire Hathaway, I think D.R. Horton (NYSE: DHI) is the most interesting. Not only was it the largest position taken (worth around $687 million at the time of writing), but it's also trading at a reasonable price-to-book value -- a useful metric for homebuilders as it accounts for homes in construction and land inventory.
DHI Price to Book Value data by YCharts
In fact, as of the second quarter, D.R. Horton had $8.5 billion in land inventory compared to $9.5 billion in construction in progress and finished homes. With such a high land bank relative to homes in construction, D.R. Horton can ride out a weak period of sales and be in good shape for the prospective upturn.
Louisiana-Pacific
In common with D.R. Horton, engineered wood siding and oriented strand board (OSB) company Louisiana-Pacific's (NYSE: LPX) prospects are tied to the housing market. Its primary end markets are new residential construction and repair and remodel activity. Not only is it a cyclical play on a recovering housing market, but there's also a long-term structural growth story coming from engineered wood winning market share from wood and other less environmentally friendly materials used in siding. Louisiana-Pacific uses sustainably sourced trees.
In addition, OSB continues to win market share over plywood, and Louisiana-Pacific also has a growth opportunity from expanding sales of its higher-value structural solutions as part of its OSB volume as it moves away from commodity OSB products. All told, the Berkshire Hathaway investment is an excellent way to play a housing recovery.
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 September 18, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Lennar. The Motley Fool recommends NVR. 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's (NASDAQ: AAPL) exposure to the interest rate cycle comes from its status as a consumer discretionary company selling relatively high-ticket items. It all sets up the company for a return to top-line growth when the interest rate cycle eventually turns and consumer spending picks up. Not only was it the largest position taken (worth around $687 million at the time of writing), but it's also trading at a reasonable price-to-book value -- a useful metric for homebuilders as it accounts for homes in construction and land inventory.
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Apple Apple's (NASDAQ: AAPL) exposure to the interest rate cycle comes from its status as a consumer discretionary company selling relatively high-ticket items. In spite of a challenging smartphone market, iPhone revenue grew on a constant currency basis in the third quarter. The housing market is challenged due to higher interest rates impacting housing affordability (a reading of 92.7 means a median-income family in the U.S. has 92.7% of the income necessary to qualify for the mortgage on a median-priced home, so a lower number means less affordability) and home sales remain weak.
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Apple Apple's (NASDAQ: AAPL) exposure to the interest rate cycle comes from its status as a consumer discretionary company selling relatively high-ticket items. Horton It's always interesting when Berkshire Hathaway initiates new positions, and it's very interesting when it's in homebuilders (the other two were Lennar and NVR) at a time when the housing market is under stress. The housing market is challenged due to higher interest rates impacting housing affordability (a reading of 92.7 means a median-income family in the U.S. has 92.7% of the income necessary to qualify for the mortgage on a median-priced home, so a lower number means less affordability) and home sales remain weak.
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Apple Apple's (NASDAQ: AAPL) exposure to the interest rate cycle comes from its status as a consumer discretionary company selling relatively high-ticket items. In the case of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), it's clear that he's not afraid of the interest rate cycle. Horton It's always interesting when Berkshire Hathaway initiates new positions, and it's very interesting when it's in homebuilders (the other two were Lennar and NVR) at a time when the housing market is under stress.
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13255.0
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2023-10-05 00:00:00 UTC
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Apple Reportedly Considered Replacing Google With DuckDuckGo For Safari
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AAPL
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https://www.nasdaq.com/articles/apple-reportedly-considered-replacing-google-with-duckduckgo-for-safari
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nan
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nan
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(RTTNews) - Apple Inc., which has been using Alphabet Inc.'s Google as the default search engine for its devices, had talks to use the search engine DuckDuckGo for the private mode on Apple's Safari browser, Bloomberg reported citing some court documents.
However, the tech major ultimately rejected the idea, the report said.
The details of those talks now emerged amid an ongoing legal fight between the US Department of Justice and tech major Google over allegations of abusing its search dominance and violating antitrust laws.
Earlier, it was reported that Microsoft Corp. was in talks with Apple in 2020 for a possible sale of its Bing search engine, but the talks never reached an advanced stage.
Bloomberg reported that the talks among Apple, DuckDuckGo, and Microsoft were revealed in transcripts unsealed by US District Judge Amit Mehta, who oversees the Google antitrust trial.
Mehta unsealed the testimony of DuckDuckGo Chief Executive Officer Gabriel Weinberg and Apple executive John Giannandrea, who testified in closed sessions in the trial.
According to Weinberg, DuckDuckGo in 2018 and 2019 had about 20 meetings and phone calls with Apple executives, including the Safari head, regarding becoming the default search engine for private browsing mode on the Safari browser.
Weinberg noted that Apple had integrated several of DuckDuckGo's other privacy technologies into Safari.
Meanwhile, Giannandrea said that Apple hadn't considered switching to DuckDuckGo, to his knowledge.
Google is Apple devices' default search engine. It was in 2002 that both companies signed their partnership, which was extended in 2021. Cue is said to be behind the current search engine partnership.
Google reportedly pays more than $10 billion every year to secure its default search engine status on millions of browsers and mobile devices.
The antitrust trial features testimony from top executives from Google, Apple, Microsoft, and Samsung.
In its testimony against Google, Apple reportedly made it clear that it has never thought to replace Google as the default on iPhones as there wasn't a valid alternative at that time.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The details of those talks now emerged amid an ongoing legal fight between the US Department of Justice and tech major Google over allegations of abusing its search dominance and violating antitrust laws. Bloomberg reported that the talks among Apple, DuckDuckGo, and Microsoft were revealed in transcripts unsealed by US District Judge Amit Mehta, who oversees the Google antitrust trial. Google reportedly pays more than $10 billion every year to secure its default search engine status on millions of browsers and mobile devices.
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(RTTNews) - Apple Inc., which has been using Alphabet Inc.'s Google as the default search engine for its devices, had talks to use the search engine DuckDuckGo for the private mode on Apple's Safari browser, Bloomberg reported citing some court documents. Mehta unsealed the testimony of DuckDuckGo Chief Executive Officer Gabriel Weinberg and Apple executive John Giannandrea, who testified in closed sessions in the trial. Google is Apple devices' default search engine.
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(RTTNews) - Apple Inc., which has been using Alphabet Inc.'s Google as the default search engine for its devices, had talks to use the search engine DuckDuckGo for the private mode on Apple's Safari browser, Bloomberg reported citing some court documents. Bloomberg reported that the talks among Apple, DuckDuckGo, and Microsoft were revealed in transcripts unsealed by US District Judge Amit Mehta, who oversees the Google antitrust trial. According to Weinberg, DuckDuckGo in 2018 and 2019 had about 20 meetings and phone calls with Apple executives, including the Safari head, regarding becoming the default search engine for private browsing mode on the Safari browser.
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(RTTNews) - Apple Inc., which has been using Alphabet Inc.'s Google as the default search engine for its devices, had talks to use the search engine DuckDuckGo for the private mode on Apple's Safari browser, Bloomberg reported citing some court documents. Mehta unsealed the testimony of DuckDuckGo Chief Executive Officer Gabriel Weinberg and Apple executive John Giannandrea, who testified in closed sessions in the trial. Google is Apple devices' default search engine.
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13256.0
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2023-10-05 00:00:00 UTC
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Is It Too Late to Buy This Top-Performing Nasdaq-100 Dividend Stock?
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AAPL
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https://www.nasdaq.com/articles/is-it-too-late-to-buy-this-top-performing-nasdaq-100-dividend-stock
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nan
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nan
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The first half of 2023 turned into an incredible comeback story for the U.S. tech sector, thanks primarily to artificial intelligence (AI) gaining rapid mainstream adoption among the masses. This resulted in stocks of AI industry leaders like Nvidia (NVDA) (up 203% YTD), Google (GOOGL) (up 52.6% YTD), and Microsoft (MSFT) (up 32.8% YTD) all reaching new highs this year.
A critical aspect of the AI revolution is the role played by semiconductor companies. In fact, according to a report by the Semiconductor Industry Association, total sales from the semiconductor industry could reach $1 trillion by 2030, up from $574.1 billion in 2022 - representing a CAGR of 7.2%. With much headroom for expansion left in the AI market, the longer-term uptrend in these stocks, and many others in this space, is likely still in its early stages - despite the broader market pullback that has punished growth stocks in particular in recent months.
As investors increasingly look to balance out robust growth prospects with more reliable, steady sources of income, let's take a look at one top semiconductor stock that offers industry-beating returns, and offers a healthy dividend yield, as well.
About Broadcom
Headquartered in San Jose, Calif., Broadcom (AVGO) has been in the chips business for more than six decades now. The company is a semiconductor and enterprise software company that designs, develops, manufactures, and sells a broad range of semiconductor and infrastructure software solutions. Its semiconductor products include integrated circuits for networking, storage, wireless, and broadband applications while its software products include enterprise software products for IT infrastructure management, security, and data analytics. The company currently commands a market cap of $340 billion.
Shares of Broadcom are up about 50% on a YTD basis, outperforming top semiconductor funds like the iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH). Among its AI-focused chip industry peers, only Advanced Micro Devices (AMD) and NVDA have outperformed on the charts - but as we'll discuss below, these two can't compete with AVGO on yield.
www.barchart.com
So, after this searing rally, is Broadcom still an attractive investment choice now? I believe it is - and here's why.
1. Strong Fundamentals
Broadcom reported a solid set of numbers for its fiscal third quarter, as revenues rose 5% from the prior year to $8.8 billion, and EPS jumped 8.3% to $10.54 - surpassing the consensus estimate of $10.42. Impressively, the company's EPS has surpassed expectations in each of the past five quarters.
Both cash flow from operations and free cash flow rose in the neighborhood of 9% year over year, reflecting the company's robust operational capabilities as well as prudent cash flow management.
Although the company's sizeable debt of $38.2 billion may be cause for concern in this high-interest rate environment, AVGO's debt load is down from $39.1 billion at the start of the year. Moreover, the strategic move to replace its $32 billion bridge debt with three term facilities - $10.69B of debt maturing in two years, $10.69B in three years, and $7B in five years - is a smart debt management maneuver as the company looks to grow via acquisition.
2. Attractive Valuations and Above-Average Yield
Even after the stock's rally, Broadcom appears to be valued at reasonable levels. It is currently trading at a forward p/e of 19.56, which is below the sector median of 21.44. In terms of forward price/cash flow, AVGO's ratio of 18.62 is also below the sector median.
Notably, Broadcom's dividend yield of 2.23% is above the sector median (1.79%). Semiconductor stocks with comparable yields - such as Intel (INTC), Taiwan Semiconductor (TSM), and Qualcomm (QCOM) - have all lagged behind AVGO on the charts in 2023. Meanwhile, AMD offers no dividend, and NVDA is yielding 0.04%.
Further, in addition to its attractive dividend yield, Broadcom has consistently increased its dividend over the past seven years.
3. AI Upside
At its latestearnings conference call the company said it expects the burgeoning generative AI space to result in annualized revenues of over $8 billion by FY2024.
Further, Broadcom remains a prominent supplier of AI-specific networking products to hyperscalers, driving demand for its switches, routers, and custom silicon AI engines. Consequently, Broadcom forecasts revenue of $800 million from its AI-deployed Ethernet switches in 2023, up from $200 million in 2022.
In fact, the company expects to generate 25% of its revenues from generative AI by the end of 2024, compared to 15% now.
4. Key Deals with VMware and Apple
The impending $61 billion acquisition of VMware is expected to draw a close soon, which should unlock additional value. After receiving regulatory clearance from the UK and EU, the deal is inching closer to approval in China, too. Now, clearance from U.S. regulators could be the last hurdle.
The VMware deal is projected to improve Broadcom's credentials in the cloud-computing and virtualization markets specifically, thanks to VMware's 45% market share in the latter.
Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. Notably, Apple contributes just under 20% of Broadcom's revenues, which is a sizeable chunk.
5. Upbeat Analyst Estimates & Ratings
Finally, analysts are expecting the company to continue to generate earnings growth, with 8.1% expected in FY 2024.
www.barchart.com
Overall, analysts have assigned the stock a “Strong Buy” rating and a mean target price of $953.44. This denotes an upside potential of about 15.8% from current levels. Out of 20 analysts covering AVGO, 15 have a “Strong Buy” rating and 5 have a “Hold” rating.
www.barchart.com
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. The first half of 2023 turned into an incredible comeback story for the U.S. tech sector, thanks primarily to artificial intelligence (AI) gaining rapid mainstream adoption among the masses. Among its AI-focused chip industry peers, only Advanced Micro Devices (AMD) and NVDA have outperformed on the charts - but as we'll discuss below, these two can't compete with AVGO on yield.
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Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. This resulted in stocks of AI industry leaders like Nvidia (NVDA) (up 203% YTD), Google (GOOGL) (up 52.6% YTD), and Microsoft (MSFT) (up 32.8% YTD) all reaching new highs this year. Its semiconductor products include integrated circuits for networking, storage, wireless, and broadband applications while its software products include enterprise software products for IT infrastructure management, security, and data analytics.
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Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. Moreover, the strategic move to replace its $32 billion bridge debt with three term facilities - $10.69B of debt maturing in two years, $10.69B in three years, and $7B in five years - is a smart debt management maneuver as the company looks to grow via acquisition. Upbeat Analyst Estimates & Ratings Finally, analysts are expecting the company to continue to generate earnings growth, with 8.1% expected in FY 2024. www.barchart.com Overall, analysts have assigned the stock a “Strong Buy” rating and a mean target price of $953.44.
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Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. Notably, Broadcom's dividend yield of 2.23% is above the sector median (1.79%). Further, in addition to its attractive dividend yield, Broadcom has consistently increased its dividend over the past seven years.
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13257.0
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2023-10-05 00:00:00 UTC
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PayPal (PYPL) Strengthens Payment Solutions With Latest Move
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AAPL
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https://www.nasdaq.com/articles/paypal-pypl-strengthens-payment-solutions-with-latest-move
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nan
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nan
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PayPal PYPL has bolstered its tie-up with Apple AAPL by introducing the option to add PayPal and Venmo credit or debit cards to Apple Wallet.
By adding cards to Apple Wallet, PayPal and Venmo, customers can use Apple Pay on iPhone, iPad and Mac to make fast and convenient purchases in apps or on the web in Safari.
Customers can now make in-store or online payments securely via Apple Pay with a simple tap of their iPhone or Apple Watch.
Users can continue earning the same cashback and rewards with the new option. More precisely, they will earn a 2% cashback while making payments through Apple Pay using a PayPal Cashback Credit Card.
Currently, the underlined option is available only for adding PayPal credit and debit cards to Apple Wallet. It will be available for PayPal Business Debit Card and Venmo credit or debit cards in the coming months.
We note that the latest move is likely to strengthen the adoption of PayPal payment cards, thanks to the growing popularity of Apple Pay, Apple watch and iPhones.
This, in turn, will likely accelerate PayPal’s transaction revenues in the days ahead, which in turn will drive its top-line growth.
In second-quarter 2023, transaction revenues amounted to $6.6 billion (90% of net revenues), up 5% from the year-ago quarter’s level.
For 2023, our model estimate for the same stands at $26.7 billion, reflecting year-over-year growth of 6% from 2022.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Expanding Payment Solution Offerings
Apart from its latest move, PayPal recently introduced Tap to Pay on Android for Venmo and Zettle users to empower small businesses with seamless payment options.
It strengthened its payment solution offerings for small businesses by adding new features. The features allow small businesses to accept payments made through PayPal, credit and debit cards, digital wallets, Venmo, PayPal Pay Later and Apple Pay.
The company’s Passkeys for Android devices, which deliver a secured log-in and password-free, safe payment experience, remain noteworthy.
PayPal's subsidiary, Xoom, introduced Debit Card Deposit, which allows U.S. customers to conveniently and securely send money directly to friends and family’s eligible Visa debit cards. It is available in 25 countries.
PayPal enables Venmo users to transfer cryptocurrencies to friends and family seamlessly.
We note that the growing portfolio offerings will continue to drive PayPal’s customer momentum in the near term.
Wrapping Up
PayPal’s increasing interest in the expansion of its payment solution offerings has been playing a vital role in strengthening its presence in the booming online payment industry.
Per a report from Statista, the digital payment market is expected to hit a transaction value of $9.46 trillion in 2023 and reach $14.78 trillion by 2027, registering a CAGR of 11.8% between 2023 and 2027.
The growth prospects of the company in this promising market are likely to continue driving its financial performance in the near term. This is likely to aid the company in winning investors’ confidence in the days ahead.
However, the company has been suffering from intensifying competition in the digital payment market, which poses a serious risk to its market position. Foreign exchange headwinds remain a concern.
PYPL has lost 17.7% in the year-to-date period against the industry’s growth of 45.3%.
Zacks Rank & Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Asure Software ASUR and Arista Networks ANET. While Asure Software sports a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have gained 4.4% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.
Arista Networks shares have gained 52.5% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.75%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PayPal PYPL has bolstered its tie-up with Apple AAPL by introducing the option to add PayPal and Venmo credit or debit cards to Apple Wallet. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The company’s Passkeys for Android devices, which deliver a secured log-in and password-free, safe payment experience, remain noteworthy.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here. PayPal PYPL has bolstered its tie-up with Apple AAPL by introducing the option to add PayPal and Venmo credit or debit cards to Apple Wallet. PayPal Holdings, Inc. Price and Consensus PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote Expanding Payment Solution Offerings Apart from its latest move, PayPal recently introduced Tap to Pay on Android for Venmo and Zettle users to empower small businesses with seamless payment options.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here. PayPal PYPL has bolstered its tie-up with Apple AAPL by introducing the option to add PayPal and Venmo credit or debit cards to Apple Wallet. PayPal Holdings, Inc. Price and Consensus PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote Expanding Payment Solution Offerings Apart from its latest move, PayPal recently introduced Tap to Pay on Android for Venmo and Zettle users to empower small businesses with seamless payment options.
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PayPal PYPL has bolstered its tie-up with Apple AAPL by introducing the option to add PayPal and Venmo credit or debit cards to Apple Wallet. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Users can continue earning the same cashback and rewards with the new option.
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13258.0
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2023-10-05 00:00:00 UTC
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US STOCKS-Futures fall ahead of key jobs data, worries over elevated Treasury yields remain
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-ahead-of-key-jobs-data-worries-over-elevated-treasury-yields-remain
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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 down: Dow 0.39%, S&P 0.39%, Nasdaq 0.36%
Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as investors awaited more data to gauge the strength of the labor market, while elevated Treasury yields still pointed to worries about high interest rates for a prolonged period.
Although longer-dated U.S. Treasury yields eased from 16-year highs on Wednesday, investors remain concerned that the elevated levels may pressure equities.
Worries about U.S. government spending and its ballooning budget deficit have added to uncertainty around the interest rates trajectory, contributing to a steep selloff that have caused a rout in Treasury prices and a spike in yields.
The S&P 500 .SPX and the Nasdaq .IXIC lost around 5% and 6% in September. Megacap growth stocks Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.3% and 0.6% in premarket trading on Thursday.
Following a mixed jobs reports earlier this week, focus will be on the more-comprehensive September non-farm payrolls data on Friday. Weekly jobless claims are also due later on Wednesday.
Traders put the chance of interest rates remaining unchanged in November and December at 80% and 63%, respectively, according to CME's FedWatch tool.
Federal Reserve policymakers including Cleveland's Loretta Mester, Minneapolis' Neel Kashkari, Richmond's Thomas Barkin, San Francisco's Mary Daly and Vice Chair for Supervision Michael Barr are set to speak during the day.
The race to replace ousted House Speaker Kevin McCarthy took shape on Wednesday as Steve Scalise, the chamber's No. 2 Republican, and Jim Jordan, a leading antagonist of Democratic President Joe Biden, said they would seek the post.
At 5:24 a.m. ET, Dow e-minis 1YMcv1 were down 131 points, or 0.39%, S&P 500 e-minis EScv1 were down 16.75 points, or 0.39%, and Nasdaq 100 e-minis NQcv1 were down 53.5 points, or 0.36%.
Clorox CLX.N fell 4.6% as the cleaning products maker said it expects to post a first-quarter loss.
(Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
((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 growth stocks Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.3% and 0.6% in premarket trading on Thursday. Although longer-dated U.S. Treasury yields eased from 16-year highs on Wednesday, investors remain concerned that the elevated levels may pressure equities. Worries about U.S. government spending and its ballooning budget deficit have added to uncertainty around the interest rates trajectory, contributing to a steep selloff that have caused a rout in Treasury prices and a spike in yields.
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Megacap growth stocks Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.3% and 0.6% in premarket trading on Thursday. Futures down: Dow 0.39%, S&P 0.39%, Nasdaq 0.36% Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as investors awaited more data to gauge the strength of the labor market, while elevated Treasury yields still pointed to worries about high interest rates for a prolonged period. Although longer-dated U.S. Treasury yields eased from 16-year highs on Wednesday, investors remain concerned that the elevated levels may pressure equities.
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Megacap growth stocks Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.3% and 0.6% in premarket trading on Thursday. Futures down: Dow 0.39%, S&P 0.39%, Nasdaq 0.36% Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as investors awaited more data to gauge the strength of the labor market, while elevated Treasury yields still pointed to worries about high interest rates for a prolonged period. Worries about U.S. government spending and its ballooning budget deficit have added to uncertainty around the interest rates trajectory, contributing to a steep selloff that have caused a rout in Treasury prices and a spike in yields.
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Megacap growth stocks Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.3% and 0.6% in premarket trading on Thursday. Futures down: Dow 0.39%, S&P 0.39%, Nasdaq 0.36% Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as investors awaited more data to gauge the strength of the labor market, while elevated Treasury yields still pointed to worries about high interest rates for a prolonged period. The S&P 500 .SPX and the Nasdaq .IXIC lost around 5% and 6% in September.
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13259.0
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2023-10-05 00:00:00 UTC
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PayPal Stock (NASDAQ:PYPL): 51% Upside, Say Analysts
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AAPL
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https://www.nasdaq.com/articles/paypal-stock-nasdaq%3Apypl%3A-51-upside-say-analysts
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nan
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nan
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Shares of fintech giant PayPal (NASDAQ:PYPL) are down 18% year-to-date and about 39% lower than the 52-week high. Concerns about macro pressures impacting consumer spending and growing rivalry in fintech space, primarily from Apple’s (NASDAQ:AAPL) Apple Pay and Alphabet’s (NASDAQ:GOOGL, GOOG) Google Pay, have weighed on investor sentiment for PYPL stock. Nonetheless, several analysts see the pullback in the shares as a good opportunity to build a position in the stock and benefit from its long-term growth potential. Their consensus price target gives PYPL stock a 51% upside.
PayPal Poised to See Better Times Ahead
PayPal enjoyed a strong run during the pandemic, thanks to the spike in e-commerce and accelerated shift to digital payments. However, subdued e-commerce transactions following the reopening of the economy, macro pressures, and intense rivalry have impacted the company’s performance over recent quarters.
In particular, investors are worried about the decline in active accounts and the impact of growth in the company’s lower-margin offerings like Braintree on its profitability. These concerns pulled down the stock despite the company reporting better-than-anticipated second-quarter earnings and revenue.
On the positive side, PayPal’s Total Payment Volume, a key metric indicating the dollar value of transactions conducted on the company’s payments platform, grew 11% to $376.5 billion and exceeded Wall Street’s expectations. Also, the company’s cost discipline helped drive more than 24% growth in Q2 2023 adjusted EPS, even as revenue increased by only 7%. The company also issued better-than-anticipated Q3 2023 guidance.
Management is confident about benefiting from higher e-commerce transactions once the macro challenges fade. Moreover, the company expects artificial intelligence to enhance its products and aims to attract more customers, given that it has significantly accelerated product innovation.
During the Q2earnings call management said that it is in the process of launching high-margin, value-added services and expanding internationally.
Is PYPL a Buy, Sell, or Hold?
On Tuesday, PayPal announced that customers can now add their Venmo credit or debit cards to Apple Wallet and make payments with a simple tap of their iPhone or Apple Watch. Following the news, Morgan Stanley analyst James Faucette commented on Wednesday that this deal would provide “modest relief to investors,” who were concerned about PayPal losing market share to Apple Pay, given the latter’s faster growth and notable usage by younger customers.
The analyst believes that leveraging additional partnerships should be a key strategy that fintech and payment players should pursue to rapidly expand availability and functionality while investing in their core capabilities.
Faucette reiterated a Buy rating on PayPal with a price target of $126.
Including Faucette, 20 out of 29 analysts have a Buy rating on PayPal stock, while the remaining have a Hold recommendation. The average price target of $88.41 indicates nearly 51% upside potential.
Conclusion
Most analysts believe that the pullback in PayPal stock presents a good opportunity to gain exposure to this dominant fintech player. They expect the company to benefit from growth in e-commerce transactions once macro pressures abate and the continued shift to digital payments.
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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Concerns about macro pressures impacting consumer spending and growing rivalry in fintech space, primarily from Apple’s (NASDAQ:AAPL) Apple Pay and Alphabet’s (NASDAQ:GOOGL, GOOG) Google Pay, have weighed on investor sentiment for PYPL stock. Following the news, Morgan Stanley analyst James Faucette commented on Wednesday that this deal would provide “modest relief to investors,” who were concerned about PayPal losing market share to Apple Pay, given the latter’s faster growth and notable usage by younger customers. The analyst believes that leveraging additional partnerships should be a key strategy that fintech and payment players should pursue to rapidly expand availability and functionality while investing in their core capabilities.
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Concerns about macro pressures impacting consumer spending and growing rivalry in fintech space, primarily from Apple’s (NASDAQ:AAPL) Apple Pay and Alphabet’s (NASDAQ:GOOGL, GOOG) Google Pay, have weighed on investor sentiment for PYPL stock. Nonetheless, several analysts see the pullback in the shares as a good opportunity to build a position in the stock and benefit from its long-term growth potential. They expect the company to benefit from growth in e-commerce transactions once macro pressures abate and the continued shift to digital payments.
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Concerns about macro pressures impacting consumer spending and growing rivalry in fintech space, primarily from Apple’s (NASDAQ:AAPL) Apple Pay and Alphabet’s (NASDAQ:GOOGL, GOOG) Google Pay, have weighed on investor sentiment for PYPL stock. On the positive side, PayPal’s Total Payment Volume, a key metric indicating the dollar value of transactions conducted on the company’s payments platform, grew 11% to $376.5 billion and exceeded Wall Street’s expectations. Following the news, Morgan Stanley analyst James Faucette commented on Wednesday that this deal would provide “modest relief to investors,” who were concerned about PayPal losing market share to Apple Pay, given the latter’s faster growth and notable usage by younger customers.
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Concerns about macro pressures impacting consumer spending and growing rivalry in fintech space, primarily from Apple’s (NASDAQ:AAPL) Apple Pay and Alphabet’s (NASDAQ:GOOGL, GOOG) Google Pay, have weighed on investor sentiment for PYPL stock. These concerns pulled down the stock despite the company reporting better-than-anticipated second-quarter earnings and revenue. They expect the company to benefit from growth in e-commerce transactions once macro pressures abate and the continued shift to digital payments.
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13260.0
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2023-10-05 00:00:00 UTC
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Alphabet (GOOGL) to Boost Smartwatch Presence With Pixel Watch 2
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https://www.nasdaq.com/articles/alphabet-googl-to-boost-smartwatch-presence-with-pixel-watch-2
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Alphabet’s GOOGL Google has unveiled the Pixel Watch 2 to bolster its smartwatch offerings as well as fitness tracking efforts.
The new Fitbit-powered Pixel watch features a circular design, a battery life of 24 hours with its always-on display active and an advanced quad-core processor.
It is equipped with a Fitbit-backed exercise tracking feature, an upgraded heart rate sensor and a tracking algorithm that captures the heart rate during strenuous exercises 40% more accurately.
It also comes with a temperature sensor and a continuous electrodermal activity sensor, which notify users to relax and breathe when they are stressed.
Pixel Watch 2 includes six months of free Fitbit Premium service, which offers various exercise courses, Sleep Profile and Readiness Score functionalities.
The underlined watch, which starts at $349, features automatic exercise detection for seven workouts, including running and outdoor cycling, Safety Check, Gmail and Google Calendar integration, along with the ability to send and receive calls and messages.
We believe all these features are expected to boost the adoption of the latest Pixel watch.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
Alphabet’s solid efforts to strengthen its Pixel Watch series are expected to continue helping it bolster its presence in the booming smartwatch and wearable markets.
Per a Fortune Business Insights report, the global smartwatch market is anticipated to hit $29.31 billion in 2023 and reach $77.22 billion by 2032, witnessing a CAGR of 14.8% between 2023 and 2030.
Per a report from Straits Research, the wearable fitness tracker market is expected to hit $192 billion by 2030, seeing a CAGR of 17.5% between 2022 and 2030.
We believe the company’s growing prospects in these promising markets are expected to aid it in gaining investors’ optimism in the days ahead.
GOOGL has gained 53.3% in the year-to-date period, outperforming the industry’s growth of 47.8%.
Growth promises associated with Pixel Watches are expected to contribute well to the performance of Google Services segment in the days ahead.
In second-quarter 2023, revenues from the Google Services segment increased by 5.5% year-over-year to $66.3 billion, accounting for 88.8% of the total revenues.
Our model estimate for 2023 Google Services revenues is pegged at $267.05 billion, reflecting 5.3% growth from 2022.
Competitive Scenario
Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents like Apple AAPL and Garmin GRMN, which are leaving no stone unturned to expand footprint in the smartwatch market.
Apple, which is currently dominating the smartwatch market on the back of its expanding Watch family, is constantly making efforts to sustain its supremacy. The strong adoption of the Apple Watch on the back of useful and advanced features like Cycle Tracking, the Noise app and Activity Trends remains a major positive.
The company recently announced the availability of watchOS 10 to further strengthen the Apple Watch series.
More than two-thirds of the customers who purchased the Apple Watch during third-quarter fiscal 2023 were first-time customers.
Garmin’s expanding product portfolio for the Fitness and Outdoor business, which has been built with both internal development efforts and acquisitions, makes the company a potential player in the wearable space.
Recently, the company launched its new health and fitness smartwatch called vivoactive 5 and GPS smartwatches, namely the Venu 3 and Venu 3S.
These devices are comprised of robust healthcare features like sleep coach, which offers a sleep score and personalized coaching that keeps track of different sleep stages, naps, Pulse Ox1 and heart rate variability (HRV) status; morning report, which provides an overview of sleep, recovery and HRV status; nap detection, which tracks or logs naps automatically and Body Battery enhancements, which monitor energy levels throughout the day.
Zacks Rank & Another Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Asure Software ASUR which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Asure Software shares have gained 29% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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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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Competitive Scenario Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents like Apple AAPL and Garmin GRMN, which are leaving no stone unturned to expand footprint in the smartwatch market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Pixel Watch 2 includes six months of free Fitbit Premium service, which offers various exercise courses, Sleep Profile and Readiness Score functionalities.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents like Apple AAPL and Garmin GRMN, which are leaving no stone unturned to expand footprint in the smartwatch market. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Alphabet’s solid efforts to strengthen its Pixel Watch series are expected to continue helping it bolster its presence in the booming smartwatch and wearable markets.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents like Apple AAPL and Garmin GRMN, which are leaving no stone unturned to expand footprint in the smartwatch market. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Alphabet’s solid efforts to strengthen its Pixel Watch series are expected to continue helping it bolster its presence in the booming smartwatch and wearable markets.
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Competitive Scenario Although Alphabet is a late entrant in this market, its growing smartwatch efforts are likely to intensify competition for other incumbents like Apple AAPL and Garmin GRMN, which are leaving no stone unturned to expand footprint in the smartwatch market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report Asure Software Inc (ASUR) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet’s GOOGL Google has unveiled the Pixel Watch 2 to bolster its smartwatch offerings as well as fitness tracking efforts.
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13261.0
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2023-10-05 00:00:00 UTC
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The 3 Best Artificial Intelligence (AI) Mutual Funds to Buy in 2023
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https://www.nasdaq.com/articles/the-3-best-artificial-intelligence-ai-mutual-funds-to-buy-in-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
According to VettaFi, there are 45 artificial intelligence (AI) ETFs you can invest in, ranging in net assets from a low of $1 million to a high of $10.8 billion. ETFs are taking over from mutual funds as the primary investment vehicle for American investors, so the range makes sense. But I’m curious about the best AI mutual funds to buy in 2023.
In June, Morningstar reported that narrow bets on thematic funds such as AI are losing propositions.
“From May 22 through May 26, investors poured approximately $232 million into exchange-traded funds that specifically target companies like Nvidia that help build or benefit from AI applications,” stated Morningstar’s June 13 article.
Morningstar reminds investors that thematic bets are often fleeting in their success and don’t possess the necessary attributes of long-term buys. It argues that total-market funds might be a better bet because any companies held within the fund that benefit from AI will undoubtedly help its net assets and share price grow.
For this article, focusing on three broader tech funds might be better. Indeed, it would be easier to pick three long-term winners.
Here are my three mutual funds to buy.
BlackRock Technology Opportunities Fund (BGSAX)
Source: Gorodenkoff / Shutterstock
The BlackRock Technology Opportunities Fund (MUTF:BGSAX) invests in growth companies disrupting technology. The actively managed fund invests across all market capitalizations in U.S. and non-U.S. equities.
The fund is managed by Tony Kim, the head of BlackRock’s technology equity team, and Reid Menge, Kim’s co-portfolio manager. The duo have more than 50 years of combined investment experience.
Virtually all of BGSAX’s top 10 holdings strongly relate to AI—and the top 10 accounts for 46.5% of the fund’s $1.57 billion in net assets. The three principal areas of technology by weight are Software & Services (30.59%), Semiconductors (29.14%), and Tech Hardware & Equipment (13.21%).
Geographically, 84.77% of the fund is invested in North American firms, with the remainder spread across Europe, Asia and emerging markets—stocks with market caps of more than $10 billion account for 92.12% of the portfolio.
The fund was launched in May 2000. It charges a relatively high fee of $1.17% annually.
Fidelity Select Technology Portfolio (FSPTX)
Source: Shutterstock
The Fidelity Select Technology Portfolio (MUTF:FSPTX) launched in July 1981. In the 42 years since, it’s attracted $11.1 billion in net assets. It’s been managed by Adam Benjamin since January 2022. The fund charges a reasonable 0.70%.
The fund’s top 10 holdings account for 72.8% of its portfolio, with Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) accounting for nearly 48% of the fund. Benjamin turns the entire portfolio once every four years.
FSPTX’s investment strategy is to invest in companies developing products and services that will benefit from technological advances.
The fund has had an annual total return of 13.58% since inception through Sept. 30. That’s 222 basis points higher than the S&P 500. The fund had an excellent second quarter. In the quarter ended June 30, it produced a return of 17.5%—almost double the index.
Nvidia gained 52% in the quarter, giving the fund its highest return out of 85 holdings. Nvidia’s AI chips are driving growth in this fast-growing segment of the tech sector.
Columbia Seligman Technology & Information Fund (SLMCX)
Source: Blue Planet Studio/Shutterstock.com
The Columbia Seligman Technology & Information Fund (MUTF:SLMCX) invests in 50-75 technology stocks across every market cap. It seeks to buy undervalued companies that investors misunderstand, utilizing a growth-at-a-reasonable price (GARP) investment style.
SLMCX has six fund managers with an average investment industry experience of 28 years. The fund charges 1.20%, the highest of the three mutual funds on this list. However, you get what you pay for.
Launched in June 1983, SLMCX has gathered $10.5 billion in net assets over its 40-year history. If you invested $10,000 in August 2013, today it’s worth $61,420.
Since inception, it’s averaged an annual total return of 14.26%. Over the past three years, Morningstar has given it a five-star rating. Out of 228 funds, its performance was in the top 8%.
The top 10 holdings account for 42.92% of its 70-stock portfolio. The top stock by weighting is Lam Research (NASDAQ:LRCX) at 6.97%, nearly 7x the fund’s allocation in the S&P North American Technology Sector Index.
Here’s what the fund’s managers had to say about AI in its Q2 2023 commentary:
“At the midpoint of 2023, the technology market had posted strong returns, driven in large part by the enthusiasm surrounding artificial intelligence and its prospects for transforming the global economy,” stated the fund managers. “We too are excited about the productivity gains promised and believe we are in the early stages of a secular trend, but we remain watchful that the early winners may not be the companies that are the greatest beneficiaries of AI over the long term.”
That is precisely why you buy a broader tech fund like SLMCX.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post The 3 Best Artificial Intelligence (AI) Mutual Funds to Buy in 2023 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 fund’s top 10 holdings account for 72.8% of its portfolio, with Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) accounting for nearly 48% of the fund. “From May 22 through May 26, investors poured approximately $232 million into exchange-traded funds that specifically target companies like Nvidia that help build or benefit from AI applications,” stated Morningstar’s June 13 article. Geographically, 84.77% of the fund is invested in North American firms, with the remainder spread across Europe, Asia and emerging markets—stocks with market caps of more than $10 billion account for 92.12% of the portfolio.
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The fund’s top 10 holdings account for 72.8% of its portfolio, with Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) accounting for nearly 48% of the fund. BlackRock Technology Opportunities Fund (BGSAX) Source: Gorodenkoff / Shutterstock The BlackRock Technology Opportunities Fund (MUTF:BGSAX) invests in growth companies disrupting technology. Fidelity Select Technology Portfolio (FSPTX) Source: Shutterstock The Fidelity Select Technology Portfolio (MUTF:FSPTX) launched in July 1981.
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The fund’s top 10 holdings account for 72.8% of its portfolio, with Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) accounting for nearly 48% of the fund. BlackRock Technology Opportunities Fund (BGSAX) Source: Gorodenkoff / Shutterstock The BlackRock Technology Opportunities Fund (MUTF:BGSAX) invests in growth companies disrupting technology. Columbia Seligman Technology & Information Fund (SLMCX) Source: Blue Planet Studio/Shutterstock.com The Columbia Seligman Technology & Information Fund (MUTF:SLMCX) invests in 50-75 technology stocks across every market cap.
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The fund’s top 10 holdings account for 72.8% of its portfolio, with Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) accounting for nearly 48% of the fund. For this article, focusing on three broader tech funds might be better. SLMCX has six fund managers with an average investment industry experience of 28 years.
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2023-10-05 00:00:00 UTC
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Foxconn expects strong holiday sales in Q4, Sept sales slump
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https://www.nasdaq.com/articles/foxconn-expects-strong-holiday-sales-in-q4-sept-sales-slump
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By Ben Blanchard and Sarah Wu
TAIPEI, Oct 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple supplier, predicted on Thursday strong year-end holiday sales after September sales dropped, coming off a high base for consumer electronics.
The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets.
Apple last month launched a new series of iPhones that included a new titanium shell, a faster chip and improved video game playing abilities, but it did not raise prices for the new iPhone 15, reflecting the global smartphone slump.
Foxconn said in a statement that with the second half of the year a "traditional peak season" for consumer tech products, operations "will ramp up sequentially".
"The fourth quarter should see significant growth compared to the third quarter," it added, without elaborating.
Foxconn beat estimates for second-quarter earnings unveiled in August thanks to a booming artificial intelligence sector but it retained a cautious outlook for this year due to global economic uncertainties.
Foxconn, formally called Hon Hai Precision Industry Co Ltd, said revenue last month reached T$660.7 billion ($20.46 billion), down 19.7% year-on-year but soaring 60.1% from August.
Third-quarter revenue dropped 11.7% on-year, but was up 18.4% on the previous quarter.
Revenue in its smart consumer electronics products, including smartphones, saw strong growth month-on-month "due to new product launches in September", Foxconn said.
Foxconn is the world's biggest iPhone assembler, but has been trying to diversify into electric vehicles.
For last month, it said that rising shipments of auto components contributed to significant year-on-year growth for its components and other products business.
It added that September year-on-year revenue for cloud and networking products, which includes servers, declined due to "conservative customer pull-in".
Foxconn releases third-quarter earnings on Nov. 14, when it will give more details on its outlook.
Foxconn's Taipei-listed shares closed up 0.5% on Thursday ahead of the release of its September sales, compared with a 1.1% gain for the broader market .TWII. Foxconn shares have risen 3.6% this year, giving it a market value of $44.1 billion.
($1 = 32.2860 Taiwan dollars)
(Reporting by Ben Blanchard and Sarah Wu; Editing by Kim Coghill)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. Foxconn beat estimates for second-quarter earnings unveiled in August thanks to a booming artificial intelligence sector but it retained a cautious outlook for this year due to global economic uncertainties. It added that September year-on-year revenue for cloud and networking products, which includes servers, declined due to "conservative customer pull-in".
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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. By Ben Blanchard and Sarah Wu TAIPEI, Oct 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple supplier, predicted on Thursday strong year-end holiday sales after September sales dropped, coming off a high base for consumer electronics. Foxconn said in a statement that with the second half of the year a "traditional peak season" for consumer tech products, operations "will ramp up sequentially".
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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. By Ben Blanchard and Sarah Wu TAIPEI, Oct 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple supplier, predicted on Thursday strong year-end holiday sales after September sales dropped, coming off a high base for consumer electronics. Revenue in its smart consumer electronics products, including smartphones, saw strong growth month-on-month "due to new product launches in September", Foxconn said.
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The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple AAPL.O for the year-end holiday period in Western markets. By Ben Blanchard and Sarah Wu TAIPEI, Oct 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple supplier, predicted on Thursday strong year-end holiday sales after September sales dropped, coming off a high base for consumer electronics. Revenue in its smart consumer electronics products, including smartphones, saw strong growth month-on-month "due to new product launches in September", Foxconn said.
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13263.0
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2023-10-05 00:00:00 UTC
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FOCUS-Novo Nordisk's Wegovy bonanza looms large in Denmark
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https://www.nasdaq.com/articles/focus-novo-nordisks-wegovy-bonanza-looms-large-in-denmark
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By Maggie Fick
COPENHAGEN, Oct 5 (Reuters) - The whirlwind success of
weight-loss treatment Wegovy is providing a bonanza not just for
its developer, Novo Nordisk , but also for its home
country of Denmark.
Interviews with Danish economists, analysts, and executives
at the Novo Nordisk Foundation which controls Novo highlight the
benefits to the economy from jobs to private wealth - but also
the potential pitfalls of relying on a single, outsized company.
"Danes are exposed to the success of Novo Nordisk, but also
the risk - both because it is the most widely held stock in
Denmark, and because of the company's impact on our society,"
Danske Bank investment strategist Lars Skovgaard Andersen said.
In August, the government cited Novo when it lifted its
economic growth forecast for this year, to 1.2% from 0.6%. The
drugmaker last month overtook LVMH as Europe's most
valuable listed company, worth about 385 billion euros ($403
billion) - slightly more than Denmark's gross domestic product.
"We have struck gold," said Lars Christensen, research
associate at Copenhagen Business School.
Novo's success would bring broad benefits, he added, citing
Danish pension savers whose schemes are typically big holders of
Novo shares. The share price has nearly tripled since Wegovy was
launched in June 2021.
Record profits for Novo are projected to generate returns
for the Foundation of more than $12 billion in coming years.
They will also boost tax revenues and employment.
Novo Nordisk added 3,500 jobs in Denmark in 2022, bringing
the total in the country to 21,000 employees, out of 59,000
worldwide, a company spokesperson said.
Mads Krogsgaard Thomsen, the Foundation's chief executive
officer, said international press coverage of Wegovy was also
enhancing Denmark's image as a place that fosters scientific
innovation.
Before Wegovy, "we used to be kind of, 'Isn't Denmark the
place where Stockholm is the capital?'" he joked to journalists
in Copenhagen on Tuesday.
Speaking later to Reuters, he acknowledged that Novo's
influence is growing as its profits soar.
"The Novo Group is of course becoming of bigger importance
to Danish society," Thomsen said. "To me, it's the opportunity -
literally I can liaise with the ministers of science, health,
commerce, energy and climate ..."
"We team up with the political system and the ministers, to
make sure we are kind of aligned" on issues such as climate and
sustainability in agriculture, he said.
Danish government officials did not respond to a request for
comment.
WINDFALL FOR FOUNDATION
Under a legal structure common in Denmark, the Foundation's
wealth is managed by its investment arm, Novo Holdings, which
owns a controlling stake - 28.1% of economic (or A) shares and
76.9% of voting (or B) shares - in Novo Nordisk.
Other big Danish companies – beer manufacturer Carlsberg
, shipping group A.P. Moller-Maersk and toymaker Lego
– are similarly "enterprise foundations," although the structure
is little used elsewhere.
Wegovy is the first-to-market of a new class of highly
effective weight-loss treatments that some analysts predict
could be worth $100 billion within a decade.
That has positioned the Foundation for a Wegovy windfall
that Thomsen said could exceed estimates of $12.5 billion
between 2022 and 2026.
Ranking alongside the U.S.-based Bill and Melinda Gates
Foundation and the UK's Wellcome Trust, the Foundation reported
assets worth 108 billion euros ($113 billion) at end-2022,
mostly representing its stakes in Novo Nordisk and Danish
enzymes maker Novozymes .
Because it has no plans to sell those stakes, the Foundation
cautions against a direct comparison of its assets to other
leading global charities.
Novo Holdings also earns money from 161 portfolio companies
and capital investments, mainly in life sciences in Europe and
North America and increasingly Asia.
Last year, the Foundation distributed grants worth about 1
billion euros, mostly in Denmark, focusing on life sciences,
including research into obesity prevention and infectious
diseases, humanitarian aid, and education and arts research.
Disbursements will rise this year, said Thomsen, who before
moving to the Foundation supervised the development of Wegovy
and Ozempic, a similar drug for diabetes, as Novo Nordisk's
chief scientific officer.
He submitted Novo's application for U.S. approval for Wegovy
in late 2020.
OUTGROWING DENMARK?
That could mean it's time for the Foundation, which has
"almost outgrown Denmark" to award more grants outside the
country, said Rasmus Kristian Feldthusen, professor of
commercial law at the University of Copenhagen.
More money will likely go abroad, Thomsen told Reuters.
He said he first considered joining the Foundation more than
a decade ago, but didn't move there until the final stages of
Wegovy's development, on a hunch the obesity drug would help
expand its philanthropic reach.
Thomsen acknowledged concerns that the Danish economy could
become too dependent on Novo and its Wegovy riches, as Finland
did with Nokia before Apple's smartphones
stole its market, but downplayed them.
Noting that Novo's patent on semaglutide - the active
ingredient used in Wegovy and Ozempic - is in place for nearly
another decade, and that the company is investing in future
growth, he said: "There's no 'Nokia moment' (for Novo) in the
next few years."
($1 = 0.9531 euros)
($1 = 7.1012 Danish crowns)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Novo Nordisk owner readies for big Wegovy windfall
[nL1N3B9048]
Novo Nordisk: Europe's most valuable listed company https://tmsnrt.rs/48DTB4Z
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Maggie Fick; Additional reporting by Jacob
Gronholt-Pedersen; Writing by Alexander Smith
Editing by Josephine Mason, Michele Gershberg and Catherine
Evans)
((maggie.fick@thomsonreuters.com; +44 7890 916706;))
Keywords: HEALTH OBESITY/NOVO NORDISK DENMARK (PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Maggie Fick COPENHAGEN, Oct 5 (Reuters) - The whirlwind success of weight-loss treatment Wegovy is providing a bonanza not just for its developer, Novo Nordisk , but also for its home country of Denmark. "Danes are exposed to the success of Novo Nordisk, but also the risk - both because it is the most widely held stock in Denmark, and because of the company's impact on our society," Danske Bank investment strategist Lars Skovgaard Andersen said. Disbursements will rise this year, said Thomsen, who before moving to the Foundation supervised the development of Wegovy and Ozempic, a similar drug for diabetes, as Novo Nordisk's chief scientific officer.
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Ranking alongside the U.S.-based Bill and Melinda Gates Foundation and the UK's Wellcome Trust, the Foundation reported assets worth 108 billion euros ($113 billion) at end-2022, mostly representing its stakes in Novo Nordisk and Danish enzymes maker Novozymes . Disbursements will rise this year, said Thomsen, who before moving to the Foundation supervised the development of Wegovy and Ozempic, a similar drug for diabetes, as Novo Nordisk's chief scientific officer. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Novo Nordisk owner readies for big Wegovy windfall [nL1N3B9048] Novo Nordisk: Europe's most valuable listed company https://tmsnrt.rs/48DTB4Z ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Maggie Fick; Additional reporting by Jacob Gronholt-Pedersen; Writing by Alexander Smith Editing by Josephine Mason, Michele Gershberg and Catherine Evans) ((maggie.fick@thomsonreuters.com; +44 7890 916706;))
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Under a legal structure common in Denmark, the Foundation's wealth is managed by its investment arm, Novo Holdings, which owns a controlling stake - 28.1% of economic (or A) shares and 76.9% of voting (or B) shares - in Novo Nordisk. Ranking alongside the U.S.-based Bill and Melinda Gates Foundation and the UK's Wellcome Trust, the Foundation reported assets worth 108 billion euros ($113 billion) at end-2022, mostly representing its stakes in Novo Nordisk and Danish enzymes maker Novozymes . <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Novo Nordisk owner readies for big Wegovy windfall [nL1N3B9048] Novo Nordisk: Europe's most valuable listed company https://tmsnrt.rs/48DTB4Z ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Maggie Fick; Additional reporting by Jacob Gronholt-Pedersen; Writing by Alexander Smith Editing by Josephine Mason, Michele Gershberg and Catherine Evans) ((maggie.fick@thomsonreuters.com; +44 7890 916706;))
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By Maggie Fick COPENHAGEN, Oct 5 (Reuters) - The whirlwind success of weight-loss treatment Wegovy is providing a bonanza not just for its developer, Novo Nordisk , but also for its home country of Denmark. Ranking alongside the U.S.-based Bill and Melinda Gates Foundation and the UK's Wellcome Trust, the Foundation reported assets worth 108 billion euros ($113 billion) at end-2022, mostly representing its stakes in Novo Nordisk and Danish enzymes maker Novozymes . Disbursements will rise this year, said Thomsen, who before moving to the Foundation supervised the development of Wegovy and Ozempic, a similar drug for diabetes, as Novo Nordisk's chief scientific officer.
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13264.0
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2023-10-05 00:00:00 UTC
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Tesla Stock Long-Term Forecast: Will the Shares Reach $500 by 2025?
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AAPL
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https://www.nasdaq.com/articles/tesla-stock-long-term-forecast%3A-will-the-shares-reach-%24500-by-2025
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nan
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nan
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Tesla (TSLA) stock has created immense wealth for investors and funds who believed in its story, and almost more importantly, in Elon Musk – the company’s mercurial CEO, who also owns several other companies like SpaceX, The Boring Company, X (formerly Twitter), and Neuralink.
Specifically, Tesla went public in 2010, pricing the IPO at $17. It has since undergone two stock splits - in relatively quick succession, between 2020 and 2022 - and its split-adjusted IPO price comes to around $1.13 per share. At its current levels of around $260, the stock has since delivered some of the most impressive post-IPO returns ever.
www.barchart.com
At the same time, the stock has left a massive hole in the pockets of short sellers, who bet against the Tesla story only to end up losing billions of dollars. Still, short sellers cannot get over their obsession with the company, which they find grossly overvalued. In fact, Tesla is often among the most shorted stocks, and it was the most shorted large-cap U.S. stock for three consecutive months until August.
TSLA Is the Industry Leader in Electric Cars - So Far
Tesla's market cap surpassed $1.2 trillion in November 2021, and while it has since come down to around $828 billion – it is still almost triple the value of Toyota Motors (TM), and more than the combined market caps of the top five automakers.
Tesla has had a relatively smooth ride in the electric vehicle (EV) industry, and the company has pretty much set the agenda – including with its price war, which pressured other carmakers to lower EV prices.
While Tesla has been the industry leader in EVs for quite some time, China-based BYD (BYDDY) is threatening to snatch the title, after having already surpassed Tesla in terms of total shipments – roughly half of which are plug-in hybrids (PHEVs).
While it can be tricky to predict Tesla’s short-term forecast - as it tends to be quite volatile, and the price action is often guided by sentiments and emotions rather than the fundamentals - in this article, we’ll look at the stock’s long-term forecast and analyze whether it can reach $500 by 2025.
Tesla Stock Long-Term Forecast
Tesla’s long-term forecast will largely depend on the following:
The trajectory of its deliveries
The progression in its margins, which have plummeted amid the price cuts
Autonomous driving and the software side of the business
Tesla is targeting a long-term delivery CAGR of 50%, and expects its production capacity to hit 20 million by 2030. Meanwhile, growing the deliveries at that pace might get tough for Tesla, and it will need new models - including the Cybertruck, and the long-talked-about low-cost platform, to spur its sales.
By Musk’s admission, Tesla’s valuation in the long term will depend on its autonomous driving technology. Musk has countered the margin erosion due to price cuts, having said that Tesla can sell cars without making any profits and later make up the difference by selling autonomous technology. The company is also open to licensing its autonomous driving technology to other automakers.
www.barchart.com
In reality, though, Tesla’s full driving (FSD) is not yet as “fully autonomous” as the name suggests. For the last several years, including in 2023, Musk has promised full autonomy “by the end of the year” - but the FSD remains far from fully autonomous.
That said, under Musk’s leadership Tesla has delivered on several milestones, and is on track to deliver 1.8 million cars in 2023. Only a few years back, not many believed that Tesla could enter the league of major automakers. Still, to its credit, Tesla has proved critics wrong - and even valuation guru Ashwath Damodaran admitted that he erred in valuing Tesla. However, the “dean of valuation” still believes Tesla stock is worth less than its current value.
Can Tesla Stock Reach $500 by 2025?
To reach $500 by 2025, Tesla needs to just about double from these price levels. Given the kind of returns that it has delivered in the past – including the 743% rise in 2020 – the price level does not seem unreasonably astronomical, and could be achieved if Tesla delivers on the 50% shipment growth and FSD.
As for Tesla bulls, the $500 price target might actually be a low bar. Ron Baron expects the stock to hit $1,500 by 2030, while Cathie Wood - who’s arguably the biggest Tesla bull - has set a base case 2027 target price of $2,000 on Tesla. Even her bear case target price is $1,400, while the bull case target price is $2,500.
And last month, Morgan Stanley analyst Adam Jonas, a long-standing Tesla stock bull in the sell-side analyst community, created quite a furor when he said that the company’s Dojo supercomputer could add $600 billion to Tesla’s market cap.
What Is Musk’s View on Tesla’s Valuation?
Elon Musk has had shifting views on Tesla’s valuation over time. In 2020, he famously (or infamously) tweeted that “Tesla's stock price is too high imo,” while last year he said that the company’s market cap can surpass the combined market cap of Apple (AAPL) and Saudi Aramco.
For context, the combined market cap of Apple and Aramco is currently at around $5 trillion - and even if Tesla stock rises by less than a third of what Musk is predicting, it would hit that magical level of $500.
All said, while I won't be surprised if Tesla stock rises to $500 by 2025, investors should watch out for several risks in the meantime, like rising competition and margin erosion.
On the date of publication, Mohit Oberoi had a position in: AAPL . 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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In 2020, he famously (or infamously) tweeted that “Tesla's stock price is too high imo,” while last year he said that the company’s market cap can surpass the combined market cap of Apple (AAPL) and Saudi Aramco. On the date of publication, Mohit Oberoi had a position in: AAPL . www.barchart.com At the same time, the stock has left a massive hole in the pockets of short sellers, who bet against the Tesla story only to end up losing billions of dollars.
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In 2020, he famously (or infamously) tweeted that “Tesla's stock price is too high imo,” while last year he said that the company’s market cap can surpass the combined market cap of Apple (AAPL) and Saudi Aramco. On the date of publication, Mohit Oberoi had a position in: AAPL . TSLA Is the Industry Leader in Electric Cars - So Far Tesla's market cap surpassed $1.2 trillion in November 2021, and while it has since come down to around $828 billion – it is still almost triple the value of Toyota Motors (TM), and more than the combined market caps of the top five automakers.
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In 2020, he famously (or infamously) tweeted that “Tesla's stock price is too high imo,” while last year he said that the company’s market cap can surpass the combined market cap of Apple (AAPL) and Saudi Aramco. On the date of publication, Mohit Oberoi had a position in: AAPL . Tesla Stock Long-Term Forecast Tesla’s long-term forecast will largely depend on the following: The trajectory of its deliveries The progression in its margins, which have plummeted amid the price cuts Autonomous driving and the software side of the business Tesla is targeting a long-term delivery CAGR of 50%, and expects its production capacity to hit 20 million by 2030.
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In 2020, he famously (or infamously) tweeted that “Tesla's stock price is too high imo,” while last year he said that the company’s market cap can surpass the combined market cap of Apple (AAPL) and Saudi Aramco. On the date of publication, Mohit Oberoi had a position in: AAPL . By Musk’s admission, Tesla’s valuation in the long term will depend on its autonomous driving technology.
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13265.0
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2023-10-05 00:00:00 UTC
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Wall St futures fall as worries over elevated Treasury yields remain
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AAPL
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https://www.nasdaq.com/articles/wall-st-futures-fall-as-worries-over-elevated-treasury-yields-remain
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as Treasury yields held on to recent highs, while investors awaited more data to gauge the strength of the labor market.
Although longer-dated U.S. Treasury yields eased from 16-year highs on Wednesday, investors remain concerned that the elevated levels may pressure equities.
Worries about U.S. government spending and its ballooning budget deficit have added to uncertainty around the interest rates trajectory, contributing to a steep selloff that have caused a rout in Treasury prices and a spike in yields.
"The rise in long-dated bond yields shows markets are readjusting to the higher-for-longer rate environment," said Janet Mui, head of market analysis at RBC Brewin Dolphin.
"Markets are moving on to debate how long rates will remain high in the current cycle, as well as rethinking the optimal interest rate level in the long run."
The S&P 500 and the tech-heavy Nasdaq lost around 5% and 6% last month as yields spiked.
Megacap growth stocks Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.1% and 0.2%% in premarket trading on Thursday.
Following a mixed jobs reports earlier this week, focus will be on the more comprehensive September non-farm payrolls data on Friday. Weekly jobless claims are also due later on Thursday.
Traders put the chance of interest rates remaining unchanged in November and December at 80% and 63%, respectively, according to CME's FedWatch tool.
At 7:20 a.m. ET, Dow e-minis 1YMcv1 were down 92 points, or 0.28%, S&P 500 e-minis EScv1 were down 10.5 points, or 0.24%, and Nasdaq 100 e-minis NQcv1 were down 27.75 points, or 0.19%.
Federal Reserve policymakers including Cleveland's Loretta Mester, Minneapolis' Neel Kashkari, Richmond's Thomas Barkin, San Francisco's Mary Daly and Vice Chair for Supervision Michael Barr are set to speak during the day.
Meanwhile, the race to replace ousted House Speaker Kevin McCarthy took shape on Wednesday as Steve Scalise, the chamber's No. 2 Republican, and Jim Jordan, a leading antagonist of Democratic President Joe Biden, said they would seek the post.
Among stocks, Clorox CLX.N fell 4.2% as the cleaning products maker said it expects to post a first-quarter loss.
Rivian AutomotiveRIVN.O dipped 9% after the EV-maker said it plans to sell convertible green bonds worth $1.5 billion and forecast quarterly revenue to rise in line with estimates.
VinFastVFS.O gained 6.7% after the Vietnamese EV maker reported third-quarter revenue that more than doubled.
U.S. energy firms including Chevron CVX.N, Exxon Mobil XOM.N, Marathon Oil MRO.N and Occidental Petroleum OXY.N fell between 0.5% and 2.0% as crude prices remained under pressure on an uncertain demand outlook.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta)
((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 growth stocks Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.1% and 0.2%% in premarket trading on Thursday. By Ankika Biswas and Shashwat Chauhan Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as Treasury yields held on to recent highs, while investors awaited more data to gauge the strength of the labor market. Worries about U.S. government spending and its ballooning budget deficit have added to uncertainty around the interest rates trajectory, contributing to a steep selloff that have caused a rout in Treasury prices and a spike in yields.
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Megacap growth stocks Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.1% and 0.2%% in premarket trading on Thursday. By Ankika Biswas and Shashwat Chauhan Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as Treasury yields held on to recent highs, while investors awaited more data to gauge the strength of the labor market. Although longer-dated U.S. Treasury yields eased from 16-year highs on Wednesday, investors remain concerned that the elevated levels may pressure equities.
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Megacap growth stocks Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.1% and 0.2%% in premarket trading on Thursday. By Ankika Biswas and Shashwat Chauhan Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as Treasury yields held on to recent highs, while investors awaited more data to gauge the strength of the labor market. "The rise in long-dated bond yields shows markets are readjusting to the higher-for-longer rate environment," said Janet Mui, head of market analysis at RBC Brewin Dolphin.
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Megacap growth stocks Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O and Alphabet GOOGL.O fell between 0.1% and 0.2%% in premarket trading on Thursday. By Ankika Biswas and Shashwat Chauhan Oct 5 (Reuters) - U.S. stock index futures fell on Thursday as Treasury yields held on to recent highs, while investors awaited more data to gauge the strength of the labor market. "Markets are moving on to debate how long rates will remain high in the current cycle, as well as rethinking the optimal interest rate level in the long run."
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13266.0
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2023-10-05 00:00:00 UTC
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Meta Quest 3 Is Coming: Is Meta Stock a Better Buy Than Apple?
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AAPL
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https://www.nasdaq.com/articles/meta-quest-3-is-coming%3A-is-meta-stock-a-better-buy-than-apple
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nan
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nan
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Meta Platforms (NASDAQ: META), home of Facebook, Instagram, and WhatsApp, will have serious competition in the market for augmented-reality and virtual-reality (AR/VR) headsets from Apple's (NASDAQ: AAPL) Vision Pro next year.
But Meta isn't sitting idly by waiting to see what will happen. CEO Mark Zuckerberg recently hosted its Connect conference, unveiling a few more details on the upcoming Quest 3 headset.
With the Quest 3's October launch beating the Vision Pro's release sometime in early 2024, and with a far cheaper price tag ($499, to Vision Pro's $3,499), is Meta a better AR/VR stock than mighty Apple right now?
Both tech giants are far from perfect
Before delving into the uncertain future of AR/VR (or as Apple calls it, spatial computing), let's acknowledge that neither of these tech giants are firing on all cylinders. For Meta, it's still dealing with a downturn in digital advertising. This was brought on first by Apple's own restriction on consumer data sharing across its devices a couple of years ago, followed by the bear market and economic worries. Advertising is often the first expense to get cut when economic storm clouds appear.
As for Apple, it's dealing with aftereffects of the height of the pandemic. The consumer electronics spending boom came to an end in 2022, and sales of smartphones, laptops, and PCs remain down sharply from all-time peaks. The company has fared far better overall than its PC and smartphone peers, but it's nonetheless dealing with sales growth that's sluggish at best.
Data by YCharts. TTM = trailing 12 months.
The next computing frontier
Could AR/VR/spatial computing pull Meta and Apple out of their slumps? Not likely. This is a long-term bet on the future of information technology, a battle for supremacy in a market that by and large doesn't exist yet. Meta and Apple are both trying to drum up interest in these next-gen devices, and as it often is with computing tech, the plan of attack to increase adoption of new fancy gear is to make it fun.
For Meta, that has meant gaming as well as the metaverse, although it has backed off that latter term evoking thoughts of total immersion in the digital world. At the Connect conference, Zuckerberg announced new features for the Quest 3, including the launch of popular gaming app Roblox on the devices (Apple has scored Disney content for its Vision Pro).
Quest 3 will also come with six months of a VR game subscription and will support Meta's new generative AI-powered media creation tools, which can handle things like making custom stickers used in chats with friends.
As a bonus, Meta also announced its newest smart-glasses partnership with Ray-Ban, featuring better audio and cameras, the ability to livestream video to Facebook and Instagram, and an on-device AI assistant.
Meta said it will also divulge a new Meta Quest for Business suite of apps later on this year once the Quest 3 is out in the market. But the strategy for now is clearly mainstream adoption via games and social media features.
Meta's "year of efficiency" to extend into 2024?
For Meta, the Quest 3 could be a pillar of Zuckerberg's declared "year of efficiency" for 2023 and beyond. After runaway expenses during the pandemic, Meta is controlling costs to boost its profit margins. Quest 3 could be an important part of this.
Apple doesn't divulge the costs of developing its Vision Pro and spatial computing platform. Meta does. It calls the segment Reality Labs, or simply RL, and many shareholders (and Meta critics) have decried the steep losses it has been incurring.
REALITY LABS FINANCIALS
FIRST HALF 2023
FIRST HALF 2022
Revenue
$616 million
$1.15 billion
Operating income (loss)
($7.73 billion)
($5.77 billion)
Data source: Meta.
Clearly, Meta's RL segment has been even less efficient as of late than it was last year. Flagging sales of previous-gen Quest 2 headsets and ongoing development of Quest 3 and those new Ray-Bans have been eating up a couple of extra billion bucks.
But with Quest 3 now looming, perhaps an uptick in RL revenue and lower operating losses will be in the cards late in 2023 and into 2024. That could do wonders for Zuckerberg's "year of efficiency" already in effect for the Meta bread-and-butter social media business. Up to a billion dollars per quarter in reduced RL operating losses would most certainly have a big impact on Meta's bottom line.
Data by YCharts.
Meanwhile, Apple's financial benefit from Vision Pro is a bit more of a mystery at this point. Meta stock currently trades for 23 times Wall Street's expectations for 2023 earnings per share (EPS), and 18 times 2024 expected EPS. Apple trades for 29 and 26 times expected 2023 and 2024 EPS, respectively. I thus call Meta the better stock right now, with possible upside for the company if its Quest 3 and related AR/VR devices and services are received favorably by consumers.
10 stocks we like better than Meta Platforms
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See the 10 stocks
*Stock Advisor returns as of October 2, 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. Nicholas Rossolillo and his clients have positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Roblox. 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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Meta Platforms (NASDAQ: META), home of Facebook, Instagram, and WhatsApp, will have serious competition in the market for augmented-reality and virtual-reality (AR/VR) headsets from Apple's (NASDAQ: AAPL) Vision Pro next year. At the Connect conference, Zuckerberg announced new features for the Quest 3, including the launch of popular gaming app Roblox on the devices (Apple has scored Disney content for its Vision Pro). Quest 3 will also come with six months of a VR game subscription and will support Meta's new generative AI-powered media creation tools, which can handle things like making custom stickers used in chats with friends.
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Meta Platforms (NASDAQ: META), home of Facebook, Instagram, and WhatsApp, will have serious competition in the market for augmented-reality and virtual-reality (AR/VR) headsets from Apple's (NASDAQ: AAPL) Vision Pro next year. At the Connect conference, Zuckerberg announced new features for the Quest 3, including the launch of popular gaming app Roblox on the devices (Apple has scored Disney content for its Vision Pro). Apple doesn't divulge the costs of developing its Vision Pro and spatial computing platform.
|
Meta Platforms (NASDAQ: META), home of Facebook, Instagram, and WhatsApp, will have serious competition in the market for augmented-reality and virtual-reality (AR/VR) headsets from Apple's (NASDAQ: AAPL) Vision Pro next year. Meta said it will also divulge a new Meta Quest for Business suite of apps later on this year once the Quest 3 is out in the market. See the 10 stocks *Stock Advisor returns as of October 2, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Meta Platforms (NASDAQ: META), home of Facebook, Instagram, and WhatsApp, will have serious competition in the market for augmented-reality and virtual-reality (AR/VR) headsets from Apple's (NASDAQ: AAPL) Vision Pro next year. Meta said it will also divulge a new Meta Quest for Business suite of apps later on this year once the Quest 3 is out in the market. Apple doesn't divulge the costs of developing its Vision Pro and spatial computing platform.
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13267.0
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2023-10-05 00:00:00 UTC
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Google changes user data practices to end German antitrust probe
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AAPL
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https://www.nasdaq.com/articles/google-changes-user-data-practices-to-end-german-antitrust-probe
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nan
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nan
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By Friederike Heine
BERLIN, Oct 5 (Reuters) - Alphabet GOOGL.O unit Google has agreed to change its user data practices to end a German antitrust investigation aimed at curbing its data-driven market power, the German cartel office said on Thursday.
The German antitrust watchdog in January issued a charge sheet known as a statement of objections to Google over its data processing terms, saying that users were not given sufficient choice as to whether and to what extent they agree to the far-reaching processing of their data across the company's services.
Tech giants rely on selling targeted advertising based on the massive amounts of data they gather about users, a lucrative business model now in regulators' crosshairs around the world.
The German regulator said Google's commitments would give users more choice on how their data is used across the company's platforms.
"In the future users of Google services will have a much better choice as to what happens to their data, how Google can use them and whether their data may be used across services," Andreas Mundt, president of the cartel office, said in a statement.
"This not only protects the users' right to determine the use of their data, but also curbs Google's data-driven market power," he said.
Google's commitment covers more than 25 other services including Gmail, Google News, Assistant, Contacts and Google TV.
It does not apply to Google Shopping, Google Play, Google Maps, Google Search, YouTube, Google Android, Google Chrome and Google's online advertising services, all of which are subject to a new EU legislation called the Digital Markets Act which has similar obligations.
The German competition authority has ramped up its scrutiny of Big Tech since it acquired sweeping powers called Section 19a GWB in 2021 which allows it to investigate and ban certain types of practices by companies considered to have to have paramount significance and cross-market power.
That has triggered investigations into Amazon AMZN.O, Meta Platforms META.O and Apple AAPL.O.
(Writing by Matthias Williams and Foo Yun Chee; Editing by Friederike Heine and Mark Potter)
((matthias.williams@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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That has triggered investigations into Amazon AMZN.O, Meta Platforms META.O and Apple AAPL.O. By Friederike Heine BERLIN, Oct 5 (Reuters) - Alphabet GOOGL.O unit Google has agreed to change its user data practices to end a German antitrust investigation aimed at curbing its data-driven market power, the German cartel office said on Thursday. Tech giants rely on selling targeted advertising based on the massive amounts of data they gather about users, a lucrative business model now in regulators' crosshairs around the world.
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That has triggered investigations into Amazon AMZN.O, Meta Platforms META.O and Apple AAPL.O. By Friederike Heine BERLIN, Oct 5 (Reuters) - Alphabet GOOGL.O unit Google has agreed to change its user data practices to end a German antitrust investigation aimed at curbing its data-driven market power, the German cartel office said on Thursday. "This not only protects the users' right to determine the use of their data, but also curbs Google's data-driven market power," he said.
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That has triggered investigations into Amazon AMZN.O, Meta Platforms META.O and Apple AAPL.O. By Friederike Heine BERLIN, Oct 5 (Reuters) - Alphabet GOOGL.O unit Google has agreed to change its user data practices to end a German antitrust investigation aimed at curbing its data-driven market power, the German cartel office said on Thursday. "In the future users of Google services will have a much better choice as to what happens to their data, how Google can use them and whether their data may be used across services," Andreas Mundt, president of the cartel office, said in a statement.
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That has triggered investigations into Amazon AMZN.O, Meta Platforms META.O and Apple AAPL.O. By Friederike Heine BERLIN, Oct 5 (Reuters) - Alphabet GOOGL.O unit Google has agreed to change its user data practices to end a German antitrust investigation aimed at curbing its data-driven market power, the German cartel office said on Thursday. The German antitrust watchdog in January issued a charge sheet known as a statement of objections to Google over its data processing terms, saying that users were not given sufficient choice as to whether and to what extent they agree to the far-reaching processing of their data across the company's services.
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13268.0
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2023-10-05 00:00:00 UTC
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Here's 1 Key Investing Metric Where Apple and Google Trounce the Other Stocks in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/heres-1-key-investing-metric-where-apple-and-google-trounce-the-other-stocks-in-the-%241
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nan
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nan
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Only five stocks that trade on U.S. exchanges boast market caps of $1 trillion or more. These giants share several common denominators, including dominating their core markets and delivering huge gains so far in 2023.
However, there are also some important differentiators between the stocks. Here's one key investing metric where Apple (NASDAQ: AAPL) and Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) trounce the other stocks in the $1 trillion club.
Data source: The Motley Fool.
An underappreciated investing metric
As the chart shows, Apple and Alphabet have much higher free cash flow (FCF) yields over the last 12 months than Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). I think that free cash flow yield is a greatly underappreciated investing metric.
Investment research company New Constructs (the source of the chart data) calculates free cash flow by subtracting a company's net working capital (excluding excess cash) and its change in fixed assets from its net operating profit after taxes (NOPAT). It then determines the FCF yield by dividing FCF by enterprise value (EV).
Free cash flow provides an even better view of a company's financial shape than earnings do. Businesses can manipulate their earnings figures in several ways that they can't do with free cash flow.
You'd expect a larger company to generate greater free cash flow than a smaller company would. That's where FCF yield is helpful. It allows investors to easily compare companies of different sizes. The greater the FCF yield is, the more attractively valued the company is.
Why such a big gap in the $1 trillion club?
It's not surprising that Apple and Alphabet sport solid FCF yields. But why is there such a big gap between the two leaders and the other members of the $1 trillion club?
There's an easy answer with Amazon. The e-commerce and cloud services leader generated negative free cash flow in several recent quarters, due in part to its heavy investments in infrastructure and logistics.
Microsoft doesn't come close to delivering the same level of NOPAT as Apple does, which explains why it trails Apple so much on FCF yield. It does have a higher NOPAT than Alphabet does.
However, Microsoft's enterprise value is much larger than Alphabet's. As a result, Alphabet claims a higher FCF yield.
MSFT NOPAT (TTM) data by YCharts
Nvidia's main issue is that it's not in the same league in terms of free cash flow generation as Apple and Alphabet are. The chipmaker's enterprise value has also skyrocketed more this year than any of the other stocks.
Don't judge these stocks by one metric
Even with FCF yield, it's important to keep in mind that the dynamics for a given stock can change. For example, Amazon is now generating strong positive free cash flow after a period of producing negative free cash flow. Nvidia's free cash flow has also soared in 2023 thanks to surging demand for its graphics processing units.
One of the biggest drawbacks to any investing metric is that it only tells you where a company has been, not where it's going. FCF yield won't give investors a good picture of a stock's growth prospects. Most other metrics won't either.
I think that FCF yield is absolutely an important metric to consider when buying stocks. However, don't judge these high-flying $1 trillion club members (or any other stocks, for that matter) by only this one metric. Apple, Alphabet, Amazon, Microsoft, and Nvidia each have growth drivers that could make them appealing to investors.
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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. Keith Speights has positions in Alphabet, Amazon.com, Apple, and Microsoft. 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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Here's one key investing metric where Apple (NASDAQ: AAPL) and Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) trounce the other stocks in the $1 trillion club. The e-commerce and cloud services leader generated negative free cash flow in several recent quarters, due in part to its heavy investments in infrastructure and logistics. MSFT NOPAT (TTM) data by YCharts Nvidia's main issue is that it's not in the same league in terms of free cash flow generation as Apple and Alphabet are.
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Here's one key investing metric where Apple (NASDAQ: AAPL) and Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) trounce the other stocks in the $1 trillion club. An underappreciated investing metric As the chart shows, Apple and Alphabet have much higher free cash flow (FCF) yields over the last 12 months than Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). The e-commerce and cloud services leader generated negative free cash flow in several recent quarters, due in part to its heavy investments in infrastructure and logistics.
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Here's one key investing metric where Apple (NASDAQ: AAPL) and Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) trounce the other stocks in the $1 trillion club. An underappreciated investing metric As the chart shows, Apple and Alphabet have much higher free cash flow (FCF) yields over the last 12 months than Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). Don't judge these stocks by one metric Even with FCF yield, it's important to keep in mind that the dynamics for a given stock can change.
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Here's one key investing metric where Apple (NASDAQ: AAPL) and Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) trounce the other stocks in the $1 trillion club. I think that free cash flow yield is a greatly underappreciated investing metric. Microsoft doesn't come close to delivering the same level of NOPAT as Apple does, which explains why it trails Apple so much on FCF yield.
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2023-10-05 00:00:00 UTC
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3 Promising Metaverse Stocks That Will Make Early Investors Rich
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AAPL
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https://www.nasdaq.com/articles/3-promising-metaverse-stocks-that-will-make-early-investors-rich
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the tech frontier, the metaverse stands out. It emerges as a beacon of opportunity. Whispered in investor circles, it is an intriguing idea. There are metaverse stocks to make you rich waiting to be uncovered. We’re at the dawn of this digital transformation. The allure of the metaverse isn’t just its futuristic appeal. It also lies in tangible investment returns. This has led to the rise of metaverse stocks to make you rich.
Yet, the true challenge is pinpointing the stocks with the most promise. Fear not, dear investor. Today, we have a treat for you. We’ll unveil three metaverse champions. They defy market odds. Moreover, they shine as potential wealth multipliers. So, if our headline piques your interest, read on. We’re setting out on a journey.
So here are the metaverse stocks to make you rich.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
In a twist that could give potential investors a dramatic pause, Roblox’s (NYSE:RBLX) share price took a theatrical tumble, plunging a staggering 38% in the last half year. Yet, like a phoenix rising, Roblox showcased its resilience in its Q2 2023 reveal. The company not only sported a 15% YoY revenue surge but also hit the golden mark of a whopping $680.8 million.
While the curtain may have momentarily dropped on its share price, the spotlight remains firmly on Roblox’s intrinsic growth story. With a three-year revenue crescendo that sings to the tune of a remarkable 57%, one can’t help but applaud. So, to the savvy investor with an eye for a performance that belies the superficial drama, Roblox’s act is far from over. Encore!
Moving on from the numbers, the metaverse has garnered significant attention, with many pundits coining terms like “metaverse stocks to make you rich.” While Roblox’s valuation raised eyebrows, prompting some to claim it’s stretched for its offerings, it’s hard to deny the strategic moves the company is making. Recently, Roblox advanced its metaverse vision by integrating animated chats, a step that aligns with the company’s ambition to augment its virtual realm.
Furthermore, partnerships with giants like Walmart (NYSE:WMT) emphasize its potential, with the retailer tapping into Roblox’s platform to showcase top toys. Additionally, the company’s foray into virtual reality through its launch of Meta Quest VR headsets showcases its dedication to expanding its metaverse footprint.
In conclusion, while the past half-year might suggest a waning interest, Roblox’s strategic enhancements and partnerships hint at a promising future. Investors should look beyond the immediate numbers and consider the broader trajectory and potential of Roblox in the ever-evolving metaverse landscape.
Qualcomm (QCOM)
Source: Shutterstock
Amid the tempestuous flurry of metaverse equities promising untold wealth, Qualcomm (NASDAQ:QCOM) rises, a beacon of resilience and foresight. The company, navigating the volatile economic tides, has made judicious strides, poised to chart an audacious path into tomorrow.
Recent market winds have tested its resolve. In the past half-year, its share price has witnessed an ebb of nearly 11%. The recent quarterly annals tell of revenue of $8.45 billion, a decline of 22.7% year-on-year.
However, in this theater where financial constellations often wane, Qualcomm shines bright. Against the backdrop of prevailing financial turbulence, it not only weathered the storm but exceeded market auguries, registering an EPS surprise of 3.4%.
Indeed, the Qualcomm saga, illustrious and compelling, marches onward.
Moreover, Qualcomm’s recent announcements hint at the company’s steadfast commitment to evolving technologies. A notable development includes the renewal of its deal with Apple (NASDAQ:AAPL). There are also significant strides in the automobile sector. As if to quell any concerns regarding its growth prospects, Qualcomm unveiled its Wi-Fi 7 platform. It has also set its sights on the broadband carrier market. The company’s $100 million Snapdragon Metaverse Fund showcases its dedication. This fund is aimed at powering the metaverse, a space that’s gaining immense traction and revolutionizing Extended Reality.
Qualcomm’s resilience is evident from its recent forays into AI, strengthening the bull case. Amid a sea of varied opinions, some assert a golden buying opportunity while others take a more cautious approach. However, one thing remains clear: Qualcomm is not merely observing the future; it is actively shaping it. So, while Wall Street debates the trajectory of semiconductors and tech giants like Meta unveil their latest offerings, Qualcomm is ensuring its prominent role in the conversation.
Matterport (MTTR)
Source: MR Neon / Shutterstock
While many have been fervently scouting for the next big “metaverse stocks to make you rich,” Matterport’s (NASDAQ:MTTR) spotlight shines even brighter, not just for its immersive 3D imaging capabilities in the real estate domain but for its speculated role in the metaverse’s horizon. Partnerships with Equinox Technologies in the Middle East and Africa, as well as a collaborative effort with CompuSoluciones for digital twin adoption in Latin America, demonstrate Matterport’s ambitious global stride. But how does this align with its recent financial performance?
For the second quarter of 2023, Matterport recorded a revenue surge of approximately 39%. A noteworthy growth, though shadowed by a net income slide and a staggering net profit margin decline to -143%. However, it’s essential to discern the backdrop of these numbers. Matterport, in a decisive move, is eliminating about 170 roles, or 30% of its workforce, a strategic play to hasten its journey toward profitability.
Moreover, despite the evident challenges, Matterport surpassed both Q2 top and bottom line estimates and displayed confidence by raising its full-year 2023 EPS outlook. As the metaverse evolves and industries intertwine in ways once deemed futuristic, Matterport’s positioning as more than just a real estate VR company may be the ace up its sleeve.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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The post 3 Promising Metaverse Stocks That Will Make Early Investors Rich 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 notable development includes the renewal of its deal with Apple (NASDAQ:AAPL). So, while Wall Street debates the trajectory of semiconductors and tech giants like Meta unveil their latest offerings, Qualcomm is ensuring its prominent role in the conversation. Partnerships with Equinox Technologies in the Middle East and Africa, as well as a collaborative effort with CompuSoluciones for digital twin adoption in Latin America, demonstrate Matterport’s ambitious global stride.
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A notable development includes the renewal of its deal with Apple (NASDAQ:AAPL). In conclusion, while the past half-year might suggest a waning interest, Roblox’s strategic enhancements and partnerships hint at a promising future. Qualcomm (QCOM) Source: Shutterstock Amid the tempestuous flurry of metaverse equities promising untold wealth, Qualcomm (NASDAQ:QCOM) rises, a beacon of resilience and foresight.
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A notable development includes the renewal of its deal with Apple (NASDAQ:AAPL). Moving on from the numbers, the metaverse has garnered significant attention, with many pundits coining terms like “metaverse stocks to make you rich.” While Roblox’s valuation raised eyebrows, prompting some to claim it’s stretched for its offerings, it’s hard to deny the strategic moves the company is making. Matterport (MTTR) Source: MR Neon / Shutterstock While many have been fervently scouting for the next big “metaverse stocks to make you rich,” Matterport’s (NASDAQ:MTTR) spotlight shines even brighter, not just for its immersive 3D imaging capabilities in the real estate domain but for its speculated role in the metaverse’s horizon.
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A notable development includes the renewal of its deal with Apple (NASDAQ:AAPL). Investors should look beyond the immediate numbers and consider the broader trajectory and potential of Roblox in the ever-evolving metaverse landscape. But how does this align with its recent financial performance?
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2023-10-05 00:00:00 UTC
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3 Unstoppable Nasdaq Stocks to Buy and Hold for the Next Decade
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AAPL
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https://www.nasdaq.com/articles/3-unstoppable-nasdaq-stocks-to-buy-and-hold-for-the-next-decade
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In Q2 2023, U.S. household wealth hit an all-time high at $154.3 trillion, marking a crucial milestone for the stock market. This achievement signals the full rebound of consumer wealth after facing challenges linked to inflation-driven fluctuations in real estate and stock prices.
Positive U.S. economic data in September, including retail sales and producer prices, may deter Fed rate hikes. Low jobless claims also indicate a robust labor market. Indeed, these trends could benefit undervalued stocks, particularly various high-growth Nasdaq stocks that continue to dominate many index funds.
As the wealth of the average investor grows, the market-cap-weighted nature of many ETFs suggests investors may have no choice but to continue adding to these top stocks. As it happens, the three Nasdaq stocks to buy and hold that I’ve listed below are also among the most profitable big-cap tech companies with the best margins and competitive advantages.
Let’s dive into why these three companies are worth buying and holding for the next decade.
Alphabet (GOOG/GOOGL)
Source: Benny Marty / Shutterstock.com
Alphabet (NASDAQ:GOOG)/(NASDAQ:GOOGL), a leader in internet services and products, is best known for its key Google Services and Google Cloud segments. The search company boasts strong financial metrics, with a high net income margin, impressive free cash flow and return on capital employed (ROCE) metrics, outperforming industry averages.
Alphabet boasts a massive user base through YouTube, Google products and Android. It serves over half a billion users across 15 Google platforms, with 6 currently seeing over 2 billion active users. Additionally, the company has intensified AI development this year, spurred by heightened interest. Alphabet introduced Bard, its version of ChatGPT, in March, though it faced challenges during its initial launch.
Alphabet and peers show Q2 2023 recovery in digital ad business. Continued growth may boost the company’s stock, but October earnings will confirm. Alphabet’s cost-cutting measures and efficiency decisions could contribute to ongoing earnings beats. In my view, this is a steady “rock of Gibraltar” kind of stock investors can own in good times and bad, and I’m considering buying some on potential dips moving forward.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META) experienced 145% year-to-date growth, rebounding from $124 to roughly $300 per share. That followed an 11% year-over-year revenue boost and a 16% net income rise in Q2. Notably, these results came despite ongoing metaverse investments, something that’s hampered the stock in the past. Now, it seems most investors are looking past the company’s long-term investments and are focusing on the cash flow-producing core businesses that drive the company’s value instead.
Indeed, Meta is among the most attractive mega-cap tech stocks given the AI boom, and a solid choice for your portfolio among the so-called “Magnificent 7” stocks. The company’s generative AI relies on the cloud’s computational power, with major investments flowing into cloud infrastructure. Meta alone invested $7.1 billion in Q1 2023. Owning market share in the fast-growing world of cloud computing is akin to controlling a valuable resource, much like an oilfield or a large factory complex in previous generations.
In recent META news, Mark Zuckerberg launched Meta’s Connect developer conference, introducing AI products like smart glasses, image-generating bots and an updated VR headset. If any one (or all) of these products are hits, perhaps this company’s growth rate could reaccelerate, something that could take this stock on a nice run over the next decade.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. Apple has outperformed, rising 39% year-to-date, while tech peers grapple with interest rate concerns amid a Fed battle against inflation.
However, the recent market selloff has made Apple’s shares more affordable, with a lower price-earnings ratio compared to many tech companies. That presents a potential buying opportunity for long-term investors, particularly those who think economic conditions will improve over the course of the next decade.
Apple is not only offering an appealing stock price but also diversifying its business. It plans to release the Vision Pro, its first VR/AR headset, next year. Moreover, Apple is significantly investing in India to expand its manufacturing operations, reducing its reliance on China and mitigating supply chain risks. Apple’s strategic diversification makes it a compelling investment for the month and possibly the year, especially if its stock continues to decline.
On the date of publication, Chris MacDonald has a long position in AAPL and META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Unstoppable Nasdaq Stocks to Buy and Hold for the Next Decade 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: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. In my view, this is a steady “rock of Gibraltar” kind of stock investors can own in good times and bad, and I’m considering buying some on potential dips moving forward.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. The search company boasts strong financial metrics, with a high net income margin, impressive free cash flow and return on capital employed (ROCE) metrics, outperforming industry averages.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In Q2 2023, U.S. household wealth hit an all-time high at $154.3 trillion, marking a crucial milestone for the stock market.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. Continued growth may boost the company’s stock, but October earnings will confirm.
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2023-10-05 00:00:00 UTC
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3 Things About Arm Holdings That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-arm-holdings-that-smart-investors-know
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Arm Holdings (NASDAQ: ARM) went public again on Sept. 14, 2023, seven years after it was acquired by the Japanese conglomerate SoftBank. The British chip designer listed its shares at $51, which continue to hover around that price now over concerns about its declining revenue, shrinking operating margins, and high valuations.
Most investors likely know these three key things about Arm:
It only licenses its designs to other chipmakers instead of manufacturing them.
It prevented Intel's (NASDAQ: INTC) x86 chips from gaining a foothold in the mobile market with its more power-efficient chip designs
More than 95% of the world's smartphones currently use Arm-based chips.
But today, I'll discuss three lesser-known facts about Arm's history and its competitive threats.
Image source: Getty Images.
1. It wouldn't exist without Apple
Apple (NASDAQ: AAPL) licenses Arm's architecture for its A-series chips for mobile devices and M-series chips for Macs and high-end iPads. That makes Apple one of Arm's top customers and a top beneficiary of its production of first-party chips.
Arm probably wouldn't exist without Apple. Back in 1990, Acorn Computers, VLSI Technology, and Apple formed Arm as a joint venture to challenge Intel's x86 architecture with power-efficient chips that were easy to program and scale. By prioritizing battery life and technical flexibility over raw horsepower, Arm-based chips became more appealing than x86 chips for many mobile chipmakers. That's why Apple put an Arm-based chip in its first handheld computer, the Newton, in 1993.
In early September, Apple signed a new deal with Arm which extends their current partnership "beyond 2040." Apple also joined Advanced Micro Devices, Alphabet's Google, and Samsung as one of the 10 "cornerstone investors" that invested an aggregate of $735 million in its IPO. Tony Fadell, the former senior VP of Apple's iPod division, also sits on Arm's board.
2. Arm shares the same roots as its open-source rival
Arm was originally an acronym for "Acorn RISC Machine" because its first product was a reduced instruction set computer (RISC) chip for Acorn's Archimedes computer. But when Arm was incorporated in 1990, it changed its acronym to "Advanced RISC Machines" to focus on a broader market beyond Acorn computers.
Over the following three decades, Arm's RISC designs evolved to suit the needs of different chipmakers. Arm also made its instruction set architecture (ISA) proprietary, which enabled it to collect royalties and licensing fees from all Arm-based chipmakers. However, those licensing fees drove some chipmakers to revisit the open-source RISC architecture to develop new power-efficient designs. The biggest RISC-based project is RISC-V (pronounced as "Risk Five"), which was developed at the University of California, Berkeley over the past decade.
Several tech giants -- including Google, Nvidia, and Western Digital -- have all started developing RISC-V chips in recent years. In its IPO filing, Arm admits many of its customers are "also major supporters of the RISC-V architecture and related technologies," and Arm warns they "may choose to utilize this free, open-source architecture instead of our products."
3. Intel once produced Arm-based chips
Intel's investors will likely recall it lost the mobile chip market to Arm because it stubbornly believed its own Atom x86 chips could adequately power smartphones, tablets, netbooks, and hybrid devices. Intel also refused to produce the CPU for Apple's first iPhone because it didn't believe the device would take off.
Intel also sold its Xscale division, which produced its own Arm-based chips, to Marvell Technology in 2006. It seemed like a good idea at the time, since it freed up more resources for the development of Intel's own Atom chips, but it turned out to be a historic mistake that caused it to broadly miss the seismic shift from PCs toward mobile devices.
If Intel had simply expanded Xscale and leveraged its dominance of the PC and server markets to sell its new mobile chips, it could have become a major Arm-based mobile chipmaker alongside Qualcomm and MediaTek. Instead, Intel remains stuck in those two markets as Arm-based chips gradually creep into PCs and servers.
Arm still isn't a compelling buy yet
I recently warned that Arm's stock wouldn't be worth buying until its valuations cool off and the macro environment improves. Arm won the mobile war against Intel and Apple remains one of its biggest backers, but the rise of RISC-V chips could eventually disrupt its long-term growth. In other words, these three facts won't alter my overall opinion about Arm's future.
10 stocks we like better than Arm Holdings
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They just revealed what they believe are the ten best stocks for investors to buy right now… and Arm Holdings 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. Leo Sun has positions in Alphabet, Apple, and Qualcomm. The Motley Fool recommends Advanced Micro Devices, Alphabet, Apple, Intel, Marvell Technology, Nvidia, and Qualcomm 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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It wouldn't exist without Apple Apple (NASDAQ: AAPL) licenses Arm's architecture for its A-series chips for mobile devices and M-series chips for Macs and high-end iPads. The British chip designer listed its shares at $51, which continue to hover around that price now over concerns about its declining revenue, shrinking operating margins, and high valuations. Back in 1990, Acorn Computers, VLSI Technology, and Apple formed Arm as a joint venture to challenge Intel's x86 architecture with power-efficient chips that were easy to program and scale.
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It wouldn't exist without Apple Apple (NASDAQ: AAPL) licenses Arm's architecture for its A-series chips for mobile devices and M-series chips for Macs and high-end iPads. Arm shares the same roots as its open-source rival Arm was originally an acronym for "Acorn RISC Machine" because its first product was a reduced instruction set computer (RISC) chip for Acorn's Archimedes computer. The Motley Fool recommends Advanced Micro Devices, Alphabet, Apple, Intel, Marvell Technology, Nvidia, and Qualcomm and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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It wouldn't exist without Apple Apple (NASDAQ: AAPL) licenses Arm's architecture for its A-series chips for mobile devices and M-series chips for Macs and high-end iPads. It prevented Intel's (NASDAQ: INTC) x86 chips from gaining a foothold in the mobile market with its more power-efficient chip designs More than 95% of the world's smartphones currently use Arm-based chips. Intel once produced Arm-based chips Intel's investors will likely recall it lost the mobile chip market to Arm because it stubbornly believed its own Atom x86 chips could adequately power smartphones, tablets, netbooks, and hybrid devices.
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It wouldn't exist without Apple Apple (NASDAQ: AAPL) licenses Arm's architecture for its A-series chips for mobile devices and M-series chips for Macs and high-end iPads. Intel once produced Arm-based chips Intel's investors will likely recall it lost the mobile chip market to Arm because it stubbornly believed its own Atom x86 chips could adequately power smartphones, tablets, netbooks, and hybrid devices. Intel also sold its Xscale division, which produced its own Arm-based chips, to Marvell Technology in 2006.
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2023-10-05 00:00:00 UTC
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3 Top E-Commerce Stocks to Buy in October
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AAPL
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https://www.nasdaq.com/articles/3-top-e-commerce-stocks-to-buy-in-october-0
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Growth stocks took a big hit in the market sell-off last year, and within this group, the sector that took one of the hardest hits was online retail (e-commerce) stocks. As the market inches toward recovery in 2023 and inflation concerns ease, investors who focus on purchasing stock in leading e-commerce brands could position their portfolios for above-average returns.
Part of the reason why this sector holds such potential is still in recovery mode. Another big reason is that global e-commerce spending is on track to top $6 trillion this year (up from $5.54 trillion in 2022), and eMarketer estimates it will grow to $7.4 trillion by 2025.
Given all that potential e-commerce growth, here are three stocks set to benefit that you might want to consider buying in October.
1. Apple
Apple (NASDAQ: AAPL) sees more of its total sales coming from what it sells on its Apple.com online store with each passing year. Last year, Apple.com-related revenue made up 15% of the business, according to Statista, up from about 10% in 2020.
Apple's installed base of devices has continued to hit new highs each year. This is fueling profitable sales of apps and subscriptions in the App Store. Over the last four years, Apple's trailing 12-month revenue increased by 48%, with operating profit up 74%.
Apple saw product sales weaken in recent quarters along with the global smartphone market. Wedbush analysts see pre-orders for the new iPhone 15 up by double-digit percentages over the previous model, so Apple should be well-positioned to resume growth over the next year.
Apple has built a profitable business around premium hardware and software. On a trailing basis, it generated $101 billion of free cash flow on $384 billion of revenue through the June quarter. That should fund more investment in artificial intelligence (AI) to grow interest in Apple's products. The stock should remain a solid investment for years to come.
2. PayPal
PayPal (NASDAQ: PYPL) is a leading online payments provider with 431 million active customer accounts. The company increased its revenue and earnings per share at an annualized rate of 17% and 12%, respectively, over the last 10 years. Its large base of customers positions the company well for more growth and returns to shareholders.
On the second-quarterearnings call CEO Dan Schulman noted a disconnect between what management is seeing inside the business and the stock's recent performance. Indeed, revenue continued to grow this year. In the second quarter, PayPal processed 6.1 billion payment transactions, which includes the Venmo peer-to-peer payment app, for an increase of 10% over the year-ago quarter.
PayPal is also seeing customers use their accounts more. Transactions per active account increased 12% year over year in the second quarter. This suggests that customers are not finding viable alternatives to PayPal's feature-rich platform.
The stock appears oversold trading well off its previous peak. Given the negative sentiment surrounding the stock due to slowing revenue growth over the last few years, it may take a while for the market to come around. But PayPal's continued growth, especially on the bottom line where earnings per share are up 28% in the first half of 2023, should lead to solid returns off these lower share prices.
3. Amazon
Amazon (NASDAQ: AMZN) is a no-brainer e-commerce stock to buy right now. It's the leader in the space with $538 billion in annual sales that is supported by several lucrative and complementary businesses, including advertising services, subscriptions, third-party fulfillment fees, and cloud services.
The stock rallied this year mostly on the prospects for Amazon's cloud business as organizations invest in AI services. But with inflation starting to come down, Amazon is well positioned for accelerating sales growth over the next few years.
Amazon's online store has already posted improved growth this year. Moreover, it is seeing profits explode. Operating income in the North American segment hit $3.2 billion in the second quarter, reversing a loss in the same quarter in 2022.
The stock could have more room to run as management optimizes inventory placement at its fulfillment centers, which should lead to more profitable growth. Using Amazon's trailing cash from operations per share, the stock looks undervalued at a price multiple of 21. This is the lowest valuation in the last 10 years, making now a great time to buy shares.
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
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, Apple, and PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. 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) sees more of its total sales coming from what it sells on its Apple.com online store with each passing year. As the market inches toward recovery in 2023 and inflation concerns ease, investors who focus on purchasing stock in leading e-commerce brands could position their portfolios for above-average returns. On the second-quarterearnings call CEO Dan Schulman noted a disconnect between what management is seeing inside the business and the stock's recent performance.
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Apple Apple (NASDAQ: AAPL) sees more of its total sales coming from what it sells on its Apple.com online store with each passing year. Over the last four years, Apple's trailing 12-month revenue increased by 48%, with operating profit up 74%. PayPal PayPal (NASDAQ: PYPL) is a leading online payments provider with 431 million active customer accounts.
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Apple Apple (NASDAQ: AAPL) sees more of its total sales coming from what it sells on its Apple.com online store with each passing year. Growth stocks took a big hit in the market sell-off last year, and within this group, the sector that took one of the hardest hits was online retail (e-commerce) stocks. Given the negative sentiment surrounding the stock due to slowing revenue growth over the last few years, it may take a while for the market to come around.
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Apple Apple (NASDAQ: AAPL) sees more of its total sales coming from what it sells on its Apple.com online store with each passing year. Over the last four years, Apple's trailing 12-month revenue increased by 48%, with operating profit up 74%. Indeed, revenue continued to grow this year.
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13273.0
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2023-10-05 00:00:00 UTC
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Where Will Apple Stock Be in 10 Years?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-stock-be-in-10-years
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nan
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nan
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With shares up by almost 700% over the last decade, Apple (NASDAQ: AAPL) richly rewarded its long-term investors. But with core drivers like the iPhone reaching their peak, the company will have to work harder to keep its shareholders happy. Let's explore how the company's strategy could evolve over the next 10 years.
What is special about Apple?
In 2018, Apple became the first company to reach a market cap of $1 trillion. And this didn't happen by accident. The tech giant is unique because of its track record of repackaging existing technologies in innovative new ways. First, its iPod revolutionized the mp3 market in 2001 before the iPhone did the same for mobile phones in 2007. But now it is 2023, and Apple is still primarily an iPhone company, with sales of the mobile devices usually making up around half of its total revenue.
The problem is that smartphones are a mature tech platform no longer capable of wowing customers with massive improvements. At the same time, slowing volume growth has encouraged Apple to raise prices. The first iPhone debuted at $499 before falling to just $199 for the iPhone 3G released the next year. This is quite low compared to $799 for the base model of the most recent iPhone 15.
While inflation explains some of the difference, hardware platforms usually drop in price over time through manufacturing economies of scale, technological improvements, and competition.
While Apple's strong brand and ecosystem (Apple products tend to work best with other Apple products) help it keep demand high, it is unclear how much longer this strategy will work. As prices rise and phone improvements become more incremental, the consumer culture of upgrading a phone every couple of years could become outdated. While the iPhone will remain a consistent and profitable revenue stream for Apple, it is far from a growth driver. The good news is that the company's services segment enjoys far better trends.
Services remain a bright spot
Over the long-term investors can expect strength in Apple's services to offset the slowdown in hardware. This segment includes offerings such as the Apple Store, iTunes, and Apple Pay, the company's mobile payment service. In the third quarter, total services revenue jumped 8.2% year over year to $21.2 billion. And it boasts a gross margin of 70.5% which is almost double the margin for Apple's hardware products.
Apple's services have a strong competitive moat because of the company's huge base of over 2 billion devices, which often come with its services pre-installed. The company can drive continued success by expanding through new services such as Apple Business Essentials, an IT management package for small businesses that synergizes with their Apple hardware.
Artificial intelligence could become a key growth driver
Over the next 10 years, Apple will need to monetize its ecosystem in new ways, and artificial intelligence (AI) could be a big part of this story. So far the company has focused on surface-level things like improving the iPhone's spell-check and better subject recognition on its photos app. These efforts seem subdued compared to those of other large tech companies like Amazon or Microsoft, which are integrating AI technology into their enterprise-facing cloud computing platforms.
But while rivals will probably benefit more from AI in the near term, Apple's consumer-focused luxury brand and ecosystem of products could become a long-term advantage.
Image source: Getty Images.
According to Bloomberg, the tech giant plans to debut a partially self-driving car by 2026. While this product isn't expected to feature full-self driving (a challenge no automaker has managed to crack), it will use AI tech such as machine learning and computer vision to augment the user experience. More importantly, it could readily integrate with Apple's existing ecosystem, giving it an economic moat for consumers who already own other Apple products such as an iPhone, Air Pods, or Mac.
Alternatively, Apple could create third-party software for self-driving cars, giving it exposure to the industry without going into manufacturing.
Is the stock a buy?
With a forward price-to-earnings (P/E) multiple of 26, Apple's valuation is in line with the S&P 500's average of 25. And this is arguably a big price to pay for such a large company in a mature industry like smartphones. While Apple deserves a premium because of its industry-leading brand and ecosystem of products, I would like to see it take advantage of new opportunities (possibly in AI and car manufacturing) before buying shares.
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 September 25, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With shares up by almost 700% over the last decade, Apple (NASDAQ: AAPL) richly rewarded its long-term investors. While this product isn't expected to feature full-self driving (a challenge no automaker has managed to crack), it will use AI tech such as machine learning and computer vision to augment the user experience. While Apple deserves a premium because of its industry-leading brand and ecosystem of products, I would like to see it take advantage of new opportunities (possibly in AI and car manufacturing) before buying shares.
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With shares up by almost 700% over the last decade, Apple (NASDAQ: AAPL) richly rewarded its long-term investors. While Apple's strong brand and ecosystem (Apple products tend to work best with other Apple products) help it keep demand high, it is unclear how much longer this strategy will work. Apple's services have a strong competitive moat because of the company's huge base of over 2 billion devices, which often come with its services pre-installed.
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With shares up by almost 700% over the last decade, Apple (NASDAQ: AAPL) richly rewarded its long-term investors. While Apple's strong brand and ecosystem (Apple products tend to work best with other Apple products) help it keep demand high, it is unclear how much longer this strategy will work. This segment includes offerings such as the Apple Store, iTunes, and Apple Pay, the company's mobile payment service.
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With shares up by almost 700% over the last decade, Apple (NASDAQ: AAPL) richly rewarded its long-term investors. While Apple's strong brand and ecosystem (Apple products tend to work best with other Apple products) help it keep demand high, it is unclear how much longer this strategy will work. While the iPhone will remain a consistent and profitable revenue stream for Apple, it is far from a growth driver.
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13274.0
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2023-10-04 00:00:00 UTC
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Using My Favorite Zacks Charts for Q3 Earnings Season
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AAPL
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https://www.nasdaq.com/articles/using-my-favorite-zacks-charts-for-q3-earnings-season
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nan
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nan
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The third quarter earnings season is about to start. What should investors be looking for?
In prior quarters, Wall Street was expecting doom and gloom as a recession hit. But the recession hasn’t arrived throughout the entire economy yet and while earnings have fallen the last few quarters, the earnings estimates look like they may hit bottom in the third quarter.
Zacks has several great earnings charts that investors and traders can use during earnings season, but Tracey’s favorite is the price and consensus with EPS surprise chart.
This chart tells the full story of a company’s earnings track record in terms of beating, or missing and combines it with the consensus earnings estimates. This is the earnings outlook for the previous years, the current year and next year too. It’s a treasure trove of information.
After looking at these charts, is the earnings outlook bullish, or not?
5 Key Charts for Q3 Earnings Season
1. KeyCorp (KEY)
KeyCorp is one of the big regional banks. It has missed 3 out of the last 4 quarters.
KeyCorp shares are down 42.3% year-to-date. It’s dirt cheap on a P/E basis with a forward P/E of 8.7. KeyCorp is also paying a huge dividend, currently yielding 8.1%.
It reports earnings on Oct 19, 2023. Is KeyCorp oversold heading into the report?
2. Tractor Supply Co. (TSCO)
Tractor Supply is a rural retailer which sells apparel, footwear, agriculture products and other items for “life out here.” It has missed 2 quarters in a row after having a winning streak during the pandemic.
Shares of Tractor Supply are down 8.2% year to date. It trades with a forward P/E of 19.8.
Is Tractor Supply still one of the top national retailers or is earnings growth going to slow?
3. Deckers Outdoor Corp. (DECK)
Deckers owns two of the hottest shoe and apparel brands in UGG and Hoka. It has beat on earnings 7 quarters in a row and has only missed once in the last 5 years.
Deckers shares are up big in 2023, gaining 27.9%. It’s not cheap, with a forward P/E of 23. But Deckers is expected to grow earnings by 15.6% this year.
Is Deckers a good barometer of the economy?
4. Apple Inc. (AAPL)
Apple is a member of the new Magnificent 7 stocks and an investor favorite. It has an excellent earnings surprise track record with just 1 miss in the last 5 years but it came this year.
Shares of Apple are up 33.2% year-to-date but have fallen 8.6% over the last month. It’s still not cheap, with a forward P/E of 28. Earnings are actually expected to decline 1% this fiscal year.
Can Apple buck the negative sentiment on the stock this earnings season?
5. Exxon Mobil Corp. (XOM)
Exxon Mobil is coming off an earnings miss last quarter but energy moves on the price of crude oil and natural gas. WTI retook the $90 level in the third quarter so analysts have been raising earnings estimates.
Shares of Exxon Mobil are up just 2.2% year-to-date but are hanging out around 5-year highs. It’s cheap with a forward P/E of just 12.3. Exxon Mobil also pays a dividend, currently yielding 3.1%.
Is it time to get back into the energy stocks like Exxon Mobil?
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
KeyCorp (KEY) : Free Stock Analysis Report
Tractor Supply Company (TSCO) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) Apple is a member of the new Magnificent 7 stocks and an investor favorite. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report KeyCorp (KEY) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report To read this article on Zacks.com click here. In prior quarters, Wall Street was expecting doom and gloom as a recession hit.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report KeyCorp (KEY) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. (AAPL) Apple is a member of the new Magnificent 7 stocks and an investor favorite. Tractor Supply Co. (TSCO) Tractor Supply is a rural retailer which sells apparel, footwear, agriculture products and other items for “life out here.” It has missed 2 quarters in a row after having a winning streak during the pandemic.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report KeyCorp (KEY) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. (AAPL) Apple is a member of the new Magnificent 7 stocks and an investor favorite. Zacks has several great earnings charts that investors and traders can use during earnings season, but Tracey’s favorite is the price and consensus with EPS surprise chart.
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Apple Inc. (AAPL) Apple is a member of the new Magnificent 7 stocks and an investor favorite. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report KeyCorp (KEY) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report To read this article on Zacks.com click here. It has missed 3 out of the last 4 quarters.
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13275.0
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2023-10-04 00:00:00 UTC
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US STOCKS-Futures subdued ahead of jobs data, Treasury yields surge
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-subdued-ahead-of-jobs-data-treasury-yields-surge
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were muted on Wednesday as investors awaited more data for clues on the state of the labor market, while a relentless rally in long-term U.S. Treasury yields kept markets on edge.
Adding to investor anxiety was the ouster of Speaker Kevin McCarthy by some Republicans in the House of Representatives just days after the government narrowly averted a shutdown.
While the 30-year Treasury yield US30YT=RR crossed above 5% for the first time since August 2007, the 10-year US10YT=RR and five-year US5YT=RR yields hit their highest since 2007.
Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down about 0.2% each in premarket trading, with Apple AAPL.O shedding 0.9% following a KeyBanc downgrade to "sector weight" from "overweight".
At 7:06 a.m. ET, Dow e-minis 1YMcv1 were up 9 points, or 0.03%, S&P 500 e-minis EScv1 were up 0.5 point, or 0.01%, and Nasdaq 100 e-minis NQcv1 were down 5 points, or 0.03%.
The CBOE volatility index .VIX, Wall Street's "fear gauge", briefly hit a five-month high and topped its long-term average of 20.
A day after U.S. job openings unexpectedly rose in August, investors will closely monitor September ADP National Employment data at 8:15 a.m. ET and non-farm payrolls data on Friday for more clues about a fairly resilient labor market.
"Markets had become overly confident in pricing a rapid easing of the Federal Reserve's monetary policy," said UBS Global Wealth Management's Chief Investment Officer Mark Haefele, who expects near-term choppy and range-bound trading in equity markets.
On the political front, Haefele noted, "Absent a new House speaker, no action can be taken on bills, from routine matters to the funding of the federal government ... increasing the risk of a government shutdown in late November."
The Institute for Supply Management's non-manufacturing Purchasing Managers' Index, S&P Global's final composite and services PMI surveys, factory orders and remarks by Fed policymakers including Chicago President Austan Goolsbee and Board Governor Michelle Bowman will also be monitored during the day.
Traders' bets of at least another 25-basis point interest rate hike in November and December stood at 29% and 44%, respectively, according to CME's FedWatch tool.
All three major U.S. stock indexes ended more than 1% lower on Tuesday, with the Dow .DJI turning negative on a year-to-date basis for the first time since June.
Chipmaker Intel INTC.O gained 1.9% on Wednesday on plans to operate its programmable chip unit as a standalone business and hold a public offering for stock in the business over the next two to three years.
Eli LillyLLY.N said the head of its diabetes and obesity division, Mike Mason, will retire by the end of the year. The drugmaker's shares fell 1%.
ADP https://tmsnrt.rs/45RL0ti
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down about 0.2% each in premarket trading, with Apple AAPL.O shedding 0.9% following a KeyBanc downgrade to "sector weight" from "overweight". Adding to investor anxiety was the ouster of Speaker Kevin McCarthy by some Republicans in the House of Representatives just days after the government narrowly averted a shutdown. The CBOE volatility index .VIX, Wall Street's "fear gauge", briefly hit a five-month high and topped its long-term average of 20.
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Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down about 0.2% each in premarket trading, with Apple AAPL.O shedding 0.9% following a KeyBanc downgrade to "sector weight" from "overweight". By Ankika Biswas and Shashwat Chauhan Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were muted on Wednesday as investors awaited more data for clues on the state of the labor market, while a relentless rally in long-term U.S. Treasury yields kept markets on edge. ET, Dow e-minis 1YMcv1 were up 9 points, or 0.03%, S&P 500 e-minis EScv1 were up 0.5 point, or 0.01%, and Nasdaq 100 e-minis NQcv1 were down 5 points, or 0.03%.
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Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down about 0.2% each in premarket trading, with Apple AAPL.O shedding 0.9% following a KeyBanc downgrade to "sector weight" from "overweight". By Ankika Biswas and Shashwat Chauhan Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were muted on Wednesday as investors awaited more data for clues on the state of the labor market, while a relentless rally in long-term U.S. Treasury yields kept markets on edge. ET, Dow e-minis 1YMcv1 were up 9 points, or 0.03%, S&P 500 e-minis EScv1 were up 0.5 point, or 0.01%, and Nasdaq 100 e-minis NQcv1 were down 5 points, or 0.03%.
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Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down about 0.2% each in premarket trading, with Apple AAPL.O shedding 0.9% following a KeyBanc downgrade to "sector weight" from "overweight". By Ankika Biswas and Shashwat Chauhan Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were muted on Wednesday as investors awaited more data for clues on the state of the labor market, while a relentless rally in long-term U.S. Treasury yields kept markets on edge. Adding to investor anxiety was the ouster of Speaker Kevin McCarthy by some Republicans in the House of Representatives just days after the government narrowly averted a shutdown.
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13276.0
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2023-10-04 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Tesla, Alphabet, Apple and NVIDIA
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-tesla-alphabet-apple-and-nvidia
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nan
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nan
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For Immediate Release
Chicago, IL – October 4, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Alphabet GOOGL, Apple AAPL and NVIDIA NVDA.
Buy These 3 Stocks with Fortress Balance Sheets
Companies with ample cash on their balance sheets boast a flexible nature, as they’re better equipped to weather a potential economic downturn, can capitalize on growth opportunities, and provide investors with peace of mind.
After all, cash is king.
And when it comes to stacking cash, three companies – Tesla, Alphabet and Apple – fit the criteria nicely. All three stocks have helped lead the market’s rebound in 2023, delivering outsized gains. Let’s take a closer look at each.
Apple
Apple has long been known as a cash-generating machine, reporting more than $110 billion in free cash flow throughout its FY22. As of its latest earnings report, the company had $62.5 billion in cash and equivalents.
In fact, Apple has regularly been able to boost its dividend payout thanks to its cash-generating nature, currently boasting a 6% five-year annualized dividend growth rate. Shares currently yield a respectable 0.6% annually.
It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple. Still, the value is modestly off its 2023 high of 30.1X, and investors have had little issue forking up the premium given the company’s favorable financial standing.
Tesla
We’re all familiar with Tesla, the undisputed leader in EVs. The company exited its latest quarter with $23.1 billion in cash and cash equivalents, up slightly from the end of FY22. In addition, it’s worth noting that the company carries a minimal debt load.
The company saw slight negative coverage yesterday following the release of its EV production and delivery numbers. However, the negativity was certainly overblown, as the company mentioned a decline in volumes to be expected due to planned downtimes for factory upgrades in its latest earnings call.
Tesla shares have struggled to find momentum over the last three months despite posting results above expectations in its latest release, down roughly 12% and underperforming relative to the S&P 500. For those seeking discounted TSLA shares, now could be the time.
Alphabet
Like AAPL, Alphabet has long been known as a cash-generating machine, generating roughly $60 billion in free cash flow throughout FY22. The company exited its latest quarter with $118 billion in cash and equivalents, up 4% compared to FY22.
GOOGL shares don’t appear expensive given its forecasted growth, with earnings forecasted to see a 25% improvement in its current year (FY23) on 8.5% higher sales. Shares trade at a 20.7X forward 12-month earnings multiple, beneath the 23.2X five-year median.
Interestingly enough, it was unveiled in early September that NVIDIA has expanded its partnership with Alphabet’s Google Cloud to advance AI computing, software, and services. NVIDIA’s generative AI technology used by Google DeepMind and Google Research teams has been optimized and is now available to Google Cloud customers worldwide.
Bottom Line
Companies with favorable balance sheet characteristics are equipped to weather downturns, can pursue growth opportunities, and give peace of mind to investors.
And when it comes to favorable balance sheet characteristics, all three companies above fit the criteria nicely.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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For Immediate Release Chicago, IL – October 4, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Alphabet GOOGL, Apple AAPL and NVIDIA NVDA. It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple. Alphabet Like AAPL, Alphabet has long been known as a cash-generating machine, generating roughly $60 billion in free cash flow throughout FY22.
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For Immediate Release Chicago, IL – October 4, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Alphabet GOOGL, Apple AAPL and NVIDIA NVDA. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple.
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For Immediate Release Chicago, IL – October 4, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Alphabet GOOGL, Apple AAPL and NVIDIA NVDA. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple.
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For Immediate Release Chicago, IL – October 4, 2023 – Today, Zacks Investment Ideas feature highlights Tesla TSLA, Alphabet GOOGL, Apple AAPL and NVIDIA NVDA. It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple. Alphabet Like AAPL, Alphabet has long been known as a cash-generating machine, generating roughly $60 billion in free cash flow throughout FY22.
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13277.0
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2023-10-04 00:00:00 UTC
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Apple considered switching to DuckDuckGo from Google for Safari - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-considered-switching-to-duckduckgo-from-google-for-safari-bloomberg-news
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nan
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nan
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Adds details in paragraphs 2-3 and background in paragraphs 5-7
Oct 4 (Reuters) - Apple AAPL.O held talks with DuckDuckGo to replace Alphabet's GOOGL.O Google as the default search engine for the private mode on Apple's Safari browser, the Bloomberg News reported on Wednesday, citing people familiar with the discussions.
The details of the talks are expected to be released later this week, according to the report, after Judge Amit Mehta, overseeing a federal antitrust suit against Google, ruled on Wednesday that he would unseal the testimony of DuckDuckGo CEO Gabriel Weinberg and Apple executive John Giannandrea.
The talks about potential deals between Microsoft and Apple and DuckDuckGo and Apple will be unsealed, the report said, citing Mehta in an order from the bench.
Apple, DuckDuckGo and Google did not immediately respond to a Reuters request for comment.
Last month, the U.S. Department of Justice in a landmark U.S. trial argued Google, which has some 90% of the search market, illegally paid $10 billion annually to smartphone makers such as Apple and wireless carriers like AT&T T.N and others to be the default in search on their devices in order to stay on top.
Microsoft CEO Satya Nadella testified on Monday, saying that tech giants were competing for vast troves of content needed to train artificial intelligence, and complained Google was locking up content with expensive and exclusive deals with publishers.
He added that Microsoft had sought to make its Bing search engine the default on Apple smartphones but was rebuffed.
(Reporting by Baranjot Kaur in Bengaluru; Editing by Rashmi Aich)
((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Adds details in paragraphs 2-3 and background in paragraphs 5-7 Oct 4 (Reuters) - Apple AAPL.O held talks with DuckDuckGo to replace Alphabet's GOOGL.O Google as the default search engine for the private mode on Apple's Safari browser, the Bloomberg News reported on Wednesday, citing people familiar with the discussions. The details of the talks are expected to be released later this week, according to the report, after Judge Amit Mehta, overseeing a federal antitrust suit against Google, ruled on Wednesday that he would unseal the testimony of DuckDuckGo CEO Gabriel Weinberg and Apple executive John Giannandrea. He added that Microsoft had sought to make its Bing search engine the default on Apple smartphones but was rebuffed.
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Adds details in paragraphs 2-3 and background in paragraphs 5-7 Oct 4 (Reuters) - Apple AAPL.O held talks with DuckDuckGo to replace Alphabet's GOOGL.O Google as the default search engine for the private mode on Apple's Safari browser, the Bloomberg News reported on Wednesday, citing people familiar with the discussions. The talks about potential deals between Microsoft and Apple and DuckDuckGo and Apple will be unsealed, the report said, citing Mehta in an order from the bench. He added that Microsoft had sought to make its Bing search engine the default on Apple smartphones but was rebuffed.
|
Adds details in paragraphs 2-3 and background in paragraphs 5-7 Oct 4 (Reuters) - Apple AAPL.O held talks with DuckDuckGo to replace Alphabet's GOOGL.O Google as the default search engine for the private mode on Apple's Safari browser, the Bloomberg News reported on Wednesday, citing people familiar with the discussions. The details of the talks are expected to be released later this week, according to the report, after Judge Amit Mehta, overseeing a federal antitrust suit against Google, ruled on Wednesday that he would unseal the testimony of DuckDuckGo CEO Gabriel Weinberg and Apple executive John Giannandrea. The talks about potential deals between Microsoft and Apple and DuckDuckGo and Apple will be unsealed, the report said, citing Mehta in an order from the bench.
|
Adds details in paragraphs 2-3 and background in paragraphs 5-7 Oct 4 (Reuters) - Apple AAPL.O held talks with DuckDuckGo to replace Alphabet's GOOGL.O Google as the default search engine for the private mode on Apple's Safari browser, the Bloomberg News reported on Wednesday, citing people familiar with the discussions. The details of the talks are expected to be released later this week, according to the report, after Judge Amit Mehta, overseeing a federal antitrust suit against Google, ruled on Wednesday that he would unseal the testimony of DuckDuckGo CEO Gabriel Weinberg and Apple executive John Giannandrea. The talks about potential deals between Microsoft and Apple and DuckDuckGo and Apple will be unsealed, the report said, citing Mehta in an order from the bench.
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13278.0
|
2023-10-04 00:00:00 UTC
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Zero-Day Options ETFs: A New Way to Generate Income
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AAPL
|
https://www.nasdaq.com/articles/zero-day-options-etfs%3A-a-new-way-to-generate-income-0
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nan
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nan
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(1:30) - What Should Investors Expect Heading Into The Fourth Quarter?
(6:50) - What Are Zero Day Options And How Are They Used?
(11:00) - What Are The Concerns With The Surge In Zero Day Stock Options Trading?
(14:30) - Defiance Nasdaq 100 Enhanced Options Income ETF and S&P 500 Enhanced Option Income ETF: QQQY & JEPY
(18:40) - Defiance Pure Electric Vehicle ETF: EVXX
(26:00) - Episode Roundup: Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Sylvia Jablonski, CEO and CIO at Defiance ETFs, about the broader market and some interesting new ETFs.
Stocks recently experienced their worst month and first negative quarter of 2023, as the possibility of interest rates remaining higher for a longer duration weighed on investor sentiment. Where should investors allocate their cash in the fourth quarter, historically the strongest period?
Sylvia believes that the market may remain volatile in the short term but sees significant opportunities for long-term investing. She still favors big tech and semiconductor stocks, including Apple AAPL, Microsoft MSFT and Nvidia NVDA, which have become more attractively valued after the recent dip.
Zero-day options (0DTE) trading volumes have recently surged, accounting for approximately half of all S&P 500 index option trading, according to FT. Defiance has recently introduced two actively managed funds that employ these options as a yield generation strategy.
The Defiance Nasdaq 100 Enhanced Options Income ETF QQQY aims to generate outsized yields for investors while providing exposure to the Nasdaq-100 QQQ by selling options on a daily basis.
Its sister fund, the Defiance S&P 500 Enhanced Options Income ETF JEPY, utilizes a similar strategy but offers equity exposure to the S&P 500 index SPY.
Both ETFs also hold Treasury bonds that serve as collateral against the options, and come with an expense ratio of 0.99% each.
The Defiance Pure Electric Vehicle ETF EVXX offers equally weighted exposure to the five largest electric vehicle manufacturers, with Tesla TSLA as the top holding in the fund.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.
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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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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
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Defiance S&P 500 Enhanced Options Income ETF (JEPY): 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.
|
She still favors big tech and semiconductor stocks, including Apple AAPL, Microsoft MSFT and Nvidia NVDA, which have become more attractively valued after the recent dip. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY): ETF Research Reports Defiance S&P 500 Enhanced Options Income ETF (JEPY): ETF Research Reports To read this article on Zacks.com click here. Stocks recently experienced their worst month and first negative quarter of 2023, as the possibility of interest rates remaining higher for a longer duration weighed on investor sentiment.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY): ETF Research Reports Defiance S&P 500 Enhanced Options Income ETF (JEPY): ETF Research Reports To read this article on Zacks.com click here. She still favors big tech and semiconductor stocks, including Apple AAPL, Microsoft MSFT and Nvidia NVDA, which have become more attractively valued after the recent dip. (14:30) - Defiance Nasdaq 100 Enhanced Options Income ETF and S&P 500 Enhanced Option Income ETF: QQQY & JEPY (18:40) - Defiance Pure Electric Vehicle ETF: EVXX (26:00) - Episode Roundup: Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Sylvia Jablonski, CEO and CIO at Defiance ETFs, about the broader market and some interesting new ETFs.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY): ETF Research Reports Defiance S&P 500 Enhanced Options Income ETF (JEPY): ETF Research Reports To read this article on Zacks.com click here. She still favors big tech and semiconductor stocks, including Apple AAPL, Microsoft MSFT and Nvidia NVDA, which have become more attractively valued after the recent dip. (14:30) - Defiance Nasdaq 100 Enhanced Options Income ETF and S&P 500 Enhanced Option Income ETF: QQQY & JEPY (18:40) - Defiance Pure Electric Vehicle ETF: EVXX (26:00) - Episode Roundup: Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Sylvia Jablonski, CEO and CIO at Defiance ETFs, about the broader market and some interesting new ETFs.
|
Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY): ETF Research Reports Defiance S&P 500 Enhanced Options Income ETF (JEPY): ETF Research Reports To read this article on Zacks.com click here. She still favors big tech and semiconductor stocks, including Apple AAPL, Microsoft MSFT and Nvidia NVDA, which have become more attractively valued after the recent dip. (1:30) - What Should Investors Expect Heading Into The Fourth Quarter?
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13279.0
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2023-10-04 00:00:00 UTC
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Pre-Market Most Active for Oct 4, 2023 : TQQQ, SQQQ, PLTR, QQQ, TLT, TSLA, AAPL, IONQ, NIO, LAAC, CCL, GOLD
|
AAPL
|
https://www.nasdaq.com/articles/pre-market-most-active-for-oct-4-2023-%3A-tqqq-sqqq-pltr-qqq-tlt-tsla-aapl-ionq-nio-laac-ccl
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 63.65 to 14,629.27. The total Pre-Market volume is currently 49,662,259 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.3122 at $34.85, with 6,372,328 shares traded. This represents a 116.47% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.19 at $20.82, with 5,809,393 shares traded. This represents a 27.11% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is +0.62 at $15.52, with 1,366,850 shares traded. PLTR's current last sale is 103.47% of the target price of $15.
Invesco QQQ Trust, Series 1 (QQQ) is +1.09 at $356.01, with 1,341,892 shares traded. This represents a 40.02% increase from its 52 Week Low.
iShares 20+ Year Treasury Bond ETF (TLT) is +0.7 at $85.76, with 1,207,592 shares traded., following a 52-week high recorded in prior regular session.
Tesla, Inc. (TSLA) is +1.3 at $247.83, with 1,015,671 shares traded. TSLA's current last sale is 93.52% of the target price of $265.
Apple Inc. (AAPL) is -1.18 at $171.22, with 689,593 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
IonQ, Inc. (IONQ) is +0.07 at $13.99, with 563,751 shares traded. IONQ's current last sale is 77.72% of the target price of $18.
NIO Inc. (NIO) is -0.02 at $8.59, with 563,415 shares traded. NIO's current last sale is 67.37% of the target price of $12.75.
Lithium Americas (Argentina) Corp. (LAAC) is +0.7 at $6.86, with 280,487 shares traded.
Carnival Corporation (CCL) is +0.09 at $12.83, with 223,443 shares traded. As reported by Zacks, the current mean recommendation for CCL is in the "buy range".
Barrick Gold Corporation (GOLD) is +0.11 at $14.30, with 217,491 shares traded. As reported by Zacks, the current mean recommendation for GOLD is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -1.18 at $171.22, with 689,593 shares traded. ProShares UltraPro Short QQQ (SQQQ) is -0.19 at $20.82, with 5,809,393 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 -1.18 at $171.22, with 689,593 shares traded. As reported by Zacks, the current mean recommendation for CCL is in the "buy range".
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Apple Inc. (AAPL) is -1.18 at $171.22, with 689,593 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 49,662,259 shares traded.
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Apple Inc. (AAPL) is -1.18 at $171.22, with 689,593 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 63.65 to 14,629.27.
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13280.0
|
2023-10-04 00:00:00 UTC
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Apple releases software update to resolve iPhone 15 overheating issue
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AAPL
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https://www.nasdaq.com/articles/apple-releases-software-update-to-resolve-iphone-15-overheating-issue
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nan
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nan
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Adds Apple comment in paragraph 2
Oct 4 (Reuters) - Apple AAPL.O said on Wednesday it had released a software update to address an issue, which causes its latest iPhones to run warmer than expected.
The update to the iOS 17 software includes "important bug fixes, security updates, and addresses an issue that may cause the iPhone to run warmer than expected," an Apple spokesperson said.
After complaints that the new phones are getting very warm, Apple has said that the device may feel warmer in the first few days "after setting up or restoring the device because of increased background activity."
(Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva and Sherry Jacob-Phillips)
((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.
|
Adds Apple comment in paragraph 2 Oct 4 (Reuters) - Apple AAPL.O said on Wednesday it had released a software update to address an issue, which causes its latest iPhones to run warmer than expected. The update to the iOS 17 software includes "important bug fixes, security updates, and addresses an issue that may cause the iPhone to run warmer than expected," an Apple spokesperson said. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva and Sherry Jacob-Phillips) ((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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Adds Apple comment in paragraph 2 Oct 4 (Reuters) - Apple AAPL.O said on Wednesday it had released a software update to address an issue, which causes its latest iPhones to run warmer than expected. The update to the iOS 17 software includes "important bug fixes, security updates, and addresses an issue that may cause the iPhone to run warmer than expected," an Apple spokesperson said. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva and Sherry Jacob-Phillips) ((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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Adds Apple comment in paragraph 2 Oct 4 (Reuters) - Apple AAPL.O said on Wednesday it had released a software update to address an issue, which causes its latest iPhones to run warmer than expected. The update to the iOS 17 software includes "important bug fixes, security updates, and addresses an issue that may cause the iPhone to run warmer than expected," an Apple spokesperson said. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva and Sherry Jacob-Phillips) ((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.
|
Adds Apple comment in paragraph 2 Oct 4 (Reuters) - Apple AAPL.O said on Wednesday it had released a software update to address an issue, which causes its latest iPhones to run warmer than expected. The update to the iOS 17 software includes "important bug fixes, security updates, and addresses an issue that may cause the iPhone to run warmer than expected," an Apple spokesperson said. After complaints that the new phones are getting very warm, Apple has said that the device may feel warmer in the first few days "after setting up or restoring the device because of increased background activity."
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13281.0
|
2023-10-04 00:00:00 UTC
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Can Alphabet Shake Off the U.S. Antitrust Case?
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AAPL
|
https://www.nasdaq.com/articles/can-alphabet-shake-off-the-u.s.-antitrust-case
|
nan
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nan
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Alphabet (GOOGL) is under intense scrutiny as the U.S. Justice Department takes the company to court. The U.S. government’s antitrust case against Alphabet targets the company’s search business, which the Justice Department alleges maintains a monopoly by paying rivals to make its search engine the default search on web browsers. The U.S. wants Alphabet to change its business practices, potentially pay damages, and restructure itself.
The case against Alphabet is the most serious case against a mega-cap technology company since the U.S. antitrust lawsuit against Microsoft (MSFT) in the 1990s. The trial began late last month and is expected to last ten weeks. Despite the headwinds of the antitrust trial, shares of Alphabet have been resilient, recently outperforming Apple (AAPL) and Amazon.com (AMZN). Alphabet shares have soared 50% this year and are less than 5% below September’s 1-1/2 year high, while Apple and Amazon are down more than -12% from their recent peaks.
Estimates for Alphabet’s revenue and profits have moved higher on recovering demand for digital advertising. According to Bloomberg, analysts’ projections for 2024 profit have risen nearly 8% in the past three months, while sales estimates are up almost 2%. Also, Alphabet’s valuation is not as extreme as its mega-cap tech peers as its shares trade at less than 20 times estimated earnings, a discount to the Nasdaq 100 Stock Index ($IUXX) (QQQ), and below the stock’s average multiple over the past ten years. In contrast, the valuations of Apple and Microsoft are at premiums to the market and their own history.
With its attractive valuation, some analysts believe now Is the time to buy Alphabet stock. Manulife Investment Management said, “Ultimately, Alphabet offers premium earnings growth, a very strong capital return profile, a lot of visibility, a very strong market position, and it is a leader in artificial intelligence (AI). Yet, its valuation is in line with the S&P 500 ($SPX) (SPY). That makes it incredibly attractive and very compelling here.”
Manulife Investment Management believes the antitrust suit against Alphabet is unlikely to impair its business, and even in a worst-case scenario where the Justice Department wins and Alphabet is broken up, the stock could still benefit. Manulife Investment Management said, “Alphabet trades incredibly well on a sum-of-the-part basis, and the stock doesn’t reflect the value of all of its businesses. If it were ever broken up, investors would be very excited to get their hands on the company’s individual parts.”
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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.
|
Despite the headwinds of the antitrust trial, shares of Alphabet have been resilient, recently outperforming Apple (AAPL) and Amazon.com (AMZN). Estimates for Alphabet’s revenue and profits have moved higher on recovering demand for digital advertising. Manulife Investment Management said, “Alphabet trades incredibly well on a sum-of-the-part basis, and the stock doesn’t reflect the value of all of its businesses.
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Despite the headwinds of the antitrust trial, shares of Alphabet have been resilient, recently outperforming Apple (AAPL) and Amazon.com (AMZN). The U.S. government’s antitrust case against Alphabet targets the company’s search business, which the Justice Department alleges maintains a monopoly by paying rivals to make its search engine the default search on web browsers. That makes it incredibly attractive and very compelling here.” Manulife Investment Management believes the antitrust suit against Alphabet is unlikely to impair its business, and even in a worst-case scenario where the Justice Department wins and Alphabet is broken up, the stock could still benefit.
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Despite the headwinds of the antitrust trial, shares of Alphabet have been resilient, recently outperforming Apple (AAPL) and Amazon.com (AMZN). Also, Alphabet’s valuation is not as extreme as its mega-cap tech peers as its shares trade at less than 20 times estimated earnings, a discount to the Nasdaq 100 Stock Index ($IUXX) (QQQ), and below the stock’s average multiple over the past ten years. That makes it incredibly attractive and very compelling here.” Manulife Investment Management believes the antitrust suit against Alphabet is unlikely to impair its business, and even in a worst-case scenario where the Justice Department wins and Alphabet is broken up, the stock could still benefit.
|
Despite the headwinds of the antitrust trial, shares of Alphabet have been resilient, recently outperforming Apple (AAPL) and Amazon.com (AMZN). According to Bloomberg, analysts’ projections for 2024 profit have risen nearly 8% in the past three months, while sales estimates are up almost 2%. Also, Alphabet’s valuation is not as extreme as its mega-cap tech peers as its shares trade at less than 20 times estimated earnings, a discount to the Nasdaq 100 Stock Index ($IUXX) (QQQ), and below the stock’s average multiple over the past ten years.
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13282.0
|
2023-10-04 00:00:00 UTC
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EU to study mobile ecosystems to counter any Apple, Google antitrust pushback
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AAPL
|
https://www.nasdaq.com/articles/eu-to-study-mobile-ecosystems-to-counter-any-apple-google-antitrust-pushback
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Oct 4 (Reuters) - European Union antitrust regulators have commissioned a study into mobile ecosystems to help them counter any pushback from Apple AAPL.O and Alphabet's GOOGL.O Google in complying with new tech rules.
The Digital Markets Act (DMA), which became applicable in May, forces Apple and Google to allow for third-party apps or app stores on their iOS and Android devices, and to make it easier for users to switch from default apps to rivals.
They will also have to let users install apps from outside their app stores, a move which Apple said would make phones the target of malware or hijacking by cybercriminals.
A tender for the study, worth 300,000 euros ($315,200), will run until Oct. 17, according to an announcement on the European Commission website.
"The aim of the study is to support the supervision and enforcement of the DMA vis-a-vis the gatekeepers," the tender document said.
"This is one of the points and issues that is expected to be raised by the designated gatekeepers, in particular ones that are running a closed mobile ecosystem."
Companies risk fines as much as 10% of their global turnover for DMA violations.
($1 = 0.9517 euros)
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)
((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.
|
By Foo Yun Chee BRUSSELS, Oct 4 (Reuters) - European Union antitrust regulators have commissioned a study into mobile ecosystems to help them counter any pushback from Apple AAPL.O and Alphabet's GOOGL.O Google in complying with new tech rules. "The aim of the study is to support the supervision and enforcement of the DMA vis-a-vis the gatekeepers," the tender document said. "This is one of the points and issues that is expected to be raised by the designated gatekeepers, in particular ones that are running a closed mobile ecosystem."
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By Foo Yun Chee BRUSSELS, Oct 4 (Reuters) - European Union antitrust regulators have commissioned a study into mobile ecosystems to help them counter any pushback from Apple AAPL.O and Alphabet's GOOGL.O Google in complying with new tech rules. They will also have to let users install apps from outside their app stores, a move which Apple said would make phones the target of malware or hijacking by cybercriminals. ($1 = 0.9517 euros) (Reporting by Foo Yun Chee; Editing by Kirsten Donovan) ((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.
|
By Foo Yun Chee BRUSSELS, Oct 4 (Reuters) - European Union antitrust regulators have commissioned a study into mobile ecosystems to help them counter any pushback from Apple AAPL.O and Alphabet's GOOGL.O Google in complying with new tech rules. The Digital Markets Act (DMA), which became applicable in May, forces Apple and Google to allow for third-party apps or app stores on their iOS and Android devices, and to make it easier for users to switch from default apps to rivals. ($1 = 0.9517 euros) (Reporting by Foo Yun Chee; Editing by Kirsten Donovan) ((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.
|
By Foo Yun Chee BRUSSELS, Oct 4 (Reuters) - European Union antitrust regulators have commissioned a study into mobile ecosystems to help them counter any pushback from Apple AAPL.O and Alphabet's GOOGL.O Google in complying with new tech rules. The Digital Markets Act (DMA), which became applicable in May, forces Apple and Google to allow for third-party apps or app stores on their iOS and Android devices, and to make it easier for users to switch from default apps to rivals. A tender for the study, worth 300,000 euros ($315,200), will run until Oct. 17, according to an announcement on the European Commission website.
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13283.0
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2023-10-04 00:00:00 UTC
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Google to combine generative AI chatbot with virtual assistant
|
AAPL
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https://www.nasdaq.com/articles/google-to-combine-generative-ai-chatbot-with-virtual-assistant
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nan
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nan
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By Max A. Cherney
Oct 4 (Reuters) - Google on Wednesday announced plans to add generative artificial intelligence (AI) capabilities to its virtual assistant, and a company executive told Reuters the AI would allow the assistant to do things like help people plan a trip or catch up on emails and then ask follow-up questions.
The Alphabet GOOGL.O subsidiary said during its hardware event in New York that it plans to add generative AI features from its Bard chatbot into Google's version of a virtual assistant, that aims to provide personalized help with reasoning and generative capabilities on mobile devices.
"(A) whole task is done through a couple of simple questions that you're asking your assistant, which is, we think, a very, very powerful concept," Sissie Hsiao vice president, Google assistant and Bard said in an interview with Reuters.
Google and other tech companies have been racing to build some form of generative AI into new or existing products. Meta Platforms META.O, Amazon.com AMZN.O and Microsoft MSFT.O have all stepped up efforts this year.
The new version of Google's assistant will have access to a mobile phone's camera and microphone, and let users input pictures or audio into the large language model to help answer questions, Hsiao said. It will not include revenue generating features, Hsiao said, because Google is still in the "learning phase" with generative AI.
"We want to learn how to make a great experience out of this," the Google vice president said.
Google said the new software would be available to its trusted tester program "soon" but did not disclose a general release date. The company plans to release a version for Android and Apple's AAPL.O mobile operating system, iOS.
(Reporting by Max A. Cherney in San Francisco; Editing by David Gregorio)
((Max.Cherney@thomsonreuters.com; 415-484-6872 @chernandburn on Twitter;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company plans to release a version for Android and Apple's AAPL.O mobile operating system, iOS. By Max A. Cherney Oct 4 (Reuters) - Google on Wednesday announced plans to add generative artificial intelligence (AI) capabilities to its virtual assistant, and a company executive told Reuters the AI would allow the assistant to do things like help people plan a trip or catch up on emails and then ask follow-up questions. Google and other tech companies have been racing to build some form of generative AI into new or existing products.
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The company plans to release a version for Android and Apple's AAPL.O mobile operating system, iOS. By Max A. Cherney Oct 4 (Reuters) - Google on Wednesday announced plans to add generative artificial intelligence (AI) capabilities to its virtual assistant, and a company executive told Reuters the AI would allow the assistant to do things like help people plan a trip or catch up on emails and then ask follow-up questions. The Alphabet GOOGL.O subsidiary said during its hardware event in New York that it plans to add generative AI features from its Bard chatbot into Google's version of a virtual assistant, that aims to provide personalized help with reasoning and generative capabilities on mobile devices.
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The company plans to release a version for Android and Apple's AAPL.O mobile operating system, iOS. By Max A. Cherney Oct 4 (Reuters) - Google on Wednesday announced plans to add generative artificial intelligence (AI) capabilities to its virtual assistant, and a company executive told Reuters the AI would allow the assistant to do things like help people plan a trip or catch up on emails and then ask follow-up questions. The Alphabet GOOGL.O subsidiary said during its hardware event in New York that it plans to add generative AI features from its Bard chatbot into Google's version of a virtual assistant, that aims to provide personalized help with reasoning and generative capabilities on mobile devices.
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The company plans to release a version for Android and Apple's AAPL.O mobile operating system, iOS. By Max A. Cherney Oct 4 (Reuters) - Google on Wednesday announced plans to add generative artificial intelligence (AI) capabilities to its virtual assistant, and a company executive told Reuters the AI would allow the assistant to do things like help people plan a trip or catch up on emails and then ask follow-up questions. "(A) whole task is done through a couple of simple questions that you're asking your assistant, which is, we think, a very, very powerful concept," Sissie Hsiao vice president, Google assistant and Bard said in an interview with Reuters.
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2023-10-04 00:00:00 UTC
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3 Quality Stocks to Defend Your Portfolio Against October Volatility
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AAPL
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https://www.nasdaq.com/articles/3-quality-stocks-to-defend-your-portfolio-against-october-volatility
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nan
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nan
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The sell-off in U.S. stocks that began in August has intensified in October. In Tuesday's session, the Dow Jones Industrial Average ($DOWI) fell more than 400 points to turn negative for the year. The S&P 500 Index ($SPX) and Nasdaq Composite ($NASX) also fell amid yesterday's heavy selling - but despite having fallen for two consecutive months, both of these indices are still in the green for 2023, thanks to a stellar first-half rally.
Just as September is widely known as the worst month for equities, October has a reputation as the most volatile month for the stock markets – a title it has held onto so far in 2023. Meanwhile, investors are getting jittery about markets now amid rising bond yields, with the 10-year yield rising to a 16-year high of 4.8%, and many now predicting it will hit 5% in the short term.
www.barchart.com
Growth Stocks Punished by U.S. Stock Market Sell-Off
Rising bond yields have especially spelled doom for growth stocks as most of their earnings are skewed towards the future - and these earnings become less valuable in current dollar terms when discounted at a higher rate.
The sell-off in growth stocks is perhaps best captured by the fall in the ARK Innovation ETF (ARKK) – the flagship fund of Cathie Wood, who is the epitome of growth investing just as Warren Buffett is for value investing. ARKK is down more than 26% from its 2023 intraday high of $51.33, set on July 19, which is much worse than the fall in broader market indices over the period.
The current sell-off can be troubling for some investors – especially conservative investors. While stocks turned positive today after a tame jobs report, they're hardly in rally mode - and I believe the sell-off might stretch for a few more trading days before the baton passes to corporate earnings later this month.
Defensive Stocks to Buy Now
Many investors seek solace in defensive stocks, as their earnings trajectory is quite linear and their topline and bottom-line performance is usually not overly dependent on the macro environment. Generally, defensive stocks have a healthy dividend yield, which adds another layer of certainty to their return profile. I believe Pfizer (PFE), Coca-Cola (KO), and Berkshire Hathaway (BRK.B) are three defensive stocks worth buying amid the current market turmoil.
Pfizer Looks Like a Good Defensive Stock to Buy
Pfizer stock is trading near its 52-week lows, and has been underperforming the markets for quite some time now, as the demand for its COVID-19 vaccines has faded.
www.barchart.com
To make things more complicated, Pfizer - along with some of the other pharma majors - is staring down a “patent cliff” – which means that the company’s patents over several medicines will soon expire, putting its revenues and profits at risk. As is the case in the pharma industry, Pfizer is trying to spur growth through the inorganic way, and has announced the acquisition of Seagen to help it boost its cancer portfolio.
Pfizer stock trades at a next 12-month (NTM) price-to-earnings (PE) multiple of 11.8x, while its dividend yield is almost 5%. I believe the stock is among the best defensive plays to buy now amid the broader market sell-off, given its tepid valuations and the growth opportunities from its pipeline of new products.
Coca-Cola is Another Defensive Play
Coca-Cola could perhaps find a place in most defensive portfolios – including that of Berkshire Hathaway, which has held the stock for years. The demand for Coca-Cola’s products is not much impacted during an economic slowdown, just as it does not spike too much during periods of economic boom.
www.barchart.com
The company has a strong brand, which gives it pricing power - as best evidenced over the last couple of years, amid sharply rising inflation.
Coca-Cola stock looks reasonably valued and trades at an NTM PE multiple of 20.4x, which is a discount to its 3-year average, as well as that of rival PepsiCo (PEP). Given its stable business model, progressive dividend policy, and reasonable valuations, I believe Coca-Cola looks like a defensive stock worth owning, especially for conservative investors.
Stock Market Crash Could Help Buffett Deploy Berkshire Hathaway's Cash
Berkshire Hathaway is a conglomerate, and holds multiple businesses ranging from industrials, energy, aviation, railroads, and insurance under its fold. It also has a burgeoning portfolio of publicly traded companies, where Apple (AAPL) is the leading holding.
I believe that Berkshire is among the least understood and sparsely followed companies among the analyst community, even as it is among the top 10 companies in the U.S. The stock is a strong defensive bet considering the investment philosophy of chair Warren Buffett.
Buffett was a net seller of stocks in the first half of 2023 while also being quite frugal with buybacks; the conglomerate only repurchased $1.4 billion worth of its shares in Q2. As a result, Berkshire Hathaway’s cash pile rose to $147.2 billion at the end of June - the second-highest level on record.
The ongoing sell-off in U.S. stocks should help Buffett deploy some of Berkshire’s cash by buying stocks at lower levels. He might even scale up the repurchases, as Berkshire Hathaway shares are also down over 8% from their 2023 highs.
www.barchart.com
Simply put, the fall in stock markets is not all that bad for Berkshire Hathaway, as it will help Buffett deploy the company's cash hoard much more efficiently - which will help drive the stock’s long-term returns.
In terms of valuation, the stock trades at a NTM enterprise value-to-earnings before interest tax, depreciation, and amortization multiple of 13.5x, which looks reasonable. I believe Berkshire Hathaway is among the stocks that defensive investors can hold over the long term, given the conglomerate's value investing philosophy and a portfolio of well-managed subsidiaries.
On the date of publication, Mohit Oberoi had a position in: ARKK , BRK.B , AAPL , PFE . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It also has a burgeoning portfolio of publicly traded companies, where Apple (AAPL) is the leading holding. On the date of publication, Mohit Oberoi had a position in: ARKK , BRK.B , AAPL , PFE . The S&P 500 Index ($SPX) and Nasdaq Composite ($NASX) also fell amid yesterday's heavy selling - but despite having fallen for two consecutive months, both of these indices are still in the green for 2023, thanks to a stellar first-half rally.
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It also has a burgeoning portfolio of publicly traded companies, where Apple (AAPL) is the leading holding. On the date of publication, Mohit Oberoi had a position in: ARKK , BRK.B , AAPL , PFE . www.barchart.com Growth Stocks Punished by U.S. Stock Market Sell-Off Rising bond yields have especially spelled doom for growth stocks as most of their earnings are skewed towards the future - and these earnings become less valuable in current dollar terms when discounted at a higher rate.
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It also has a burgeoning portfolio of publicly traded companies, where Apple (AAPL) is the leading holding. On the date of publication, Mohit Oberoi had a position in: ARKK , BRK.B , AAPL , PFE . www.barchart.com Growth Stocks Punished by U.S. Stock Market Sell-Off Rising bond yields have especially spelled doom for growth stocks as most of their earnings are skewed towards the future - and these earnings become less valuable in current dollar terms when discounted at a higher rate.
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It also has a burgeoning portfolio of publicly traded companies, where Apple (AAPL) is the leading holding. On the date of publication, Mohit Oberoi had a position in: ARKK , BRK.B , AAPL , PFE . I believe Pfizer (PFE), Coca-Cola (KO), and Berkshire Hathaway (BRK.B) are three defensive stocks worth buying amid the current market turmoil.
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2023-10-04 00:00:00 UTC
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Markets Today: Stocks Rebound as Bond Yields Fall on a Weak ADP Report
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AAPL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-rebound-as-bond-yields-fall-on-a-weak-adp-report
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Morning Markets
December E-Mini S&P 500 futures (ESZ23) are up +0.24%, and the Dec Nasdaq 100 E-Mini futures (NQZ23) are up +0.38%.
Stock index futures this morning are moderately higher as bond yields decline. T-note yields are falling this morning after September's monthly ADP employment report showed fewer jobs than expected, a dovish factor for Fed policy. The markets will look to Friday’s monthly U.S. employment report for confirmation that the labor market is slowing.
The U.S. Sep ADP employment change rose +89,000, weaker than expectations of +150,000 and the smallest increase in over 2-1/2 years.
Weekly U.S. MBA mortgage applications fell -6.0% in the week ended Sep 29 to its lowest level since 1996. The home purchase sub-index fell -5.7% to 136.6, the lowest since 1995. The refinancing sub-index fell -6.6% w/w. The 30-year fixed mortgage rate rose +12 bp to 7.53%, the highest in almost 23 years.
The markets are discounting a 20% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 38% 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 fell back from early gains and are moving lower. The 10-year T-note yield fell back from a new 16-year high of 4.880% and is down -3.8 bp at 4.758%. The 10-year German bund yield fell back from a 12-year high of 3.026% and is down -2.5 bp at 2.943%. The 10-year UK gilt yield fell back from a 1-1/2 month high of 4.666% and is down -0.5 at 4.593%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.40%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed -2.28%.
The Euro Stoxx 50 today recovered from a 6-1/2 month low and is moderately higher. Strength in retailer stocks is lifting the overall market, with Tesco Plc, Britain’s biggest grocer, up more than +1% after it boosted its profit forecast. Also, an easing of price pressures is supportive for stocks after Eurozone Aug PPI fell a record -11.5% y/y. An upward revision to the Eurozone Sep S&P composite PMI was another positive factor for stocks. On the negative side, Eurozone Aug retail sales fell more than expected by the most in 8 months, and government bond yields continue to climb as the 10-year German bund yield rose above 3% for the first time in 12 years.
ECB President Lagarde said future ECB decisions "will ensure that the interest rates will be set at sufficiently restrictive levels for as long as necessary."
Eurozone Aug retail sales fell -1.2% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 8 months.
Eurozone Aug PPI fell a record -11.5% y/y from a -7.6% y/y decline in July, right on expectations.
The Eurozone Sep S&P composite PMI was revised upward by +0.1 to 47.2 from the initially reported 47.1.
China’s Shanghai Composite Stock Index today was closed for the week-long Golden Week holidays.
Japan’s Nikkei Stock Index today plunged to a 4-1/2 month low and closed sharply lower. Japanese stocks sold off today on negative carryover from Tuesday’s slide in U.S. equity markets. Soaring global interest rates are undercutting stocks on concerns that the Federal Reserve will keep interest rates higher for longer. The jump in the 10-year T-note yield to a 16-year high today sparked selling in Japanese government bonds and pushed the 10-year JGB bond yield up to a 10-year high at 0.810%. The higher bond yields led to the selling of technology and consumer discretionary stocks and led the overall market lower.
The yen fell to an 11-1/2 month low of 150 per dollar Tuesday but recovered and fell to 149 yen per dollar after reports that Japanese authorities were checking forex rates, usually a precursor to currency intervention.
The Japan Sep Jibun Bank services PMI was revised upward by +0.5 to 53.8 from the initially reported 53.3.
Pre-Market U.S. Stock Movers
Palantir Technologies (PLTR) rose more than +2% in pre-market trading as the company has emerged as the top pick for a contract to overhaul the UK’s National Health Service.
Intel (INTC) climbed more than +2% in pre-market trading after it said it plans to separate its Programmable Solutions Group operations into a standalone business and sell shares to the public or seek an investor for it.
LyondellBasell (LYB) gained more than +1% in pre-market trading after Citigroup upgraded the stock to buy from neutral with a price target of $106.
On Holding AG (ONON) rose more than +1% in pre-market trading after it said it intends to double net sales between 2023 and 2026 and exceed 60% of gross profit margin by 2026.
Hub Group (HUBG) is up more than +1% in pre-market trading after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $98.
Matson Inc (MATX) climbed more than +2% in pre-market trading after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $113.
Apple (AAPL) slid more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to sector weight from overweight.
ON Semiconductor (ON) fell more than -1% in pre-market trading after BNP Paribas Exane downgraded the stock to neutral from outperform.
PPL Corp (PPL) dropped nearly -2% in pre-market trading after UBS downgraded the stock to neutral from buy.
Cal-Maine Foods (CALM) tumbled more than -11% in pre-market trading after reporting Q1 net sales of $459.3 million, weaker than the consensus of $479.5 million.
A10 Networks (ATEN) plunged more than -13% in pre-market trading after forecasting preliminary Q3 revenue between $56.5 million-$58.5 million, well below the consensus of $74.5 million.
Earnings Reports (10/4/2023)
Accolade Inc (ACCD), Acuity Brands Inc (AYI), AngioDynamics Inc (ANGO), BlueLinx Holdings Inc (BXC), Helen of Troy Ltd (HELE), Resources Connection Inc (RGP), RPM International Inc (RPM), Village Super Market Inc (VLGEA).
More Stock Market News from Barchart
How To Find Options Trades This Earnings Season
Stocks Climb Before the Open as U.S. ADP Jobs Report Looms
With Interest Rates Set to Remain High Into 2025, These 2 Stocks Make Good Sense
Stocks Sink as the Rout in Government Bonds Deepens
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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Apple (AAPL) slid more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to sector weight from overweight. T-note yields are falling this morning after September's monthly ADP employment report showed fewer jobs than expected, a dovish factor for Fed policy. Intel (INTC) climbed more than +2% in pre-market trading after it said it plans to separate its Programmable Solutions Group operations into a standalone business and sell shares to the public or seek an investor for it.
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Apple (AAPL) slid more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to sector weight from overweight. The yen fell to an 11-1/2 month low of 150 per dollar Tuesday but recovered and fell to 149 yen per dollar after reports that Japanese authorities were checking forex rates, usually a precursor to currency intervention. Hub Group (HUBG) is up more than +1% in pre-market trading after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $98.
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Apple (AAPL) slid more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to sector weight from overweight. On the negative side, Eurozone Aug retail sales fell more than expected by the most in 8 months, and government bond yields continue to climb as the 10-year German bund yield rose above 3% for the first time in 12 years. The yen fell to an 11-1/2 month low of 150 per dollar Tuesday but recovered and fell to 149 yen per dollar after reports that Japanese authorities were checking forex rates, usually a precursor to currency intervention.
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Apple (AAPL) slid more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to sector weight from overweight. Stock index futures this morning are moderately higher as bond yields decline. Eurozone Aug retail sales fell -1.2% m/m, weaker than expectations of -0.5% m/m and the biggest decline in 8 months.
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2023-10-04 00:00:00 UTC
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Stocks Climb Before the Open as U.S. ADP Jobs Report Looms
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AAPL
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https://www.nasdaq.com/articles/stocks-climb-before-the-open-as-u.s.-adp-jobs-report-looms
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nan
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December S&P 500 futures (ESZ23) are up +0.18%, and December Nasdaq 100 E-Mini futures (NQZ23) are up +0.21% this morning as Treasury yields retreated, with investors’ focus now shifting to the ADP National Employment numbers due later in the day.
In Tuesday’s trading session, the benchmark S&P 500 and blue-chip Dow fell to 4-month lows. McCormick (MKC) plunged over -8% after the spice maker reported weaker-than-expected Q3 sales. Also, Amazon.com (AMZN) slid more than -3%, and Microsoft (MSFT) dropped over -2% following a Reuters report indicating that these companies might face antitrust investigations by British media regulator Ofcom. In addition, Airbnb Inc (ABNB) fell more than -6% after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. On the bullish side, HP Inc (HPQ) rose over +1% after BofA Global Research upgraded the stock to Buy from Underperform.
A Labor Department report on Tuesday showed that U.S. JOLTs job openings unexpectedly rose to 9.610M in August, stronger than expectations of 8.800M, pointing to stubborn resilience in the labor market.
“Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda.
Atlanta Fed President Raphael Bostic stated Tuesday that the U.S. central bank should hold interest rates at elevated levels “for a long time” to bring inflation back down to its 2% target. “I am not in a hurry to raise, but I am not in a hurry to reduce either,” Bostic said.
Meanwhile, U.S. rate futures have priced in a 28.7% probability of a 25 basis point rate increase at the next central bank meeting in November and a 37.6% chance of a 25 basis point rate hike at December’s monetary policy meeting.
In other news, the U.S. House of Representatives voted to oust Kevin McCarthy as speaker just three days after he struck a deal with Democrats to pass a short-term spending bill, preventing a government shutdown.
Today, all eyes are focused on U.S. ADP Nonfarm Employment Change data in a couple of hours. Economists, on average, forecast that September ADP Nonfarm Employment Change will stand at 153K, compared to the previous value of 177K.
Also, investors are likely to focus on the U.S. ISM Non-Manufacturing PMI, which came in at 54.5 in August. Economists foresee the new figure to be 53.6.
U.S. S&P Global Composite PMI will be reported today. Economists foresee this figure to stand at 50.1 in September, compared to 50.2 in August.
U.S. S&P Global Services PMI will come in today. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5.
U.S. Factory Orders data will also be in focus today. Economists foresee this figure to stand at +0.2% m/m in August, compared to the previous value of -2.1% m/m.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -0.446M, compared to last week’s value of -2.170M.
In the bond markets, United States 10-year rates are at 4.760%, down -0.83%.
The Euro Stoxx 50 futures are up +0.24% this morning, reversing an earlier drop. Gains in utilities and media stocks are leading the overall market higher. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. In corporate news, Tesco Plc (TSCO.L.EB) rose over +2% after Britain’s biggest retailer boosted its annual profit guidance and signaled that food inflation would continue to fall.
Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
The German September Composite PMI came in at 46.4, stronger than expectations of 46.2.
The German September Services PMI was at 50.3, stronger than expectations of 49.8.
Eurozone September Composite PMI arrived at 47.2, stronger than expectations of 47.1.
Eurozone September Services PMI stood at 48.7, stronger than expectations of 48.4.
U.K. September Composite PMI was at 48.5, stronger than expectations of 46.8.
U.K. September Services PMI arrived at 49.3, stronger than expectations of 47.2.
Eurozone August Retail Sales came in at -1.2% m/m and -2.1% y/y, weaker than expectations of -0.3% m/m and -1.2% y/y.
Eurozone August PPI has been reported at +0.6% m/m and -11.5% y/y, compared to expectations of +0.6% m/m and -11.6% y/y.
Japan’s Nikkei 225 Stock Index (NIK) closed down -2.28%, while the Chinese market was closed for a holiday.
Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates. All sectors of the Nikkei 225 ended in the red, with real estate and utilities stocks experiencing the largest declines. A private survey showed on Wednesday that Japan’s service activity expanded for the 13th consecutive month in September, albeit at the slowest pace since the beginning of the year. Meanwhile, despite conducting an emergency bond purchase on Wednesday, the Bank of Japan failed to ease Japanese government bond yields from their decade-high levels. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +12.12% to 22.76.
The Japanese September Services PMI stood at 53.8, stronger than expectations of 53.3.
“There’s so much uncertainty about the U.S. outlook, and that’s weighing on Japanese stocks. There is a risk in the near term that the Nikkei falls below 30,000 - it’s possible,” said Kenji Abe, strategist at Daiwa Securities.
Pre-Market U.S. Stock Movers
Intel Corporation (INTC) gained about +2% in pre-market trading after the company said it would separate its Programmable Solutions Group operations into a standalone business, effective January 1st.
Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight.
Palantir Technologies Inc (PLTR) rose over +1% in pre-market trading following a report from Bloomberg stating that the company is on track to win a contract to overhaul the U.K.’s National Health Service.
Cal-Maine Foods Inc (CALM) plunged over -12% in pre-market trading after the company reported downbeat Q1 results.
B&G Foods Inc (BGS) slid more than -4% in pre-market trading after Piper Sandler downgraded the stock to Underweight from Neutral.
Brooge Holdings Ltd (BROG) surged about +18% in pre-market trading after announcing it received a proposal to buy the company from Dubai-listed maritime and shipping company Gulf Navigation Holdings.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - October 4th
RPM (RPM), Acuity Brands (AYI), Helen of Troy Ltd (HELE), Accolade (ACCD), Resources Connection (RGP), AngioDynamics (ANGO).
More Stock Market News from Barchart
With Interest Rates Set to Remain High Into 2025, These 2 Stocks Make Good Sense
Stocks Sink as the Rout in Government Bonds Deepens
3 Dividend Energy Stocks to Scoop Up Now
2 Consumer Staples Stocks to Buy on an October Pullback
On the date of publication, Oleksandr Pylypenko 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 Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. “Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today. Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5. In the bond markets, United States 10-year rates are at 4.760%, down -0.83%.
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2023-10-04 00:00:00 UTC
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3 Stocks That Can Withstand a Brutal Stock Market Crash
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AAPL
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https://www.nasdaq.com/articles/3-stocks-that-can-withstand-a-brutal-stock-market-crash
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Concerns about a potential stock market crash on the horizon are driving valuations lower in the equity markets. Investors are now pricing in higher for longer interest rates, which have pushed the yield on the 10 year U.S. Treasury to more than 4.7%. Accordingly, with interest rates on the rise, it’s reasonable to see higher-yielding stocks and other pockets of the stock market take a hit.
This pain has been uneven, and there are still certain winners in this environment. Investors still clearly want safer, more defensive stocks in these uncertain times. Thus, companies with reasonable price-earnings ratios that deliver capital to shareholders have have strong moats are great places to start. This is a list of three such stocks I would consider “all weather,” for those pacing back and forth, just waiting for the crash to start.
Maybe we’ll see a soft landing take hold. But if we don’t, these are the stocks I’m thinking could perform best in a significantly down market.
Berkshire Hathaway (BRK-B)
Source: Jonathan Weiss / Shutterstock.com
Berkshire Hathaway’s (NYSE:BRK-A, NYSE:BRK-B) diversified portfolio drove a 6.6% Q2 operating earnings increase, despite challenges in some segments. Berkshire’s unique and resilient holdings are likely to outperform the market over time. Warren Buffett’s legacy will live on through his capable successor team, making this stock a safe long-term investment for those seeking exposure to industrials and economically-sensitive names.
Berkshire’s Q2 operating earnings surged 7% to $10 billion, a new quarterly record. Despite overall net earnings turning to a $35.9 billion profit due to stock gains, Buffett emphasizes that operating earnings best reflect the company’s core performance, which remains strong.
In essence, Berkshire’s top-tier operating businesses, coupled with Buffett’s steadfast approach, consistently deliver strong results regardless of market conditions. While others fret over U.S. Federal Reserve rate hikes, supply chain issues and recession fears, Berkshire maintains its steady performance, making it a top pick for cautious investors seeking defensive options for a stock market crash.
Apple (AAPL)
Source: Yalcin Sonat / Shutterstock.com
Apple (NASDAQ:AAPL), the world’s most valuable company, has achieved record-breaking success in its 47-year history. Leading market shares in various product categories, particularly with the iPhone, which boasts over a billion users, have fueled its remarkable 135,000% stock growth since going public in December 1980. While Apple’s ascent may make it seem like the best time to invest was in the past, it continues to deliver consistent gains, with Warren Buffett’s Berkshire Hathaway increasing its stake in the company in Q1 2023.
Apple’s iPhone 15 launch is a hit, even in China. With a 50-day global order fulfillment time and a 10% sales increase compared to the iPhone 14, it’s gaining momentum. The upcoming Vision Pro augmented reality headset, priced at $3,500, is generating buzz.
Despite a modest start, the device has achieved remarkable lead times in North America, impressing many. Analyst Dan Ives of Wedbush Securities predicts a bullish AAPL trajectory, aiming for $240 per share this year, making it an enticing blue-chip stock. I think AAPL stock is likely to hold its value well, even in a downturn, relative to other tech stocks. Thus, those looking to maintain a diversified portfolio during a stock market crash can’t really go wrong owning this name for tech exposure.
Coca-Cola (KO)
Source: Jonathan Weiss / Shutterstock
There are some reasons why investors may think Coca-Cola (NYSE:KO) doesn’t deserve a place on this list. The world’s largest beverage producer faces declining sales due to changing consumer preferences. Additionally, recent revenue growth previously relied on price hikes, not higher sales volumes. And the rise of weight-loss drugs may further erode its market share as people choose healthier alternatives. Diversification and innovation efforts may struggle to offset core business decline.
Those are plenty of negatives. However, Coca-Cola, a Dividend King with 62 consecutive years of dividend increases, is yet another stock Warren Buffett believes in. This company is prominently featured in Berkshire Hathaway’s portfolio, which owns around 9% of the company’s stock. Berkshire Hathaway is set to receive $736 million in dividends from its investment this year.
The reason for this is simple. Coca-Cola is a resilient choice in uncertain economic times, with a predicted recession looming in late 2023 or early 2024. Recent financials are impressive, with Q2 2023 revenue at $11.97 billion, a 5.71% year-over-year increase, and net income of $2.55 billion, up 33.7% year-over-year. Its diluted earnings per share of 59 cents surpassed analyst expectations by 8.14%. Indeed, KO remains a top stock pick for any portfolio.
On the date of publication, Chris MacDonald has a LONG position in AAPL, BRK-B, KO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Stocks That Can Withstand a Brutal Stock Market Crash 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: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL), the world’s most valuable company, has achieved record-breaking success in its 47-year history. Analyst Dan Ives of Wedbush Securities predicts a bullish AAPL trajectory, aiming for $240 per share this year, making it an enticing blue-chip stock. I think AAPL stock is likely to hold its value well, even in a downturn, relative to other tech stocks.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL), the world’s most valuable company, has achieved record-breaking success in its 47-year history. Analyst Dan Ives of Wedbush Securities predicts a bullish AAPL trajectory, aiming for $240 per share this year, making it an enticing blue-chip stock. I think AAPL stock is likely to hold its value well, even in a downturn, relative to other tech stocks.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL), the world’s most valuable company, has achieved record-breaking success in its 47-year history. Analyst Dan Ives of Wedbush Securities predicts a bullish AAPL trajectory, aiming for $240 per share this year, making it an enticing blue-chip stock. I think AAPL stock is likely to hold its value well, even in a downturn, relative to other tech stocks.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Apple (NASDAQ:AAPL), the world’s most valuable company, has achieved record-breaking success in its 47-year history. Analyst Dan Ives of Wedbush Securities predicts a bullish AAPL trajectory, aiming for $240 per share this year, making it an enticing blue-chip stock. I think AAPL stock is likely to hold its value well, even in a downturn, relative to other tech stocks.
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2023-10-04 00:00:00 UTC
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1 Easily Overlooked Reason Apple Is the Most Attractive FAANG Stock
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AAPL
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https://www.nasdaq.com/articles/1-easily-overlooked-reason-apple-is-the-most-attractive-faang-stock
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Apple (NASDAQ: AAPL) has struggled to grow its top line this year. Revenue fell 1% year over year during its most recently reported quarter, and management called for more of the same in the current fiscal fourth quarter.
This top-line performance is also disappointing when compared to comparable megacap tech companies, including all of the other FAANG stocks. Meta Platforms (formerly Facebook), Amazon, Netflix, and Alphabet (the parent company of Google) all reported top-line growth in their most recent quarters.
Microsoft, though not a FAANG stock, has similarly outperformed Apple's sales trends recently; the software company's quarterly revenue rose 8% year over year for the period ended June 30.
Yet I still prefer Apple stock over most megacap tech stocks. While a single article couldn't capture my entire bull thesis for the company, one metric does a good job highlighting a key area where the company shines compared to its peers: its research and development (R&D) spending as a percentage of sales. Coming in much lower than most of its peers, this important metric highlights Apple's financial discipline and, subsequently, why I'd bet on it over the other FAANG stocks.
Disciplined spending
Rounded to the nearest percentage point, here's how FAANG stocks and Microsoft stack up on R&D spending as a percentage of revenue on a trailing-12-month basis.
Meta Platforms: 29%
Amazon: 15%
Alphabet: 14%
Microsoft: 13%
Netflix: 8%
Apple: 8%
Showing how it bests the entire group, Apple actually edges out Netflix by 70 basis points, with R&D spending of 7.6% versus 8.3% for Netflix. So it can operate its business with a significantly lower R&D budget than most of its peers.
This isn't a new phenomenon for Apple
One might argue that Apple's disciplined approach could be a drawback, constraining innovation and ultimately limiting the company's growth opportunities. But its frugality isn't a new phenomenon. Indeed, even in the years leading up to the launch of the iPhone, the company's R&D costs as a percentage of revenue were similar to today's levels -- and its spending was lower than peers like Microsoft back then, too.
Discipline is an asset
So how has Apple been able to grow its earnings per share more than 17,000% since 1995 and nearly double it over the last five years with an R&D budget mostly staying around 8% of revenue or below during these periods? That careful spending has created a culture of resourcefulness. Instead of stifling innovation, the iPhone maker's disciplined culture has yielded focus and creativity.
Notably, it spills into all areas of its business, such as acquisitions, where even its largest purchases are nearly immaterial to its business. And it could be a key contributor to the company's willingness to scrap potentially unsuccessful products, even after years of development.
While there's no way to know for sure, I'd theorize that this high bar for product development has been integral to helping Apple protect its brand and remain laser-focused on the areas where its R&D spending gets the biggest bang for its buck.
Of course, a culture of discipline also means the current management and R&D teams have plenty of upside to increase spending if the company deems it necessary. Indeed, Apple has done exactly this recently. Its research spending as a percentage of revenue has increased by about 36% over the last five years (in absolute dollars, it has approximately doubled over this same period), yet it is still below 8% of revenue.
And a nice by-product of financial discipline? Heaps of free cash flow (the excess cash after both regular business operations and capital expenditures are taken care of). Apple currently generates around $100 billion annually in free cash flow and pays this directly and indirectly to shareholders via dividends and share repurchases.
But is discipline enough to compensate for Apple's slow revenue growth today? I'd argue that it's this discipline that makes an acceleration in revenue growth in the future likely. The company's focused business has led to a history of innovation, concentrated across a handful of carefully selected product lines.
Even more, it's led to entirely new successful product categories from time to time like the Apple Watch and AirPods. Given some time and patience, this discipline will likely lead to another blockbuster product or even a totally new product category. In the meantime, investors can rest assured that the company will respect shareholders by remaining careful with every dollar.
Discipline makes Apple the best FAANG stock.
Find out why Apple is one of the 10 best stocks to buy now
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*Stock Advisor returns as of October 2, 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. 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. Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) has struggled to grow its top line this year. Indeed, even in the years leading up to the launch of the iPhone, the company's R&D costs as a percentage of revenue were similar to today's levels -- and its spending was lower than peers like Microsoft back then, too. While there's no way to know for sure, I'd theorize that this high bar for product development has been integral to helping Apple protect its brand and remain laser-focused on the areas where its R&D spending gets the biggest bang for its buck.
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Apple (NASDAQ: AAPL) has struggled to grow its top line this year. Microsoft, though not a FAANG stock, has similarly outperformed Apple's sales trends recently; the software company's quarterly revenue rose 8% year over year for the period ended June 30. Meta Platforms: 29% Amazon: 15% Alphabet: 14% Microsoft: 13% Netflix: 8% Apple: 8% Showing how it bests the entire group, Apple actually edges out Netflix by 70 basis points, with R&D spending of 7.6% versus 8.3% for Netflix.
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Apple (NASDAQ: AAPL) has struggled to grow its top line this year. Microsoft, though not a FAANG stock, has similarly outperformed Apple's sales trends recently; the software company's quarterly revenue rose 8% year over year for the period ended June 30. Meta Platforms: 29% Amazon: 15% Alphabet: 14% Microsoft: 13% Netflix: 8% Apple: 8% Showing how it bests the entire group, Apple actually edges out Netflix by 70 basis points, with R&D spending of 7.6% versus 8.3% for Netflix.
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Apple (NASDAQ: AAPL) has struggled to grow its top line this year. The company's focused business has led to a history of innovation, concentrated across a handful of carefully selected product lines. Discipline makes Apple the best FAANG stock.
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2023-10-04 00:00:00 UTC
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Why GOOG Stock Is Poised for an End-of-Year Breakout
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AAPL
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https://www.nasdaq.com/articles/why-goog-stock-is-poised-for-an-end-of-year-breakout
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As you’re surely aware, September was a challenging month for technology businesses, including Google and YouTube parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). However, GOOG stock can still finish 2023 on a strong note. Indeed, now is the time to be a buyer, not a seller.
As we’ll see, Alphabet is relentlessly pushing the envelope with generative artificial intelligence technology.
Alphabet is selling more smartphones than you might think. So, be prepared to hold your share position in Alphabet at least until the end of the year.
This Event Could Propel GOOG Stock Higher
GOOG stock lost ground in September, but there may be an October surprise in store. That’s because Alphabet should release its third-quarter 2023 earnings results on Oct. 24.
Compared to Wall Street’s forecasts, the company posted EPS beats in the first and second quarters. Alphabet earned $1.44 per share in Q2. Analysts expect the company to have earned that same amount, $1.44 per share, in the third quarter.
It’s impressive that Alphabet earned that amount during the second quarter, when inflation was a serious problem. Hence, it’s easy to envision Alphabet having earned at least $1.44 per share in Q3.
The company’s strong second-quarter results helped to fuel a summertime rally in GOOG stock. Don’t be too surprised, then, if the stock breaks above the 2021 resistance level of $150 in October and November of this year.
Alphabet, Generative AI and Smartphones
With many financial traders obsessing over OpenAI’s ChatGPT chatbot, I suspect that some of them are ignoring Alphabet. That’s a mistake, though, as Alphabet remains a fierce competitor in the generative AI arms race.
For instance, YouTube recently added AI-powered features for the platform’s video creators.
Now, content producers can use AI-enhanced tools to edit videos, discover data/insights and streamline the video-making process.
In addition, Google just made its conversational/generative AI feature, known as Search Generative Experience, available to teenagers. Thus, teens are no longer restricted from accessing SGE’s AI-generated search suggestions, prompts and answers.
Finally, I’d like to hit you with a startling fact. Believe it or not, Alphabet reported net-positive Q2 2023 sales for its Google Pixel smartphone.
During that same quarter, global smartphone sales declined 10% and even the almighty Apple (NASDAQ:AAPL) suffered a decrease in smartphone shipments. Also, the Google Pixel is apparently taking market share from Apple’s iPhone in Japan.
Expect GOOG Stock to Make a Run at $150 Soon
The point is, it’s a mistake for investors to obsess over ChatGPT and Apple while ignoring Alphabet. As 2023 enters its final months, Alphabet remains a strong contender in the areas of generative AI technology and smartphones.
Also, October should be an important month for Alphabet as the company could easily beat Wall Street’s quarterly EPS forecast.
Therefore, I recommend buying GOOG stock today as it will probably clear the $150 resistance level by the year’s end.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
More From InvestorPlace
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The post Why GOOG Stock Is Poised for an End-of-Year Breakout 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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During that same quarter, global smartphone sales declined 10% and even the almighty Apple (NASDAQ:AAPL) suffered a decrease in smartphone shipments. Expect GOOG Stock to Make a Run at $150 Soon The point is, it’s a mistake for investors to obsess over ChatGPT and Apple while ignoring Alphabet. David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com.
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During that same quarter, global smartphone sales declined 10% and even the almighty Apple (NASDAQ:AAPL) suffered a decrease in smartphone shipments. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As you’re surely aware, September was a challenging month for technology businesses, including Google and YouTube parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Compared to Wall Street’s forecasts, the company posted EPS beats in the first and second quarters.
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During that same quarter, global smartphone sales declined 10% and even the almighty Apple (NASDAQ:AAPL) suffered a decrease in smartphone shipments. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As you’re surely aware, September was a challenging month for technology businesses, including Google and YouTube parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Alphabet, Generative AI and Smartphones With many financial traders obsessing over OpenAI’s ChatGPT chatbot, I suspect that some of them are ignoring Alphabet.
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During that same quarter, global smartphone sales declined 10% and even the almighty Apple (NASDAQ:AAPL) suffered a decrease in smartphone shipments. Analysts expect the company to have earned that same amount, $1.44 per share, in the third quarter. Expect GOOG Stock to Make a Run at $150 Soon The point is, it’s a mistake for investors to obsess over ChatGPT and Apple while ignoring Alphabet.
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2023-10-04 00:00:00 UTC
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Apple CEO Tim Cook makes $41 mln from biggest stock sale in two years
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AAPL
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https://www.nasdaq.com/articles/apple-ceo-tim-cook-makes-%2441-mln-from-biggest-stock-sale-in-two-years
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Oct 4 (Reuters) - Apple AAPL.O Chief Executive Officer Tim Cook made $41.5 million after taxes in his biggest share sale in two years, a U.S. securities filing showed.
Cook sold 511,000 shares, which were worth about $87.8 million before accounting for taxes, according to the filing dated Tuesday. He made $355 million from a stock sale in August 2021.
The Apple chief owns about 3.3 million shares, valued at about $565 million, following the sale, the filing showed.
The company's shares have fallen 13% from their record high of $198.23 in July as investors fret about a slower-than-expected recovery in smartphone demand.
Apple launched its new iPhone 15 lineup last month, without raising prices, a move that some industry watchers said was in response to a global smartphone slump.
Shares of the Cupertino, California-based company were down 0.6% in trading before the bell.
Analysts at KeyBanc downgraded the stock to "sector-weight" from "overweight" on Wednesday on worries that sales growth in the United States - Apple's largest geographical segment - was likely to slow again in the fourth quarter.
The brokerage noted that fewer phone users in the United States were likely to upgrade their devices as they grappled with high inflation.
A report from research firm Canalys showed North American smartphone shipments were expected to fall 12% in 2023.
(Reporting by Chavi Mehta and Akash Sriram in Bengaluru; Editing by Anil D'Silva)
((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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Oct 4 (Reuters) - Apple AAPL.O Chief Executive Officer Tim Cook made $41.5 million after taxes in his biggest share sale in two years, a U.S. securities filing showed. Apple launched its new iPhone 15 lineup last month, without raising prices, a move that some industry watchers said was in response to a global smartphone slump. Analysts at KeyBanc downgraded the stock to "sector-weight" from "overweight" on Wednesday on worries that sales growth in the United States - Apple's largest geographical segment - was likely to slow again in the fourth quarter.
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Oct 4 (Reuters) - Apple AAPL.O Chief Executive Officer Tim Cook made $41.5 million after taxes in his biggest share sale in two years, a U.S. securities filing showed. He made $355 million from a stock sale in August 2021. The Apple chief owns about 3.3 million shares, valued at about $565 million, following the sale, the filing showed.
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Oct 4 (Reuters) - Apple AAPL.O Chief Executive Officer Tim Cook made $41.5 million after taxes in his biggest share sale in two years, a U.S. securities filing showed. The Apple chief owns about 3.3 million shares, valued at about $565 million, following the sale, the filing showed. Analysts at KeyBanc downgraded the stock to "sector-weight" from "overweight" on Wednesday on worries that sales growth in the United States - Apple's largest geographical segment - was likely to slow again in the fourth quarter.
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Oct 4 (Reuters) - Apple AAPL.O Chief Executive Officer Tim Cook made $41.5 million after taxes in his biggest share sale in two years, a U.S. securities filing showed. He made $355 million from a stock sale in August 2021. The Apple chief owns about 3.3 million shares, valued at about $565 million, following the sale, the filing showed.
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2023-10-04 00:00:00 UTC
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2 Dow Stocks to Hold for a Decade or More
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https://www.nasdaq.com/articles/2-dow-stocks-to-hold-for-a-decade-or-more
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There's a broad subset of investors with a strong infatuation for members of the Dow Jones Industrial Average. These businesses are well-established, and the stocks often provide regular streams of passive income through dividend payments. Most of these investments pay cash out quarterly, and often the payouts get an annual boost, no matter where we are in the economic cycle.
By narrowing your focus on these industry leaders, you can increase the potential to find stocks with attractive growth prospects. Here are two worth considering.
1. McDonald's
McDonald's (NYSE: MCD) Big Mac has been popular with fast-food fans for over 50 years. The restaurant chain is popular with income investors, in part, because it has hiked its dividend for an equally impressive 46 consecutive years.
Look closer at the business, and you'll see just how McDonald's has been able to achieve this impressive financial feat. Comparable-store sales were up 12% in the most recent quarter and by 10% in the U.S. market. At a time when many consumers are looking to save cash and maximize convenience, McDonald's is serving these needs well and is being rewarded with a rising market share.
"The McDonald's brand has never been stronger," CEO Chris Kempczinski told investors in late August. Profit margins have never been this high, either. The chain now converts over 40% of sales into operating earnings thanks in part to a steady stream of franchise fees, royalty fees, and real estate income.
It's true that McDonald's needs to constantly respond to shifting consumer preferences. Getting behind in this area would open the door to rivals who are always looking for ways to chip away at its lead in the fast-food industry. But the company has demonstrated through the decades that it can adapt. That's a valuable attribute for any company that you'd want to keep in your portfolio for many years.
2. Apple
Apple (NASDAQ: AAPL) is another stellar Dow stock that's likely to send out bigger payments to its shareholders in a few decades. It dominates the global smartphone industry thanks to its long track record of innovation. And its push into services is really starting to impact the business. CEO Tim Cook in early August celebrated the milestone of Apple having crossed 1 billion paid subscriptions, after all.
Apple has among the most impressive finances on the planet. Cash flow was a whopping $26 billion in the most recent quarter, and that success allowed management to return $24 billion to shareholders through dividends and stock buybacks.
AAPL Cash from Operations (TTM) data by YCharts.
The tech industry will certainly look very different in 10 years. It's always possible that Apple will stumble from its leadership position in that time, especially if a string of poor product launches tarnishes the brand. Yet the company's track record points to a much more positive result.
If Apple can maintain its positive momentum, there's no reason why the company couldn't continue boosting annual earnings for many years. It is sitting on over $60 billion of cash and marketable securities today, after all.
No growth stock is a sure bet. But by focusing on businesses that command market share leads in growing industries, an investor can maximize their chances of accumulating positive returns well into the future.
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 September 25, 2023
Demitri Kalogeropoulos has positions in Apple and McDonald's. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is another stellar Dow stock that's likely to send out bigger payments to its shareholders in a few decades. AAPL Cash from Operations (TTM) data by YCharts. The restaurant chain is popular with income investors, in part, because it has hiked its dividend for an equally impressive 46 consecutive years.
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Apple Apple (NASDAQ: AAPL) is another stellar Dow stock that's likely to send out bigger payments to its shareholders in a few decades. AAPL Cash from Operations (TTM) data by YCharts. But by focusing on businesses that command market share leads in growing industries, an investor can maximize their chances of accumulating positive returns well into the future.
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Apple Apple (NASDAQ: AAPL) is another stellar Dow stock that's likely to send out bigger payments to its shareholders in a few decades. AAPL Cash from Operations (TTM) data by YCharts. But by focusing on businesses that command market share leads in growing industries, an investor can maximize their chances of accumulating positive returns well into the future.
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Apple Apple (NASDAQ: AAPL) is another stellar Dow stock that's likely to send out bigger payments to its shareholders in a few decades. AAPL Cash from Operations (TTM) data by YCharts. 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.
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2023-10-04 00:00:00 UTC
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Here's the Latest Must-See News From These 2 Dow Jones Stocks
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AAPL
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https://www.nasdaq.com/articles/heres-the-latest-must-see-news-from-these-2-dow-jones-stocks
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Investors have had to deal with some tough times lately, and even the Dow Jones Industrial Average (DJINDICES: ^DJI) hasn't been immune to the forces acting on the stock market. On Wednesday morning, however, the Dow briefly saw a bit of a bounce, opening slightly higher after dealing with steep declines in recent days. Yet even the early gains seemed tenuous.
The 30 companies in the Dow Jones Industrials are among the largest in the world, and you can find several tech stocks within the Dow. Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Here's what you need to know.
Intel looks to break off a piece of its business
Shares of Intel were up about 1% early Wednesday. The semiconductor pioneer said late Tuesday that it would look to separate one of its business units from the rest of the company, with the intent of eventually creating a new publicly traded stock for those interested in the unit.
Intel said it would separate its programmable solutions group (PSG) into a stand-alone business. In Intel's view, the move will more effectively give PSG the autonomy and flexibility it needs in order to compete among other providers of field programmable gate arrays and other programmable products.
Already, PSG serves customers in the data center, communications, industrial, automotive, and aerospace & defense industries, and programmable solutions are becoming ever more important as technological innovation moves forward.
As part of the move, executive vice president Sandra Rivera will become the CEO of the PSG business. The semiconductor company expects PSG to operate independently as of Jan. 1, although it is likely to take longer for the two businesses to separate themselves fully from each other.
Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business.
Intel appears to be focusing heavily on making its existing businesses more appealing to investors. That's laudable, but Intel also needs to make sure it doesn't get left behind as many of its semiconductor rivals home in on huge demand for AI chips in the rush to capitalize on artificial intelligence.
Apple gets a downgrade
Elsewhere, shares of Apple were little changed Wednesday morning. The consumer electronics company has seen its stock fall about 12% since the beginning of August, and members of the Wall Street community appear to be losing confidence in the company's ability to keep growing at the pace they would like to see.
The downgrade came from KeyBanc Capital Markets, which cut its rating on the stock from overweight to sector weight. The primary motivation for the downgrade was rising concern about Apple's ability to keep generating revenue growth.
The launch of the iPhone 15 has faced a few hitches, and macroeconomic pressures in key markets like the U.S. could weigh on consumer demand for high-priced electronics more broadly. KeyBanc is also skeptical that current iPhone users will upgrade to the 15 models.
KeyBanc isn't the only Wall Street analyst company that's nervous about Apple's near-term sales. The combination of questionable demand and some potential issues with production throughput is particularly challenging, and few see the iPhone 15 as incorporating major changes with must-have features.
Apple's longer-term prospects arguably depend more on getting users to adopt its associated services than on its hardware sales. Nevertheless, that's a transition that will take a long time to play out. In the interim, you can expect further share-price volatility as sales figures come out.
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Dan Caplinger has positions in Apple. The Motley Fool has positions in and recommends Apple. 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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Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Investors have had to deal with some tough times lately, and even the Dow Jones Industrial Average (DJINDICES: ^DJI) hasn't been immune to the forces acting on the stock market. That's laudable, but Intel also needs to make sure it doesn't get left behind as many of its semiconductor rivals home in on huge demand for AI chips in the rush to capitalize on artificial intelligence.
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Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. The semiconductor company expects PSG to operate independently as of Jan. 1, although it is likely to take longer for the two businesses to separate themselves fully from each other. KeyBanc isn't the only Wall Street analyst company that's nervous about Apple's near-term sales.
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Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Intel looks to break off a piece of its business Shares of Intel were up about 1% early Wednesday. Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business.
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13293.0
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2023-10-04 00:00:00 UTC
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Stocks Little Changed Before the Open as Bond Yields Stabilize, U.S. ADP Jobs Report in Focus
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AAPL
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https://www.nasdaq.com/articles/stocks-little-changed-before-the-open-as-bond-yields-stabilize-u.s.-adp-jobs-report-in
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nan
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nan
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December S&P 500 futures (ESZ23) are down -0.03%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.07% this morning as Treasury yields found firmer footing, with investors’ focus now shifting to the ADP National Employment numbers due later in the day.
In Tuesday’s trading session, the benchmark S&P 500 and blue-chip Dow fell to 4-month lows. McCormick (MKC) plunged over -8% after the spice maker reported weaker-than-expected Q3 sales. Also, Amazon.com (AMZN) slid more than -3%, and Microsoft (MSFT) dropped over -2% following a Reuters report indicating that these companies might face antitrust investigations by British media regulator Ofcom. In addition, Airbnb Inc (ABNB) fell more than -6% after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. On the bullish side, HP Inc (HPQ) rose over +1% after BofA Global Research upgraded the stock to Buy from Underperform.
A Labor Department report on Tuesday showed that U.S. JOLTs job openings unexpectedly rose to 9.610M in August, stronger than expectations of 8.800M, pointing to stubborn resilience in the labor market.
“Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda.
Atlanta Fed President Raphael Bostic stated Tuesday that the U.S. central bank should hold interest rates at elevated levels “for a long time” to bring inflation back down to its 2% target. “I am not in a hurry to raise, but I am not in a hurry to reduce either,” Bostic said.
Meanwhile, U.S. rate futures have priced in a 28.7% probability of a 25 basis point rate increase at the next central bank meeting in November and a 37.6% chance of a 25 basis point rate hike at December’s monetary policy meeting.
In other news, the U.S. House of Representatives voted to oust Kevin McCarthy as speaker just three days after he struck a deal with Democrats to pass a short-term spending bill, preventing a government shutdown.
Today, all eyes are focused on U.S. ADP Nonfarm Employment Change data in a couple of hours. Economists, on average, forecast that September ADP Nonfarm Employment Change will stand at 153K, compared to the previous value of 177K.
Also, investors are likely to focus on the U.S. ISM Non-Manufacturing PMI, which came in at 54.5 in August. Economists foresee the new figure to be 53.6.
U.S. S&P Global Composite PMI will be reported today. Economists foresee this figure to stand at 50.1 in September, compared to 50.2 in August.
U.S. S&P Global Services PMI will come in today. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5.
U.S. Factory Orders data will also be in focus today. Economists foresee this figure to stand at +0.2% m/m in August, compared to the previous value of -2.1% m/m.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -0.446M, compared to last week’s value of -2.170M.
In the bond markets, United States 10-year rates are at 4.814%, up +0.29%.
The Euro Stoxx 50 futures are up +0.24% this morning. Gains in utilities stocks are leading the overall market higher. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. In corporate news, Tesco Plc (TSCO.L.EB) rose over +2% after Britain’s biggest retailer boosted its annual profit guidance and signaled that food inflation would continue to fall.
Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
The German September Composite PMI came in at 46.4, stronger than expectations of 46.2.
The German September Services PMI was at 50.3, stronger than expectations of 49.8.
Eurozone September Composite PMI arrived at 47.2, stronger than expectations of 47.1.
Eurozone September Services PMI stood at 48.7, stronger than expectations of 48.4.
U.K. September Composite PMI was at 48.5, stronger than expectations of 46.8.
U.K. September Services PMI arrived at 49.3, stronger than expectations of 47.2.
Eurozone August Retail Sales came in at -1.2% m/m and -2.1% y/y, weaker than expectations of -0.3% m/m and -1.2% y/y.
Eurozone August PPI has been reported at +0.6% m/m and -11.5% y/y, compared to expectations of +0.6% m/m and -11.6% y/y.
Japan’s Nikkei 225 Stock Index (NIK) closed down -2.28%, while the Chinese market was closed for a holiday.
Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates. All sectors of the Nikkei 225 ended in the red, with real estate and utilities stocks experiencing the largest declines. A private survey showed on Wednesday that Japan’s service activity expanded for the 13th consecutive month in September, albeit at the slowest pace since the beginning of the year. Meanwhile, despite conducting an emergency bond purchase on Wednesday, the Bank of Japan failed to ease Japanese government bond yields from their decade-high levels. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +12.12% to 22.76.
The Japanese September Services PMI stood at 53.8, stronger than expectations of 53.3.
“There’s so much uncertainty about the U.S. outlook, and that’s weighing on Japanese stocks. There is a risk in the near term that the Nikkei falls below 30,000 - it’s possible,” said Kenji Abe, strategist at Daiwa Securities.
Pre-Market U.S. Stock Movers
Intel Corporation (INTC) gained about +2% in pre-market trading after the company said it would separate its Programmable Solutions Group operations into a standalone business, effective January 1st.
Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight.
Palantir Technologies Inc (PLTR) rose over +1% in pre-market trading following a report from Bloomberg stating that the company is on track to win a contract to overhaul the U.K.’s National Health Service.
Cal-Maine Foods Inc (CALM) plunged over -12% in pre-market trading after the company reported downbeat Q1 results.
B&G Foods Inc (BGS) slid more than -4% in pre-market trading after Piper Sandler downgraded the stock to Underweight from Neutral.
Brooge Holdings Ltd (BROG) surged about +18% in pre-market trading after announcing it received a proposal to buy the company from Dubai-listed maritime and shipping company Gulf Navigation Holdings.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - October 4th
RPM (RPM), Acuity Brands (AYI), Helen of Troy Ltd (HELE), Accolade (ACCD), Resources Connection (RGP), AngioDynamics (ANGO).
More Stock Market News from Barchart
With Interest Rates Set to Remain High Into 2025, These 2 Stocks Make Good Sense
Stocks Sink as the Rout in Government Bonds Deepens
3 Dividend Energy Stocks to Scoop Up Now
2 Consumer Staples Stocks to Buy on an October Pullback
On the date of publication, Oleksandr Pylypenko 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 Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. “Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today. Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5. In the bond markets, United States 10-year rates are at 4.814%, up +0.29%.
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13294.0
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2023-10-04 00:00:00 UTC
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US STOCKS-Wall St eyes higher open after fresh jobs data, Treasury yields retreat
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-after-fresh-jobs-data-treasury-yields-retreat
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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
U.S. private payrolls growth slows sharply in Sept - ADP
Apple falls on brokerage downgrade
Intel up on plans to spin out programmable chip unit
Speaker Kevin McCarthy ousted by U.S. House Republicans
Futures up: Dow 0.13%, S&P 0.21%, Nasdaq 0.33%
Updated at 8:20 a.m. ET/1220 GMT
By Ankika Biswas and Shashwat Chauhan
Oct 4 (Reuters) - Wall Street's main indexes were set for a higher open on Wednesday after data pointed to a cooling labor market, while a pullback in U.S. Treasury yields from their multi-year highs also supported investor sentiment.
The ADP National Employment report showed private payrolls rose 89,000 in September, much lower than the expected 153,000.
"This is further evidence that the Fed has done enough and they need to step away," said Thomas Hayes, chairman at Great Hill Capital LLC.
The latest data comes a day after U.S. job openings unexpectedly rose in August. All three major U.S. stock indexes ended more than 1% lower on Tuesday, with the Dow .DJI turning negative on a year-to-date basis for the first time since June.
Before coming off their highs on Wednesday, the 30-year Treasury yield US30YT=RR crossed above 5% for the first time since August 2007, while the 10-year US10YT=RR and five-year US5YT=RR yields hit their highest since 2007.
Major growth stocks Microsoft MSFT.O, Amazon.com AMZN.O, Nvidia NVDA.O and Tesla TSLA.O reversed course and edged 0.6% to 0.9% higher in premarket trading.
Apple AAPL.O shed 0.6% following a KeyBanc downgrade to "sector weight" from "overweight".
At 8:20 a.m. ET, Dow e-minis 1YMcv1 were up 42 points, or 0.13%, S&P 500 e-minis EScv1 were up 9 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were up 48.25 points, or 0.33%.
U.S. energy firms including Chevron CVX.N, Exxon Mobil XOM.N, Marathon Oil MRO.N and Occidental Petroleum OXY.N fell more than 1% each as crude prices fell on demand concerns.
The Institute for Supply Management's non-manufacturing Purchasing Managers' Index, S&P Global's final composite and services PMI surveys, factory orders and remarks by Fed policymakers including Chicago President Austan Goolsbee and Board Governor Michelle Bowman will also be monitored during the day.
A handful of Republicans in the U.S. House of Representatives on Tuesday ousted Republican Speaker Kevin McCarthy, as party infighting plunged Congress into further chaos just days after it narrowly averted a government shutdown.
Chipmaker Intel INTC.O gained 2.5% on Wednesday on plans to operate its programmable chip unit as a standalone business and hold a public offering for stock in the business over the next two to three years.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O shed 0.6% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. private payrolls growth slows sharply in Sept - ADP Apple falls on brokerage downgrade Intel up on plans to spin out programmable chip unit Speaker Kevin McCarthy ousted by U.S. House Republicans Futures up: Dow 0.13%, S&P 0.21%, Nasdaq 0.33% Updated at 8:20 a.m. ET/1220 GMT By Ankika Biswas and Shashwat Chauhan Oct 4 (Reuters) - Wall Street's main indexes were set for a higher open on Wednesday after data pointed to a cooling labor market, while a pullback in U.S. Treasury yields from their multi-year highs also supported investor sentiment. All three major U.S. stock indexes ended more than 1% lower on Tuesday, with the Dow .DJI turning negative on a year-to-date basis for the first time since June.
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Apple AAPL.O shed 0.6% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. private payrolls growth slows sharply in Sept - ADP Apple falls on brokerage downgrade Intel up on plans to spin out programmable chip unit Speaker Kevin McCarthy ousted by U.S. House Republicans Futures up: Dow 0.13%, S&P 0.21%, Nasdaq 0.33% Updated at 8:20 a.m. ET/1220 GMT By Ankika Biswas and Shashwat Chauhan Oct 4 (Reuters) - Wall Street's main indexes were set for a higher open on Wednesday after data pointed to a cooling labor market, while a pullback in U.S. Treasury yields from their multi-year highs also supported investor sentiment. A handful of Republicans in the U.S. House of Representatives on Tuesday ousted Republican Speaker Kevin McCarthy, as party infighting plunged Congress into further chaos just days after it narrowly averted a government shutdown.
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Apple AAPL.O shed 0.6% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. private payrolls growth slows sharply in Sept - ADP Apple falls on brokerage downgrade Intel up on plans to spin out programmable chip unit Speaker Kevin McCarthy ousted by U.S. House Republicans Futures up: Dow 0.13%, S&P 0.21%, Nasdaq 0.33% Updated at 8:20 a.m. ET/1220 GMT By Ankika Biswas and Shashwat Chauhan Oct 4 (Reuters) - Wall Street's main indexes were set for a higher open on Wednesday after data pointed to a cooling labor market, while a pullback in U.S. Treasury yields from their multi-year highs also supported investor sentiment. ET, Dow e-minis 1YMcv1 were up 42 points, or 0.13%, S&P 500 e-minis EScv1 were up 9 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were up 48.25 points, or 0.33%.
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Apple AAPL.O shed 0.6% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. private payrolls growth slows sharply in Sept - ADP Apple falls on brokerage downgrade Intel up on plans to spin out programmable chip unit Speaker Kevin McCarthy ousted by U.S. House Republicans Futures up: Dow 0.13%, S&P 0.21%, Nasdaq 0.33% Updated at 8:20 a.m. ET/1220 GMT By Ankika Biswas and Shashwat Chauhan Oct 4 (Reuters) - Wall Street's main indexes were set for a higher open on Wednesday after data pointed to a cooling labor market, while a pullback in U.S. Treasury yields from their multi-year highs also supported investor sentiment. The ADP National Employment report showed private payrolls rose 89,000 in September, much lower than the expected 153,000.
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13295.0
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2023-10-04 00:00:00 UTC
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Stocks Tread Water Before the Open as U.S. ADP Jobs Report Looms
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AAPL
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https://www.nasdaq.com/articles/stocks-tread-water-before-the-open-as-u.s.-adp-jobs-report-looms
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nan
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nan
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December S&P 500 futures (ESZ23) are down -0.03%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.07% this morning as Treasury yields found firmer footing, with investors’ focus now shifting to the ADP National Employment numbers due later in the day.
In Tuesday’s trading session, the benchmark S&P 500 and blue-chip Dow fell to 4-month lows. McCormick (MKC) plunged over -8% after the spice maker reported weaker-than-expected Q3 sales. Also, Amazon.com (AMZN) slid more than -3%, and Microsoft (MSFT) dropped over -2% following a Reuters report indicating that these companies might face antitrust investigations by British media regulator Ofcom. In addition, Airbnb Inc (ABNB) fell more than -6% after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. On the bullish side, HP Inc (HPQ) rose over +1% after BofA Global Research upgraded the stock to Buy from Underperform.
A Labor Department report on Tuesday showed that U.S. JOLTs job openings unexpectedly rose to 9.610M in August, stronger than expectations of 8.800M, pointing to stubborn resilience in the labor market.
“Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda.
Atlanta Fed President Raphael Bostic stated Tuesday that the U.S. central bank should hold interest rates at elevated levels “for a long time” to bring inflation back down to its 2% target. “I am not in a hurry to raise, but I am not in a hurry to reduce either,” Bostic said.
Meanwhile, U.S. rate futures have priced in a 28.7% probability of a 25 basis point rate increase at the next central bank meeting in November and a 37.6% chance of a 25 basis point rate hike at December’s monetary policy meeting.
In other news, the U.S. House of Representatives voted to oust Kevin McCarthy as speaker just three days after he struck a deal with Democrats to pass a short-term spending bill, preventing a government shutdown.
Today, all eyes are focused on U.S. ADP Nonfarm Employment Change data in a couple of hours. Economists, on average, forecast that September ADP Nonfarm Employment Change will stand at 153K, compared to the previous value of 177K.
Also, investors are likely to focus on the U.S. ISM Non-Manufacturing PMI, which came in at 54.5 in August. Economists foresee the new figure to be 53.6.
U.S. S&P Global Composite PMI will be reported today. Economists foresee this figure to stand at 50.1 in September, compared to 50.2 in August.
U.S. S&P Global Services PMI will come in today. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5.
U.S. Factory Orders data will also be in focus today. Economists foresee this figure to stand at +0.2% m/m in August, compared to the previous value of -2.1% m/m.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -0.446M, compared to last week’s value of -2.170M.
In the bond markets, United States 10-year rates are at 4.814%, up +0.29%.
The Euro Stoxx 50 futures are up +0.24% this morning. Gains in utilities stocks are leading the overall market higher. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. In corporate news, Tesco Plc (TSCO.L.EB) rose over +2% after Britain’s biggest retailer boosted its annual profit guidance and signaled that food inflation would continue to fall.
Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
The German September Composite PMI came in at 46.4, stronger than expectations of 46.2.
The German September Services PMI was at 50.3, stronger than expectations of 49.8.
Eurozone September Composite PMI arrived at 47.2, stronger than expectations of 47.1.
Eurozone September Services PMI stood at 48.7, stronger than expectations of 48.4.
U.K. September Composite PMI was at 48.5, stronger than expectations of 46.8.
U.K. September Services PMI arrived at 49.3, stronger than expectations of 47.2.
Eurozone August Retail Sales came in at -1.2% m/m and -2.1% y/y, weaker than expectations of -0.3% m/m and -1.2% y/y.
Eurozone August PPI has been reported at +0.6% m/m and -11.5% y/y, compared to expectations of +0.6% m/m and -11.6% y/y.
Japan’s Nikkei 225 Stock Index (NIK) closed down -2.28%, while the Chinese market was closed for a holiday.
Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates. All sectors of the Nikkei 225 ended in the red, with real estate and utilities stocks experiencing the largest declines. A private survey showed on Wednesday that Japan’s service activity expanded for the 13th consecutive month in September, albeit at the slowest pace since the beginning of the year. Meanwhile, despite conducting an emergency bond purchase on Wednesday, the Bank of Japan failed to ease Japanese government bond yields from their decade-high levels. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +12.12% to 22.76.
The Japanese September Services PMI stood at 53.8, stronger than expectations of 53.3.
“There’s so much uncertainty about the U.S. outlook, and that’s weighing on Japanese stocks. There is a risk in the near term that the Nikkei falls below 30,000 - it’s possible,” said Kenji Abe, strategist at Daiwa Securities.
Pre-Market U.S. Stock Movers
Intel Corporation (INTC) gained about +2% in pre-market trading after the company said it would separate its Programmable Solutions Group operations into a standalone business, effective January 1st.
Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight.
Palantir Technologies Inc (PLTR) rose over +1% in pre-market trading following a report from Bloomberg stating that the company is on track to win a contract to overhaul the U.K.’s National Health Service.
Cal-Maine Foods Inc (CALM) plunged over -12% in pre-market trading after the company reported downbeat Q1 results.
B&G Foods Inc (BGS) slid more than -4% in pre-market trading after Piper Sandler downgraded the stock to Underweight from Neutral.
Brooge Holdings Ltd (BROG) surged about +18% in pre-market trading after announcing it received a proposal to buy the company from Dubai-listed maritime and shipping company Gulf Navigation Holdings.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - October 4th
RPM (RPM), Acuity Brands (AYI), Helen of Troy Ltd (HELE), Accolade (ACCD), Resources Connection (RGP), AngioDynamics (ANGO).
More Stock Market News from Barchart
With Interest Rates Set to Remain High Into 2025, These 2 Stocks Make Good Sense
Stocks Sink as the Rout in Government Bonds Deepens
3 Dividend Energy Stocks to Scoop Up Now
2 Consumer Staples Stocks to Buy on an October Pullback
On the date of publication, Oleksandr Pylypenko 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 Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. “Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today. Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5. In the bond markets, United States 10-year rates are at 4.814%, up +0.29%.
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13296.0
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2023-10-04 00:00:00 UTC
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Stocks Little Changed Before the Open as U.S. ADP Jobs Report Looms
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AAPL
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https://www.nasdaq.com/articles/stocks-little-changed-before-the-open-as-u.s.-adp-jobs-report-looms
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nan
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nan
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December S&P 500 futures (ESZ23) are down -0.03%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.07% this morning as Treasury yields found firmer footing, with investors’ focus now shifting to the ADP National Employment numbers due later in the day.
In Tuesday’s trading session, the benchmark S&P 500 and blue-chip Dow fell to 4-month lows. McCormick (MKC) plunged over -8% after the spice maker reported weaker-than-expected Q3 sales. Also, Amazon.com (AMZN) slid more than -3%, and Microsoft (MSFT) dropped over -2% following a Reuters report indicating that these companies might face antitrust investigations by British media regulator Ofcom. In addition, Airbnb Inc (ABNB) fell more than -6% after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. On the bullish side, HP Inc (HPQ) rose over +1% after BofA Global Research upgraded the stock to Buy from Underperform.
A Labor Department report on Tuesday showed that U.S. JOLTs job openings unexpectedly rose to 9.610M in August, stronger than expectations of 8.800M, pointing to stubborn resilience in the labor market.
“Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda.
Atlanta Fed President Raphael Bostic stated Tuesday that the U.S. central bank should hold interest rates at elevated levels “for a long time” to bring inflation back down to its 2% target. “I am not in a hurry to raise, but I am not in a hurry to reduce either,” Bostic said.
Meanwhile, U.S. rate futures have priced in a 28.7% probability of a 25 basis point rate increase at the next central bank meeting in November and a 37.6% chance of a 25 basis point rate hike at December’s monetary policy meeting.
In other news, the U.S. House of Representatives voted to oust Kevin McCarthy as speaker just three days after he struck a deal with Democrats to pass a short-term spending bill, preventing a government shutdown.
Today, all eyes are focused on U.S. ADP Nonfarm Employment Change data in a couple of hours. Economists, on average, forecast that September ADP Nonfarm Employment Change will stand at 153K, compared to the previous value of 177K.
Also, investors are likely to focus on the U.S. ISM Non-Manufacturing PMI, which came in at 54.5 in August. Economists foresee the new figure to be 53.6.
U.S. S&P Global Composite PMI will be reported today. Economists foresee this figure to stand at 50.1 in September, compared to 50.2 in August.
U.S. S&P Global Services PMI will come in today. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5.
U.S. Factory Orders data will also be in focus today. Economists foresee this figure to stand at +0.2% m/m in August, compared to the previous value of -2.1% m/m.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -0.446M, compared to last week’s value of -2.170M.
In the bond markets, United States 10-year rates are at 4.814%, up +0.29%.
The Euro Stoxx 50 futures are up +0.24% this morning. Gains in utilities stocks are leading the overall market higher. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. In corporate news, Tesco Plc (TSCO.L.EB) rose over +2% after Britain’s biggest retailer boosted its annual profit guidance and signaled that food inflation would continue to fall.
Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
The German September Composite PMI came in at 46.4, stronger than expectations of 46.2.
The German September Services PMI was at 50.3, stronger than expectations of 49.8.
Eurozone September Composite PMI arrived at 47.2, stronger than expectations of 47.1.
Eurozone September Services PMI stood at 48.7, stronger than expectations of 48.4.
U.K. September Composite PMI was at 48.5, stronger than expectations of 46.8.
U.K. September Services PMI arrived at 49.3, stronger than expectations of 47.2.
Eurozone August Retail Sales came in at -1.2% m/m and -2.1% y/y, weaker than expectations of -0.3% m/m and -1.2% y/y.
Eurozone August PPI has been reported at +0.6% m/m and -11.5% y/y, compared to expectations of +0.6% m/m and -11.6% y/y.
Japan’s Nikkei 225 Stock Index (NIK) closed down -2.28%, while the Chinese market was closed for a holiday.
Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates. All sectors of the Nikkei 225 ended in the red, with real estate and utilities stocks experiencing the largest declines. A private survey showed on Wednesday that Japan’s service activity expanded for the 13th consecutive month in September, albeit at the slowest pace since the beginning of the year. Meanwhile, despite conducting an emergency bond purchase on Wednesday, the Bank of Japan failed to ease Japanese government bond yields from their decade-high levels. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +12.12% to 22.76.
The Japanese September Services PMI stood at 53.8, stronger than expectations of 53.3.
“There’s so much uncertainty about the U.S. outlook, and that’s weighing on Japanese stocks. There is a risk in the near term that the Nikkei falls below 30,000 - it’s possible,” said Kenji Abe, strategist at Daiwa Securities.
Pre-Market U.S. Stock Movers
Intel Corporation (INTC) gained about +2% in pre-market trading after the company said it would separate its Programmable Solutions Group operations into a standalone business, effective January 1st.
Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight.
Palantir Technologies Inc (PLTR) rose over +1% in pre-market trading following a report from Bloomberg stating that the company is on track to win a contract to overhaul the U.K.’s National Health Service.
Cal-Maine Foods Inc (CALM) plunged over -12% in pre-market trading after the company reported downbeat Q1 results.
B&G Foods Inc (BGS) slid more than -4% in pre-market trading after Piper Sandler downgraded the stock to Underweight from Neutral.
Brooge Holdings Ltd (BROG) surged about +18% in pre-market trading after announcing it received a proposal to buy the company from Dubai-listed maritime and shipping company Gulf Navigation Holdings.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - October 4th
RPM (RPM), Acuity Brands (AYI), Helen of Troy Ltd (HELE), Accolade (ACCD), Resources Connection (RGP), AngioDynamics (ANGO).
More Stock Market News from Barchart
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On the date of publication, Oleksandr Pylypenko 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 Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. “Unless the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year,” said Ed Moya, senior market analyst for the Americas at Oanda. Meanwhile, a survey released on Wednesday showed that the Eurozone economy likely contracted in the third quarter, with demand experiencing its swiftest decline in almost three years in September as indebted consumers curtailed their spending due to rising borrowing costs and higher prices.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Separately, data showed on Wednesday that Eurozone retail sales fell much more than expected in August, indicating reduced consumer demand in the context of persistently high inflation. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Germany’s Composite PMI, Germany’s Services PMI, Eurozone’s Composite PMI, Eurozone’s Services PMI, U.K.’s Composite PMI, U.K.’s Services PMI, Eurozone’s Retail Sales, and Eurozone’s PPI data were released today. Japan’s Nikkei 225 Stock Index closed sharply lower and hit a more than 4-month low today, tracking Wall Street declines overnight after U.S. Treasury yields climbed to fresh 16-year highs amid the prospect of higher rates.
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Apple Inc (AAPL) fell more than -1% in pre-market trading after KeyBanc Capital Markets downgraded the stock to Sector Weight from Overweight. Economists expect September’s figure to be 50.2, compared to August’s number of 50.5. In the bond markets, United States 10-year rates are at 4.814%, up +0.29%.
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13297.0
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2023-10-04 00:00:00 UTC
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US STOCKS-Futures subdued on relentless rally in Treasury yields
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-subdued-on-relentless-rally-in-treasury-yields
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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: Dow flat, S&P down 0.11%, Nasdaq down 0.23%
Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were subdued on Wednesday after a spike in long-term U.S. Treasury yields, while investors awaited more clues on the state of the labor market and the likelihood of prolonged restrictive monetary policy.
Adding to investor anxiety was the ouster of Speaker Kevin McCarthy by some Republicans in the House of Representatives just days after the government narrowly averted a shutdown.
While the 30-year Treasury yield US30YT=RR crossed above 5% for the first time since August 2007, the 10-year US10YT=RR and five-year US5YT=RR yields hit their highest since 2007.
Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down between 0.3% and 0.6% in premarket trading, with Apple AAPL.O shedding 1.2% following a KeyBanc downgrade to "sector weight" from "overweight".
At 5:27 a.m. ET, Dow e-minis 1YMcv1 were down 6 points, or 0.02%, S&P 500 e-minis EScv1 were down 4.75 points, or 0.11%, and Nasdaq 100 e-minis NQcv1 were down 34.25 points, or 0.23%.
The CBOE volatility index .VIX, Wall Street's "fear gauge", briefly hit a five-month high and topped its long-term average of 20.
A day after U.S. job openings unexpectedly rose in August, investors will closely monitor ADP National Employment data at 8:15 a.m. ET and non-farm payrolls data on Friday for more clues about a fairly resilient labor market.
"Markets had become overly confident in pricing a rapid easing of the Federal Reserve's monetary policy," said UBS Global Wealth Management's Chief Investment Officer Mark Haefele, who expects near-term choppy and range-bound trading in equity markets.
On the political front, Haefele noted, "Absent a new House speaker, no action can be taken on bills, from routine matters to the funding of the federal government ... increasing the risk of a government shutdown in late November."
The Institute for Supply Management's non-manufacturing Purchasing Managers' Index, S&P Global's final composite and services PMI surveys, factory orders and remarks by Fed policymakers including Chicago President Austan Goolsbee and Board Governor Michelle Bowman will also be monitored during the day.
Traders' bets of at least another 25-basis point interest rate hike in November and December stood at 29% and 44%, respectively, according to CME's FedWatch tool.
Chipmaker Intel INTC.O gained 2% on plans to operate its programmable chip unit as a standalone business and hold a public offering for stock in the business over the next two to three years.
(Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
((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 growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down between 0.3% and 0.6% in premarket trading, with Apple AAPL.O shedding 1.2% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow flat, S&P down 0.11%, Nasdaq down 0.23% Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were subdued on Wednesday after a spike in long-term U.S. Treasury yields, while investors awaited more clues on the state of the labor market and the likelihood of prolonged restrictive monetary policy. Adding to investor anxiety was the ouster of Speaker Kevin McCarthy by some Republicans in the House of Representatives just days after the government narrowly averted a shutdown.
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Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down between 0.3% and 0.6% in premarket trading, with Apple AAPL.O shedding 1.2% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow flat, S&P down 0.11%, Nasdaq down 0.23% Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were subdued on Wednesday after a spike in long-term U.S. Treasury yields, while investors awaited more clues on the state of the labor market and the likelihood of prolonged restrictive monetary policy. ET, Dow e-minis 1YMcv1 were down 6 points, or 0.02%, S&P 500 e-minis EScv1 were down 4.75 points, or 0.11%, and Nasdaq 100 e-minis NQcv1 were down 34.25 points, or 0.23%.
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Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down between 0.3% and 0.6% in premarket trading, with Apple AAPL.O shedding 1.2% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow flat, S&P down 0.11%, Nasdaq down 0.23% Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were subdued on Wednesday after a spike in long-term U.S. Treasury yields, while investors awaited more clues on the state of the labor market and the likelihood of prolonged restrictive monetary policy. ET, Dow e-minis 1YMcv1 were down 6 points, or 0.02%, S&P 500 e-minis EScv1 were down 4.75 points, or 0.11%, and Nasdaq 100 e-minis NQcv1 were down 34.25 points, or 0.23%.
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Megacap growth stocks including Microsoft MSFT.O, Meta Platforms META.O, Nvidia NVDA.O and Tesla TSLA.O were down between 0.3% and 0.6% in premarket trading, with Apple AAPL.O shedding 1.2% following a KeyBanc downgrade to "sector weight" from "overweight". For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow flat, S&P down 0.11%, Nasdaq down 0.23% Oct 4 (Reuters) - Futures tracking Wall Street's main indexes were subdued on Wednesday after a spike in long-term U.S. Treasury yields, while investors awaited more clues on the state of the labor market and the likelihood of prolonged restrictive monetary policy. Adding to investor anxiety was the ouster of Speaker Kevin McCarthy by some Republicans in the House of Representatives just days after the government narrowly averted a shutdown.
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13298.0
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2023-10-03 00:00:00 UTC
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Russian court rejects Apple appeal against abuse of dominant market position - RIA
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AAPL
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https://www.nasdaq.com/articles/russian-court-rejects-apple-appeal-against-abuse-of-dominant-market-position-ria
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nan
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nan
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Oct 3 (Reuters) - A Russian court rejected Apple's AAPL.O appeal against the alleged abuse of its dominant market position in terms of in-app payments, for which it was fined 1.2 billion roubles ($12.1 million) in January, the RIA news agency reported on Tuesday.
Apple did not immediately respond to an emailed request for comment.
Russia's federal anti-monopoly service (FAS) fined Apple in January over what it said was the U.S. company's abuse of its dominant market position.
In a statement, the regulator said it had previously found that Apple forced Russian developers to use Apple's payment services with the iOS App Store, in violation of Russia's competition rules.
The FAS's decision entered legal force in May after it was approved by a Moscow court, RIA reported. Apple was appealing both the decision and the fine.
The rouble has depreciated sharply since January. In dollar terms, the fine has decreased by more than $5 million since then.
($1 = 99.1990 roubles)
(Reporting by Reuters; Editing by Mark Trevelyan)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Oct 3 (Reuters) - A Russian court rejected Apple's AAPL.O appeal against the alleged abuse of its dominant market position in terms of in-app payments, for which it was fined 1.2 billion roubles ($12.1 million) in January, the RIA news agency reported on Tuesday. Russia's federal anti-monopoly service (FAS) fined Apple in January over what it said was the U.S. company's abuse of its dominant market position. The FAS's decision entered legal force in May after it was approved by a Moscow court, RIA reported.
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Oct 3 (Reuters) - A Russian court rejected Apple's AAPL.O appeal against the alleged abuse of its dominant market position in terms of in-app payments, for which it was fined 1.2 billion roubles ($12.1 million) in January, the RIA news agency reported on Tuesday. Russia's federal anti-monopoly service (FAS) fined Apple in January over what it said was the U.S. company's abuse of its dominant market position. In a statement, the regulator said it had previously found that Apple forced Russian developers to use Apple's payment services with the iOS App Store, in violation of Russia's competition rules.
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Oct 3 (Reuters) - A Russian court rejected Apple's AAPL.O appeal against the alleged abuse of its dominant market position in terms of in-app payments, for which it was fined 1.2 billion roubles ($12.1 million) in January, the RIA news agency reported on Tuesday. Russia's federal anti-monopoly service (FAS) fined Apple in January over what it said was the U.S. company's abuse of its dominant market position. In a statement, the regulator said it had previously found that Apple forced Russian developers to use Apple's payment services with the iOS App Store, in violation of Russia's competition rules.
|
Oct 3 (Reuters) - A Russian court rejected Apple's AAPL.O appeal against the alleged abuse of its dominant market position in terms of in-app payments, for which it was fined 1.2 billion roubles ($12.1 million) in January, the RIA news agency reported on Tuesday. Apple did not immediately respond to an emailed request for comment. Russia's federal anti-monopoly service (FAS) fined Apple in January over what it said was the U.S. company's abuse of its dominant market position.
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13299.0
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2023-10-03 00:00:00 UTC
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This Is One of the Top-Rated and Most-Upgraded Stocks
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AAPL
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https://www.nasdaq.com/articles/this-is-one-of-the-top-rated-and-most-upgraded-stocks
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nan
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nan
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Another week has passed with shares of Meta Platforms (NASDAQ: META) outperforming the overall market, closing the prior week up 0.38% while the overall market was down almost 1%.
META recently made headlines after the company hosted its annual Connect product conference. It has continued to buck the overall market trend and remain firmly above its critical support.
The company also finds itself on the Top-Rated Stocks list, a list of 100 companies that have received the highest average rating among equities research analysts in the last twelve months, and is one of the Most-Upgraded Stocks, a list of companies that have been upgraded by Wall Street analysts most frequently during the previous 90 days.
So, as the fourth quarter begins, could META be a top pick and smart investment choice? Let's take a closer look at the news and technical setup.
META Announces Product Updates and Launch During Connect
Meta Connect 2023 spotlighted the Meta Quest 3, which received significant attention in the tech community. This new mixed-reality device aims to compete with Apple's Vision Pro headset, capitalizing on Apple's reported production delays.
Alongside this announcement, Meta unveiled a range of innovations, including the well-received Ray-Ban Meta smart glasses, the Emu text-to-image model, Meta AI for chatbots, and AI Studio for custom chatbot development.
These developments underscore Meta's commitment to making metaverse technology affordable and accessible. Mark Zuckerberg, Meta's CEO, emphasized this aspect during his keynote address, highlighting the importance of inclusivity as the company works toward its metaverse ambitions.
Analysts are Bullish on META
A host of analysts reiterated their ratings and boosted their price targets following the Connect event. Guggenheim reiterated its rating and increased its target from $375 to $380, seeing just over 27% upside for META. Notably, Morgan Stanley reiterated its rating as Overweight with a price target of $375, as did JPMorgan Chase & Co., with a price target on the high end at $425.
Overall, META has a Moderate Buy rating based on fifty-two analyst ratings. Of the fifty-two, forty-four have the stock as a Buy, one as a Strong Buy, five as Hold, and just two as Sell. The consensus analyst price target of $320.34 sees almost a 7% upside for the stock, which is impressive considering that META is already up nearly 150% year-to-date.
A Snapshot of META's Earnings
In its latest earnings report on July 26, 2023, Meta Platforms exceeded expectations with earnings per share (EPS) of $3.23, surpassing the consensus estimate of $2.87 by $0.36. The company reported quarterly revenue of $32 billion, exceeding analyst estimates of $30.91 billion. Over the past year, Meta Platforms has generated $8.58 in earnings per share and maintains a price-to-earnings ratio of 34.9. Analysts anticipate a 26.92% earnings growth for the company in the coming year, increasing from $13.26 to $16.83 per share.
META Continues to Hold Over Key Support
The range of META has continued to contract, along with the convergence of short to medium-term key moving averages, like the 5-day SMA and 50-day SMA. The price action can be seen as bullish, as the stock has recently outperformed the overall market and remains steadily above its rising 200-day SMA. A move above the resistance of the wedge pattern would signal a breakout and the potential for the continuation of the stock's uptrend.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Mark Zuckerberg, Meta's CEO, emphasized this aspect during his keynote address, highlighting the importance of inclusivity as the company works toward its metaverse ambitions. Over the past year, Meta Platforms has generated $8.58 in earnings per share and maintains a price-to-earnings ratio of 34.9. The price action can be seen as bullish, as the stock has recently outperformed the overall market and remains steadily above its rising 200-day SMA.
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Analysts are Bullish on META A host of analysts reiterated their ratings and boosted their price targets following the Connect event. The company reported quarterly revenue of $32 billion, exceeding analyst estimates of $30.91 billion. META Continues to Hold Over Key Support The range of META has continued to contract, along with the convergence of short to medium-term key moving averages, like the 5-day SMA and 50-day SMA.
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META Announces Product Updates and Launch During Connect Meta Connect 2023 spotlighted the Meta Quest 3, which received significant attention in the tech community. Alongside this announcement, Meta unveiled a range of innovations, including the well-received Ray-Ban Meta smart glasses, the Emu text-to-image model, Meta AI for chatbots, and AI Studio for custom chatbot development. A Snapshot of META's Earnings In its latest earnings report on July 26, 2023, Meta Platforms exceeded expectations with earnings per share (EPS) of $3.23, surpassing the consensus estimate of $2.87 by $0.36.
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Analysts are Bullish on META A host of analysts reiterated their ratings and boosted their price targets following the Connect event. Analysts anticipate a 26.92% earnings growth for the company in the coming year, increasing from $13.26 to $16.83 per share. The price action can be seen as bullish, as the stock has recently outperformed the overall market and remains steadily above its rising 200-day SMA.
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