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13300.0
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2023-10-03 00:00:00 UTC
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GRAPHIC-Tech giants' market cap dips on rising bond yields, AI caution
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AAPL
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https://www.nasdaq.com/articles/graphic-tech-giants-market-cap-dips-on-rising-bond-yields-ai-caution
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nan
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nan
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Oct 3 (Reuters) - Global technology giants faced the biggest drop in their market capitalization in September, hit by a rise in U.S. bond yields and waning enthusiasm over artificial intelligence (AI).
The market cap of Apple Inc AAPL.O shed about 9% to 2.67 trillion at the end of September, while Microsoft Corp MSFT.O and Alphabet Inc's GOOGL.O market cap declined about 4% each to $2.3 trillion and $1.6 trillion, respectively.
U.S. economic data released last month showed a tight labour market and a resilient economy, feeding concerns inflation levels would stay elevated and that the Federal Reserve would need to keep interest rates higher for an extended time to curb inflation.
Those worries pushed U.S. 10-Treasury yields to hit a 16-year high last month, tarnishing the allure of riskier assets. Tech stocks were particularly impacted, as the rise in Treasury yields, which are regarded as risk-free rates, diminished the value of the future cash flow of tech firms.
The market cap of Nvidia Corp, which benefitted from a boom in AI earlier this year, dropped nearly 12% to $1.07 trillion. Still, the company's market cap has risen almost 200% this year.
Still, Goldman Sachs was optimistic about the outlook for mega-cap stocks, saying the consensus sales and earnings expectations for the largest U.S. tech stocks have been upgraded since the start of August.
"The divergence between falling valuations and improving fundamentals represents an opportunity for investors: On a growth-adjusted basis, the mega caps trade at the largest discount to the median S&P 500 stock in over six years," it said.
On the other hand, Exxon Mobil Corp XOM.N and UnitedHealth Group Inc UNH.N climbed about 6% each to $470.7 billion and $467 billion, respectively.
Top 20 companies in the world by market cap Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8
Change in market cap in August Change in market cap in August https://tmsnrt.rs/47cjbgK
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Bernadette Baum)
((patturaja.muruga@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 market cap of Apple Inc AAPL.O shed about 9% to 2.67 trillion at the end of September, while Microsoft Corp MSFT.O and Alphabet Inc's GOOGL.O market cap declined about 4% each to $2.3 trillion and $1.6 trillion, respectively. Oct 3 (Reuters) - Global technology giants faced the biggest drop in their market capitalization in September, hit by a rise in U.S. bond yields and waning enthusiasm over artificial intelligence (AI). The market cap of Nvidia Corp, which benefitted from a boom in AI earlier this year, dropped nearly 12% to $1.07 trillion.
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The market cap of Apple Inc AAPL.O shed about 9% to 2.67 trillion at the end of September, while Microsoft Corp MSFT.O and Alphabet Inc's GOOGL.O market cap declined about 4% each to $2.3 trillion and $1.6 trillion, respectively. Still, the company's market cap has risen almost 200% this year. Still, Goldman Sachs was optimistic about the outlook for mega-cap stocks, saying the consensus sales and earnings expectations for the largest U.S. tech stocks have been upgraded since the start of August.
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The market cap of Apple Inc AAPL.O shed about 9% to 2.67 trillion at the end of September, while Microsoft Corp MSFT.O and Alphabet Inc's GOOGL.O market cap declined about 4% each to $2.3 trillion and $1.6 trillion, respectively. The market cap of Nvidia Corp, which benefitted from a boom in AI earlier this year, dropped nearly 12% to $1.07 trillion. Top 20 companies in the world by market cap Top 20 companies in the world by market cap https://tmsnrt.rs/3OAhlz8 Change in market cap in August Change in market cap in August https://tmsnrt.rs/47cjbgK (Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Bernadette Baum) ((patturaja.muruga@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 market cap of Apple Inc AAPL.O shed about 9% to 2.67 trillion at the end of September, while Microsoft Corp MSFT.O and Alphabet Inc's GOOGL.O market cap declined about 4% each to $2.3 trillion and $1.6 trillion, respectively. U.S. economic data released last month showed a tight labour market and a resilient economy, feeding concerns inflation levels would stay elevated and that the Federal Reserve would need to keep interest rates higher for an extended time to curb inflation. The market cap of Nvidia Corp, which benefitted from a boom in AI earlier this year, dropped nearly 12% to $1.07 trillion.
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13301.0
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2023-10-03 00:00:00 UTC
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Best Performing ETFs of Q3 2023
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AAPL
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https://www.nasdaq.com/articles/best-performing-etfs-of-q3-2023
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nan
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nan
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Stocks recently posted their worst month and first negative quarter of 2023 as the possibility of interest rates remaining higher for longer weighed on investors' sentiment.
The Dow DIA fell 2.6%, the S&P SPY declined 3.6%, while the Nasdaq Composite QQQ tumbled 4.1% during Q3. All three major indexes remain up this year, led by Nasdaq.
Energy was the best-performing sector, up about 12% as crude surged more than 25%. Communication Services was the only other sector in the green as investors favored Alphabet GOOGL and Meta Platforms (META) over Apple AAPL and Microsoft MSFT, which were already up by a significant margin.
Rate-sensitive sectors, Real Estate and Utilities, were the worst performers, down 9.2% and 9%, respectively.
The Simplify Interest Rate Hedge ETF PFIX was the best-performing ETF, up about 52%. It invests in options to hedge against rising long-term interest rates and benefit from market stress when fixed income volatility increases. (Should Investors Diversify with Hedge Fund Style ETFs?)
The Roundhill Cannabis ETF WEED gained about 50% on some favorable regulatory developments. The Department of Health and Human Services asked the DEA to review its classification of cannabis. Furthermore, the SAFE Banking Act, which would allow cannabis companies to use major financial and banking institutions, moved forward. (Cannabis Stocks & ETFs: Can the Recent Surge Continue?)
The Sprott Uranium Miners ETF URNM was up about 47% during the quarter. The demand for uranium has been rising thanks to renewed interest in alternative sources of energy, while supply has become constrained. (Why Uranium ETFs Are Going Nuclear)
To learn more, please watch the short video above.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Sprott Uranium Miners ETF (URNM): ETF Research Reports
Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Roundhill Cannabis ETF (WEED): 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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Communication Services was the only other sector in the green as investors favored Alphabet GOOGL and Meta Platforms (META) over Apple AAPL and Microsoft MSFT, which were already up by a significant margin. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sprott Uranium Miners ETF (URNM): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. Stocks recently posted their worst month and first negative quarter of 2023 as the possibility of interest rates remaining higher for longer weighed on investors' sentiment.
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Communication Services was the only other sector in the green as investors favored Alphabet GOOGL and Meta Platforms (META) over Apple AAPL and Microsoft MSFT, which were already up by a significant margin. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sprott Uranium Miners ETF (URNM): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. The Simplify Interest Rate Hedge ETF PFIX was the best-performing ETF, up about 52%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sprott Uranium Miners ETF (URNM): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. Communication Services was the only other sector in the green as investors favored Alphabet GOOGL and Meta Platforms (META) over Apple AAPL and Microsoft MSFT, which were already up by a significant margin. The Simplify Interest Rate Hedge ETF PFIX was the best-performing ETF, up about 52%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Sprott Uranium Miners ETF (URNM): ETF Research Reports Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports To read this article on Zacks.com click here. Communication Services was the only other sector in the green as investors favored Alphabet GOOGL and Meta Platforms (META) over Apple AAPL and Microsoft MSFT, which were already up by a significant margin. Energy was the best-performing sector, up about 12% as crude surged more than 25%.
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13302.0
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2023-10-03 00:00:00 UTC
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Apple enforces new check on apps in China as Beijing tightens oversight
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AAPL
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https://www.nasdaq.com/articles/apple-enforces-new-check-on-apps-in-china-as-beijing-tightens-oversight
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nan
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nan
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By Josh Ye
HONG KONG, Oct 3 (Reuters) - Apple AAPL.O has started requiring new apps to show proof of a Chinese government licence before their release on its China App Store, joining local rivals years that had adopted the policy years earlier to meet tightening state regulations.
Apple began last Friday requiring app developers to submit the "internet content provider (ICP) filing" when they publish new apps on its App Store, it said on its website for developers.
An ICP filing is a longtime registration system, required for websites to operate legally in China, and most local app stores including those operated by Tencent 0700.HK and Huawei HWT.UL have adopted it since at least 2017.
Apple's loose ICP policy has allowed it to offer far more mobile apps than local app rivals and helped the U.S. tech giant boost its popularity in China, its third-largest market behind the Americas and Europe.
The decision by Apple comes after China further tightened its oversight over mobile apps in August by releasing a new rule requiring all app stores and app developers to submit an "app filing" containing business details with the regulators.
Chinese regulators last week released names of the first batch of mobile app stores that have completed app filings, but Apple's App Store was not among those on the list.
Apple did not respond to a request for comment.
Apple's compliance status could affect the accessibility of hundreds of thousands of apps on its App Store in China, including popular foreign apps like X, formerly known as Twitter, and Telegram, which became popular during protests against COVID-19 lockdowns last year.
Apple is also facing other troubles in China as Beijing focuses more on security, such as some government agencies banning employees from using iPhones, as Reuters reported last month.
Rich Bishop, CEO of app publishing firm AppInChina, said demanding ICP filings from developers brings Apple one step closer to being fully compliant in China.
Many developers have taken to social media to voice concerns over Apple's decision, fearing it may further tighten rules to fully comply with China's regulations.
In a post on X, Jinyu Meng, an independent developer, said, "If my apps can't be launched in China without app filing, I will take down my apps [there]."
Some iPhone users in China posted on X saying that they may need to start using Apple accounts from other countries to access their favourite apps.
Under the new rule, apps without proper filings will be punished after the grace period that will end in March next year, while newly developed apps need to comply with the rule from September.
(Reporting by Josh Ye; Editing by Miyoung Kim and Jamie Freed)
((Josh.Ye@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Josh Ye HONG KONG, Oct 3 (Reuters) - Apple AAPL.O has started requiring new apps to show proof of a Chinese government licence before their release on its China App Store, joining local rivals years that had adopted the policy years earlier to meet tightening state regulations. Apple is also facing other troubles in China as Beijing focuses more on security, such as some government agencies banning employees from using iPhones, as Reuters reported last month. Rich Bishop, CEO of app publishing firm AppInChina, said demanding ICP filings from developers brings Apple one step closer to being fully compliant in China.
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By Josh Ye HONG KONG, Oct 3 (Reuters) - Apple AAPL.O has started requiring new apps to show proof of a Chinese government licence before their release on its China App Store, joining local rivals years that had adopted the policy years earlier to meet tightening state regulations. The decision by Apple comes after China further tightened its oversight over mobile apps in August by releasing a new rule requiring all app stores and app developers to submit an "app filing" containing business details with the regulators. Chinese regulators last week released names of the first batch of mobile app stores that have completed app filings, but Apple's App Store was not among those on the list.
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By Josh Ye HONG KONG, Oct 3 (Reuters) - Apple AAPL.O has started requiring new apps to show proof of a Chinese government licence before their release on its China App Store, joining local rivals years that had adopted the policy years earlier to meet tightening state regulations. Apple began last Friday requiring app developers to submit the "internet content provider (ICP) filing" when they publish new apps on its App Store, it said on its website for developers. The decision by Apple comes after China further tightened its oversight over mobile apps in August by releasing a new rule requiring all app stores and app developers to submit an "app filing" containing business details with the regulators.
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By Josh Ye HONG KONG, Oct 3 (Reuters) - Apple AAPL.O has started requiring new apps to show proof of a Chinese government licence before their release on its China App Store, joining local rivals years that had adopted the policy years earlier to meet tightening state regulations. Apple began last Friday requiring app developers to submit the "internet content provider (ICP) filing" when they publish new apps on its App Store, it said on its website for developers. The decision by Apple comes after China further tightened its oversight over mobile apps in August by releasing a new rule requiring all app stores and app developers to submit an "app filing" containing business details with the regulators.
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13303.0
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2023-10-03 00:00:00 UTC
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5 Reasons Higher Interest Rates WON’T Crash Stocks
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AAPL
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https://www.nasdaq.com/articles/5-reasons-higher-interest-rates-wont-crash-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Many on the Street are convinced that interest rates and the stock market are intertwined. According to this theory, when rates are low, nothing can stop stock prices from climbing. On the other hand, when rates are rising and/or high, nothing can prevent them from sinking. I believe that this theory is primarily based on experiences from the 1970’s and the 2010’s. In the 1970s, the economy was terrible and rates were climbing, which caused the infamous stock market crash. Conversely, from 2009-2021, rates were extremely low and stocks (for the most part) soared.
However, stock performance at other times in history showed that equities can indeed jump when rates are high and rising. In the mid-1980s, late 90s and for the first eight months of 2023, stocks and equities climbed in high-rate environments. So it’s clear that the link between interest rates and the stock market is greatly exaggerated by many pundits and investors. Here are five other reasons I think that elevated rates won’t crash stocks in 2023 or 2024.
Strong Economic Growth
Source: shutterstock.com/Lemonsoup14
Traditionally, company profits are the main factor involved in determining stock prices. Profits are largely driven by U.S. economic growth.
This view predates the belief that interest rates and the stock market must always move in opposite directions. However, I believe this traditional view is correct.
U.S. economic growth is currently rather strong, as shown by last quarter’s 2.1% real GDP growth, and by the Fed’s prediction that real GDP zoomed 4.9% higher in real terms last quarter.
I believe the loans the government dealt out during the pandemic are a driving force behind the economic growth. The energy transformation that employs many Americans and spurs a great deal of investment is another factor, as well as Washington’s infrastructure investment and the onshoring trend.
The Strong Labor Market
Source: Casimiro PT / Shutterstock.com
Another primary catalyst of the U.S economy is domestic consumer spending, which correlates directly to the strength of the labor market. If Americans have a feeling of job security, they are more likely to spend, thereby driving the economy.
The latter theory, I believe, has been proven in the last 30 months. We have seen a positive impact on the economy through rapid consumer spending, thanks to the job market remaining powerful.
Although the labor market has become a bit less tight, it remains very strong at a 3.8% unemployment rate. The powerful labor market isn’t likely to change soon, resulting in significant profit and stock growth for most companies.
Many Consumers and Companies are Not Greatly Negatively Affected by Higher Rates
Source: eamesBot / Shutterstock
Government loans during the pandemic allowed a large percentage of companies to currently be financially independent.
Meanwhile, salary increases will prevent many workers from needing to take out loans, and most homeowners in the country are paying low interest rates on their mortgages because they refinanced their mortgages during the years when rates were miniscule.
Also worth pointing out (but never apparently noticed by those who believe that interest rates and the stock market must move in opposite directions) is the fact that many consumers and companies can and do benefit from high rates. Money market funds and CDs during high-rate periods can turn a huge profit for companies and consumers.
The Link Between Inflation and Economic Growth Has Been Disproven
Source: shutterstock.com/Lemonsoup14
Many who believe that interest rates and the stock market must move inversely contend that the Fed will have to stifle economic growth in order to conquer inflation.
Recently, we’ve seen that that’s simply not the case. Since the latter half of 2022, inflation has dropped sharply while economic growth has continued to be strong. Similarly, in the second half of the 1980s, U.S. inflation dropped sharply while the economy grew rapidly.
Multi-billionaire Ken Fisher attests that inflation is not caused by economic growth, but by “too much money chasing too few” goods and services. And the latter condition can be remedied without stifling economic growth and stocks, he stated.
AI Is a Positive Game Changer for Stocks
Source: Andrey Suslov / Shutterstock.com
I, as I’ve explained previously, will make many if not most companies more profitable by significantly lowering their operating costs and enabling them to more easily obtain highly lucrative customers. And as we’ve seen already, the advent of AI is quite positive for many tech companies.
Given these points, the continued proliferation of AI is likely to be quite positive for American stocks.
On the date of publication, Larry Ramer 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.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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The post 5 Reasons Higher Interest Rates WON’T Crash Stocks 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.
|
AI Is a Positive Game Changer for Stocks Source: Andrey Suslov / Shutterstock.com I, as I’ve explained previously, will make many if not most companies more profitable by significantly lowering their operating costs and enabling them to more easily obtain highly lucrative customers. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 5 Reasons Higher Interest Rates WON’T Crash Stocks appeared first on InvestorPlace.
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Strong Economic Growth Source: shutterstock.com/Lemonsoup14 Traditionally, company profits are the main factor involved in determining stock prices. We have seen a positive impact on the economy through rapid consumer spending, thanks to the job market remaining powerful. The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post 5 Reasons Higher Interest Rates WON’T Crash Stocks appeared first on InvestorPlace.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Many on the Street are convinced that interest rates and the stock market are intertwined. Also worth pointing out (but never apparently noticed by those who believe that interest rates and the stock market must move in opposite directions) is the fact that many consumers and companies can and do benefit from high rates. The Link Between Inflation and Economic Growth Has Been Disproven Source: shutterstock.com/Lemonsoup14 Many who believe that interest rates and the stock market must move inversely contend that the Fed will have to stifle economic growth in order to conquer inflation.
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According to this theory, when rates are low, nothing can stop stock prices from climbing. The Link Between Inflation and Economic Growth Has Been Disproven Source: shutterstock.com/Lemonsoup14 Many who believe that interest rates and the stock market must move inversely contend that the Fed will have to stifle economic growth in order to conquer inflation. Since the latter half of 2022, inflation has dropped sharply while economic growth has continued to be strong.
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13304.0
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2023-10-03 00:00:00 UTC
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US STOCKS-Futures subdued ahead of key jobs data as rate worries keep yields high
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-subdued-ahead-of-key-jobs-data-as-rate-worries-keep-yields-high
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.08%, S&P 0.10%, Nasdaq 0.02%
Oct 3 (Reuters) - U.S. stock index futures were nearly flat on Tuesday as investors awaited key employment data this week, while prospects of an extended restrictive monetary policy kept Treasury yields elevated, pressuring stocks.
Investors will closely monitor the Job Openings and Labor Turnover Survey (JOLTS), due at 10 a.m. ET, while a slew of other data including the ADP National Employment numbers and the more comprehensive non-farms payrolls will also be on their radar later this week.
The S&P 500 ended flat on Monday with rate-sensitive utilities falling sharply on uncertainty over the Federal Reserve's monetary policy path, with the 10-year Treasury yield US10-YT=RR hitting 16-year highs.
"U.S. equities begin the fourth quarter as the tug-of-war between bull and bear camps remains," U.S. Bank Asset Management analysts wrote in a note.
"Persistent inflation, elevated interest rates and uncertainty over the pace of earnings growth in 2023 and 2024 remain headwinds to advancing equity prices."
At 5:30 a.m. ET, Dow e-minis 1YMcv1 were up 28 points, or 0.08%, S&P 500 e-minis EScv1 were up 4.5 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were up 3.25 points, or 0.02%.
Fed Chair Jerome Powell said on Monday the central bank was striving to foster a sustained, strong labor market, and called for price stability.
Fed officials reiterated the for "some time" with indications of another likely hike this year.
Traders have priced in a 26% chance for a rate hike in November, while their odds for an increase in rates in December stand at 45%, according to the CME Group's FedWatch Tool.
After a stellar performance by megacaps in the first half of 2023 led by optimism over artificial intelligence, some investors believe these stocks could lose momentum as yields rise.
Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O and Amazon.com AMZN.O slipping between 0.1% and 0.6%.
Supporting sentiment, oil prices extended their decline in early trade after falling to a three-week low on Monday due to strength in the dollar, rising bond yields and mixed supply signals.
Airbnb ABNB.O fell 1.8% after a report said Keybanc had downgraded the vacation lodging platform's stock to "sector weight".
(Reporting by Ankika Biswas in Bengaluru Editing by Vinay Dwivedi)
((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 were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O and Amazon.com AMZN.O slipping between 0.1% and 0.6%. The S&P 500 ended flat on Monday with rate-sensitive utilities falling sharply on uncertainty over the Federal Reserve's monetary policy path, with the 10-year Treasury yield US10-YT=RR hitting 16-year highs. Fed Chair Jerome Powell said on Monday the central bank was striving to foster a sustained, strong labor market, and called for price stability.
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Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O and Amazon.com AMZN.O slipping between 0.1% and 0.6%. Futures up: Dow 0.08%, S&P 0.10%, Nasdaq 0.02% Oct 3 (Reuters) - U.S. stock index futures were nearly flat on Tuesday as investors awaited key employment data this week, while prospects of an extended restrictive monetary policy kept Treasury yields elevated, pressuring stocks. ET, Dow e-minis 1YMcv1 were up 28 points, or 0.08%, S&P 500 e-minis EScv1 were up 4.5 points, or 0.1%, and Nasdaq 100 e-minis NQcv1 were up 3.25 points, or 0.02%.
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Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O and Amazon.com AMZN.O slipping between 0.1% and 0.6%. Futures up: Dow 0.08%, S&P 0.10%, Nasdaq 0.02% Oct 3 (Reuters) - U.S. stock index futures were nearly flat on Tuesday as investors awaited key employment data this week, while prospects of an extended restrictive monetary policy kept Treasury yields elevated, pressuring stocks. Fed Chair Jerome Powell said on Monday the central bank was striving to foster a sustained, strong labor market, and called for price stability.
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Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O and Amazon.com AMZN.O slipping between 0.1% and 0.6%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.08%, S&P 0.10%, Nasdaq 0.02% Oct 3 (Reuters) - U.S. stock index futures were nearly flat on Tuesday as investors awaited key employment data this week, while prospects of an extended restrictive monetary policy kept Treasury yields elevated, pressuring stocks.
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13305.0
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2023-10-03 00:00:00 UTC
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3 Things About Apple That Smart Investors Know
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AAPL
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https://www.nasdaq.com/articles/3-things-about-apple-that-smart-investors-know-10
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nan
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nan
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Wall Street has slightly cooled on tech stocks in recent months, with the Nasdaq-100 Technology Sector down about 8% since Aug. 1. Excitement over expanding markets like artificial intelligence (AI) has cooled, while concerns over macroeconomic factors continue to grow. As a result, now is an excellent time to consider a long-term investment in a tech stock.
Apple (NASDAQ: AAPL) is an attractive option given its dominance in the consumer side of the market and growing venture in AI. The company has leading market shares in multiple product categories, and could have a winner with its recently launched iPhone 15. However, before you fill up on its stock, it's a good idea to get the most out of your investment by learning more about its business.
Here are three things about Apple that smart investors know.
1. Apple stock is down 13% since Aug. 1
Apple shares tumbled 13% since the beginning of August after the company posted dismal third-quarter 2023 results. Last year's economic downturn seems to have caught up with the company, and it suffered declines in multiple product segments as marketwide trends show consumers are spending less on tech.
Tumbles in Apple's iPhone, Mac, and iPad segments in Q3 2023 led to the company's third consecutive quarter of revenue declines as total net sales fell 1% year over year. The repeated dips in revenue have investors concerned as the holiday season approaches. If the company can't pick up steam during its busiest time of the year, revenue declines may continue into 2024.
The good news is that Apple is not alone in its recent challenges. According to Counterpoint Research, U.S. smartphone shipments fell 24% year over year in Q2 2023. Meanwhile, global PC shipments decreased by 13% (per IDC). However, economic challenges won't last forever, and Apple is well-positioned to profit significantly from the market's inevitable recovery. As a result, a recent dip in its stock could be the perfect time to buy.
2. Signs of strong iPhone 15 demand
Despite decreased sales for Apple's smartphones last quarter, the recently launched iPhone 15 is showing signs of high demand. Data from Counterpoint indicates that wait times for the base model iPhone 15 are almost double what they were a year ago for the iPhone 14. U.S. shoppers currently need to wait 10 days for the newest iPhone, compared to six days in 2022.
Moreover, Apple's most expensive version in its new lineup, the iPhone 15 Pro Max, looks to be winning over consumers. Wait times for the Pro smartphone are at 48 days, compared to 39 days for its predecessor this time last year.
Meanwhile, in China, Apple's largest overseas market, wait times for the base model iPhone 15 have quadrupled from last year. Counterpoint analyst Archie Zhang said, "We were expecting the base model iPhone 15 wait times in China to come in a lot lower -- maybe on par with last year." It's positive that Apple's offerings are attracting Chinese shoppers despite increasing competition from Huawei and other smartphone brands.
High demand for the iPhone 15 could mean a return to revenue growth for Apple's smartphone business, making its stock an attractive option ahead of its Q4 2023 earnings release.
3. Heavily investing in generative AI
Apple's research and development spending increased by more than $3 billion last quarter, hitting nearly $23 billion. CEO Tim Cook told Reuters in early August the increase was primarily due to a ramp-up in research on generative AI. The company has reportedly built a framework for developing large language models and has produced its own version of OpenAI's ChatGPT, which engineers call Apple GPT.
The tech giant's expansion in AI has gradually shown up in the form of AI-enabled features across its product lineup this year.
A revamp to the iPhone's autocorrect uses a language model to more accurately learn how users text. Meanwhile, improvements to Siri, photos, and search are using the technology to enhance user experience. Even the company's AirPods Pros have introduced an AI-driven feature that automatically turns off noise canceling when wearers engage in a conversation.
Apple appears to be playing the long game in AI by gradually sprinkling the technology across its products. However, its dominance in tech and brand loyalty among consumers could make its stock an excellent way to back the burgeoning industry.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is an attractive option given its dominance in the consumer side of the market and growing venture in AI. Last year's economic downturn seems to have caught up with the company, and it suffered declines in multiple product segments as marketwide trends show consumers are spending less on tech. High demand for the iPhone 15 could mean a return to revenue growth for Apple's smartphone business, making its stock an attractive option ahead of its Q4 2023 earnings release.
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Apple (NASDAQ: AAPL) is an attractive option given its dominance in the consumer side of the market and growing venture in AI. Signs of strong iPhone 15 demand Despite decreased sales for Apple's smartphones last quarter, the recently launched iPhone 15 is showing signs of high demand. High demand for the iPhone 15 could mean a return to revenue growth for Apple's smartphone business, making its stock an attractive option ahead of its Q4 2023 earnings release.
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Apple (NASDAQ: AAPL) is an attractive option given its dominance in the consumer side of the market and growing venture in AI. Apple stock is down 13% since Aug. 1 Apple shares tumbled 13% since the beginning of August after the company posted dismal third-quarter 2023 results. Tumbles in Apple's iPhone, Mac, and iPad segments in Q3 2023 led to the company's third consecutive quarter of revenue declines as total net sales fell 1% year over year.
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Apple (NASDAQ: AAPL) is an attractive option given its dominance in the consumer side of the market and growing venture in AI. As a result, a recent dip in its stock could be the perfect time to buy. Wait times for the Pro smartphone are at 48 days, compared to 39 days for its predecessor this time last year.
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2023-10-03 00:00:00 UTC
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Zero-Day Options ETFs: A New Way to Generate Income
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https://www.nasdaq.com/articles/zero-day-options-etfs%3A-a-new-way-to-generate-income
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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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.
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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. (1:30) - What Should Investors Expect Heading Into The Fourth Quarter?
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2023-10-03 00:00:00 UTC
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US STOCKS-Wall St slides as Treasury yields extend rally after jobs data
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-treasury-yields-extend-rally-after-jobs-data
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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.
30-yr, 10-yr Treasury yields hit highest since 2007
Point Biopharma Global jumps on Eli Lilly buyout deal
Airbnb down after brokerage downgrade
August job openings at 9.61 mln vs 8.8 mln estimate
Indexes down: Dow 0.68%, S&P 0.84%, Nasdaq 1.01%
Updated at 10:07 a.m. ET/ 1407 GMT
By Ankika Biswas and Shashwat Chauhan
Oct 3 (Reuters) - Wall Street's key indexes dropped on Tuesday as Treasury yields extended their multi-year-high rally after hotter-than-expected jobs data fanned fears of interest rates remaining higher for longer, dragging down megacaps.
Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O lower between 0.8% and 2.5%.
After a stellar first half this year driven by the Artificial Intelligence (AI) hype, some investors believe megacap stocks could lose momentum as yields continue to rise.
"We're in the middle of a historic move in the 10-year Treasury (yield) ... the curve had been historically inverted and in many ways we're just playing catch up," said David Russell, global head of market strategy at TradeStation.
Consumer discretionary .SPLRCD led declines in the major S&P 500 sectors, falling 2.2%, while beaten-down utilities .SPLRCU dropped 1.8%.
Industrials .SPLRCI slipped 0.2% with Boeing shares BA.N helping limit the sector's decline, up 1.8% after Reuters reported United Airlines UAL.O was set to announce an order for 50 Boeing 787 Dreamliner aircraft.
A Labor Department report showed 9.61 million job openings for August, higher than the 8.8 million estimated by economists polled by Reuters.
Investor focus will now shift to the ADP National Employment numbers and the more comprehensive non-farms payrolls report for further clues on the state of the U.S. labor market.
Joining the chorus of several Fed officials, Atlanta Fed President Raphael Bostic said with the economy slowing and inflation falling, there was no urgency for the Fed to raise its policy interest rate again, but it will likely be a long time before it moves to cut rates.
At 10:07 a.m. ET, the Dow Jones Industrial Average .DJI was down 228.56 points, or 0.68%, at 33,204.79, the S&P 500 .SPX was down 35.85 points, or 0.84%, at 4,252.54, and the Nasdaq Composite .IXIC was down 134.10 points, or 1.01%, at 13,173.67.
The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the interest rate trajectory, as the 10-year Treasury yield US10YT=RR surged following a funding deal that averted a government shutdown.
Among individual stocks, Airbnb ABNB.O fell 4.1% after Keybanc downgraded the vacation lodging platform's stock to "sector weight".
HPHPQ.N gained 2.2% after BofA Global Research upgraded the PC maker to "buy" from "underperform" and raised its price target.
McCormickMKC.N dropped 9.7% after the spice maker missed third-quarter sales estimates.
Point Biopharma GlobalPNT.O surged 84.6% as Eli Lilly and Co LLY.N was set to buy the cancer therapy developer for $1.4 billion. The latter was down 2.3%.
Declining issues outnumbered advancers by a 4.74-to-1 ratio on the NYSE and by a 3.17-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 48 new lows, while the Nasdaq recorded 11 new highs and 225 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O lower between 0.8% and 2.5%. 30-yr, 10-yr Treasury yields hit highest since 2007 Point Biopharma Global jumps on Eli Lilly buyout deal Airbnb down after brokerage downgrade August job openings at 9.61 mln vs 8.8 mln estimate Indexes down: Dow 0.68%, S&P 0.84%, Nasdaq 1.01% Updated at 10:07 a.m. ET/ 1407 GMT By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes dropped on Tuesday as Treasury yields extended their multi-year-high rally after hotter-than-expected jobs data fanned fears of interest rates remaining higher for longer, dragging down megacaps. After a stellar first half this year driven by the Artificial Intelligence (AI) hype, some investors believe megacap stocks could lose momentum as yields continue to rise.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O lower between 0.8% and 2.5%. 30-yr, 10-yr Treasury yields hit highest since 2007 Point Biopharma Global jumps on Eli Lilly buyout deal Airbnb down after brokerage downgrade August job openings at 9.61 mln vs 8.8 mln estimate Indexes down: Dow 0.68%, S&P 0.84%, Nasdaq 1.01% Updated at 10:07 a.m. ET/ 1407 GMT By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes dropped on Tuesday as Treasury yields extended their multi-year-high rally after hotter-than-expected jobs data fanned fears of interest rates remaining higher for longer, dragging down megacaps. A Labor Department report showed 9.61 million job openings for August, higher than the 8.8 million estimated by economists polled by Reuters.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O lower between 0.8% and 2.5%. 30-yr, 10-yr Treasury yields hit highest since 2007 Point Biopharma Global jumps on Eli Lilly buyout deal Airbnb down after brokerage downgrade August job openings at 9.61 mln vs 8.8 mln estimate Indexes down: Dow 0.68%, S&P 0.84%, Nasdaq 1.01% Updated at 10:07 a.m. ET/ 1407 GMT By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes dropped on Tuesday as Treasury yields extended their multi-year-high rally after hotter-than-expected jobs data fanned fears of interest rates remaining higher for longer, dragging down megacaps. Joining the chorus of several Fed officials, Atlanta Fed President Raphael Bostic said with the economy slowing and inflation falling, there was no urgency for the Fed to raise its policy interest rate again, but it will likely be a long time before it moves to cut rates.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O lower between 0.8% and 2.5%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. 30-yr, 10-yr Treasury yields hit highest since 2007 Point Biopharma Global jumps on Eli Lilly buyout deal Airbnb down after brokerage downgrade August job openings at 9.61 mln vs 8.8 mln estimate Indexes down: Dow 0.68%, S&P 0.84%, Nasdaq 1.01% Updated at 10:07 a.m. ET/ 1407 GMT By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes dropped on Tuesday as Treasury yields extended their multi-year-high rally after hotter-than-expected jobs data fanned fears of interest rates remaining higher for longer, dragging down megacaps.
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2023-10-03 00:00:00 UTC
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Better Buy: Amazon vs. Apple
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https://www.nasdaq.com/articles/better-buy%3A-amazon-vs.-apple-4
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Tech stocks made a solid recovery this year after falling out of favor in 2022. Macroeconomic headwinds have caused declines across the industry as inflation hikes curbed consumer and commercial spending. However, advances in burgeoning markets like artificial intelligence (AI) suggest companies could see significant gains over the long term. As a result, investor excitement has sent shares in Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) soaring around 51% and 32% since Jan. 1.
These companies have massive dominance in their respective industries, making their stocks attractive options to hold for the next five to 10 years. As leaders in e-commerce and consumer tech products, Amazon and Apple will have much to gain from the market's inevitable recovery.
So let's look at whether you're better off buying Amazon or Apple stock this October.
Amazon
Amazon was among the hardest-hit companies in last year's economic downturn. The retail giant experienced steep profit declines in its e-commerce business, with operating losses totaling close to $11 billion between its North American and international segments in fiscal 2022. However, various restructuring moves and easing inflation have allowed for a strong recovery this year.
In the first quarter of 2023, Amazon reported a return to profitability in its North American segment. Then, in Q2 2023, the same segment posted more than $3 billion in operating income, with continued improvements in its international division. Amazon's retail segments regularly account for over 80% of its revenue, with investors rallying over the solid recovery.
Moreover, Amazon has strengthened its long-term outlook with a growing position in AI. The company's leading role in the cloud market with Amazon Web Services has given it an edge by attracting countless businesses to its growing library of AI tools.
Meanwhile, news broke last month that Amazon will take on Microsoft by investing $4 billion in Anthropic, a rival to ChatGPT developer OpenAI. Amazon is on a promising growth path that could pay off for investors over the long term.
Apple
Apple fared far better than Amazon last year, with consistent growth throughout the economically challenging period. As a result, its stock became a haven for investors, repeatedly outperforming the market and its competitors. However, 2023 hasn't been as easy for the company.
Apple's stock has tumbled about 12% since the start of August, when it posted its Q3 2023 earnings. Macro factors seem to have finally caught up to Apple, reporting its third consecutive dip in revenue as total net sales fell 1% year over year. The tech giant suffered from reduced product sales, with revenue declines in its iPhone, Mac, and iPad segments in Q3 2023. The bright spot of the quarter was digital services, which has become an increasingly lucrative area for Apple.
Services is the company's second-highest earning segment and includes income from the App Store and subscription-based platforms like Apple TV+, Music, iCloud, and more. The digital business reported year-over-year revenue growth of 8% in Q3 2023. Meanwhile, profit margins hit 70% compared to products' 35%. Services appear to be less vulnerable to macroeconomic headwinds, strengthening Apple's long-term prospects, as that means it can lean less on product sales.
Alongside an AI expansion and reports of high demand for its recently launched iPhone 15, Apple is an attractive stock to hold over many years.
Is Amazon or Apple the better buy?
Amazon and Apple have a lot to offer investors over the long term as the market rebounds and they begin profiting from investments in AI. As a result, determining which is the better buy lies in which stock is trading at a better value.
Data by YCharts
The chart above shows Apple's price-to-earnings ratio (P/E) and price-to-free-cash-flow ratio are significantly lower than Amazon's. These metrics are helpful in working out a stock's value, and Apple comes out on top on both fronts. The figures indicate your investment can potentially go further with the iPhone company.
In addition to being a better value, Apple's performance in 2022 makes it a more reliable buy. Its business isn't as vulnerable to economic declines as Amazon's, making it an excellent option to buy now and hold over the long term.
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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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As a result, investor excitement has sent shares in Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) soaring around 51% and 32% since Jan. 1. The retail giant experienced steep profit declines in its e-commerce business, with operating losses totaling close to $11 billion between its North American and international segments in fiscal 2022. The company's leading role in the cloud market with Amazon Web Services has given it an edge by attracting countless businesses to its growing library of AI tools.
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As a result, investor excitement has sent shares in Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) soaring around 51% and 32% since Jan. 1. The retail giant experienced steep profit declines in its e-commerce business, with operating losses totaling close to $11 billion between its North American and international segments in fiscal 2022. Services appear to be less vulnerable to macroeconomic headwinds, strengthening Apple's long-term prospects, as that means it can lean less on product sales.
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As a result, investor excitement has sent shares in Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) soaring around 51% and 32% since Jan. 1. So let's look at whether you're better off buying Amazon or Apple stock this October. Apple Apple fared far better than Amazon last year, with consistent growth throughout the economically challenging period.
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As a result, investor excitement has sent shares in Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) soaring around 51% and 32% since Jan. 1. In the first quarter of 2023, Amazon reported a return to profitability in its North American segment. Its business isn't as vulnerable to economic declines as Amazon's, making it an excellent option to buy now and hold over the long term.
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2023-10-03 00:00:00 UTC
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HMD starts making Nokia phones in Europe, launches 5G smartphone
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https://www.nasdaq.com/articles/hmd-starts-making-nokia-phones-in-europe-launches-5g-smartphone
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nan
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By Paul Sandle
LONDON, Oct 3 (Reuters) - HMD Global, which makes Nokia-branded phones, has become the first major smartphone company to manufacture devices in Europe with its first made-in-Hungary 5G model, aimed at data security-conscious customers, now available for purchase.
"We are thrilled to be manufacturing the Nokia XR21, our signature rugged 5G smartphone, in Europe," HMD Global co-founder, chairman and CEO Jean-Francois Baril said on Tuesday.
Before HMD opened its Hungarian operations, Europe had no large-scale smartphone manufacturing as major companies like Apple and Samsung make their phones in Asia to keep costs down.
Most of Apple's iPhones are made in China, a key market for the U.S. company. However, concerns over national security have come to the fore in recent years, prompting the U.S. to place technology sanctions on Huawei's mobile business, while China expanded curbs on the use of iPhones by state employees.
HMD said the first European model was designed for enterprise customers, some of whom had requested additional security in conjunction with their IT security partners.
The company already stores data in the European Union, with consumer and corporate data from all of its smartphones held and processed on servers in Finland since 2019.
HMD signed an exclusive 10-year licensing agreement with Nokia Oyj NOKIA.HE, once the world's largest phone maker, in 2016 to make Nokia-branded smartphones and tablets.
It said in March it would start manufacturing in the European Union, which has been encouraging companies to set up production in key sectors such as semiconductors.
The Nokia XR21 European edition is priced from 649 euros, or 549 pounds, the company said.
A limited edition of 30 units from the European production line in frosted platinum will be available for purchase from the company's website from 699 euros or 599 pounds, it said.
(Reporting by Paul Sandle; Editing by Bernadette Baum)
((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.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 Paul Sandle LONDON, Oct 3 (Reuters) - HMD Global, which makes Nokia-branded phones, has become the first major smartphone company to manufacture devices in Europe with its first made-in-Hungary 5G model, aimed at data security-conscious customers, now available for purchase. Before HMD opened its Hungarian operations, Europe had no large-scale smartphone manufacturing as major companies like Apple and Samsung make their phones in Asia to keep costs down. However, concerns over national security have come to the fore in recent years, prompting the U.S. to place technology sanctions on Huawei's mobile business, while China expanded curbs on the use of iPhones by state employees.
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By Paul Sandle LONDON, Oct 3 (Reuters) - HMD Global, which makes Nokia-branded phones, has become the first major smartphone company to manufacture devices in Europe with its first made-in-Hungary 5G model, aimed at data security-conscious customers, now available for purchase. "We are thrilled to be manufacturing the Nokia XR21, our signature rugged 5G smartphone, in Europe," HMD Global co-founder, chairman and CEO Jean-Francois Baril said on Tuesday. Before HMD opened its Hungarian operations, Europe had no large-scale smartphone manufacturing as major companies like Apple and Samsung make their phones in Asia to keep costs down.
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By Paul Sandle LONDON, Oct 3 (Reuters) - HMD Global, which makes Nokia-branded phones, has become the first major smartphone company to manufacture devices in Europe with its first made-in-Hungary 5G model, aimed at data security-conscious customers, now available for purchase. Before HMD opened its Hungarian operations, Europe had no large-scale smartphone manufacturing as major companies like Apple and Samsung make their phones in Asia to keep costs down. The company already stores data in the European Union, with consumer and corporate data from all of its smartphones held and processed on servers in Finland since 2019.
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By Paul Sandle LONDON, Oct 3 (Reuters) - HMD Global, which makes Nokia-branded phones, has become the first major smartphone company to manufacture devices in Europe with its first made-in-Hungary 5G model, aimed at data security-conscious customers, now available for purchase. Most of Apple's iPhones are made in China, a key market for the U.S. company. The Nokia XR21 European edition is priced from 649 euros, or 549 pounds, the company said.
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13310.0
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2023-10-03 00:00:00 UTC
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US STOCKS-Futures fall as 10-year yields hit fresh 16-yr highs; jobs data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-10-year-yields-hit-fresh-16-yr-highs-jobs-data-in-focus
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path.
Investors will closely monitor the Job Openings and Labor Turnover Survey (JOLTS), due at 10 a.m. ET, while a slew of other data including the ADP National Employment numbers and the more comprehensive non-farms payrolls will also be on their radar later this week.
The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the U.S. interest rate path, with the 10-year Treasury yield US10-YT=RR scaling a 16-year peak following an agreement to avert a government shutdown.
"U.S. equities begin the fourth quarter as the tug-of-war between bull and bear camps remains," U.S. Bank Asset Management analysts wrote in a note.
"Persistent inflation, elevated interest rates and uncertainty over the pace of earnings growth in 2023 and 2024 remain headwinds to advancing equity prices."
Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%.
Megacaps have had a stellar first half this year driven by the Artificial Intelligence (AI) hype, though some believe these stocks could lose momentum as yields continue to rise.
Fed officials reiterated the for "some time" with indications of another likely hike this year.
Investors would also look out for remarks from Atlanta Fed President Raphael Bostic later in the day.
Traders' bets for at least a 25-basis-point rate hike in November stood at close to 26%, while they have priced in a 45% chance for a hike in December, according to the CME Group's FedWatch Tool.
At 7:21 a.m. ET, Dow e-minis 1YMcv1 were down 86 points, or 0.26%, S&P 500 e-minis EScv1 were down 12.5 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were down 56.75 points, or 0.38%.
Supporting sentiment, oil prices extended their decline in early trade after falling to a three-week low on Monday due to strength in the dollar, rising bond yields and mixed supply signals.
Among individual stocks, Airbnb ABNB.O fell 2.4% after Keybanc downgraded the vacation lodging platform's stock to "sector weight".
Point Biopharma GlobalPNT.O surged 84.7% as Eli Lilly and Co LLY.N is set to buy the cancer therapy developer for $1.4 billion, both companies said.
McCormickMKC.N dipped 3.0% after the spice maker missed third quarter sales estimates.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path. The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the U.S. interest rate path, with the 10-year Treasury yield US10-YT=RR scaling a 16-year peak following an agreement to avert a government shutdown.
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Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path. The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the U.S. interest rate path, with the 10-year Treasury yield US10-YT=RR scaling a 16-year peak following an agreement to avert a government shutdown.
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Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path. ET, Dow e-minis 1YMcv1 were down 86 points, or 0.26%, S&P 500 e-minis EScv1 were down 12.5 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were down 56.75 points, or 0.38%.
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Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. "Persistent inflation, elevated interest rates and uncertainty over the pace of earnings growth in 2023 and 2024 remain headwinds to advancing equity prices." Fed officials reiterated the for "some time" with indications of another likely hike this year.
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13311.0
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2023-10-03 00:00:00 UTC
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Noteworthy Tuesday Option Activity: WSM, RRX, AAPL
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AAPL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-wsm-rrx-aapl
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Williams Sonoma Inc (Symbol: WSM), where a total of 11,231 contracts have traded so far, representing approximately 1.1 million underlying shares. That amounts to about 83.5% of WSM's average daily trading volume over the past month of 1.3 million shares. Especially high volume was seen for the $140 strike put option expiring May 17, 2024, with 1,500 contracts trading so far today, representing approximately 150,000 underlying shares of WSM. Below is a chart showing WSM's trailing twelve month trading history, with the $140 strike highlighted in orange:
Regal Rexnord Corp (Symbol: RRX) saw options trading volume of 2,815 contracts, representing approximately 281,500 underlying shares or approximately 81.9% of RRX's average daily trading volume over the past month, of 343,635 shares. Particularly high volume was seen for the $160 strike call option expiring October 20, 2023, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of RRX. Below is a chart showing RRX's trailing twelve month trading history, with the $160 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 545,419 contracts thus far today. That number of contracts represents approximately 54.5 million underlying shares, working out to a sizeable 81.2% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Especially high volume was seen for the $170 strike put option expiring October 06, 2023, with 48,199 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $170 strike highlighted in orange:
For the various different available expirations for WSM options, RRX options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding TOAC
CDZI Split History
AMX Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $170 strike put option expiring October 06, 2023, with 48,199 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing RRX's trailing twelve month trading history, with the $160 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 545,419 contracts thus far today. That number of contracts represents approximately 54.5 million underlying shares, working out to a sizeable 81.2% of AAPL's average daily trading volume over the past month, of 67.2 million shares.
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Below is a chart showing RRX's trailing twelve month trading history, with the $160 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 545,419 contracts thus far today. Especially high volume was seen for the $170 strike put option expiring October 06, 2023, with 48,199 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. That number of contracts represents approximately 54.5 million underlying shares, working out to a sizeable 81.2% of AAPL's average daily trading volume over the past month, of 67.2 million shares.
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Especially high volume was seen for the $170 strike put option expiring October 06, 2023, with 48,199 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing RRX's trailing twelve month trading history, with the $160 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 545,419 contracts thus far today. That number of contracts represents approximately 54.5 million underlying shares, working out to a sizeable 81.2% of AAPL's average daily trading volume over the past month, of 67.2 million shares.
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Especially high volume was seen for the $170 strike put option expiring October 06, 2023, with 48,199 contracts trading so far today, representing approximately 4.8 million underlying shares of AAPL. Below is a chart showing RRX's trailing twelve month trading history, with the $160 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 545,419 contracts thus far today. That number of contracts represents approximately 54.5 million underlying shares, working out to a sizeable 81.2% of AAPL's average daily trading volume over the past month, of 67.2 million shares.
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13312.0
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2023-10-03 00:00:00 UTC
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Buy These 3 Stocks for Fortress Balance Sheets
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AAPL
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https://www.nasdaq.com/articles/buy-these-3-stocks-for-fortress-balance-sheets
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nan
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nan
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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 TSLA, Alphabet GOOGL, and Apple AAPL – 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.
Below is a chart illustrating the company’s free cash flow on a quarterly basis.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
Interestingly enough, it was unveiled in early September that NVIDIA NVDA 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 – Tesla TSLA, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely.
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It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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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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And when it comes to stacking cash, three companies – Tesla TSLA, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. Image Source: Zacks Investment Research It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple. Image Source: Zacks Investment Research 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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Image Source: Zacks Investment Research It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple. And when it comes to favorable balance sheet characteristics, all three companies above – Tesla TSLA, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. 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.
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And when it comes to stacking cash, three companies – Tesla TSLA, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely. Image Source: Zacks Investment Research Alphabet Like AAPL, Alphabet has long been known as a cash-generating machine, generating roughly $60 billion in free cash flow throughout FY22. 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.
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Image Source: Zacks Investment Research It’s worth noting that AAPL shares remain relatively expensive, currently trading at a 28.7X forward 12-month earnings multiple. Image Source: Zacks Investment Research Alphabet Like AAPL, Alphabet has long been known as a cash-generating machine, generating roughly $60 billion in free cash flow throughout FY22. And when it comes to stacking cash, three companies – Tesla TSLA, Alphabet GOOGL, and Apple AAPL – fit the criteria nicely.
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13313.0
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2023-10-03 00:00:00 UTC
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AAPL, AMZN, or GOOGL: Which Tech Stock Could Offer the Highest Returns?
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AAPL
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https://www.nasdaq.com/articles/aapl-amzn-or-googl%3A-which-tech-stock-could-offer-the-highest-returns
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nan
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nan
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Tech stocks have been declining recently on fears that elevated interest rates for a prolonged period might push the economy into a recession. Nonetheless, several tech names remain attractive due to their strong fundamentals and attractive long-term growth potential. We used TipRanks’ Stock Comparison Tool to place Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL, GOOG) against each other to find the stock that could deliver the highest returns.
Apple (NASDAQ:AAPL)
Apple is known for its solid brand name and a compelling portfolio of hardware products, including iPhone, Mac, and iPad. The company also has a Services business, which is expanding at a rapid growth rate.
Apple exceeded analysts’ earnings expectations for the fiscal third quarter (ended July 1, 2023), even as the top line declined 1.4% year-over-year to $81.8 billion. Revenue was impacted by lower iPhone, Mac, and iPad sales due to macro pressures. That said, the 8.2% growth in Services revenue helped offset the weakness in major hardware lines to some extent.
While the long-term prospects for Apple seem attractive, recent news related to the overheating issue in iPhone 15 and persistent macro headwinds have weighed on investor sentiment. Shares have declined over 8% in the past one month but are still up 34% year-to-date.
Is Apple a Buy or Sell Now?
On Tuesday, Bank of America analyst Wamsi Mohan reiterated a Hold rating on Apple stock with a price target of $208.
The analyst remains on the sidelines as positive catalysts of new product introductions like AR/VR headset and iPhone 15 are offset by a potentially weaker consumer spending environment in the second half of the year. Mohan also cited the growing threat from actions taken by China (like a ban on iPhone for government officials and changes in App store guidelines) as one of the reasons for his Hold rating.
Overall, Wall Street is cautiously optimistic on AAPL stock, with a Moderate Buy consensus rating based on 21 Buys and eight Holds. The average price target of $207.69 implies 19.5% upside potential.
Amazon (NASDAQ:AMZN)
E-commerce and cloud computing giant Amazon impressed investors by returning to double-digit sales growth in the second quarter. Further, the company’s cost-reduction and streamlining efforts drove an EPS of $0.65 in Q2 2023 compared to a loss of $0.20 per share in the year-ago quarter.
Looking ahead, Amazon expects to benefit from the significant interest of enterprises in generative artificial intelligence (AI). The company is confident that Amazon Web Service (AWS) is well positioned to be customers’ long-term partner in building generative AI applications. Amazon recently announced a $4 billion investment in OpenAI-rival AI firm Anthropic as part of its AI ambitions.
Is Amazon a Good Stock to Buy Now?
On Tuesday, Mizuho analyst James Lee reiterated a Buy rating on AMZN with a price target of $180, calling the stock his top pick. Lee said that checks with sales channels revealed that demand for AWS services remained stable after a notable improvement in Q2 2023. He said early budgeting for 2024 indicates accelerating AWS demand.
Like Lee, UBS analyst Lloyd Walmsley is also bullish on Amazon and raised his price target to $180 from $175 on Monday. Walmsley is optimistic that the launch of video ads within Prime Video content will generate substantial revenues and significantly enhance AMZN’s margins.
Amazon plans to include ads in Prime Video shows and movies from early 2024, initially in the U.S., U.K., Germany, and Canada, and later expand to additional countries. Walmsley expects Prime Video ads in the U.S. alone to generate $6.2 billion in incremental venue and boost EPS by $0.40 over time, adding nearly 1.2% to North America retail margins.
With 40 Buys vs. one Hold, Amazon stock earns a Strong Buy consensus rating. The average price target of $176.02 implies 36% upside potential. Shares have risen 54% since the start of this year.
Alphabet (NASDAQ:GOOGL, GOOG)
Google’s parent company Alphabet reported better-than-expected second-quarter results, even as macro pressures continue to impact ad spending. A 28% revenue growth in the company’s Google Cloud business fueled the upbeat performance in Q2 2023.
Alphabet is incorporating generative AI into several products, including Google Search, to expand its total addressable market and attract more customers. Moreover, its AI-optimized Google Cloud platform is preferred by several customers for developing and training generative AI models. Alphabet claims that over 70% of generative AI startups, including Cohere, Jasper, and Typeface, are Google Cloud clients.
What is the Target Price for GOOGL Stock?
On Tuesday, Piper Sandler analyst Thomas Champion lowered his price target to $147 from $148 but reiterated a Buy rating on Alphabet stock, calling the tech giant an AI winner. The analyst noted that shares have outperformed the broader market despite the ongoing antitrust trial and thinks that GOOGL’s valuation remains “undemanding.”
Champion highlighted that the company’s filings reveal updated purchase commitments, suggesting additional AI and data center investments. Accordingly, the analyst increased his capital expenditure estimate.
“Looking ahead, we see an improving picture for core Search and new Cloud/AI revenue streams emerging,” concluded Champion.
Wall Street has a Strong Buy consensus rating on GOOGL stock, backed by 31 Buys and four Holds. At $150.67, the average price target implies 12.3% upside. Shares have advanced 52% year-to-date.
Conclusion
Wall Street is highly bullish on Amazon and Alphabet, but cautiously optimistic about Apple. Among these three tech giants, analysts see the highest upside potential in AMZN stock. Amazon’s dominance in e-commerce and cloud computing markets and lucrative AI prospects make it an attractive tech stock.
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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We used TipRanks’ Stock Comparison Tool to place Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL, GOOG) against each other to find the stock that could deliver the highest returns. Apple (NASDAQ:AAPL) Apple is known for its solid brand name and a compelling portfolio of hardware products, including iPhone, Mac, and iPad. Overall, Wall Street is cautiously optimistic on AAPL stock, with a Moderate Buy consensus rating based on 21 Buys and eight Holds.
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We used TipRanks’ Stock Comparison Tool to place Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL, GOOG) against each other to find the stock that could deliver the highest returns. Apple (NASDAQ:AAPL) Apple is known for its solid brand name and a compelling portfolio of hardware products, including iPhone, Mac, and iPad. Overall, Wall Street is cautiously optimistic on AAPL stock, with a Moderate Buy consensus rating based on 21 Buys and eight Holds.
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We used TipRanks’ Stock Comparison Tool to place Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL, GOOG) against each other to find the stock that could deliver the highest returns. Apple (NASDAQ:AAPL) Apple is known for its solid brand name and a compelling portfolio of hardware products, including iPhone, Mac, and iPad. Overall, Wall Street is cautiously optimistic on AAPL stock, with a Moderate Buy consensus rating based on 21 Buys and eight Holds.
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We used TipRanks’ Stock Comparison Tool to place Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL, GOOG) against each other to find the stock that could deliver the highest returns. Apple (NASDAQ:AAPL) Apple is known for its solid brand name and a compelling portfolio of hardware products, including iPhone, Mac, and iPad. Overall, Wall Street is cautiously optimistic on AAPL stock, with a Moderate Buy consensus rating based on 21 Buys and eight Holds.
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13314.0
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2023-10-03 00:00:00 UTC
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Q4 Stock Predictions: 3 Meme Stocks Ready to Move Higher Heading Into 2024
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AAPL
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https://www.nasdaq.com/articles/q4-stock-predictions%3A-3-meme-stocks-ready-to-move-higher-heading-into-2024
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The world of “meme stocks to buy” is buzzing afresh following the recent release of Dumb Money.
The latest cinematic dives into the retail trading frenzy in early 2021 that captivated one and all in the investment realm. Popcorn munchers and market enthusiasts alike were reminded of the wild rollercoaster that ushered in the meme stock era.
While many are quick to brush off meme stocks as mere social media sensations with little foundational merit, it’s imperative to understand their inherent allure. However, it’s prudent not to be fooled into thinking that meme stocks are solely reserved for fleeting fame.
As we delve deeper, you’ll find some of the market’s biggest performers are dancing in the limelight of social media trends.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
In the sprawling digital landscape, Meta Platforms (NASDAQ:META), with a whopping user base of over three billion, continue to turn heads.
However, beyond the familiar terrains of Facebook and Instagram, Meta has charted an incredible comeback with its tantalizing artificial intelligence offerings.
The introduction of its Llama large language model earlier this year showcased its determination to rival giants in OpenAI’s ChatGPT. Moreover, Meta’s subsequent unveiling of Llama 2 is a clear nod to attract developers with transparency and adaptability.
Furthermore, the recent Meta Connect 2023 event was a tech enthusiast’s dream. It featured the pixel-packed Quest 3 VR headset, compatible with Xbox Cloud gaming. Also, it showcased its chic, smart glasses collaboration with Ray-Ban. Meta stock’s trajectory seems poised for the stratosphere.
The stock is up more than 149% year to date (YTD) while still trading roughly 8% lower than its 52-week highs. Moreover, it still trades approximately 20.3% lower than the average analyst target of $361.65.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
GPU powerhouse Nvidia (NASDAQ:NVDA) isn’t just dipping its toes but diving deep into the transformative AI sphere. While many companies are still navigating the AI maze, Nvidia is setting the pace. As a trailblazer, NVDA is marking its territory as one of the bellwethers in the sector.
The insatiable appetite for Nvidia’s AI training and inference chips is evident in its robust growth trajectory. NVDA has effectively integrated its HGX systems across major cloud platforms. The company recently posted a jaw-dropping $13.51 billion in sales during for Q2, a 101.5% bump from prior year.
Moreover, its data center division alone witnessed a 171% year-over-year (YOY) increase. Additionally, as Citigroup analysts predict Nvidia’s dominance over 90% of the AI chip market, NVDA stock seems set for the stars.
Furthermore, the company is forging strategic partnerships with giants such as Reliance Industries and Tata Group. This is evidence that Nvidia is making significant inroads into the burgeoning Indian market. The expansion not only amplifies its growth potential but also offers a strategic hedge against risks associated with China.
Apple (AAPL)
Source: Yalcin Sonat / Shutterstock.com
Tech titan, Apple (NASDAQ:AAPL) is once again in the limelight with its iPhone 15 launch. It is already garnering rave reviews and promising revenue figures, even in challenging markets such as China.
The staggering 50-day average fulfillment time for iPhone 15 Pro Max, as highlighted by JP Morgan, is a testament to its soaring demand. Moreover, consumers can buy the Vision Pro augmented reality headset, priced at a cool $3,500. The consumer product launch is Apple’s most significant in over a decade.
Beyond its products, Apple’s financial prowess is undeniable. As the world’s most valuable company with a market cap exceeding $2.7 trillion, it continues to dominate the tech landscape. While a slight dip in the recent quarter’s revenue might raise eyebrows, a deeper dive reveals an 8% YOY growth in its services segment, pushing profits to an impressive $19.8 billion. Also, seasoned analyst Dan Ives of Wedbush Securities believes Apple’s stock could soar to $240 per share this year, roughly 40% higher than its current price.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post Q4 Stock Predictions: 3 Meme Stocks Ready to Move Higher Heading Into 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Tech titan, Apple (NASDAQ:AAPL) is once again in the limelight with its iPhone 15 launch. While many are quick to brush off meme stocks as mere social media sensations with little foundational merit, it’s imperative to understand their inherent allure. While a slight dip in the recent quarter’s revenue might raise eyebrows, a deeper dive reveals an 8% YOY growth in its services segment, pushing profits to an impressive $19.8 billion.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Tech titan, Apple (NASDAQ:AAPL) is once again in the limelight with its iPhone 15 launch. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The world of “meme stocks to buy” is buzzing afresh following the recent release of Dumb Money. Additionally, as Citigroup analysts predict Nvidia’s dominance over 90% of the AI chip market, NVDA stock seems set for the stars.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Tech titan, Apple (NASDAQ:AAPL) is once again in the limelight with its iPhone 15 launch. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The world of “meme stocks to buy” is buzzing afresh following the recent release of Dumb Money. Meta Platforms (META) Source: Ascannio / Shutterstock.com In the sprawling digital landscape, Meta Platforms (NASDAQ:META), with a whopping user base of over three billion, continue to turn heads.
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Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com Tech titan, Apple (NASDAQ:AAPL) is once again in the limelight with its iPhone 15 launch. Meta Platforms (META) Source: Ascannio / Shutterstock.com In the sprawling digital landscape, Meta Platforms (NASDAQ:META), with a whopping user base of over three billion, continue to turn heads. Nvidia (NVDA) Source: Poetra.RH / Shutterstock.com GPU powerhouse Nvidia (NASDAQ:NVDA) isn’t just dipping its toes but diving deep into the transformative AI sphere.
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13315.0
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2023-10-03 00:00:00 UTC
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Apple (AAPL) Stock Moves -0.78%: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-stock-moves-0.78%3A-what-you-should-know
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nan
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nan
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Apple (AAPL) closed at $172.40 in the latest trading session, marking a -0.78% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.37%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 1.87%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 8.29% in the past month. In that same time, the Computer and Technology sector lost 4.68%, while the S&P 500 lost 4.93%.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. The company is expected to report EPS of $1.39, up 7.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $88.87 billion, down 1.42% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% lower. Apple is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 26.4. This valuation marks a premium compared to its industry's average Forward P/E of 11.42.
Investors should also note that AAPL has a PEG ratio of 2.33 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.33 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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To read this article on Zacks.com click here.
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) closed at $172.40 in the latest trading session, marking a -0.78% move from the prior day. Investors should also note that AAPL has a PEG ratio of 2.33 right now. AAPL's industry had an average PEG ratio of 2.33 as of yesterday's close.
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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 at $172.40 in the latest trading session, marking a -0.78% move from the prior day. Investors should also note that AAPL has a PEG ratio of 2.33 right now.
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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 at $172.40 in the latest trading session, marking a -0.78% move from the prior day. Investors should also note that AAPL has a PEG ratio of 2.33 right now.
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Apple (AAPL) closed at $172.40 in the latest trading session, marking a -0.78% move from the prior day. Investors should also note that AAPL has a PEG ratio of 2.33 right now. AAPL's industry had an average PEG ratio of 2.33 as of yesterday's close.
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13316.0
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2023-10-03 00:00:00 UTC
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Will Demand Improve in the Chip Sector?
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AAPL
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https://www.nasdaq.com/articles/will-demand-improve-in-the-chip-sector
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nan
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nan
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Shares of Taiwan Semiconductor Manufacturing Co (TSM), the world’s largest contract chipmaker, have fallen more than -10% since posting a 6-month high in June as weakness in demand and elevated inventories plague the chip sector. The stock is also under pressure from soft global consumer electronics demand and the recent jump in global interest rates that have raised concerns about the macro environment.
Taiwan Semiconductor Manufacturing Co (TSMC) jumped 60% from last October to June due to the frenzy over everything related to artificial intelligence (AI). However, investors have become more wary about how much AI will contribute to the company’s bottom line, especially without a pickup in the smartphone and personal computer business. Also, high-end AI chip orders have slowed more quickly than expected. JPMorgan Chase believes this means a slower recovery going into 2024, saying, “With a murky macro-outlook, we expect first-half orders for 2024 to remain sluggish.”
The continued weakness in global chip demand prompted TSMC in June to warn that capital spending levels may fall to the bottom end of its $32 billion to $36 billion guidance for the year. While cuts to capital spending (CAPEX) are commonly seen as a positive sign as a cost management tool, some analysts say the recent reductions signal longer-term bearishness about chip demand and concerns about a protracted recovery. Goldman Sachs recently cut its estimate for TSMC’s capital spending for next year by more than -20% to $25 billion over concerns the company may delay its planned overseas capacity expansion.
Concerns about waning demand for TSMC’s cutting-edge 3-nanometer chip are at the heart of the recent decline in the company’s stock price. The chip was put into mass production in December and was seen as a technology breakthrough that would revolutionize everything from Apple’s (AAPL) iPhones to Nvidia’s AI generators. However, due to weak consumer demand, TSMC told major suppliers it had to delay deliveries of the chips. According to JPMorgan Chase, Nvidia (NVDA), Advanced Micro Devices (AMD), and Qualcomm (QCOM) may even delay their orders for the chips into 2025. Citigroup also said that given the lack of chip demand recovering back to pre-Covid levels, “We expect the recovery to take longer.”
Despite the setbacks in chip demand recovery, analysts remain bullish on TSMC. According to Bloomberg data, the stock has no sell ratings and a 12-month average price target that’s 24% above Monday’s close. TSMC’s leadership position in the foundry, or chip manufacturing, remains strong, with a 59% share of the global chip market in Q2, compared with an 11% share for its biggest rival Samsung Electronics, according to Counterpoint Technology Market Research. However, the expected chip inventory adjustment and recovery in chip demand is taking longer than many analysts predicted. Mizuho Securities Asia said,” We now expect such adjustment to extend into the first quarter next year, or even the second quarter due to soft end-demand.”
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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.
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The chip was put into mass production in December and was seen as a technology breakthrough that would revolutionize everything from Apple’s (AAPL) iPhones to Nvidia’s AI generators. Shares of Taiwan Semiconductor Manufacturing Co (TSM), the world’s largest contract chipmaker, have fallen more than -10% since posting a 6-month high in June as weakness in demand and elevated inventories plague the chip sector. While cuts to capital spending (CAPEX) are commonly seen as a positive sign as a cost management tool, some analysts say the recent reductions signal longer-term bearishness about chip demand and concerns about a protracted recovery.
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The chip was put into mass production in December and was seen as a technology breakthrough that would revolutionize everything from Apple’s (AAPL) iPhones to Nvidia’s AI generators. The stock is also under pressure from soft global consumer electronics demand and the recent jump in global interest rates that have raised concerns about the macro environment. JPMorgan Chase believes this means a slower recovery going into 2024, saying, “With a murky macro-outlook, we expect first-half orders for 2024 to remain sluggish.” The continued weakness in global chip demand prompted TSMC in June to warn that capital spending levels may fall to the bottom end of its $32 billion to $36 billion guidance for the year.
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The chip was put into mass production in December and was seen as a technology breakthrough that would revolutionize everything from Apple’s (AAPL) iPhones to Nvidia’s AI generators. JPMorgan Chase believes this means a slower recovery going into 2024, saying, “With a murky macro-outlook, we expect first-half orders for 2024 to remain sluggish.” The continued weakness in global chip demand prompted TSMC in June to warn that capital spending levels may fall to the bottom end of its $32 billion to $36 billion guidance for the year. Citigroup also said that given the lack of chip demand recovering back to pre-Covid levels, “We expect the recovery to take longer.” Despite the setbacks in chip demand recovery, analysts remain bullish on TSMC.
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The chip was put into mass production in December and was seen as a technology breakthrough that would revolutionize everything from Apple’s (AAPL) iPhones to Nvidia’s AI generators. JPMorgan Chase believes this means a slower recovery going into 2024, saying, “With a murky macro-outlook, we expect first-half orders for 2024 to remain sluggish.” The continued weakness in global chip demand prompted TSMC in June to warn that capital spending levels may fall to the bottom end of its $32 billion to $36 billion guidance for the year. Concerns about waning demand for TSMC’s cutting-edge 3-nanometer chip are at the heart of the recent decline in the company’s stock price.
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13317.0
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2023-10-03 00:00:00 UTC
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US STOCKS-Wall St set for weak open as Treasury yields surge; jobs data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-weak-open-as-treasury-yields-surge-jobs-data-in-focus
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Oct 3 (Reuters) - Wall Street's key indexes were setto open lower on Tuesday as prospects of an extended restrictive monetary policy pushed Treasury yields to multi-year highs, while investors awaited crucial employment data to gauge the U.S. interest rate outlook.
Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing megacaps Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O and Microsoft MSFT.Olower between 0.7% and 1% in premarket trading.
"We're in the middle of a historic move in the 10-year treasury (yield) ... the curve had been historically inverted and in many ways we're just playing catch up," said David Russell, global head of market strategy at TradeStation.
Investors will closely monitor the Job Openings and Labor Turnover Survey (JOLTS), due at 10 a.m. ET, while a slew of other data including the ADP National Employment numbers and the more comprehensive non-farms payrolls will also be on their radar later this week.
The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the interest rate trajectory, as the 10-year Treasury yield US10YT=RR surged following a fundingdeal that averted a government shutdown.
Fed officials reiterated the for "some time" with indications of another likely hike this year.
Traders' bets for at least a 25-basis-point rate hike in November stood at close to 26%, while they have priced in a 45% chance for such a move in December, according to the CME Group's FedWatch Tool.
At 8:36 a.m. ET, Dow e-minis 1YMcv1 were down 148 points, or 0.44%, S&P 500 e-minis EScv1 were down 24.5 points, or 0.57%, and Nasdaq 100 e-minis NQcv1 were down 104.75 points, or 0.7%.
Oil prices extended their decline in early trading after falling to a three-week low on Monday due to strength in the dollar, rising bond yields and mixed supply signals.
Among individual stocks, Airbnb ABNB.O fell 2.8% after Keybanc downgraded the vacation lodging platform's stock to "sector weight".
HPHPQ.N gained 2.4% after BofA Global Research upgraded the PC maker to "buy" from "underperform" and raised its price target.
Point Biopharma GlobalPNT.O surged 84.4% as Eli Lilly and Co LLY.N was set to buy the cancer therapy developer for $1.4 billion. The latter was down 0.4%.
McCormickMKC.N dropped 5.1% after the spice maker missed third-quarter sales estimates.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing megacaps Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O and Microsoft MSFT.Olower between 0.7% and 1% in premarket trading. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes were setto open lower on Tuesday as prospects of an extended restrictive monetary policy pushed Treasury yields to multi-year highs, while investors awaited crucial employment data to gauge the U.S. interest rate outlook. The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the interest rate trajectory, as the 10-year Treasury yield US10YT=RR surged following a fundingdeal that averted a government shutdown.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing megacaps Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O and Microsoft MSFT.Olower between 0.7% and 1% in premarket trading. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes were setto open lower on Tuesday as prospects of an extended restrictive monetary policy pushed Treasury yields to multi-year highs, while investors awaited crucial employment data to gauge the U.S. interest rate outlook. The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the interest rate trajectory, as the 10-year Treasury yield US10YT=RR surged following a fundingdeal that averted a government shutdown.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing megacaps Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O and Microsoft MSFT.Olower between 0.7% and 1% in premarket trading. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes were setto open lower on Tuesday as prospects of an extended restrictive monetary policy pushed Treasury yields to multi-year highs, while investors awaited crucial employment data to gauge the U.S. interest rate outlook. The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the interest rate trajectory, as the 10-year Treasury yield US10YT=RR surged following a fundingdeal that averted a government shutdown.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing megacaps Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O and Microsoft MSFT.Olower between 0.7% and 1% in premarket trading. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's key indexes were setto open lower on Tuesday as prospects of an extended restrictive monetary policy pushed Treasury yields to multi-year highs, while investors awaited crucial employment data to gauge the U.S. interest rate outlook. "We're in the middle of a historic move in the 10-year treasury (yield) ... the curve had been historically inverted and in many ways we're just playing catch up," said David Russell, global head of market strategy at TradeStation.
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13318.0
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2023-10-03 00:00:00 UTC
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US STOCKS-Wall St dives as jobs data fans rate worries, Treasury yields spike
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-dives-as-jobs-data-fans-rate-worries-treasury-yields-spike
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Oct 3 (Reuters) - Wall Street's main indexes slid more than 1% on Tuesday after a hotter-than-expected jobs report deepened worries over interest rates staying higher for longer, providing a fresh leg up to Treasury yields and dragging megacap stocks lower.
Both the S&P 500 .SPX and the Dow .DJI hit their lowest levels in over four months intraday, with the latter turning negative on a year-to-date basis for the first time since early June.
A Labor Department report showed U.S. job openings unexpectedly increased in August, pointing to tight labor market conditions.
Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O and Alphabet GOOGL.Olower around 1% each.
Amazon.com AMZN.O and Microsoft MSFT.O dropped 3.3% and 2.4%, respectively, after Reuters reported British media regulator Ofcom will push for an antitrust investigation into the companies' dominance of the UK cloud computing market.
After a stellar first half this year, driven by the artificial intelligence hype, some investors believe megacap stocks could lose momentum as yields continue to rise.
"We do have potentially one more Fed rate hike coming at the tail end of this year, " said Jason Pride, chief of investment strategy and research at Glenmede in Philadelphia, "Any strength in the jobs market can push us in that direction and strengthen CPI."
Consumer discretionary .SPLRCD, real-estate .SPLRCR and information technology .SPLRCT were the worst hit among major S&P 500 sector indexes, down between 1.6% and 2.1%.
At 12:06 p.m. ET, the Dow Jones Industrial Average was down 358.67 points, or 1.07%, at 33,074.68, the S&P 500 was down 55.07 points, or 1.28%, at 4,233.32, and the Nasdaq Composite .IXIC was down 214.48 points, or 1.61%, at 13,093.30.
The CBOE volatility index .VIX, known as Wall Street's "fear gauge", touched a more than four-month high, reflecting heightened investor anxiety.
Focus now shifts to the ADP National Employment numbers and the more comprehensive non-farms payrolls report for further clues on the state of the U.S. labor market.
Among individual stocks, Airbnb ABNB.O fell 5.5% after KeyBanc downgraded the vacation lodging platform's stock to "sector weight".
HPHPQ.N gained 2.2% after BofA Global Research upgraded the PC maker to "buy" from "underperform" and raised its price target.
McCormickMKC.N dropped 9.0% after the spice maker missed third-quarter sales estimates.
Boeing BA.N edged up 0.8% after Reuters reported United Airlines UAL.O was set to announce an order for 50 Boeing 787 Dreamliner aircraft.
Declining issues outnumbered advancers for a 5.99-to-1 ratio on the NYSE and a 3.50-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 58 new lows, while the Nasdaq recorded 12 new highs and 340 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi and Maju Samuel)
((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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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O and Alphabet GOOGL.Olower around 1% each. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's main indexes slid more than 1% on Tuesday after a hotter-than-expected jobs report deepened worries over interest rates staying higher for longer, providing a fresh leg up to Treasury yields and dragging megacap stocks lower. Amazon.com AMZN.O and Microsoft MSFT.O dropped 3.3% and 2.4%, respectively, after Reuters reported British media regulator Ofcom will push for an antitrust investigation into the companies' dominance of the UK cloud computing market.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O and Alphabet GOOGL.Olower around 1% each. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's main indexes slid more than 1% on Tuesday after a hotter-than-expected jobs report deepened worries over interest rates staying higher for longer, providing a fresh leg up to Treasury yields and dragging megacap stocks lower. The S&P index recorded one new 52-week high and 58 new lows, while the Nasdaq recorded 12 new highs and 340 new lows.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O and Alphabet GOOGL.Olower around 1% each. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's main indexes slid more than 1% on Tuesday after a hotter-than-expected jobs report deepened worries over interest rates staying higher for longer, providing a fresh leg up to Treasury yields and dragging megacap stocks lower. A Labor Department report showed U.S. job openings unexpectedly increased in August, pointing to tight labor market conditions.
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Yields on 10-year and 30-year U.S. government bonds hit their highest since 2007, pushing Apple AAPL.O, Tesla TSLA.O and Alphabet GOOGL.Olower around 1% each. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - Wall Street's main indexes slid more than 1% on Tuesday after a hotter-than-expected jobs report deepened worries over interest rates staying higher for longer, providing a fresh leg up to Treasury yields and dragging megacap stocks lower. Both the S&P 500 .SPX and the Dow .DJI hit their lowest levels in over four months intraday, with the latter turning negative on a year-to-date basis for the first time since early June.
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13319.0
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2023-10-02 00:00:00 UTC
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46% of Warren Buffett's Portfolio Is Invested in This Stock. Does That Mean You Should Buy Now?
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AAPL
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https://www.nasdaq.com/articles/46-of-warren-buffetts-portfolio-is-invested-in-this-stock.-does-that-mean-you-should-buy
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nan
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nan
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Warren Buffett is considered one of the greatest investors of all time. If you invested $10,000 in the A shares of Buffett's Berkshire Hathaway 30 years ago, you'd have nearly $330,000 today. That's an incredible return, and it makes many investors curious about how Buffett and his team generated those results.
While Berkshire Hathaway owns companies -- or parts of companies -- that investors can't purchase shares in because they are not publicly traded, it also has a large investment portfolio many turn to for ideas. Apple (NASDAQ: AAPL) is the largest holding in its portfolio, accounting for an incredible 46%. Should investors follow the Oracle of Omaha's example.
Apple has been a star performer in Berkshire Hathaway's portfolio
When Berkshire Hathaway first purchased Apple stock in the first quarter of 2016, I don't think anyone knew of the upside it contained. From the start of 2016 to now, Apple's stock has a total return of over 600%, easily outperforming the market. This performance also helped supercharged Berkshire Hathaway's returns, as the stock has risen 176% compared to the S&P 500's 141% rise.
But does that warrant extreme portfolio concentration? Buffett has been vocal in explaining to investors that portfolio concentration isn't a big deal if you know what you're doing. Furthermore, he believes investors only have a few great investments over their careers, and being concentrated helps those investments shine.
While this may play out well for some investing rock stars, it may not be a wise path for an individual investor who occasionally glances at their portfolio. As a result, 46% concentration in one stock probably isn't wise for many investors. Additionally, Buffett didn't just go out and buy a 46% stake. He started in smaller pieces and added to the stock as he became more and more confident in it.
If you see a stock in your portfolio outperform without a massive thesis change, it may be a smart stock to add to.
But is Apple that way for Buffett?
The stock isn't nearly as cheap as it once was
Berkshire Hathaway's most recently reported purchase of Apple was in Q1 2023, when it purchased 20 million shares. Clearly, Buffett still believes in Apple as an investment. Is he right?
Apple is no longer the screaming deal it was seven years ago, as its valuation has nearly tripled.
AAPL P/E Ratio data by YCharts.
With Apple trading at around 29 times earnings, it is far from a cheap stock. Throw in Apple's declining revenue, and it looks like a stock that may have reached its peak.
The cause of declining revenue? Declining iPhone sales. Berkshire Hathaway's original purchase coincided with the rise of the iPhone, and for many years, consumers rushed out to purchase the latest phone generation.
However, the sales cycle has become elongated as consumers aren't upgrading their devices as frequently.
Still, Apple has a massiveglobal marketopportunity to capture -- there are a lot of people who don't own an iPhone -- so the upside remains, although not at nearly the levels presented in 2016.
I think investors should avoid Apple stock. With the stock trading at an expensive level plus experiencing sales growth, there are much better places for investors to park their money than in Apple.
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Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) is the largest holding in its portfolio, accounting for an incredible 46%. AAPL P/E Ratio data by YCharts. While this may play out well for some investing rock stars, it may not be a wise path for an individual investor who occasionally glances at their portfolio.
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Apple (NASDAQ: AAPL) is the largest holding in its portfolio, accounting for an incredible 46%. AAPL P/E Ratio data by YCharts. While Berkshire Hathaway owns companies -- or parts of companies -- that investors can't purchase shares in because they are not publicly traded, it also has a large investment portfolio many turn to for ideas.
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Apple (NASDAQ: AAPL) is the largest holding in its portfolio, accounting for an incredible 46%. AAPL P/E Ratio data by YCharts. Apple has been a star performer in Berkshire Hathaway's portfolio When Berkshire Hathaway first purchased Apple stock in the first quarter of 2016, I don't think anyone knew of the upside it contained.
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Apple (NASDAQ: AAPL) is the largest holding in its portfolio, accounting for an incredible 46%. AAPL P/E Ratio data by YCharts. From the start of 2016 to now, Apple's stock has a total return of over 600%, easily outperforming the market.
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13320.0
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2023-10-02 00:00:00 UTC
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Qualcomm (QCOM) Remains in Spotlight Throughout September
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AAPL
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https://www.nasdaq.com/articles/qualcomm-qcom-remains-in-spotlight-throughout-september
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nan
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nan
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Qualcomm Incorporated QCOM shares have witnessed a rollercoaster ride in September, with the ebb and flow attributable to various macroeconomic developments and corporate achievements. While such ups and downs are part of a stock’s progression, the sudden turn of events often tests the stock's inherent strength to withstand the storm and its ability to come up trumps. We believe that Qualcomm has the requisite wherewithal to emerge victorious from the apparent upheaval and strike the right chords in the near future.
Early this month, Qualcomm and BMW Group extended their technology partnership to redefine the automotive landscape. The collaboration is set to power BMW's new vehicles with Qualcomm’s Snapdragon Digital Chassis Solution. It aims to provide drivers and passengers with safer, smarter and more sophisticated in-vehicle experiences. BMW has chosen Qualcomm as its systems solution provider, incorporating the latest Snapdragon Cockpit Platform and Snapdragon Auto Connectivity Platforms for 5G connectivity.
One key aspect of this partnership is the integration of Snapdragon Cockpit Platforms into new BMW vehicles and MINI's New Family vehicles. These platforms enhance the user experience by offering high-definition graphics, premium audio, crystal-clear voice communication and AI-driven features. As Qualcomm continues to innovate and collaborate, it is poised to reap the rewards of a dynamic and evolving automotive landscape.
During the month, Qualcomm inked an agreement with Manchester United plc MANU to be the official shirt sponsor from next season. Per the deal, effective from the start of the 2024-25 season, the Snapdragon brand of Qualcomm will be put in front of the iconic jerseys of the English Premier League (“EPL”) club. Snapdragon will feature on all the home, away and third kits of the men’s and women’s teams of Manchester United, replacing Germany-based software firm TeamViewer. Although no official deal value is currently available, people familiar with the proceedings have billed it to be one of the largest jersey deals in soccer.
The three-year agreement with one of the premier EPL soccer clubs with a dedicated fanbase is likely to prove beneficial for Qualcomm and augment its global exposure. Manchester United historically sells around 2 million shirts each year on average, with the club maintaining a rich legacy and huge fan-following base across the globe. This, in turn, is likely to provide additional mileage for upcoming Snapdragon models with top-of-the-mind recall and boost its brand presence.
The deal gains further significance as Qualcomm chips will be featured in the upcoming iPhone models with a renewed deal inked with Apple Inc. AAPL. The chipmaker entered into a multi-year agreement with Apple to supply Snapdragon 5G Modem-RF systems for forthcoming iPhones.
In addition to incremental revenues, the deal augments QCOM's leadership position across 5G technologies and products. It also gains weightage as the chipmaker is expected to record softer revenues from China owing to strict restrictions on iPhone usage. Per various media reports, Beijing is mulling to impose a ban on the use of iPhones in government offices and state-backed entities as part of its concerted effort toward self-reliance. The restrictions on Apple are likely to have a profound effect on Qualcomm, which is one of the leading suppliers to the iPhone manufacturing firm.
Over the years, China has been one of the primary markets for Apple. As the news of the purported ban spread like wildfire, Apple’s shares slumped and wiped nearly $200 billion in market capitalization. This further affected its suppliers like Qualcomm, among others. Qualcomm modems have been a key feature in iPhone models, connecting the device to cellular networks for fast web browsing and instant app access. Built on indigenous technology that requires specialized engineering expertise and broad industry know-how, these modems have been the hallmark of impeccable performance standards.
Moreover, as China accounts for the lion’s share of Qualcomm’s revenues, any disruption in local operation is bound to have a ripple effect across the company. The chip-making firm has a significant presence in more than 12 cities in China, aiming to drive advancements in semiconductors and mobile telecommunications for the larger benefit. The company has been a key supplier of chips and other related components to local smartphone manufacturers like Xiaomi, Huawei and its spin-off brand Honor. However, it appears that Qualcomm is increasingly finding it difficult to maintain its operations in China.
Much of these hardships can be attributed to the continued Sino-U.S. trade spat. The U.S. Commerce Department has long imposed various trade restrictions against China that banned the sale of high-tech equipment, chips, components and related technology to develop high-end smartphones and AI-enabled chips. Despite adding China-based Huawei to the ‘Entity List,’ the newly developed Huawei Mate 60 smartphone is believed to have violated the U.S. trade sanctions. This has forced the U.S. watchdog to enforce stricter trade restrictions while conducting the authenticity of the trade violations.
Qualcomm is reportedly undertaking job cuts and retrenchments to sustain its business in China. Local media reports claim that the company has laid off dozens of people from its research and development facility in Shanghai, raising questions about its long-term viability plans.
In the backdrop of these events, we believe that the company will strive to maintain an optimum balance between its China operations and conforming to the national interests of both countries. Although shares did have a knee-jerk reaction triggered by the sudden developments, we expect the company to retrace its growth trajectory in the near future.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Manchester United Ltd. (MANU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The deal gains further significance as Qualcomm chips will be featured in the upcoming iPhone models with a renewed deal inked with Apple Inc. AAPL. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Manchester United Ltd. (MANU) : Free Stock Analysis Report To read this article on Zacks.com click here. Per the deal, effective from the start of the 2024-25 season, the Snapdragon brand of Qualcomm will be put in front of the iconic jerseys of the English Premier League (“EPL”) club.
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The deal gains further significance as Qualcomm chips will be featured in the upcoming iPhone models with a renewed deal inked with Apple Inc. AAPL. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Manchester United Ltd. (MANU) : Free Stock Analysis Report To read this article on Zacks.com click here. BMW has chosen Qualcomm as its systems solution provider, incorporating the latest Snapdragon Cockpit Platform and Snapdragon Auto Connectivity Platforms for 5G connectivity.
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The deal gains further significance as Qualcomm chips will be featured in the upcoming iPhone models with a renewed deal inked with Apple Inc. AAPL. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Manchester United Ltd. (MANU) : Free Stock Analysis Report To read this article on Zacks.com click here. BMW has chosen Qualcomm as its systems solution provider, incorporating the latest Snapdragon Cockpit Platform and Snapdragon Auto Connectivity Platforms for 5G connectivity.
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The deal gains further significance as Qualcomm chips will be featured in the upcoming iPhone models with a renewed deal inked with Apple Inc. AAPL. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Manchester United Ltd. (MANU) : Free Stock Analysis Report To read this article on Zacks.com click here. BMW has chosen Qualcomm as its systems solution provider, incorporating the latest Snapdragon Cockpit Platform and Snapdragon Auto Connectivity Platforms for 5G connectivity.
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13321.0
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2023-10-02 00:00:00 UTC
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Technology Sector Update for 10/02/2023: WIT, ACN, AAPL, XLK, XSD
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-02-2023%3A-wit-acn-aapl-xlk-xsd
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nan
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nan
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Technology stocks were mixed premarket Monday as the Technology Select Sector SPDR Fund (XLK) was down 0.1% and the SPDR S&P Semiconductor ETF (XSD) was up 0.1% recently.
Wipro's (WIT) Rizing will be offering PlanSource's artificial intelligence technology through human resource management platforms as part of a new partnership, the companies said. Wipro was over 1% higher pre-bell.
Accenture (ACN) was down nearly 1% after saying it acquired SIGNAL, an integrated marketing firm in Japan. Financial terms weren't disclosed.
Apple's (AAPL) objections to a penalty of 50 million euros ($52.7 million) have been rejected, the Netherlands Authority for Consumers and Markets said. Apple was declining 0.04% pre-bell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple's (AAPL) objections to a penalty of 50 million euros ($52.7 million) have been rejected, the Netherlands Authority for Consumers and Markets said. Technology stocks were mixed premarket Monday as the Technology Select Sector SPDR Fund (XLK) was down 0.1% and the SPDR S&P Semiconductor ETF (XSD) was up 0.1% recently. Wipro's (WIT) Rizing will be offering PlanSource's artificial intelligence technology through human resource management platforms as part of a new partnership, the companies said.
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Apple's (AAPL) objections to a penalty of 50 million euros ($52.7 million) have been rejected, the Netherlands Authority for Consumers and Markets said. Technology stocks were mixed premarket Monday as the Technology Select Sector SPDR Fund (XLK) was down 0.1% and the SPDR S&P Semiconductor ETF (XSD) was up 0.1% 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's (AAPL) objections to a penalty of 50 million euros ($52.7 million) have been rejected, the Netherlands Authority for Consumers and Markets said. Technology stocks were mixed premarket Monday as the Technology Select Sector SPDR Fund (XLK) was down 0.1% and the SPDR S&P Semiconductor ETF (XSD) was up 0.1% recently. Wipro's (WIT) Rizing will be offering PlanSource's artificial intelligence technology through human resource management platforms as part of a new partnership, the companies said.
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Apple's (AAPL) objections to a penalty of 50 million euros ($52.7 million) have been rejected, the Netherlands Authority for Consumers and Markets said. Technology stocks were mixed premarket Monday as the Technology Select Sector SPDR Fund (XLK) was down 0.1% and the SPDR S&P Semiconductor ETF (XSD) was up 0.1% recently. Wipro's (WIT) Rizing will be offering PlanSource's artificial intelligence technology through human resource management platforms as part of a new partnership, the companies said.
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13322.0
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2023-10-02 00:00:00 UTC
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Microsoft CEO testifies at once-in-a-generation US Google antitrust trial
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AAPL
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https://www.nasdaq.com/articles/microsoft-ceo-testifies-at-once-in-a-generation-us-google-antitrust-trial
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nan
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nan
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By Diane Bartz
WASHINGTON, Oct 2 (Reuters) - The U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O gets some star power on Monday when Microsoft MSFT.O chief executive Satya Nadella takes the witness stand.
The government is likely to ask Nadella about the obstacles posed by Google's dominance as Microsoft sought to grow Edge and Bing, its browser and search engine.
The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default search engine on their devices. The clout in search makes Google a heavy hitter in the lucrative advertising market, boosting its profits.
Google has sought to show that the quality of its products are the reason for its success rather than illegal behavior.
Nadella became CEO of Microsoft in 2014, long after the tech giant had faced its own federal antitrust lawsuit. That court fight, which began in 1998 and ended in a 2001 settlement, forced Microsoft to end some business practices and opened the door to companies like Google.
As Google, which was founded in 1998, became an industry leading search engine, the two became bitter rivals. Both have browsers, search engines, email services and a host of other overlaps. They have recently become rivals in artificial intelligence, with Microsoft investing heavily in OpenAI and Google building the Bard AI chatbot among other investments.
(Reporting by Diane Bartz; editing by Christina Fincher)
((Diane.Bartz@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default search engine on their devices. By Diane Bartz WASHINGTON, Oct 2 (Reuters) - The U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O gets some star power on Monday when Microsoft MSFT.O chief executive Satya Nadella takes the witness stand. The government is likely to ask Nadella about the obstacles posed by Google's dominance as Microsoft sought to grow Edge and Bing, its browser and search engine.
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The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default search engine on their devices. The government is likely to ask Nadella about the obstacles posed by Google's dominance as Microsoft sought to grow Edge and Bing, its browser and search engine. Both have browsers, search engines, email services and a host of other overlaps.
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The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default search engine on their devices. By Diane Bartz WASHINGTON, Oct 2 (Reuters) - The U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O gets some star power on Monday when Microsoft MSFT.O chief executive Satya Nadella takes the witness stand. The government is likely to ask Nadella about the obstacles posed by Google's dominance as Microsoft sought to grow Edge and Bing, its browser and search engine.
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The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple AAPL.O and wireless carriers like AT&T T.N and others to be the default search engine on their devices. By Diane Bartz WASHINGTON, Oct 2 (Reuters) - The U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O gets some star power on Monday when Microsoft MSFT.O chief executive Satya Nadella takes the witness stand. The government is likely to ask Nadella about the obstacles posed by Google's dominance as Microsoft sought to grow Edge and Bing, its browser and search engine.
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13323.0
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2023-10-02 00:00:00 UTC
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US STOCKS-Nasdaq, S&P 500 rise ahead of comments from Fed Chair Powell
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-sp-500-rise-ahead-of-comments-from-fed-chair-powell
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nan
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nan
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By Shubham Batra and Shashwat Chauhan
Oct 2 (Reuters) - The tech-heavy Nasdaq and the S&P 500 rose on Monday as most growth stocks gained, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path.
Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 2.0%.
Nvidia NVDA.O rose 3.1% after Goldman Sachs added the chipmaker's stock to its conviction list.
Limiting gains in the S&P 500, TeslaTSLA.O dipped 0.7% after the EV maker missed market estimates for third-quarter deliveries.
Information technology stocks .SPLRCT jumped 1.2% while utilities .SPLRCU, often considered as a bond proxy, were the top decliner amongst the major S&P 500 sectors, down 2.6%.
Investors await Powell and Philadelphia Fed President Patrick Harker's comments during a roundtable discussion, due 11 a.m. ET. Cleveland Fed President Loretta Mester will also speak later in the day.
A final estimate of S&P Global September Manufacturing Purchasing Managers' Index (PMI) came in at 49.8, versus a preliminary estimate of 48.9 released in September.
Separately, the Institute for Supply Management (ISM) said on Monday that its manufacturing PMI increased to 49.0 last month, the highest reading since November 2022, from 47.6 in August.
Traders' bets on the benchmark rate remained unchanged for November and December at nearly 69% and 55%, respectively, according to CME's FedWatch tool, while they have priced in a 25-basis-point rate cut as early as March.
"The Fed has said that their target is still 2% and they are still long ways away from getting inflation really going in the direction that they want," said Russell Hackmann, President of Hackmann Wealth Partners.
Yield on the 10-year Treasury note US10YT=RR edged up on Monday, touching 16-year highs again, while the yield on the 2-year note, which best reflects interest rate expectations, remained above 5%. US/
Investors await job openings data on Tuesday leading to the crucial monthly jobs report at the end of the week for more clues on the Fed's interest-rate path.
U.S. stocks ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer amid a recent rally in crude prices fueling inflation concerns. O/R
Relieving some concerns, the Congress on Saturday passed a stopgap funding bill with overwhelming Democratic support after Republican House Speaker Kevin McCarthy backed down from an earlier demand by his party's hardliners for a partisan bill.
At 10:04 a.m. ET, the Dow Jones Industrial Average .DJI was down 55.31 points, or 0.17%, at 33,452.19, the S&P 500 .SPX was up 7.16 points, or 0.17%, at 4,295.21, and the Nasdaq Composite .IXIC was up 100.19 points, or 0.76%, at 13,319.51.
CoinbaseCOIN.O climbed 4.1% after the cryptocurrency exchange got the Singapore payments' licence from the city-state's central bank.
ViatrisVTRS.O added 4.0% after the drugmaker on Sunday said it had reached agreements to divest some of its businesses for up to $3.6 billion.
Declining issues outnumbered advancers by a 2.52-to-1 ratio on the NYSE and by a 1.67-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 33 new lows, while the Nasdaq recorded 16 new highs and 109 new lows.
(Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
((Shubham.Batra@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 stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 2.0%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The tech-heavy Nasdaq and the S&P 500 rose on Monday as most growth stocks gained, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. Separately, the Institute for Supply Management (ISM) said on Monday that its manufacturing PMI increased to 49.0 last month, the highest reading since November 2022, from 47.6 in August.
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Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 2.0%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The tech-heavy Nasdaq and the S&P 500 rose on Monday as most growth stocks gained, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. A final estimate of S&P Global September Manufacturing Purchasing Managers' Index (PMI) came in at 49.8, versus a preliminary estimate of 48.9 released in September.
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Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 2.0%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The tech-heavy Nasdaq and the S&P 500 rose on Monday as most growth stocks gained, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. US/ Investors await job openings data on Tuesday leading to the crucial monthly jobs report at the end of the week for more clues on the Fed's interest-rate path.
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Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 2.0%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The tech-heavy Nasdaq and the S&P 500 rose on Monday as most growth stocks gained, while investors awaited comments from Federal Reserve Chair Jerome Powell and more data this week to gauge the central bank's interest-rate path. A final estimate of S&P Global September Manufacturing Purchasing Managers' Index (PMI) came in at 49.8, versus a preliminary estimate of 48.9 released in September.
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13324.0
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2023-10-02 00:00:00 UTC
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US STOCKS-Futures mixed as investors await more data, comments from Fed officials
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-mixed-as-investors-await-more-data-comments-from-fed-officials
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nan
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nan
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By Shubham Batra and Shashwat Chauhan
Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook.
Powell and Philadelphia Fed President Patrick Hasker will speak at a roundtable discussion, due 11 a.m. ET, with local employers and small business owners on efforts to grow the economy.
Later in the day, Cleveland Fed President Loretta Mester will speak on the outlook for the U.S. economy.
All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns. O/R
A slew of economic data including U.S. manufacturing activity and the crucial monthly jobs reports at the end of the week is on investors' radar for more clues on the Fed's interest-rate path.
"Last week's inflation data suggested that while the Fed has made considerable progress against untoward levels of inflation, it still has more work to do before it can declare an end to the current rate hike cycle or even initiate an extended pause," John Stoltzfus, CIO at Oppenheimer Asset Management wrote in a note.
Traders' bets on the benchmark rate remaining unchanged in November and December stood at nearly 74% and 55%, respectively, according to CME's FedWatch tool, while a 25-basis-point rate cut is being priced in as early as March.
Meanwhile, the Congress on Saturday passed a stopgap funding bill with overwhelming Democratic support after Republican House Speaker Kevin McCarthy backed down from an earlier demand by his party's hardliners for a partisan bill.
Yields on the 10-year Treasury note edged higher on Monday, with the 2-year note, which best reflects interest rate expectations, still above 5%. US/
At 6:59 a.m. ET, Dow e-minis 1YMcv1 were down 12 points, or 0.04%, S&P 500 e-minis EScv1 were up 0.5 points, or 0.01%, and Nasdaq 100 e-minis NQcv1 were up 25 points, or 0.17%.
Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Microsoft MSFT.O rose between 0.1% and 0.5% in premarket trading.
Crypto-linked stocks including Riot Platforms RIOT.O, Marathon Digital MARA.O and U.S.-listed shares of Hut 8 Mining HUT.TO were up between 7.4% and 8.7% after bitcoin BTC=BTSP hit near two-month highs.
Shares of CoinbaseCOIN.O climbed 5.4% after the cryptocurrency exchange got the Singapore payments licence from the city-state's central bank.
Cybersecurity firm Zscaler ZS.O jumped 3.1%, while cloud security platform Datadog DDOG.O advanced 2.4% after brokerage Piper Sandler upgraded the stocks to "overweight" from "neutral".
Nvidia NVDA.O rose 1.2% on a report saying Goldman Sachs had upgraded the chipmaker's stock to "conviction buy".
Rivian Automotive RIVN.O advanced 4.2% after Evercore ISI raised the EV maker's stock to "outperform" from "in line".
(Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
((Shubham.Batra@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 stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Microsoft MSFT.O rose between 0.1% and 0.5% in premarket trading. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
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Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Microsoft MSFT.O rose between 0.1% and 0.5% in premarket trading. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
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Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Microsoft MSFT.O rose between 0.1% and 0.5% in premarket trading. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
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Megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O and Microsoft MSFT.O rose between 0.1% and 0.5% in premarket trading. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - Wall Street index futures were subdued on Monday ahead of comments from Federal Reserve officials including Chair Jerome Powell, while investors looked forward to more economic data this week to gauge the central bank's interest-rate outlook. All three major stock indexes ended the July-September period lower to log their first quarterly decline in 2023 as investors grappled with the prospects of interest rates remaining higher for longer, with a recent rally in crude prices fueling inflation concerns.
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13325.0
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2023-10-02 00:00:00 UTC
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Dutch regulator rejects Apple’s objections against fines
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AAPL
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https://www.nasdaq.com/articles/dutch-regulator-rejects-apples-objections-against-fines
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nan
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nan
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Adds more detail and background
AMSTERDAM, Oct 2 (Reuters) - Dutch competition watchdog ACM on Monday said it had rejected objections by Apple AAPL.O against fines of 50 million euros ($52.9 million) it had given the company over failure to comply with regulations aimed at limiting the dominant position of Apple's App Store.
The ACM said Apple had by now complied with most of its demands to open its App Store to alternative forms of payment for dating apps in the Netherlands, but had not met an undisclosed third element of the conditions related to the fines.
The ACM in 2021 ruled that Apple violated Dutch competition laws in the dating app market and required Apple to allow developers of dating apps to use third-party payment processors.
It fined Apple 5 million euros per week, to a maximum of 50 million euros, for the time it failed to comply with these orders.
Apple has objected to these fines, saying that the regulator had incorrectly defined relevant markets and had overestimated the dominance of its position in the dating app market and the extent to which it might have abused this position.
The regulator rejected all of Apple's objections in a decision on July 13, 2023, which was published on Monday.
Apple has filed an appeal against the ruling, the ACM said.
($1 = 0.9454 euros)
(Reporting by Bart Meijer, Editing by Louise Heavens)
((Bart.Meijer@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 more detail and background AMSTERDAM, Oct 2 (Reuters) - Dutch competition watchdog ACM on Monday said it had rejected objections by Apple AAPL.O against fines of 50 million euros ($52.9 million) it had given the company over failure to comply with regulations aimed at limiting the dominant position of Apple's App Store. The ACM in 2021 ruled that Apple violated Dutch competition laws in the dating app market and required Apple to allow developers of dating apps to use third-party payment processors. The regulator rejected all of Apple's objections in a decision on July 13, 2023, which was published on Monday.
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Adds more detail and background AMSTERDAM, Oct 2 (Reuters) - Dutch competition watchdog ACM on Monday said it had rejected objections by Apple AAPL.O against fines of 50 million euros ($52.9 million) it had given the company over failure to comply with regulations aimed at limiting the dominant position of Apple's App Store. The ACM in 2021 ruled that Apple violated Dutch competition laws in the dating app market and required Apple to allow developers of dating apps to use third-party payment processors. It fined Apple 5 million euros per week, to a maximum of 50 million euros, for the time it failed to comply with these orders.
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Adds more detail and background AMSTERDAM, Oct 2 (Reuters) - Dutch competition watchdog ACM on Monday said it had rejected objections by Apple AAPL.O against fines of 50 million euros ($52.9 million) it had given the company over failure to comply with regulations aimed at limiting the dominant position of Apple's App Store. The ACM in 2021 ruled that Apple violated Dutch competition laws in the dating app market and required Apple to allow developers of dating apps to use third-party payment processors. Apple has objected to these fines, saying that the regulator had incorrectly defined relevant markets and had overestimated the dominance of its position in the dating app market and the extent to which it might have abused this position.
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Adds more detail and background AMSTERDAM, Oct 2 (Reuters) - Dutch competition watchdog ACM on Monday said it had rejected objections by Apple AAPL.O against fines of 50 million euros ($52.9 million) it had given the company over failure to comply with regulations aimed at limiting the dominant position of Apple's App Store. The ACM in 2021 ruled that Apple violated Dutch competition laws in the dating app market and required Apple to allow developers of dating apps to use third-party payment processors. ($1 = 0.9454 euros) (Reporting by Bart Meijer, Editing by Louise Heavens) ((Bart.Meijer@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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13326.0
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2023-10-02 00:00:00 UTC
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Is Invesco FTSE RAFI US 1000 ETF (PRF) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now-9
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nan
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nan
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The Invesco FTSE RAFI US 1000 ETF (PRF) made its debut on 12/19/2005, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $5.88 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. PRF seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.39%, making it on par with most peer products in the space.
PRF's 12-month trailing dividend yield is 1.98%.
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.
PRF's heaviest allocation is in the Financials sector, which is about 19.60% of the portfolio. Its Information Technology and Healthcare round out the top three.
When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.95% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
PRF's top 10 holdings account for about 18.53% of its total assets under management.
Performance and Risk
The ETF return is roughly 4.05% so far this year and is up about 15.41% in the last one year (as of 10/02/2023). In the past 52-week period, it has traded between $28.10 and $33.99.
PRF has a beta of 1 and standard deviation of 16.61% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1012 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $48.04 billion in assets, Vanguard Value ETF has $97.60 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.95% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Invesco FTSE RAFI US 1000 ETF (PRF) made its debut on 12/19/2005, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.95% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Alternatives Invesco FTSE RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market.
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Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.95% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index.
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When you look at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.95% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Invesco FTSE RAFI US 1000 ETF (PRF) made its debut on 12/19/2005, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
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13327.0
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2023-10-02 00:00:00 UTC
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Will iPhone 15 Issues Harm Apple (NASDAQ:AAPL) Stock?
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AAPL
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https://www.nasdaq.com/articles/will-iphone-15-issues-harm-apple-nasdaq%3Aaapl-stock
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nan
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nan
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Apple (NASDAQ:AAPL) recently unveiled four new models of the iPhone 15. Soon after the launch, AAPL stock closed lower as the company did not increase the prices of the iPhone 15 Pro and Pro Max (its pricier versions) as many expected. Further, overheating issues in the new models spell unfavorable news for the company. Despite these issues, analysts see strong demand for the iPhone 15 as driving its financials and share price.
For example, on September 19, Goldman Sachs analyst Mike Ng wrote to investors that the new iPhone 15 models are witnessing a notable increase in lead times. The analyst is encouraged by the increased lead times and sees this as an indicator of strong demand for all iPhone 15 models, particularly in China. Mike is bullish about AAPL stock and recommends a price target of $216.
Echoing similar sentiments, Morgan Stanley analyst Erik Woodring reiterated a Buy on Apple stock on September 25. Woodring is encouraged by early demand trends for the iPhone 15.
While analysts are bullish about the iPhone 15’s prospects, the company plans to release an iOS 17 software update to tackle the overheating issues related to the iPhone 15. Apple informed several media companies that the overheating problems can be attributed to various factors, including a software bug within iOS 17. Further, it clarified that the heat-related issues are not caused by the new titanium design.
With this backdrop, let’s look at what the Street recommends for Apple stock.
Is Apple a Buy, Sell, or Hold?
Analysts are encouraged by early demand trends for the iPhone 15. Meanwhile, its large installed base of devices and strength in its service revenue are positives. However, increased competition, macro uncertainty, and Apple’s premium valuation keep analysts cautiously optimistic in the near term.
Apple stock carries a Moderate Buy consensus rating on TipRanks based on 21 Buy and eight Hold recommendations. Analysts’ average price target of $207.69 implies 21.31% upside potential from current levels.
Bottom Line
Apple is a solid long-term stock. Given its large installed base, growing services business, and substantial cash flows, Apple is poised to enhance its shareholders' returns. However, near-term headwinds and recent appreciation in its share price could limit the upside in Apple stock, as reflected by analysts' Moderate Buy consensus rating.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL) recently unveiled four new models of the iPhone 15. Soon after the launch, AAPL stock closed lower as the company did not increase the prices of the iPhone 15 Pro and Pro Max (its pricier versions) as many expected. Mike is bullish about AAPL stock and recommends a price target of $216.
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Mike is bullish about AAPL stock and recommends a price target of $216. Apple (NASDAQ:AAPL) recently unveiled four new models of the iPhone 15. Soon after the launch, AAPL stock closed lower as the company did not increase the prices of the iPhone 15 Pro and Pro Max (its pricier versions) as many expected.
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Apple (NASDAQ:AAPL) recently unveiled four new models of the iPhone 15. Soon after the launch, AAPL stock closed lower as the company did not increase the prices of the iPhone 15 Pro and Pro Max (its pricier versions) as many expected. Mike is bullish about AAPL stock and recommends a price target of $216.
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Mike is bullish about AAPL stock and recommends a price target of $216. Apple (NASDAQ:AAPL) recently unveiled four new models of the iPhone 15. Soon after the launch, AAPL stock closed lower as the company did not increase the prices of the iPhone 15 Pro and Pro Max (its pricier versions) as many expected.
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13328.0
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2023-10-02 00:00:00 UTC
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Is It Safe to Invest Today? Here Are 2 Better Questions to Ask
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AAPL
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https://www.nasdaq.com/articles/is-it-safe-to-invest-today-here-are-2-better-questions-to-ask
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nan
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nan
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It's only natural to worry about money. We all do it, however much we might like to pretend we don't.
Yet, this natural impulse can work against you when it comes to investing. By asking, "Is it safe to invest right now?" you might forget to ask two questions that are even more important.
Here's what they are.
Image source: Getty Images.
Are you diversified?
At the top of the list for any investor should be the question, "Am I diversified?" Many investors have fallen on hard times specifically because they did not ask this simple question.
In short, a diversified portfolio consists of stocks spread across multiple industries and sectors. Some should be large; some should be small. Some should be focused on growth, others on value.
Say you have a five-stock portfolio containing Apple, Microsoft, Tesla, Starbucks, and Bank of America. That portfolio is overweight tech and underweight healthcare, materials, and energy. Perhaps swapping out Apple for Eli Lilly would make sense, or maybe replacing Microsoft with ExxonMobil would be a step in the right direction.
Better yet, increasing the overall number of stocks would spread your risk among more names, thus lowering the chance that a one-off event could wreck your portfolio. In addition, sprinkling in some foreign stocks, precious metals, bonds, and cryptocurrencies can add further diversification.
Are you trying to time the market?
The second question investors should be asking -- particularly right now -- is whether they are trying to time the market. I'm sure you've heard it before, but it's worth repeating: Timing the market doesn't work. Numerous studies show it's better to stay invested long term. Nevertheless, it's human nature to think we can beat the odds.
Staying disciplined means buying whether market sentiment is high or in the dumps. It means letting your winners run and still believing in your laggards (assuming their fundamentals and your investing thesis remain intact).
Here's a case in point as to why letting winners run is better than trying to time the market: $10,000 invested in Apple stock in January 2013 would have grown to $46,380 by February 2020. An investor who sold shares on that date -- almost perfectly anticipating the COVID pandemic stock market correction would have recorded a 364% total return.
AAPL Total Return Level data by YCharts.
However, if that same investor had held their shares through to today, the investment would have grown to $104,870 -- a total return of 949%. In short, holding through the volatility of the pandemic almost tripled the total return -- demonstrating that letting winners run can make a huge difference.
AAPL Total Return Level data by YCharts.
All in all, regardless of what concerning signs pop up in the broader economic landscape, investors should keep researching and investing in great companies. Over the long run, those investments will pay off despite any short-term volatility that may -- or may not -- occur.
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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Jake Lerch has positions in Tesla. The Motley Fool has positions in and recommends Apple, Bank of America, Microsoft, Starbucks, 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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AAPL Total Return Level data by YCharts. Here's a case in point as to why letting winners run is better than trying to time the market: $10,000 invested in Apple stock in January 2013 would have grown to $46,380 by February 2020. An investor who sold shares on that date -- almost perfectly anticipating the COVID pandemic stock market correction would have recorded a 364% total return.
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AAPL Total Return Level data by YCharts. The Motley Fool has positions in and recommends Apple, Bank of America, Microsoft, Starbucks, and Tesla.
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AAPL Total Return Level data by YCharts. Here's a case in point as to why letting winners run is better than trying to time the market: $10,000 invested in Apple stock in January 2013 would have grown to $46,380 by February 2020. An investor who sold shares on that date -- almost perfectly anticipating the COVID pandemic stock market correction would have recorded a 364% total return.
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AAPL Total Return Level data by YCharts. At the top of the list for any investor should be the question, "Am I diversified?" In short, holding through the volatility of the pandemic almost tripled the total return -- demonstrating that letting winners run can make a huge difference.
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13329.0
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2023-10-02 00:00:00 UTC
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GRAPHIC-How China-West tensions will shape global markets
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AAPL
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https://www.nasdaq.com/articles/graphic-how-china-west-tensions-will-shape-global-markets
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nan
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nan
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By Naomi Rovnick and Dhara Ranasinghe
LONDON, Oct 2 (Reuters) - Tensions between the West and China are rising, from tit-for-tat trade tariffs to tech rivalry and spying allegations.
The ramifications for global markets are significant, with Washington and Beijing's determination to loosen dependence on each other fraying long-established supply chains.
That could help keep inflation and interest rates elevated. Still, there are gains for emerging nations and tech giants on the right side of the power battle.
Here's how Western-China tensions are shaping markets.
1. HELLO INFLATION
U.S. President Joe Biden is determined to bring manufacturing in strategic sectors such as electric vehicles and semiconductors back home.
TSMC .2330, the world's largest chipmaker, is moving some productionto Germany to satisfy multinationals' need to diversify supply chains from China.
Goldman Sachs research found that bringing production home may have inflationary repercussions, particularly if Western manufacturing does not ramp up quickly enough to offset declining imports.
"We built a globalised world for a reason, it was efficient and cheap," said Wouter Sturkenboom, chief investment strategist for EMEA and APAC at Northern Trust.
"If we unwind some of that, it will add cost."
Prolonged U.S. inflation also means rates staying higher for longer, boosting the dollar.
A stronger dollar can export inflation to resource-importing nations in Europe by forcing them to pay more for commodities priced in dollars.
Many central banks target 2% inflation; market gauges of traders' long-term U.S. and European inflation expectations are running higher USIL5YF5Y=R, EUIL5YF5Y=R.
2. FRIENDSHORING
Washington is pushing "friendshoring" - the idea of replacing China's role in supply chains with friendly nations.
Research led by Harvard Business School's Laura Alfaro identifies Vietnam and Mexico as the major beneficiaries of the U.S. supply chain shift so far.
Mongolia is seeking U.S. investment in mining rare earths, materials used in high-tech products such as smartphones. The Philippines is courting U.S. infrastructure investment.
Anna Rosenberg, head of geopolitics at the Amundi Investment Institute, said Sino-U.S. tensions, provide a "new lens" through which to analyse emerging markets' growth prospects.
3. INDIA RUSH
India is viewed as the most able to compete with China in low-cost, large-scale manufacturing. Its large, young population and a burgeoning middle class also creates opportunities for multinationals seeing less business in China.
Indian stocks have rallied 8% this year .BSESN and the prospect of investor flows into the bond market just got a boost from JPMorgan's plan to include India in a key government bond index next year.
"India is a very large opportunity," said Christopher Rossbach, chief investment officer at asset manager J. Stern. "The global companies we are invested in are working on it."
India's central bank forecasts that the economy will expand 6.5% this fiscal year, while China is expected to grow around 5% this year.
Barclays reckons that if India raises its annual economic growth closer to 8% over the next five years, it would be in a position to become the biggest contributor to global growth.
4. CHIPS TO COUTURE
A China-West clash creates winners and losers on both sides.
The EU is investigating whether to impose punitive tariffs against Chinese electric vehicle imports it says benefit from excessive state subsidies.
U.S. subsidies for domestic semiconductor manufacturing have boosted Intel's shares INTC.O. But the performance of big U.S. tech stocks and global share indices are vulnerable to signs of Chinese retaliation.
Apple AAPL.O stock slid by more than 6% over two days in early September on reports that Beijing would ban government workers from using iPhones.
With China the world's dominant buyer of luxury goods, Western fashion houses are also ensnared in politics. China's top anti-corruption watchdog has vowed to eliminate what it calls the hedonism of Western elites. Chinese banks have told staff not to wear European luxury items at work.
"Higher levels of government scrutiny have started to weigh on the spending of more affluent (Chinese) consumers," Barclays analysts Carole Madjo and Wendy Liu said in a note.
Luxury sector shares surged as China loosened COVID-19 restrictions in early 2023. Since then, with China's economy in the doldrums and tensions with the West ratcheting up, they have slumped. European luxury stocks slid 16% in Q3 .STXLUXL.
5. SELL CHINA?
A faltering economy and property market turmoil mean the bearish China investment case extends beyond politics.
But the prospect of continued tariffs and the hassle of navigating U.S. restrictions on investing in Chinese technology does not help.
With China underperforming global stocks, investors are split on how to approach this market.
A JPMorgan survey of credit investors found that 40% were bearish on China, but almost the same proportion wanted to increase allocations.
"I'm actually warming to China because everyone hates (this market) so much," said RW Baird vice chair of equities Patrick Spencer. "Market expectations are really severe and the reality is slightly better."
Inflation expected to remain above central banks’ targets https://tmsnrt.rs/3ryLDcI
US imports have diversified away from China https://tmsnrt.rs/3t8fRnB
India eco data https://tmsnrt.rs/48ta0cy
Loss of grandeur https://tmsnrt.rs/3ZykQKg
China equities have trailed global stocks https://tmsnrt.rs/3rwcvdC
(Reporting by Naomi Rovnick and Dhara Ranasinghe; Graphics by Kripa Jayaram, Riddhima Talwani, Vineet Sachdev, Sumanta Sen and Pasit Kongkunakornkul; Editing by Louise Heavens)
((Naomi.Rovnick@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 stock slid by more than 6% over two days in early September on reports that Beijing would ban government workers from using iPhones. By Naomi Rovnick and Dhara Ranasinghe LONDON, Oct 2 (Reuters) - Tensions between the West and China are rising, from tit-for-tat trade tariffs to tech rivalry and spying allegations. Goldman Sachs research found that bringing production home may have inflationary repercussions, particularly if Western manufacturing does not ramp up quickly enough to offset declining imports.
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Apple AAPL.O stock slid by more than 6% over two days in early September on reports that Beijing would ban government workers from using iPhones. Many central banks target 2% inflation; market gauges of traders' long-term U.S. and European inflation expectations are running higher USIL5YF5Y=R, EUIL5YF5Y=R. Luxury sector shares surged as China loosened COVID-19 restrictions in early 2023.
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Apple AAPL.O stock slid by more than 6% over two days in early September on reports that Beijing would ban government workers from using iPhones. Indian stocks have rallied 8% this year .BSESN and the prospect of investor flows into the bond market just got a boost from JPMorgan's plan to include India in a key government bond index next year. A faltering economy and property market turmoil mean the bearish China investment case extends beyond politics.
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Apple AAPL.O stock slid by more than 6% over two days in early September on reports that Beijing would ban government workers from using iPhones. Many central banks target 2% inflation; market gauges of traders' long-term U.S. and European inflation expectations are running higher USIL5YF5Y=R, EUIL5YF5Y=R. Luxury sector shares surged as China loosened COVID-19 restrictions in early 2023.
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13330.0
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2023-10-02 00:00:00 UTC
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Warner Bros. Discovery's (WBD) REAL TIME WITH BILL MAHER Returns
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AAPL
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https://www.nasdaq.com/articles/warner-bros.-discoverys-wbd-real-time-with-bill-maher-returns
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nan
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nan
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Warner Bros. Discovery WBD announced the return of HBO’s well-known podcast, REAL TIME WITH BILL MAHER. Allowing Maher to offer his unique perspective on contemporary issues, the show, which returned on Sep 29, continues with its opening monologue, one-on-one interviews with notable guests, roundtable discussions with panelists and its signature New Rules. The series airs on HBO and is available to stream on Max.
In the upcoming episode, there will be a one-on-one interview with Gov. Ron DeSantis, the Republican Governor of Florida, who is currently seeking the 2024 Republican presidential nomination.
The panel discussion for this week includes Sam Harris, the host of the Making Sense podcast, and Mary Katharine Ham, the co-host of the Getting Hammered podcast. Another panelist is the author of End of Discussion: How The Left's Outrage Industry Suppresses Debate, Influences Voters, and Diminishes Freedom (and Enjoyment) in America.
Bill Maher headlined his inaugural special on the network back in 1989 and has been the featured star in a total of 12 solo specials on HBO to date.
Warner Bros. Discovery, Inc. Price and Consensus
Warner Bros. Discovery, Inc. price-consensus-chart | Warner Bros. Discovery, Inc. Quote
WBD’s Recent Podcasts to Fend Off Competitors
Warner Bros. Discovery’s recent podcasts like Succession, Last Call and The Last Of Us have been received well by subscribers. It is expected to give tough competition to giants like Spotify SPOT, Apple AAPL and Alphabet GOOGL.
Spotify, being one of the most popular platforms for podcasts, is a specialist in this market. It is mostly based on exclusive stories from artists and creators as well as insights on culture and community. Its recent podcasts include Discover This, Mic Check and For The Record.
Apple Podcasts is an audio streaming service and media player application developed by Apple for playing podcasts. It is well known as it comes pre-installed with all the apple products. Its recent podcasts include weekly podcasts from The Economic times, money control and Finshots.
Google Podcasts is a podcast application developed by Google, which was released on Jun 18, 2018, for Android devices. It is set to be shifted to YouTube in the upcoming year. Its top podcasts include Stuff You Should Know, 3 Things and The Daily.
HBO podcasts offer listeners the chance to further immerse themselves in the worlds created by HBO shows. Whether it's delving into the creative process, exploring theories, finding answers, or listening to insights from cast and crew members about their journeys, these HBO podcasts serve as ideal companions for fans who crave more from their favorite HBO series.
This is expected to boost the company’s direct-to-consumer (DTC) subscribers and revenues in the upcoming quarters.
The Zacks Consensus Estimate for 2023 total DTC subscribers is pegged at 96,562, indicating year-over-year growth of 0.48%. The Zacks Consensus Estimate for revenues is pegged at $41.94 billion, indicating year-over-year growth of 24.01%.
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
Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
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Spotify Technology (SPOT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is expected to give tough competition to giants like Spotify SPOT, Apple AAPL and Alphabet GOOGL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Warner Bros. Allowing Maher to offer his unique perspective on contemporary issues, the show, which returned on Sep 29, continues with its opening monologue, one-on-one interviews with notable guests, roundtable discussions with panelists and its signature New Rules.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Warner Bros. It is expected to give tough competition to giants like Spotify SPOT, Apple AAPL and Alphabet GOOGL. The Zacks Consensus Estimate for 2023 total DTC subscribers is pegged at 96,562, indicating year-over-year growth of 0.48%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Warner Bros. It is expected to give tough competition to giants like Spotify SPOT, Apple AAPL and Alphabet GOOGL. Discovery, Inc. Quote WBD’s Recent Podcasts to Fend Off Competitors Warner Bros. Discovery’s recent podcasts like Succession, Last Call and The Last Of Us have been received well by subscribers.
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It is expected to give tough competition to giants like Spotify SPOT, Apple AAPL and Alphabet GOOGL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Warner Bros. Discovery WBD announced the return of HBO’s well-known podcast, REAL TIME WITH BILL MAHER.
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13331.0
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2023-10-02 00:00:00 UTC
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Wall Street Bulls Look Optimistic About Apple (AAPL): Should You Buy?
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AAPL
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https://www.nasdaq.com/articles/wall-street-bulls-look-optimistic-about-apple-aapl%3A-should-you-buy
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nan
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nan
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL).
Apple currently has an average brokerage recommendation (ABR) of 1.64, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.64 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 18 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 62.1% and 10.3% of all recommendations.
Brokerage Recommendation Trends for AAPL
Check price target & stock forecast for Apple here>>>
While the ABR calls for buying Apple, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is AAPL Worth Investing In?
Looking at the earnings estimate revisions for Apple, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $6.05.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Apple.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Brokerage Recommendation Trends for AAPL Is AAPL Worth Investing In?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Brokerage Recommendation Trends for AAPL Is AAPL Worth Investing In?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Brokerage Recommendation Trends for AAPL Is AAPL Worth Investing In?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Apple (AAPL). Brokerage Recommendation Trends for AAPL Is AAPL Worth Investing In?
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13332.0
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2023-10-02 00:00:00 UTC
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Technology Sector Update for 10/02/2023: SPOT, AAPL, JMIA, GOOG
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-02-2023%3A-spot-aapl-jmia-goog
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nan
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nan
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Tech stocks were mixed late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index down 0.2%.
In company news, Spotify (SPOT) is working on a new way to incorporate AI into its app, specifically in the creation of playlists powered by AI, Techcrunch reported Monday. Spotify shares rose almost 2%.
Jumia Technologies (JMIA) said it has reached an agreement with Elon Musk's Starlink to offer the Starlink Residential Kit in Africa. Jumia shares jumped 4.6%.
Alphabet's (GOOG) Google on Monday introduced the Chromebook Plus laptop series that features built-in Google applications and artificial intelligence capabilities. Alphabet shares added 2.2%.
Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Apple shares gained 1.1%.
The views and 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 considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Tech stocks were mixed late Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index down 0.2%. In company news, Spotify (SPOT) is working on a new way to incorporate AI into its app, specifically in the creation of playlists powered by AI, Techcrunch reported Monday.
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Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. In company news, Spotify (SPOT) is working on a new way to incorporate AI into its app, specifically in the creation of playlists powered by AI, Techcrunch reported Monday. Spotify shares rose almost 2%.
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Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. In company news, Spotify (SPOT) is working on a new way to incorporate AI into its app, specifically in the creation of playlists powered by AI, Techcrunch reported Monday. Jumia Technologies (JMIA) said it has reached an agreement with Elon Musk's Starlink to offer the Starlink Residential Kit in Africa.
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Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Spotify shares rose almost 2%. Jumia shares jumped 4.6%.
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13333.0
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2023-10-02 00:00:00 UTC
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Microsoft CEO calls Google mobile search argument 'bogus'
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AAPL
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https://www.nasdaq.com/articles/microsoft-ceo-calls-google-mobile-search-argument-bogus
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nan
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nan
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By Diane Bartz
WASHINGTON, Oct 2 (Reuters) - Microsoft MSFT.O chief executive Satya Nadella on Monday took the witness stand in the U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O.
Nadella said that Microsoft, itself a tech powerhouse, had sought to make its Bing search engine the default on Apple AAPL.O smartphones but was rebuffed.
Nadella dismissed an argument that Google has made, that it is easy to change defaults on devices, as "bogus".
"Changing defaults today is easiest on Windows and toughest on mobile," he said.
The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple and wireless carriers like AT&T T.N and others to be the default search engine on their devices. The clout in search makes Google a heavy hitter in the lucrative advertising market, boosting its profits.
Google has sought to show that the quality of its products are the reason for its success rather than illegal behavior.
Nadella became CEO of Microsoft in 2014, long after the tech giant had faced its own federal antitrust lawsuit. That court fight, which began in 1998 and ended in a 2001 settlement, forced Microsoft to end some business practices and opened the door to companies like Google.
As Google, which was founded in 1998, became an industry leading search engine, the two became bitter rivals. Both have browsers, search engines, email services and a host of other overlaps. They have recently become rivals in artificial intelligence, with Microsoft investing heavily in OpenAI and Google building the Bard AI chatbot among other investments.
(Reporting by Diane Bartz; editing by Christina Fincher)
((Diane.Bartz@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nadella said that Microsoft, itself a tech powerhouse, had sought to make its Bing search engine the default on Apple AAPL.O smartphones but was rebuffed. By Diane Bartz WASHINGTON, Oct 2 (Reuters) - Microsoft MSFT.O chief executive Satya Nadella on Monday took the witness stand in the U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O. The clout in search makes Google a heavy hitter in the lucrative advertising market, boosting its profits.
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Nadella said that Microsoft, itself a tech powerhouse, had sought to make its Bing search engine the default on Apple AAPL.O smartphones but was rebuffed. The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple and wireless carriers like AT&T T.N and others to be the default search engine on their devices. The clout in search makes Google a heavy hitter in the lucrative advertising market, boosting its profits.
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Nadella said that Microsoft, itself a tech powerhouse, had sought to make its Bing search engine the default on Apple AAPL.O smartphones but was rebuffed. By Diane Bartz WASHINGTON, Oct 2 (Reuters) - Microsoft MSFT.O chief executive Satya Nadella on Monday took the witness stand in the U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O. The government has argued that Google, worth more than $1 trillion with some 90% of the search market, illegally paid $10 billion annually to smartphone makers like Apple and wireless carriers like AT&T T.N and others to be the default search engine on their devices.
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Nadella said that Microsoft, itself a tech powerhouse, had sought to make its Bing search engine the default on Apple AAPL.O smartphones but was rebuffed. By Diane Bartz WASHINGTON, Oct 2 (Reuters) - Microsoft MSFT.O chief executive Satya Nadella on Monday took the witness stand in the U.S. Justice Department's once-in-a-generation antitrust fight with Alphabet's Google GOOGL.O. Nadella dismissed an argument that Google has made, that it is easy to change defaults on devices, as "bogus".
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13334.0
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2023-10-02 00:00:00 UTC
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The 7 Top Stocks to Buy for a Q4 Rebound
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AAPL
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https://www.nasdaq.com/articles/the-7-top-stocks-to-buy-for-a-q4-rebound
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
September lived up to its billing as the worst month of the year. Pulled lowered by the threat of higher interest rates, a looming government shutdown, and rising energy prices, U.S. indices ended September in the red. However, there’s still reason for optimism for some of the market’s top stocks and indices. For one, the final three months of the year are historically the strongest.
Two, a government shutdown has been averted, which takes pressure off equities. Three, the U.S. Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures Price Index (PCE), just came in lower than expected. In addition, we’re about to get another round of earnings that could serve as another powerful catalyst. That being said, we wanted to take a look at some of the top stocks to watch, especially if markets are about to turn around.
Top Stocks: Nike (NKE)
Source: mimohe / Shutterstock.com
Nike (NYSE:NKE) just reported that its revenue jumped 2% for its fiscal first quarter from a year earlier to $12.9 billion. That was slightly less than the $13 billion expected on Wall Street. However, Nike’s earnings per share did come in at 94 cents, which was much better than the 76 cents that was expected.
Nike also reaffirmed both its fiscal second quarter and full-year guidance. First, the company announced that its inventories declined 10% in the latest quarter from a year earlier. Nike had been stuck with high inventory levels since the Covid-19 pandemic. Second, Nike said its sales in China increased 5% from a year earlier. There had been concerns about how the economic slowdown in China would impact Nike. NKE stock is still down 20% year to date. Buy the dip.
Costco (COST)
Source: ilzesgimene / Shutterstock.com
Costco (NASDAQ:COST) didn’t raise its membership fees or issue a special dividend as expected. However, the big box retailer managed to turn in a print that beat Wall Street expectations on both the top and bottom lines. Much of that being fueled by robust grocery sales. EPS came in at $4.86 as compared to expectations for $4.79. Revenue totaled $78.9 billion as compared to the $77.9 billion that was forecast.
Even better, the company said it ended its recent quarter with 71 million paid household members, up 8% from a year ago. Membership growth outpaced its rate of new store openings, which grew by 3%. And Costco executives said they plan to open 10 new stores in this year’s fourth quarter.
Top Stocks: Meta Platforms (META)
Source: Ascannio / Shutterstock.com
Meta Platforms (NASDAQ:META) just unveiled several new products that should keep its stock buoyant. For one, Meta introduced a new virtual reality headset and several artificial intelligence applications at its 2023 developer conference. The new Quest 3 VR headset, which will be available to consumers on Oct. 10, is priced at $499 and expected to be a hot item this holiday season.
The Quest 3 headset supports video games from Microsoft’s (NASDAQ:MSFT) Xbox. It’s also aimed at business users through a new platform called Meta Quest for Business that allows app and device management for corporate customers. The new headset comes months ahead of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset which is scheduled to be released in early 2024. Meta also unveiled a new version of its Ray-Ban mixed reality smart glasses that can capture photos and videos.
Peloton Interactive (PTON)
Source: JHVEPhoto / Shutterstock.com
It’s been a while since there’s been anything positive to say about Peloton Interactive (NASDAQ:PTON). The maker of Internet-connected treadmills and exercise bikes had fallen on hard times since the pandemic ended and people returned to the gym. However, PTON recently jumped 15% higher on news that the company struck a five-year partnership deal with Lululemon Athletica (NASDAQ:LULU). Under the terms of the deal, Peloton will become the exclusive provider of digital fitness content to Lululemon.
In turn, Lululemon will become Peloton’s primary apparel partner. Additionally, Lululemon will stop selling its Studio Mirror fitness device that directly competed against Peloton’s treadmills and exercise bikes. Lululemon will also discontinue its digital app-only membership tier on November 1 as part of the arrangement with Peloton. Eventually, Peloton will develop all content for Lululemon Studio, which, like Peloton, offers pre-recorded online fitness classes to users. Analysts hailed the deal as great news for Peloton, which has managed to neutralize one of its main competitors.
Top Stocks: General Mills (GIS)
Source: JHVEPhoto / Shutterstock.com
Food company General Mills (NYSE:GIS) also fell on hard times. However, it does appear to be redeeming itself. For one, the company just posted earnings that beat Wall Street forecasts across the board. For its fiscal 2024 first quarter, General Mills reported EPS of $1.09, which was slightly ahead of the consensus estimate among analysts of $1.08. Revenue in the quarter totaled $4.90 billion, which was better than the $4.88 billion that Wall Street analysts had penciled in for the company.
Two, General Mills, which makes Yoplait yogurt, Cheerios breakfast cereal, and Betty Crocker baking products, also reaffirmed its full-year guidance. The company said that it continues to expect that its profits will increase by 4% to 6% for its fiscal 2024 year. It also expects revenue to grow by 3% to 4%. Much like Costco, General Mills is a stock that will likely perform well even in the event that the economy tips into a recession.
Netflix (NFLX)
Source: izzuanroslan / Shutterstock.com
Netflix (NASDAQ:NFLX) dropped after a senior executive essentially lowered the company’s forward guidance. In fact, Netflix Chief Financial Officer Spencer Neumann lowered the guidance on the company’s operating margins. He also warned that the company’s new advertising business was not yet material to overall revenue, and said that there are no plans to add live sports to the streaming platform. These comments didn’t sit well with investors and traders, who bid the stock lower. However, Netflix’s upcoming earnings could surprise to the upside. Plus, the strike by Hollywood writers is now over, which can only help Netflix move forward.
GameStop (GME)
Lastly, we come to video game retailer and notorious meme stock GameStop (NYSE:GME). Of course, this name is not without risks. The company continues to struggle with a poorly executed turnaround strategy. However, the recent appointment of activist investor Ryan Cohen as GameStop’s new CEO has investors excited again.
We should also note that Cohen, who is already on the company’s board of directors, won’t receive any compensation for his expanded role as CEO, president, and executive chairman. Cohen’s appointment as CEO comes after GameStop fired former CEO Matthew Furlong in June. With that, investors should still proceed with caution.
On the date of publication, Joel Baglole held long positions in AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post The 7 Top Stocks to Buy for a Q4 Rebound 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 new headset comes months ahead of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset which is scheduled to be released in early 2024. On the date of publication, Joel Baglole held long positions in AAPL and MSFT. Pulled lowered by the threat of higher interest rates, a looming government shutdown, and rising energy prices, U.S. indices ended September in the red.
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The new headset comes months ahead of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset which is scheduled to be released in early 2024. On the date of publication, Joel Baglole held long positions in AAPL and MSFT. Top Stocks: Nike (NKE) Source: mimohe / Shutterstock.com Nike (NYSE:NKE) just reported that its revenue jumped 2% for its fiscal first quarter from a year earlier to $12.9 billion.
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The new headset comes months ahead of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset which is scheduled to be released in early 2024. On the date of publication, Joel Baglole held long positions in AAPL and MSFT. Top Stocks: Nike (NKE) Source: mimohe / Shutterstock.com Nike (NYSE:NKE) just reported that its revenue jumped 2% for its fiscal first quarter from a year earlier to $12.9 billion.
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The new headset comes months ahead of Apple’s (NASDAQ:AAPL) Vision Pro augmented reality headset which is scheduled to be released in early 2024. On the date of publication, Joel Baglole held long positions in AAPL and MSFT. Top Stocks: Nike (NKE) Source: mimohe / Shutterstock.com Nike (NYSE:NKE) just reported that its revenue jumped 2% for its fiscal first quarter from a year earlier to $12.9 billion.
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13335.0
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2023-10-02 00:00:00 UTC
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Apple Is a Magnificent Stock, But There Are 2 Big Reasons Investors Could Regret Buying It Right Now
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AAPL
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https://www.nasdaq.com/articles/apple-is-a-magnificent-stock-but-there-are-2-big-reasons-investors-could-regret-buying-it
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nan
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nan
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In the past 10 years, the Nasdaq Composite has produced a total return of 283%. That's respectable growth, to be fair. However, Apple (NASDAQ: AAPL) has crushed the broader index, soaring 895% over the same period.
An impressive return like that over a long time period usually happens because the underlying fundamentals are strong. Even the great investor Warren Buffett would agree with Apple's merits as it represents a whopping 46% of Berkshire Hathaway's portfolio.
There are some compelling characteristics that make this tech giant an incredible business. However, investors might regret buying the FAANG stock at present for two very important reasons.
Apple is a great company
In the tech sector, a company can really only find lasting success the way Apple has if it produces superior products and/or services. In this case, the business does both. Game-changing hardware, like the iPhone and Watch, and software (iOS and macOS) and services, including TV+, Music, Pay, and iCloud, make up the ecosystem, and have resulted in strong customer loyalty.
Consequently, Apple has become the strongest brand in the world. By Interbrand's estimates, it's worth $482 billion. Its premium standing helps it generate a gross margin that has averaged 40.7% in the past five years. Pricing power is one of the most attractive qualities about Apple. The new iPhone 15 Pro starts at $999, which is more expensive than a lot of laptops that are on the market.
Apple's iPhones command 21% of the global smartphone market on a unit basis, but account for 82% of the industry's operating profits. That's a clear indication of its premium status, a position management wants to maintain.
These qualitative factors have benefited the company from a financial perspective. Between fiscal 2012 and 2022, revenue and diluted earnings per share (EPS) have increased at compound annual rates of 9.7% and 14.5%, respectively. With that type of bottom-line gain, it's not a surprise that Apple produces enormous amounts of free cash flow, to the tune of $671 billion in the last 10 full fiscal years.
With financial figures like these, it's no wonder the stock has performed so well for investors.
Future returns could disappoint
There are numerous factors investors can point to that make Apple one of the world's greatest companies. But it might still be a smart idea to avoid buying shares right now. There are two reasons to think this way.
Take the current valuation. After the stock's outstanding rise in the past decade -- including a 31% gain just this year -- the shares definitely aren't cheap. They trade at a trailing price-to-earnings (P/E) ratio of 28.7, which is well above the historical 10-year average of 20.3. This means that prospective investors would have to pay a bloated valuation, a scenario that doesn't bode well for future returns. Paying that high a P/E multiple makes sense for a growth stock, but Apple doesn't fit in this category anymore.
And that brings me to the next reason to avoid the stock. That expensive valuation looks even less intriguing when you consider Apple's growth prospects. This is a business that's at a very mature stage of its lifecycle, even though it is still successfully introducing upgrades to existing products that see strong consumer demand. Double-digit annual revenue gains going forward might be out of the question.
But even if Apple can increase its EPS in the mid- to high teens, the high P/E ratio still adds downside risk if shareholders become disappointed with financial results. For a business that carries a market capitalization of nearly $2.7 trillion, investors need to be realistic about where the potential for market-beating returns could really come from now.
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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, Apple (NASDAQ: AAPL) has crushed the broader index, soaring 895% over the same period. Game-changing hardware, like the iPhone and Watch, and software (iOS and macOS) and services, including TV+, Music, Pay, and iCloud, make up the ecosystem, and have resulted in strong customer loyalty. With that type of bottom-line gain, it's not a surprise that Apple produces enormous amounts of free cash flow, to the tune of $671 billion in the last 10 full fiscal years.
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However, Apple (NASDAQ: AAPL) has crushed the broader index, soaring 895% over the same period. Apple is a great company In the tech sector, a company can really only find lasting success the way Apple has if it produces superior products and/or services. After the stock's outstanding rise in the past decade -- including a 31% gain just this year -- the shares definitely aren't cheap.
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However, Apple (NASDAQ: AAPL) has crushed the broader index, soaring 895% over the same period. Apple is a great company In the tech sector, a company can really only find lasting success the way Apple has if it produces superior products and/or services. Future returns could disappoint There are numerous factors investors can point to that make Apple one of the world's greatest companies.
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However, Apple (NASDAQ: AAPL) has crushed the broader index, soaring 895% over the same period. In this case, the business does both. That expensive valuation looks even less intriguing when you consider Apple's growth prospects.
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13336.0
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2023-10-02 00:00:00 UTC
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Here’s Why Cloudflare may be the Ultimate Cloud Stock to Own
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AAPL
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https://www.nasdaq.com/articles/heres-why-cloudflare-may-be-the-ultimate-cloud-stock-to-own
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nan
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nan
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Cloudflare Inc. (NYSE: NET) is the world's most connected cloud network, offering a serverless cloud architecture, security and artificial intelligence (AI) on the network edge to thousands of companies and millions of websites. It is a content-delivery-network (CDN) serving and partnering with e-commerce and internet giants like Alphabet Inc. (NASDAQ: GOOGL), Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX), TikTok, Twitch, Reddit and Spotify Technology S.A. (NYSE: SPOT).
Its cloud platform can host AI data at the network edge in addition to Internet-of-Things (IoT), software-as-a-service (SaaS), cloud and AI anywhere services.
What is Edge Computing?
Edge computing is about locating computing power and data closer to the sources of data, which improves latency, saves and improves bandwidth and bolsters response times. Edge computing also bolsters reliability, making applications less reliant on central servers. Devices ranging from microcontrollers, sensors, devices and machines to powerful servers are used to process and analyze data on the spot without relaying it back to a central server.
AI Cloud on the Edge
The promise of AI on the edge hopes to speed up computing while personalizing AI applications and services for users. Cloudflare is well-suited to accommodate AI data at the edge as it can handle complicated large language models. Cloudflare integrates AI and machine learning into its security, which has attracted AI companies to use the service.
It provides a full circle of benefits from AI training models to security and the network edge for inference performance, staying on the cusp of AI trends. It is positioned to benefit from the tailwinds shifting to AI edge networks from training models.
AI Edge Partnerships
Cloudflare announced many partnerships and collaborations on Sept. 27, 2023. The company recently announced a partnership with Nvidia Co. (NASDAQ: NVDA). Cloudflare powers hyper-local AI inference with Nvidia accelerated computing. Inference is the process of making decisions based on reasoning utilizing the available data. It announced a collaboration with Microsoft Co. (NASDAQ: MSFT) to enable AI models to run anywhere where processing makes sense.
Cloudflare leverages ONXX Runtime across the device, network edge and cloud from hyperscale cloud to hyper-distributed network edge to devices. This makes it easier for companies to deploy AI in any location most suitable for their needs.
It also announced a continued collaboration with Databricks to bring MLflow capabilities to Cloudflare's serverless developer platform. They also partnered with Hugging Face to run optimized AI models on its network.
Firing on All Cylinders
On August 3, 2023, Cloudflare reported non-GAAP Q2 2023 earnings of 10 cents per share, beating consensus analyst estimates for 7 cents per share by 3 cents. GAAP loss was $56.2 million or 18% of revenues. Revenues rose 32% YoY to $308.5 million, beating $305.57 million analyst estimates.
Lifting the Bar
Cloudflare raised its fiscal Q3 2023 EPS to 10 cents share versus 9 cents consensus analyst estimates. Revenue guidance was raised to $330 to $331 million versus $329.44 million analyst estimates. Full-year 2023 EPS was raised to 37 cents versus 34 cents analyst estimates on revenues between $1.283 to $1.287 billion versus $1.28 billion analyst estimates.
Cloudflare CEO Matthew Price commented, “Cloudflare is the most commonly used cloud provider across leading AI startups. In the second quarter alone, we shared ten major announcements and features to extend Cloudflare Workers as the preeminent development platform built for the age of AI…” He concluded, “We believe we're uniquely positioned to become a leader in AI inferencing and have much more in store across the entire AI lifecycle to help enable companies to build the future."
Cloudflare analyst ratings and price targets are at MarketBeat. Cloudflare peers and competitor stocks can be found with the MarketBeat stock screener.
Weekly Ascending Triangle
The weekly candlestick chart on NET illustrates an ascending triangle pattern. The April 2022 low at $39.90 started the ascending trendline, marking higher lows after testing the flat-top horizontal trendline at $72.41.
The daily market structure low (MSL) trigger is at $60.42. The weekly relative strength index (RSI) attempts to bounce through the 50-band. Pullback supports are at $60.42, $56.36, $50.35 and $45.25.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is a content-delivery-network (CDN) serving and partnering with e-commerce and internet giants like Alphabet Inc. (NASDAQ: GOOGL), Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX), TikTok, Twitch, Reddit and Spotify Technology S.A. (NYSE: SPOT). Cloudflare is well-suited to accommodate AI data at the edge as it can handle complicated large language models. It announced a collaboration with Microsoft Co. (NASDAQ: MSFT) to enable AI models to run anywhere where processing makes sense.
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It is a content-delivery-network (CDN) serving and partnering with e-commerce and internet giants like Alphabet Inc. (NASDAQ: GOOGL), Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX), TikTok, Twitch, Reddit and Spotify Technology S.A. (NYSE: SPOT). Firing on All Cylinders On August 3, 2023, Cloudflare reported non-GAAP Q2 2023 earnings of 10 cents per share, beating consensus analyst estimates for 7 cents per share by 3 cents. Lifting the Bar Cloudflare raised its fiscal Q3 2023 EPS to 10 cents share versus 9 cents consensus analyst estimates.
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It is a content-delivery-network (CDN) serving and partnering with e-commerce and internet giants like Alphabet Inc. (NASDAQ: GOOGL), Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX), TikTok, Twitch, Reddit and Spotify Technology S.A. (NYSE: SPOT). Cloudflare Inc. (NYSE: NET) is the world's most connected cloud network, offering a serverless cloud architecture, security and artificial intelligence (AI) on the network edge to thousands of companies and millions of websites. Its cloud platform can host AI data at the network edge in addition to Internet-of-Things (IoT), software-as-a-service (SaaS), cloud and AI anywhere services.
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It is a content-delivery-network (CDN) serving and partnering with e-commerce and internet giants like Alphabet Inc. (NASDAQ: GOOGL), Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Netflix Inc. (NASDAQ: NFLX), TikTok, Twitch, Reddit and Spotify Technology S.A. (NYSE: SPOT). Cloudflare Inc. (NYSE: NET) is the world's most connected cloud network, offering a serverless cloud architecture, security and artificial intelligence (AI) on the network edge to thousands of companies and millions of websites. Cloudflare powers hyper-local AI inference with Nvidia accelerated computing.
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13337.0
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2023-10-02 00:00:00 UTC
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From Apple to Walmart: Stock Market Winners and Losers as Student Loan Payments Restart
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AAPL
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https://www.nasdaq.com/articles/from-apple-to-walmart%3A-stock-market-winners-and-losers-as-student-loan-payments-restart
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nan
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nan
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Student loan repayments are beginning again in October, after being on hold since March 2020. Almost all stimulus packages announced during the COVID-19 pandemic have since wound down, and even the Fed – which slashed rates to zero in March 2020 – has since hiked its benchmark rate to the highest in over two decades.
The student loan moratorium was one key stimulus that was extended multiple times - first by Donald Trump, and then by his successor, President Joe Biden. The latter’s bid to forgive student loans was struck down by the Supreme Court - and even as the Biden administration is mulling alternative relief mechanisms for borrowers, for now, the repayments are set to begin. That's estimated to leave a $100 billion hole in the pockets of borrowers in the coming year, according to a Wall Street Journal report.
Here are the stocks that could emerge as winners and losers as student loan repayments begin this month.
Which Stocks Could Benefit as Student Loan Repayments Begin?
Discount retailers and student loan refinance companies are among the stocks that look set to win as student loan repayments begin.
1. SoFi Could Benefit as Student Loan Refinancing Gains Traction
SoFi (SOFI) operates a student loan refinancing business, and its fortunes nosedived as the student loan moratorium meant that borrowers no longer had any pressing need to refinance their loans. Incidentally, SoFi sued the Biden administration earlier this year over the repayment pause. It has a strong lead in the student loan refinancing business, and could be among the biggest beneficiaries as student loan repayments begin.
While SoFi stock is outperforming the Nasdaq Composite ($NASX) by a wide margin in 2023, it has come off its recent highs, and I believe it makes sense to buy the dip in this quality fintech company.
2. Discount Retailers Like Walmart and Costco
Amid stubbornly high inflation and a broader macroeconomic slowdown, many consumers have been pivoting to discount retailers like Walmart (WMT) - which I noted previously is among the recession-proof stocks.
According to Jefferies, Walmart, TJX Companies (TJX), and Costco (COST), are among the retailers that budget-conscious borrowers might prefer if the resumption of student loan repayments puts pressure on their finances.
Costco also reported stellar fiscal Q4 2023 earnings last week, and multiple Wall Street analysts raised their target prices on the stock. It currently has a Strong Buy rating on average, and of the 26 analysts covering the stock, 17 rate it as a Strong Buy while 3 consider it a moderate Buy. The remaining 6 analysts rate it as a Hold.
www.barchart.com
Student Loan Repayments Could be Negative for Restaurant Stocks
Meanwhile, the resumption of student loan repayments could be negative for companies in industries like consumer discretionary and restaurants.
A BTIG survey showed that the resumption of student loans will have a disproportionate impact on higher-income borrowers, and listed Starbucks (SBUX), Shake Shack (SHAK), and Chipotle Mexican Grill (CMG) as the companies with the highest exposure to these borrowers.
BTIG analyst Peter Saleh said, “While we don’t expect these consumers to significantly change their habits, we do believe that some could manage their check, trade down within the menu, or modestly reduce their visit frequency.”
Consumer Discretionary Stocks
Companies like Apple (AAPL) might also be impacted if student loan borrowers cut back on their discretionary spending. Notably, the December quarter is seasonally strong for Apple, as the launch of the new iPhone helps propel sales during the holiday season. This year, that quarter will coincide with the resumption of student loan payments, which might play a dampener.
Other names in the consumer discretionary space, like Amazon (AMZN), as well as automakers like Ford (F), might also be negatively impacted if consumers cut down on discretionary spending. Notably, interest rates are already at their highest level in years, and the resumption of student loan repayments will further lower the loan affordability for some borrowers.
Robinhood Might Also Be Impacted as Student Loan Repayments Resume
Discount brokerage Robinhood (HOOD) might also be impacted as student loan repayments resume. The savings rate might dip further as the moratorium on student loans is lifted, which could mean that some borrowers have less money to invest through platforms like Robinhood.
Robinhood’s active user count has already plummeted from its 2021 highs as the meme stock mania faded. The company is, however, looking at alternative products - like retirement solutions - to revive its sagging fortunes. It has also cut down on costs, and in Q2 2023, it posted its first-ever quarterly GAAP profit as a public company.
www.barchart.com
However, if the younger cohort on Robinhood has fewer disposable dollars to trade in the various instruments on the platform, it could mean lower trading volumes and, by extension, lower revenues for Robinhood.
All of that said, the resumption of student loan repayments is yet another variable that investors should watch out for this October. U.S. stocks continued their losing streak in September – which, yet again, held on to its reputation as the worst month for stocks.
The Nasdaq Composite and the S&P 500 Index ($SPX) respectively lost 5.8% and 4.9% in September, and both had their worst month of the year. Markets will now eye the upcoming slate of quarterly earnings reports and - among other factors - investors should look out for color on whether companies are seeing any visible impact on consumer behavior after the resumption of student loan repayments.
On the date of publication, Mohit Oberoi had a position in: SOFI , AAPL , AMZN , F . 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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BTIG analyst Peter Saleh said, “While we don’t expect these consumers to significantly change their habits, we do believe that some could manage their check, trade down within the menu, or modestly reduce their visit frequency.” Consumer Discretionary Stocks Companies like Apple (AAPL) might also be impacted if student loan borrowers cut back on their discretionary spending. On the date of publication, Mohit Oberoi had a position in: SOFI , AAPL , AMZN , F . The latter’s bid to forgive student loans was struck down by the Supreme Court - and even as the Biden administration is mulling alternative relief mechanisms for borrowers, for now, the repayments are set to begin.
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BTIG analyst Peter Saleh said, “While we don’t expect these consumers to significantly change their habits, we do believe that some could manage their check, trade down within the menu, or modestly reduce their visit frequency.” Consumer Discretionary Stocks Companies like Apple (AAPL) might also be impacted if student loan borrowers cut back on their discretionary spending. On the date of publication, Mohit Oberoi had a position in: SOFI , AAPL , AMZN , F . SoFi Could Benefit as Student Loan Refinancing Gains Traction SoFi (SOFI) operates a student loan refinancing business, and its fortunes nosedived as the student loan moratorium meant that borrowers no longer had any pressing need to refinance their loans.
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BTIG analyst Peter Saleh said, “While we don’t expect these consumers to significantly change their habits, we do believe that some could manage their check, trade down within the menu, or modestly reduce their visit frequency.” Consumer Discretionary Stocks Companies like Apple (AAPL) might also be impacted if student loan borrowers cut back on their discretionary spending. On the date of publication, Mohit Oberoi had a position in: SOFI , AAPL , AMZN , F . SoFi Could Benefit as Student Loan Refinancing Gains Traction SoFi (SOFI) operates a student loan refinancing business, and its fortunes nosedived as the student loan moratorium meant that borrowers no longer had any pressing need to refinance their loans.
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BTIG analyst Peter Saleh said, “While we don’t expect these consumers to significantly change their habits, we do believe that some could manage their check, trade down within the menu, or modestly reduce their visit frequency.” Consumer Discretionary Stocks Companies like Apple (AAPL) might also be impacted if student loan borrowers cut back on their discretionary spending. On the date of publication, Mohit Oberoi had a position in: SOFI , AAPL , AMZN , F . Discount retailers and student loan refinance companies are among the stocks that look set to win as student loan repayments begin.
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13338.0
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2023-10-02 00:00:00 UTC
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Stocks Settle Mixed as Big Tech Gains Despite Rising Bond Yields
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AAPL
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https://www.nasdaq.com/articles/stocks-settle-mixed-as-big-tech-gains-despite-rising-bond-yields
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.01%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.22%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.83%.
Stocks on Monday settled mixed, with the Dow Jones Industrials falling to a 4-month low. A jump in the 10-year T-note yield to a 16-year high undercut the broader equity market Monday. Hawkish comments from Fed Governor Bowman pushed bond yields higher when she said, "I continue to expect that further interest rate increases will likely be needed to return inflation to 2% in a timely way as high energy prices could reverse some of the progress we have seen on inflation in recent months." T-note yields were also pushed higher after the Sep ISM manufacturing index rose more than expected.
Strength in mega-cap technology stocks kept the Nasdaq 100 in positive territory.
Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown and fund the government through November 17, sparking a relief rally in stock index futures.
Adding to positive sentiment was better-than-expected Chinese economic news that supports global growth after China Sep manufacturing and Sep non-manufacturing activity expanded more than expected.
Goldman Sachs on Monday said mega-cap U.S. tech stocks are likely to do well during the Q3 earnings season after a recent selloff led to lower valuations and "The divergence between falling valuations and improving fundamentals represents an opportunity for investors."
The U.S. Sep ISM manufacturing index rose +1.4 to 49.0, stronger than expectations of 47.9.
U.S. Aug construction spending rose +0.5% m/m, right on expectations.
The markets are discounting a 31% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 51% 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 Monday moved higher. The 10-year T-note yield climbed to a 16-year high of 4.701% and finished up +10.6 bp at 4.677%. The 10-year German bund yield rose +8.4 bp to 2.922%. The 10-year UK gilt yield rose to a 1-1/4 month high of 4.5718% and finished up +12.7 bp at 4.564%.
The China Sep manufacturing PMI rose +0.5 to a 6-month high of 50.2, stronger than expectations of 50.1. Also, the Sep non-manufacturing PMI rose +0.7 to 51.7, stronger than expectations of 51.6.
ECB Vice President Guindos said interest rates at their current levels will help bring down inflation to the ECB's 2% target, and talk of rate cuts by the ECB is premature.
The Japan Q3 Tankan large manufacturing business conditions rose +4 to 9, stronger than expectations of 6.
Overseas stock markets on Monday settled lower. The Euro Stoxx 50 closed down -0.89%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed -0.31%.
Today’s stock movers…
Utility stocks were under pressure Monday from higher T-note yields. As a result, American Electric Power (AEP) closed down more than -4% to lead losers in the Nasdaq 100. Also, Ameren (AEE), Alliant Energy (LNT), FirstEnergy (FE), CenterPoint Energy (CNP), Eversource Energy (ES), Exelon Corp (EXC), and PPL Corp (PPL) closed down more than -4%.
Monday’s -2% fall in crude oil prices undercut energy stocks. As a result, Marathon Oil (MRO), Devon Energy (DVN), and Occidental Petroleum (OXY) closed down more than -4%. Also, APA Corp (APA) and Diamondback Energy (FANG) closed down more than -3%. In addition, ConocoPhillips (COP), Hess Corp (HES), and Valero Energy (VLO) closed down more than -2%.
Fidelity National Financial (FNF) closed down more than -4% after Keefe, Bruyette & Woods downgraded the stock to market perform from outperform.
Target (TGT) closed down more than -3% after Bank of America Global Research cut its price target on the stock to $120 from $135.
McDonald’s (MCD) closed down more than -2% after Citigroup cut its target price for the stock to $283 from $317.
Norfolk Southern (NSC) closed down more than -2% after Bank of America Global Research downgraded the stock to neutral from buy.
Strength in mega-cap technology stocks was supportive of the overall market. Alphabet (GOOGL) and Metal Platforms (META) closed up more than +2%. Also, Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) closed up more than +1%.
Discover Financial Services (DFS) closed up more than +4% to lead gainers in the S&P 500 after agreeing to improve its consumer compliance management system and enhance related corporate governance and enterprise risk management practices as part of a consent order issued by the FDIC.
Zscaler (ZS) closed up more than +3% to lead gainers in the Nasdaq 100 after Piper Sandler upgraded the stock to overweight from neutral with a price target of $190.
Insulet (PODD) closed up more than +3% after Jeffries upgraded the stock to buy from hold, saying the potential for GLP-1 weight-loss drugs to have “a modest drag or no drag” on the insulin-pump opportunity.
Nvidia (NVDA) closed up more than +2% after Goldman Sachs added the stock to its Conviction List, saying it sees strong long-term growth prospects for the company.
Viatris (VTRS) closed up more than +1% after it said it received an offer of $2.17 billion for its over-the-counter health business from Cooper Consumer Health, a company owned by CVC Capital Partners.
Across the markets…
December 10 year T-notes (ZNZ23) Monday closed down -23.5 ticks. The 10-year T-note yield rose +10.6 bp to 4.677%. Dec T-notes Monday matched last Thursday’s 16-year nearest-futures low, and the 10-year T-note yield rose to a new 16-year high of 4.701%. Dec T-notes Monday opened lower after U.S. lawmakers late Saturday night passed legislation to avert a government shutdown, which reduced the safe-haven demand for T-notes. Losses in T-notes accelerated on Monday’s stronger-than-expected Sep ISM manufacturing report and hawkish comments from Fed Governor Bowman, who said she expects additional Fed rate hikes.
More Stock Market News from Barchart
Dollar Strengthens on Positive U.S. Economic News and Higher Bond Yields
From Apple to Walmart: Stock Market Winners and Losers as Student Loan Payments Restart
1 Cathie Wood Stock with 65% Upside Potential
Options Traders Go to War on Controversial But Compelling Geo Group (GEO)
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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Also, Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) closed up more than +1%. Fidelity National Financial (FNF) closed down more than -4% after Keefe, Bruyette & Woods downgraded the stock to market perform from outperform. Zscaler (ZS) closed up more than +3% to lead gainers in the Nasdaq 100 after Piper Sandler upgraded the stock to overweight from neutral with a price target of $190.
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Also, Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) closed up more than +1%. Hawkish comments from Fed Governor Bowman pushed bond yields higher when she said, "I continue to expect that further interest rate increases will likely be needed to return inflation to 2% in a timely way as high energy prices could reverse some of the progress we have seen on inflation in recent months." Losses in T-notes accelerated on Monday’s stronger-than-expected Sep ISM manufacturing report and hawkish comments from Fed Governor Bowman, who said she expects additional Fed rate hikes.
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Also, Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) closed up more than +1%. What you need to know… The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.01%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.22%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.83%. Today’s stock movers… Utility stocks were under pressure Monday from higher T-note yields.
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Also, Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) closed up more than +1%. T-note yields were also pushed higher after the Sep ISM manufacturing index rose more than expected. Monday’s -2% fall in crude oil prices undercut energy stocks.
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13339.0
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2023-10-02 00:00:00 UTC
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New iPhones Hot In A Bad Way, But Apple Stock Chart is Bullish
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AAPL
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https://www.nasdaq.com/articles/new-iphones-hot-in-a-bad-way-but-apple-stock-chart-is-bullish
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nan
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nan
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Apple Inc. (NASDAQ: AAPL) is wrapping up September with a decline of 9%, its biggest monthly decline of 2023.
The stock is showing a year-to-date gain of 31.92%, despite posting declines on a one-month and three-month basis.
If you look at the tech stocks tracked by the Technology Select Sector SPDR Fund (NYSEARCA: XLK), Apple is among a large group of decliners on a one-month basis.
However, the Apple chart is actually showing some encouraging signs, especially for investors who want shares of a growth stock while it’s trading at bargain prices.
Before jumping into the chart, let’s look at what has been going wrong for Apple recently.
Users Say New iPhone 15 is Overheating
The company released the iPhone 15 in September. Almost immediately users began posting about overheating devices on social media and online review sites. Users around the world lodged the same complaints.
Overheating can affect performance. If you’ve ever seen an iPhone that was left in a hot car, you know that it shuts down. Cooler temperatures will generally revive the device, but battery life can be impacted.
Reduced performance, as well as a phone that’s uncomfortably hot to the touch, turn out to be concerns for iPhone 15 buyers. Reportedly, some iPhone 14 customers also registered complaints on social media about overheated phones in recent months.
There are a couple of problems here for Apple.
First, the company may need to implement software updates. These may harm iPhone performance by introducing new features that demand more processing power or by fixing bugs that slow down the device.
iPhone Launch Tends to Generate Big Revenue
Second, the release of a new iPhone is always a major event for the company and is typically a reliable revenue generator.
Apple counts on its established customer base to participate in the phones’ annual upgrade cycle. For years, consumers have eagerly anticipated new features and improvements, driving sales. It hasn’t been unusual to see customers lining up outside Apple stores to be among the first to get their hands on the latest model.
Additionally, new iPhones tend to come with updated features and more storage options, which boost the sales price.
However, iPhone revenue has taken on even more importance this year, as global demand for smartphones has fallen.
According to data from Counterpoint Research, 2023 smartphone shipments are expected to decline 6% to 1.15 billion units, the lowest in a decade.
Customers Keeping Smartphones for Longer
Analysts attribute the decline to several factors, including inflation, consumers keeping their existing phones for longer, and a growing acceptance of second-hand and refurbished phones.
You can see that lower demand in Apple’s results. The company’s year-over-year revenue declined in each of the past three quarters. You can track that trajectory using MarketBeat’s Apple earnings data.
The company is pinning its hopes for renewed growth on strong sales of the iPhone 15, but the widely publicized overheating problems could dissuade would-be buyers.
An analyst at Chinese asset management firm TF International Securities is reported to have said the iPhone 15’s overheating problems may stem from its lightweight design and its use of titanium, which does not conduct heat as efficiently as other metals.
Tech Sector Skids on Interest Rate Worries
Overheated iPhones aren’t Apple’s only problem. The tech sector as a whole is slumping as the market now expects a higher-for-longer interest-rate environment.
Tech stocks go down when interest rates rise. That’s because higher rates make it more expensive for companies to borrow money, reducing profits and growth prospects.
If you look at the Technology Select Sector SPDR Fund chart, you’ll see a downtrend that began in early September, when the market began forecasting more Federal Reserve interest rate hikes.
Apple began trending lower again at around the same time, after a short-lived rally attempt.
Support at Key Price Line
Here’s the potentially bullish view on Apple: The stock’s chart shows solid support at the 200-day moving average, meaning investors aren’t ready to let the stock sink into value territory.
The 200-day moving average support is meaningful for a stock because it represents a long-term trend. When the stock's price stays above this line, it suggests overall positive sentiment and potential for further gains.
That in turn instills investor confidence, which can spur additional buying.
Watch for Apple to address the iPhone 15 problems. That may or may not give the stock price a lift, but it may reassure investors of robust sales for the devices.
The views and 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. (NASDAQ: AAPL) is wrapping up September with a decline of 9%, its biggest monthly decline of 2023. If you look at the tech stocks tracked by the Technology Select Sector SPDR Fund (NYSEARCA: XLK), Apple is among a large group of decliners on a one-month basis. The company is pinning its hopes for renewed growth on strong sales of the iPhone 15, but the widely publicized overheating problems could dissuade would-be buyers.
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Apple Inc. (NASDAQ: AAPL) is wrapping up September with a decline of 9%, its biggest monthly decline of 2023. If you look at the tech stocks tracked by the Technology Select Sector SPDR Fund (NYSEARCA: XLK), Apple is among a large group of decliners on a one-month basis. Reportedly, some iPhone 14 customers also registered complaints on social media about overheated phones in recent months.
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Apple Inc. (NASDAQ: AAPL) is wrapping up September with a decline of 9%, its biggest monthly decline of 2023. Users Say New iPhone 15 is Overheating The company released the iPhone 15 in September. Tech Sector Skids on Interest Rate Worries Overheated iPhones aren’t Apple’s only problem.
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Apple Inc. (NASDAQ: AAPL) is wrapping up September with a decline of 9%, its biggest monthly decline of 2023. Users Say New iPhone 15 is Overheating The company released the iPhone 15 in September. Reportedly, some iPhone 14 customers also registered complaints on social media about overheated phones in recent months.
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13340.0
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2023-10-02 00:00:00 UTC
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Technology Sector Update for 10/02/2023: AAPL
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-02-2023%3A-aapl
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nan
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nan
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Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index fractionally lower.
In company news, Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Apple shares gained 1.3%.
Jumia Technologies (JMIA) said it has reached an agreement with Elon Musk's Starlink, a satellite internet service, to retail the Starlink Residential Kit in Africa. Jumia shares rose over 3%.
Alphabet's (GOOG) Google on Monday introduced the Chromebook Plus laptop series that features built-in Google applications and artificial intelligence capabilities. Its shares rose 1.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index fractionally lower. Jumia Technologies (JMIA) said it has reached an agreement with Elon Musk's Starlink, a satellite internet service, to retail the Starlink Residential Kit in Africa.
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In company news, Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Apple shares gained 1.3%. Jumia Technologies (JMIA) said it has reached an agreement with Elon Musk's Starlink, a satellite internet service, to retail the Starlink Residential Kit in Africa.
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In company news, Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Jumia Technologies (JMIA) said it has reached an agreement with Elon Musk's Starlink, a satellite internet service, to retail the Starlink Residential Kit in Africa. Jumia shares rose over 3%.
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In company news, Apple (AAPL) is considering making a bid for Formula One global TV rights, BusinessF1 magazine reported in its October issue, quoting unnamed sources. Tech stocks were mixed Monday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the Philadelphia Semiconductor index fractionally lower. Jumia shares rose over 3%.
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13341.0
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2023-10-02 00:00:00 UTC
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US STOCKS-Nasdaq rises on boost from growth stocks; Fed comments in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-rises-on-boost-from-growth-stocks-fed-comments-in-focus
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nan
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By Shubham Batra and Shashwat Chauhan
Oct 2 (Reuters) - The Nasdaq rose on Monday, boosted by gains in growth stocks as investors awaited commentary from more Federal Reserve officials and economic data this week to gauge the central bank's interest-rate path.
NvidiaNVDA.O jumped 2.8% after Goldman Sachs added the chipmaker's stock to its conviction list, while TeslaTSLA.O was up 0.5% after falling as much as 3% earlier in the session as it missed market estimates for third-quarter deliveries.
Other megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 1.9%.
Eight of the eleven S&P sub sectors were down, with the utilities index .SPLRCU, often considered as a bond proxy, declining 4.9%.
Fed Chair Jerome Powell, while participating in a community roundtable discussion, did not comment on current monetary policy or the economic outlook in his brief opening remarks.
Meanwhile, Fed Governor Michelle Bowman said she remains willing to support another increase in the central bank's policy interest rate at a future meeting if incoming data shows progress on inflation is stalling or proceeding too slowly.
Cleveland Fed President Loretta Mester will also speak later in the day.
Stocks got some boost after U.S. manufacturing took a step further towards a recovery in September as production picked up and employment rebounded, according to a survey that also showed prices paid for inputs by factories falling considerably.
"Overall, U.S. manufacturing appears to be over the worst, but the outlook remain muted – particularly given the softness of global conditions," Paul Ashworth, chief North America economist at Capital Economics, said in a note.
Traders' bets on the benchmark rate remained unchanged for November and December stood at nearly 69% and 55%, respectively, according to CME's FedWatch tool, while they have priced in a 25-basis-point rate cut as early as March.
Yield on the 10-year Treasury note US10YT=RR rose to its highest since 2007 at 4.689%, while the yield on the two-year note, which best reflects interest rate expectations, remained above 5%. US/
Investors will closely monitor a bunch of labor market data leading to the crucial monthly jobs report at the end of the week for more clues on the Fed's interest-rate path.
Markets also cheered that Congress on Saturday passed a stopgap funding bill with overwhelming Democratic support after Republican House Speaker Kevin McCarthy backed down from an earlier demand by his party's hardliners for a partisan bill.
At 11:59 a.m. ET, the Dow Jones Industrial Average .DJI was down 186.11 points, or 0.56%, at 33,321.39, the S&P 500 .SPX was down 14.63 points, or 0.34%, at 4,273.42, and the Nasdaq Composite .IXIC was up 47.20 points, or 0.36%, at 13,266.53.
ViatrisVTRS.O added 3.1% after the drugmaker on Sunday said it had reached agreements to divest some of its businesses for up to $3.6 billion.
Declining issues outnumbered advancers for a 4.02-to-1 ratio on the NYSE and for a 2.27-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 48 new lows, while the Nasdaq recorded 19 new highs and 211 new lows.
(Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi and Maju Samuel)
((Shubham.Batra@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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Other megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 1.9%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The Nasdaq rose on Monday, boosted by gains in growth stocks as investors awaited commentary from more Federal Reserve officials and economic data this week to gauge the central bank's interest-rate path. Meanwhile, Fed Governor Michelle Bowman said she remains willing to support another increase in the central bank's policy interest rate at a future meeting if incoming data shows progress on inflation is stalling or proceeding too slowly.
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Other megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 1.9%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The Nasdaq rose on Monday, boosted by gains in growth stocks as investors awaited commentary from more Federal Reserve officials and economic data this week to gauge the central bank's interest-rate path. Meanwhile, Fed Governor Michelle Bowman said she remains willing to support another increase in the central bank's policy interest rate at a future meeting if incoming data shows progress on inflation is stalling or proceeding too slowly.
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Other megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 1.9%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The Nasdaq rose on Monday, boosted by gains in growth stocks as investors awaited commentary from more Federal Reserve officials and economic data this week to gauge the central bank's interest-rate path. Meanwhile, Fed Governor Michelle Bowman said she remains willing to support another increase in the central bank's policy interest rate at a future meeting if incoming data shows progress on inflation is stalling or proceeding too slowly.
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Other megacap stocks including Apple AAPL.O, Meta Platforms META.O, Amazon.com AMZN.O, Alphabet GOOGL.O and Microsoft MSFT.O advanced between 0.9% and 1.9%. By Shubham Batra and Shashwat Chauhan Oct 2 (Reuters) - The Nasdaq rose on Monday, boosted by gains in growth stocks as investors awaited commentary from more Federal Reserve officials and economic data this week to gauge the central bank's interest-rate path. NvidiaNVDA.O jumped 2.8% after Goldman Sachs added the chipmaker's stock to its conviction list, while TeslaTSLA.O was up 0.5% after falling as much as 3% earlier in the session as it missed market estimates for third-quarter deliveries.
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2023-10-02 00:00:00 UTC
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Strong earnings will reverse decline in megacap tech stocks: Goldman Sachs
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AAPL
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https://www.nasdaq.com/articles/strong-earnings-will-reverse-decline-in-megacap-tech-stocks%3A-goldman-sachs
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nan
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nan
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By David Randall
NEW YORK, Oct 2 (Reuters) - Strong upcoming earnings results could reverse the decline in mega-cap technology and growth stocks, which have been hammered by the rise in Treasury yields and are trading at their cheapest levels in six years by one measure, according to Goldman Sachs strategists.
The so-called Magnificent Seven group of megacap stocks -Apple, Microsoft, Amazon.com, Alphabet, Nvidia, Tesla, and Meta Platforms - have fallen 7% over the last two months, compared with a 3% decline in the broad S&P 500, as Treasury yields jumped more than 60 basis points to 16-year highs.
Those declines have pushed mega-cap forward price-to-earnings ratios down by a collective 20% over the last two months, leaving them trading at their largest discount to the market based on long-term growth since January 2017, Goldman Sachs said in a note dated Oct. 1. At the same time, the group is expected to post sales growth of 11% in the third quarter, compared with a 1% improvement for the S&P 500, the firm noted.
The mega caps in aggregate have beaten consensus sales growth expectations 81% of the time and have outperformed in two-thirds of earnings seasons since the fourth quarter of 2016, Goldman's strategists said.
"The divergence between falling valuations and improving fundamentals represents an opportunity for investors," they wrote.
The bullish call on tech stocks comes as investor sentiment for equities overall has flatlined, which historically has been a contrarian indicator of more gains ahead, Savita Subramanian, equity and quant strategist at BofA Global Research, wrote in a note Monday.
The average recommended allocation to equities in balanced funds remained unchanged at 53% in September, below the benchmark of 60%, Subramanian noted. Falling sentiment has historically been a signal of broad gains over the following 12 months, she noted.
The S&P 500 has dropped nearly 5% over the last 10 trading days but remains slightly more than 11% up since the start of the year.
"We expect the S&P 500 to rally into year-end, with more upside in the equal-weighted index," Subramanian wrote.
(Reporting by David Randall; Editing by Ira Iosebashvili and Mark Potter)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Randall NEW YORK, Oct 2 (Reuters) - Strong upcoming earnings results could reverse the decline in mega-cap technology and growth stocks, which have been hammered by the rise in Treasury yields and are trading at their cheapest levels in six years by one measure, according to Goldman Sachs strategists. The so-called Magnificent Seven group of megacap stocks -Apple, Microsoft, Amazon.com, Alphabet, Nvidia, Tesla, and Meta Platforms - have fallen 7% over the last two months, compared with a 3% decline in the broad S&P 500, as Treasury yields jumped more than 60 basis points to 16-year highs. Those declines have pushed mega-cap forward price-to-earnings ratios down by a collective 20% over the last two months, leaving them trading at their largest discount to the market based on long-term growth since January 2017, Goldman Sachs said in a note dated Oct. 1.
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By David Randall NEW YORK, Oct 2 (Reuters) - Strong upcoming earnings results could reverse the decline in mega-cap technology and growth stocks, which have been hammered by the rise in Treasury yields and are trading at their cheapest levels in six years by one measure, according to Goldman Sachs strategists. The so-called Magnificent Seven group of megacap stocks -Apple, Microsoft, Amazon.com, Alphabet, Nvidia, Tesla, and Meta Platforms - have fallen 7% over the last two months, compared with a 3% decline in the broad S&P 500, as Treasury yields jumped more than 60 basis points to 16-year highs. At the same time, the group is expected to post sales growth of 11% in the third quarter, compared with a 1% improvement for the S&P 500, the firm noted.
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By David Randall NEW YORK, Oct 2 (Reuters) - Strong upcoming earnings results could reverse the decline in mega-cap technology and growth stocks, which have been hammered by the rise in Treasury yields and are trading at their cheapest levels in six years by one measure, according to Goldman Sachs strategists. Those declines have pushed mega-cap forward price-to-earnings ratios down by a collective 20% over the last two months, leaving them trading at their largest discount to the market based on long-term growth since January 2017, Goldman Sachs said in a note dated Oct. 1. The bullish call on tech stocks comes as investor sentiment for equities overall has flatlined, which historically has been a contrarian indicator of more gains ahead, Savita Subramanian, equity and quant strategist at BofA Global Research, wrote in a note Monday.
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By David Randall NEW YORK, Oct 2 (Reuters) - Strong upcoming earnings results could reverse the decline in mega-cap technology and growth stocks, which have been hammered by the rise in Treasury yields and are trading at their cheapest levels in six years by one measure, according to Goldman Sachs strategists. The bullish call on tech stocks comes as investor sentiment for equities overall has flatlined, which historically has been a contrarian indicator of more gains ahead, Savita Subramanian, equity and quant strategist at BofA Global Research, wrote in a note Monday. Falling sentiment has historically been a signal of broad gains over the following 12 months, she noted.
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2023-10-02 00:00:00 UTC
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Stocks Mixed on Higher Bond Yields and Strength in Big Tech
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AAPL
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https://www.nasdaq.com/articles/stocks-mixed-on-higher-bond-yields-and-strength-in-big-tech
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.23%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.48%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.47%.
Stocks this morning are mixed as rising bond yields weigh on the broader market. Hawkish comments from Fed Governor Bowman pushed bond yields higher today when she said, "I continue to expect that further interest rate increases will likely be needed to return inflation to 2% in a timely way as high energy prices could reverse some of the progress we have seen on inflation in recent months."
T-note yields remained higher after the Sep ISM manufacturing index rose more than expected. Strength in mega-cap technology stocks is keeping the Nasdaq 100 in positive territory.
Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown, sparking a relief rally in stock index futures.
Adding to positive sentiment is better-than-expected Chinese economic news that supports global growth after China Sep manufacturing and Sep non-manufacturing activity expanded more than expected.
Goldman Sachs today said mega-cap U.S. tech stocks are likely to do well during the Q3 earnings season after a recent selloff led to lower valuations and "The divergence between falling valuations and improving fundamentals represents an opportunity for investors."
The U.S. Sep ISM manufacturing index rose +1.4 to 49.0, stronger than expectations of 47.9.
U.S. Aug construction spending rose +0.5% m/m, right on expectations.
The markets are discounting a 33% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 51% 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 today are moving higher. The 10-year T-note yield is up +10.5 bp at 4.677%. The 10-year German bund yield is up +7.7 bp at 2.915%. The 10-year UK gilt yield rose to a 1-1/4 month high of 4.568% and is up +11.5 bp at 4.552%.
The China Sep manufacturing PMI rose +0.5 to a 6-month high of 50.2, stronger than expectations of 50.1. Also, the Sep non-manufacturing PMI rose +0.7 to 51.7, stronger than expectations of 51.6.
Overseas stock markets are lower. The Euro Stoxx 50 is down -1.27%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed -0.31%.
Today’s stock movers…
Strength in mega-cap technology stocks is supportive of the overall market. Alphabet (GOOGL) is up more than +2%. Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%.
Discover Financial Services (DFS) climbed more than +3% in pre-market trading after agreeing to improve its consumer compliance management system and enhance related corporate governance and enterprise risk management practices as part of a consent order issued by the FDIC.
Viatris (VTRS) is up more than +4% after it said it received an offer of $2.17 billion for its over-the-counter health business from Cooper Consumer Health, a company owned by CVC Capital Partners.
Zscaler (ZS) is up more than +3% to lead gainers in the Nasdaq 100 after Piper Sandler upgraded the stock to overweight from neutral with a price target of $190.
Nvidia (NVDA) is up more than +2% after Goldman Sachs added the stock to its Conviction List, saying it sees strong long-term growth prospects for the company.
Xylem (XYL) is up more than +1% after Melius Research upgraded the stock to buy from hold with a price target of $122.
Macerich (MAC) is up more than +1% after Piper Sandler upgraded the stock to neutral from underweight.
Utility stocks are under pressure today from higher T-note yields. As a result, American Electric Power (AEP), CenterPoint Energy (CNP), Eversource Energy (ES), Exelon Corp (EXC), FirstEnergy (FE), and PPL Corp (PPL) are down more than -2%.
Norfolk Southern (NSC) is down more than -3% after Bank of America Global Research downgraded the stock to neutral from buy.
Target (TGT) is down more than -2% after Bank of America Global Research cut its price target on the stock to $120 from $135.
Fidelity National Financial (FNF) is down more than -2% after Keefe, Bruyette & Woods downgraded the stock to market perform from outperform.
Tesla (TSLA) is down nearly -1% after reporting Q3 vehicle deliveries of 435,059, below the consensus of 456,722.
United Parcel Service (UPS) is down more than -1% after Susquehanna Financial cut its price target on the stock to $160 from $173.
Toast (TOST) is down more than -1% after Mizuho Securities downgraded the stock to neutral from buy.
Across the markets…
December 10-year T-notes (ZNZ23) today are down -23 ticks, and the 10-year T-note yield is up +10.5 bp at 4.677%. Dec T-notes today are under pressure after U.S. lawmakers late Saturday night passed legislation to avert a government shutdown, which reduced the safe-haven demand for T-notes. Losses in T-notes accelerated on this morning’s stronger-than-expected Sep ISM manufacturing index and hawkish comments from Fed Governor Bowman, who said she expects additional Fed rate hikes.
The dollar index (DXY00) today is up by +0.54% at a 10-month high. The dollar index today is climbing on support from higher T-note yields. Also, weakness in the yen is supportive for the dollar after the BOJ announced additional bond purchases, which knocked the yen down to an 11-1/4 month low against the dollar. The dollar extended its gains after the U.S. Sep ISM manufacturing index rose more than expected, a hawkish factor for Fed policy.
EUR/USD (^EURUSD) today is down by -0.59%. A stronger dollar today has sparked long liquidation pressure in the euro. The downside for EUR/US is limited after ECB Vice President Guindos said talk of rate cuts by the ECB is premature.
The Eurozone Aug unemployment rate fell -0.1 to match the record low of 6.4%, right on expectations.
ECB Vice President Guindos said interest rates at their current levels will help bring down inflation to the ECB's 2% target, and talk of rate cuts by the ECB is premature.
USD/JPY (^USDJPY) is up by +0.31%. The yen today tumbled to an 11-1/4 month low against the dollar. Higher T-note yields today are bearish for the yen. Also, today’s action by the BOJ to announce an extra bond-buying plan of five- to 10-year bonds for this week undercut the yen. Losses in the yen were contained after the Japan Q3 Tankan large manufacturing business conditions rose more than expected and after the 10-year JGB bond yield rose to a 10-year high of 0.783%, strengthening the yen’s interest rate differentials.
The Japan Q3 Tankan large manufacturing business conditions rose +4 to 9, stronger than expectations of 6.
The Japan Sep Jibun Bank manufacturing PMI was revised downward by -0.1 to 48.5 from the initially reported 48.6, the steepest pace of contraction in 7 months.
December gold (GCZ3) today is down -20.4 (-1.09%), and Dec silver (SIZ23) is down -0.900 (-4.01%). Precious metals prices this morning are sharply lower, with gold sinking to a 6-3/4 month low and silver dropping to a 6-1/2 month low. Today’s jump in the dollar index to a 10-month high is undercutting metals prices. Also, higher global bond yields are bearish for precious metals. In addition, hawkish central bank comments were bearish for precious metals after ECB Vice President Guindos said any talks of rate cuts by the ECB are premature. Finally, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low last Friday.
More Stock Market News from Barchart
Markets Today: Stocks Slip as Bond Yields Resume Their Climb
This Option Trade on Adobe Stock Has a Profit Zone Between $480 and $540
Stocks Set to Open Lower as Investors Await U.S. Jobs Data and Powell’s Comments, U.S. Avoids Shutdown
Crude Inventories, Jobs and Other Market Moving Items to Watch This Week
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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Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. Zscaler (ZS) is up more than +3% to lead gainers in the Nasdaq 100 after Piper Sandler upgraded the stock to overweight from neutral with a price target of $190. Nvidia (NVDA) is up more than +2% after Goldman Sachs added the stock to its Conviction List, saying it sees strong long-term growth prospects for the company.
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Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown, sparking a relief rally in stock index futures. Losses in T-notes accelerated on this morning’s stronger-than-expected Sep ISM manufacturing index and hawkish comments from Fed Governor Bowman, who said she expects additional Fed rate hikes.
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Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. Hawkish comments from Fed Governor Bowman pushed bond yields higher today when she said, "I continue to expect that further interest rate increases will likely be needed to return inflation to 2% in a timely way as high energy prices could reverse some of the progress we have seen on inflation in recent months." Losses in the yen were contained after the Japan Q3 Tankan large manufacturing business conditions rose more than expected and after the 10-year JGB bond yield rose to a 10-year high of 0.783%, strengthening the yen’s interest rate differentials.
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Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. T-note yields remained higher after the Sep ISM manufacturing index rose more than expected. Today’s stock movers… Strength in mega-cap technology stocks is supportive of the overall market.
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2023-10-02 00:00:00 UTC
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Dow Movers: MMM, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-mmm-aapl
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nan
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nan
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In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. Year to date, Apple registers a 33.2% gain.
And the worst performing Dow component thus far on the day MMM, trading down 3.2%. MMM is lower by about 24.4% looking at the year to date performance.
Two other components making moves today are Nike, trading down 1.5%, and Cisco Systems, trading up 0.6% on the day.
VIDEO: Dow Movers: MMM, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: MMM, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. And the worst performing Dow component thus far on the day MMM, trading down 3.2%.
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VIDEO: Dow Movers: MMM, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. Year to date, Apple registers a 33.2% gain.
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VIDEO: Dow Movers: MMM, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. And the worst performing Dow component thus far on the day MMM, trading down 3.2%.
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VIDEO: Dow Movers: MMM, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day MMM, trading down 3.2%. MMM is lower by about 24.4% looking at the year to date performance.
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2023-10-01 00:00:00 UTC
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Futurescape: Betting Big on These 3 Next-Gen Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/futurescape%3A-betting-big-on-these-3-next-gen-tech-stocks
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In an era of rapid technological advancement and groundbreaking innovations, the stock market is constantly abuzz with opportunities and potential pitfalls. Amidst this ever-evolving landscape, three companies stand out as beacons of forward-thinking progress and visionary leadership.
With strategic partnerships, the first stock is changing the game for real-time 3D development. Conversely, the second leverages a versatile manufacturing approach. Meanwhile, the third one is pioneering gene-based medicine with a diverse portfolio.
Let’s delve into the fundamentals of three next-gen tech stocks, exploring their strategies, innovations, and market potential.
Unity (U)
Source: rafapress / Shutterstock.com
Unity (NYSE:U) is poised for significant long-term benefits through its next-gen technological advancements.
First, Unity’s partnership with Apple (NASDAQ:AAPL) at WWDC has generated substantial interest in the PolySpatial platform. This innovative technology represents a compelling reason for developers to choose Unity as their primary platform for real-time 3D development. The benefit lies in attracting a broader developer base, which can increase the adoption of Unity’s platform.
Similarly, Unity Cloud aims to simplify the go-to-market process by connecting all of Unity’s services to its product. Therefore, what used to require physical meetings and travel will now be accomplished with a simple click inside the editor. And so, this ease of use is expected to drive increased adoption among developers and companies.
Financially, the integration of Unity Cloud will boost Unity’s subscription revenue and drive consumption revenue. Additionally, Unity’s strategic partnerships with companies like Weta, Ziva, and Speedtree will continue to attract artists to its platform, resulting in net new revenue and SaaS revenue.
Furthermore, Unity is gaining significant traction in the market with its Digital Twins technology. The company’s strategic decision to prioritize high-margin solutions with repeatable and ratable revenue streams is a game-changer. So, by de-emphasizing lower-margin professional services and relying on strategic partners like Capgemini (OTCMKTS:CAPMF) and Booz (NYSE:BAH), Unity is enhancing its bottom-line profitability.
Finally, Unity’s synergy between Unity Create and Grow is a strategic advantage. The deep integration of advertising, mediation, publishing, and user acquisition tools inside the editor provides a seamless experience for customers. This integrated approach enables Unity to be the go-to platform for building and monetizing products.
Proto Labs (PRLB)
Source: Gorodenkoff / Shutterstock
Proto Labs (NYSE:PRLB) has a distinct advantage in providing a broad spectrum of manufacturing solutions. This includes both its internal digital factories and a network of manufacturing partners.
As a result, these combined capabilities allow Proto Labs to cater to an extensive range of customer needs. Whether clients are looking for rapid turnaround times or are more price-sensitive, Proto Labs can accommodate them. PRLB makes it a go-to choice for various industries and applications.
Financially, the company is enjoying remarkable growth in network revenue, with an astounding 80% year-over-year (YOY) increase (Q2 2023). This spike signifies the appeal of its network offering, which extends the company’s capabilities and pricing options. Proto Labs secures its position as a preferred partner for clients with diverse requirements by tapping into a broader range of manufacturing capacities and lead time choices.
PRLB strategically invests in research and development to expand its customer offering. A recent example is the launch of accelerated anodizing and chromate plating within its digital factory CNC machining service. This innovation represents a significant advancement in the industry. It enables Proto Labs to deliver fully anodized or plated CNC machine parts with unmatched speed and precision.
In addition to innovation, Proto Labs focuses on efficient cost management. The company maintains world-class lead times while optimizing factory costs. This includes aligning staffing levels with production volumes, leading to a 9% YOY reduction in manufacturing headcount. The approach ensures it can provide cost-effective solutions without compromising quality or delivery times.
Finally, Proto Labs’ acquisition of Hubs in 2021 has expanded its customer offering. The combination of factory and network fulfillment avenues has proven highly effective. Therefore, this integrated approach allows Proto Labs to provide comprehensive solutions. Customers increasingly embrace this expanded service.
Crispr (CRSP)
Source: rafapress / Shutterstock.com
Crispr (NASDAQ:CRSP) has an innovative approach to gene-based medicine. And its strategic pipeline across various therapeutic areas places it at the forefront of a healthcare revolution.
In detail, Crispr’s gene-editing technology, with a broad pipeline of ex vivo and in vivo programs, spans four key franchises. They include hemoglobinopathies, immuno-oncology, regenerative medicine, and in vivo approaches. Therefore, it increases its market potential and reduces the risk associated with dependency on a single therapeutic area.
Notably, Crispr has made history with the first Marketing Authorization Application (MAA) filing for a CRISPR-edited product known as exagamglogene autotemcel (exa-cel) in β-thalassemia and sickle cell disease. If approved, exa-cel could offer a functional cure for over 30,000 patients in the U.S. and E.U. This groundbreaking achievement reflects the company’s leadership in translating gene-editing technology into real-world therapies.
Statistically, the data from exa-cel’s trials is highly promising. In transfusion-dependent thalassemia, 42 out of 44 patients stopped red blood cell transfusions. And in sickle cell disease, all 31 patients remained VOC-free for considerable durations. Such compelling results signify the potential of exa-cel and instill confidence in the broader application of Crispr’s technology.
Finally, Crispr strategically focuses on in vivo gene disruption, addressing many severe monogenic diseases. For example, the company aims to establish a leading in vivo gene correction platform, initially targeting the liver. Crispr is well-prepared to address a broad spectrum of diseases with a portfolio that includes various targets and indications. Its wholly-owned portfolio also provides opportunities for internal development or partnerships.
On the date of publication, Yiannis Zourmpanos 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.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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The post Futurescape: Betting Big on These 3 Next-Gen Tech Stocks 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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First, Unity’s partnership with Apple (NASDAQ:AAPL) at WWDC has generated substantial interest in the PolySpatial platform. So, by de-emphasizing lower-margin professional services and relying on strategic partners like Capgemini (OTCMKTS:CAPMF) and Booz (NYSE:BAH), Unity is enhancing its bottom-line profitability. Notably, Crispr has made history with the first Marketing Authorization Application (MAA) filing for a CRISPR-edited product known as exagamglogene autotemcel (exa-cel) in β-thalassemia and sickle cell disease.
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First, Unity’s partnership with Apple (NASDAQ:AAPL) at WWDC has generated substantial interest in the PolySpatial platform. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In an era of rapid technological advancement and groundbreaking innovations, the stock market is constantly abuzz with opportunities and potential pitfalls. Proto Labs (PRLB) Source: Gorodenkoff / Shutterstock Proto Labs (NYSE:PRLB) has a distinct advantage in providing a broad spectrum of manufacturing solutions.
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First, Unity’s partnership with Apple (NASDAQ:AAPL) at WWDC has generated substantial interest in the PolySpatial platform. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In an era of rapid technological advancement and groundbreaking innovations, the stock market is constantly abuzz with opportunities and potential pitfalls. Additionally, Unity’s strategic partnerships with companies like Weta, Ziva, and Speedtree will continue to attract artists to its platform, resulting in net new revenue and SaaS revenue.
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First, Unity’s partnership with Apple (NASDAQ:AAPL) at WWDC has generated substantial interest in the PolySpatial platform. Unity (U) Source: rafapress / Shutterstock.com Unity (NYSE:U) is poised for significant long-term benefits through its next-gen technological advancements. Proto Labs (PRLB) Source: Gorodenkoff / Shutterstock Proto Labs (NYSE:PRLB) has a distinct advantage in providing a broad spectrum of manufacturing solutions.
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13346.0
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2023-10-01 00:00:00 UTC
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A Trillion-Dollar Dividend Growth Stock to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/a-trillion-dollar-dividend-growth-stock-to-buy-and-hold-forever
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nan
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nan
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With a market cap well above $2.5 trillion, some investors might wonder whether any fuel is left in Apple's (NASDAQ: AAPL) growth tank. The company has delivered market-beating returns in the past 15 years, but the unveiling of new iPhone models has lost much of its appeal, and the company's innovative smartphone remains its biggest cash cow. At least, that's what the bears say.
There is some legitimacy to this argument, but there are also good reasons to believe that Apple is still an excellent pick for growth investors, or income seekers for that matter. Let's find out why.
AAPL total return level data by YCharts.
Apple still has multiple paths ahead
While it is true that the iPhone no longer garners the same kind of buzz it did when it first came out a little over 15 years ago, it continues to generate impressive sales even after all this time. In the third quarter of Apple's fiscal year 2023, ending on July 1, iPhone sales came in at $39.7 billion.
That was a decline of a little more than 2% year over year, but given the still-challenging economy and the fact that Apple's devices are very expensive, what's surprising is that the iPhone can rack up tens of billions in sales in a quarter at all -- not that its revenue dropped 2% year over year.
The secret to Apple's success: The company's brand name is one of the most valuable in the world. That's why the company's customers continue to buy its costly gadgets. It's also why Apple now has an installed base of over 2 billion devices.
That deep and loyal ecosystem provides many opportunities. Its growing fintech business offers a digital wallet; buy now, pay later services; a credit card, and a high-yield savings account.
The services segment also features video and music streaming, an app geared toward helping people be more active, a premium gaming service, and more. Whatever the lineup currently is, investors shouldn't lose sight of the most important thing: The large ecosystem provides many growth options as long as the company finds new ways to monetize its audience.
One sector where it sees significant untapped potential is in healthcare. The company's AirPods feature a hearing-aid option, the Apple Watch has several health-related features, including heart rate monitoring, and the company is also looking to turn that device into a continuous glucose monitoring device for diabetes patients.
Apple's knack for innovation, its successful addition of its own spin on existing technologies, and its ability to generate tons of cash it can invest into R&D mean the possibilities are practically endless. It might take a while before Apple can entirely replace its iPhone segment, but its services unit has been growing steadily and is its second largest in sales (it still trails the iPhone by some distance).
In the company's third quarter, services sales came in at $21.2 billion, an increase of about 8% year over year, while total sales declined by about 1% year over year to $81.8 billion. So the services segment is precisely why the company can continue to grow for years.
The dividend looks secure
Apple doesn't have the most competitive dividend yield -- it's only 0.56% compared to the S&P 500's 1.54%. But the company's payouts have more than doubled in the past decade, and its cash payout ratio is a highly conservative 14.8%.
Apple could afford to substantially raise its dividend at these levels without worrying about running out of cash for years. In other words, investors can bet the farm on the tech company to continue rewarding shareholders with dividend hikes.
Lastly, a dividend-paying company's underlying business -- above its yield or payout ratio -- is the most important thing to consider. On that front, investors have nothing to worry about. Apple's track record of consistent financial results -- with growing revenue, earnings, and cash flow -- and the growth avenues available paint a healthy picture of its operations.
AAPL revenue (quarterly) data by YCharts.
Apple isn't known primarily as a dividend stock, but it should be near the top of the list for income seekers, including those looking for "forever" stocks.
Find out why Apple is one of the 10 best stocks to buy now
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With a market cap well above $2.5 trillion, some investors might wonder whether any fuel is left in Apple's (NASDAQ: AAPL) growth tank. AAPL total return level data by YCharts. AAPL revenue (quarterly) data by YCharts.
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AAPL total return level data by YCharts. With a market cap well above $2.5 trillion, some investors might wonder whether any fuel is left in Apple's (NASDAQ: AAPL) growth tank. AAPL revenue (quarterly) data by YCharts.
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With a market cap well above $2.5 trillion, some investors might wonder whether any fuel is left in Apple's (NASDAQ: AAPL) growth tank. AAPL total return level data by YCharts. AAPL revenue (quarterly) data by YCharts.
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With a market cap well above $2.5 trillion, some investors might wonder whether any fuel is left in Apple's (NASDAQ: AAPL) growth tank. AAPL total return level data by YCharts. AAPL revenue (quarterly) data by YCharts.
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13347.0
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2023-10-01 00:00:00 UTC
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Wall St Week Ahead-US stock market’s powerhouses tested by soaring bond yields
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-us-stock-markets-powerhouses-tested-by-soaring-bond-yields-0
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nan
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nan
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By Lewis Krauskopf and Saqib Iqbal Ahmed
NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot.
Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. As of Tuesday, these stocks accounted for more than 80% of the S&P 500's total return for 2023.
Investors see many of the stocks as major beneficiaries of advances in artificial intelligence. Earlier this year, megacaps' strong balance sheets and business models also attracted those looking for a safe haven when regional banking turmoil shook the financial system.
Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks. The so-called Magnificent Seven stocks trade at an average price-to-earnings ratio of 31.8 based on earnings estimates for the next 12 months, according to LSEG Datastream. That far surpasses the S&P 500's ratio of 18.1.
With a collective weighting of 27% in the S&P 500, weakness in the megacaps could further deflate the broader index, now down 6.6% from its July highs, investors said. Year-to-date, the S&P 500 is up over 11%.
"When the big tech stocks start going down ... the indexes go down," said Matt Maley, chief market strategist at Miller Tabak. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.”
The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July. High-flier Nvidia fell nearly 12% in September. Apple remains up 32% for the year, with Nvidia up nearly 200%.
PRESSURE FROM YIELDS
Higher yields on Treasuries - which are sensitive to rate expectations and seen as risk free - offer more investment competition to stocks while raising the cost of borrowing for corporations and households.
Shares of tech and growth companies, which often have significant expected profit growth in the years ahead, tend to be hit particularly hard when yields rise because their future projected earnings are discounted more severely.
“Because (the megacaps) are more highly valued, that just means that they are going to be more sensitive to changes in real interest rates,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.
Options markets show elevated concern among investors. Thirty-day implied volatility for the Nasdaq-100-tracking Invesco QQQ ETF QQQ.O - a measure of how much traders expect the shares to gyrate in the near term - recently climbed to 22, the highest since mid-April, according to options analytics service Trade Alert.
Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. That sense of complacency makes tech stocks vulnerable to increased volatility should market declines accelerate from here, said Chris Murphy, Susquehanna Financial Group co-head of derivative strategy.
To be sure, some megacap stocks have held up relatively well in the S&P 500's latest slide, including Alphabet, whose shares are down only slightly since late July.
The Nasdaq 100 .NDX, a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year. It is down 7% from its highs.
Investors also see other risks for megacap stocks.
A U.S. antitrust lawsuit filed this week against Amazon created a “new line of worry in the megacap space,” said Rick Meckler, partner at Cherry Lane Investments in New Jersey.
And while optimism about increased use of AI applications has helped tech stocks this year, there is some question about the ultimate boost to profits, said J. Bryant Evans, portfolio manager at Cozad Asset Management.
"The whole promise of AI hasn’t... reached fruition yet,” Evans said.
(Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.” The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July.
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Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. (Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks.
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Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. The Nasdaq 100 .NDX, a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year.
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13348.0
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2023-10-01 00:00:00 UTC
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Nasdaq Sell-Off: My Top 3 Beaten-Down Growth Stocks to Buy Now
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AAPL
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https://www.nasdaq.com/articles/nasdaq-sell-off%3A-my-top-3-beaten-down-growth-stocks-to-buy-now
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nan
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nan
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The Nasdaq Composite has come roaring back in 2023 and is crushing the performance of the S&P 500 and Dow Jones Industrial Average. But a lot of Nasdaq stocks have been selling off this year or are still down big off their highs.
Netflix (NASDAQ: NFLX), Enphase Energy (NASDAQ: ENPH), and Starbucks (NASDAQ: SBUX) are three growth stocks that are down big but are worth buying now. Here's why.
Image source: Getty Images
It's Netflix's world. Other streamers are just living in it
Netflix stock is up over 60% compared to its brutal summer 2022 sell-off. But it's still down over 45% from its all-time high and has rather quietly lost 10% of its value in the last three months.
While it is clear in hindsight that Netflix should never have gotten as beaten down as it did last summer, investors have been left wondering what a good price for this stock is and whether or not it is still a growth stock.
Netflix is certainly not the growth stock it once was, but that is arguably a good thing for long-term investors.
NFLX revenue (TTM) data by YCharts. TTM = trailing 12 months.
Revenue is at an all-time high, but ttm net income has been slowing and is ticking down from the peak in Q4 2021. Cash from operations is up over 300% in the last five years. Netflix is now a seasoned veteran in the streaming space.
And with so much more competition from the likes of Walt Disney (NYSE: DIS), Amazon, Apple, and others, it's better that Netflix is a cash cow that's generating gobs of profit instead of a barely profitable company that is relying on top-line growth alone.
The company's biggest advantage is that it has a business model that works. It sounds simple, but this isn't something that other streaming companies have been able to replicate, at least not yet.
Rivals such as Disney+ are still unprofitable and are struggling to find the balance between content spending and what kind of content will boost viewer engagement. The struggle to find profitable content has been so bad that Disney is doubling down on its parks business since streaming hasn't panned out as investors initially hoped. I have every bit of confidence that Disney+ will be a force to be reckoned with over time, but the reality is that it's just not there yet.
Netflix is in a league of its own. The growth is still there, but at a far lower rate than in past years. However, Netflix is now consistently profitable and generates large amounts of cash flow. In this vein, it's a more stable company. Netflix needs to prove to investors it can turn the corner and resume growing its bottom line. But in the meantime, the valuation has never been more reasonable, and the company has the content needed to justify price increases.
Netflix remains the top streaming stock and a top growth stock to buy now.
Renewable energy's top growth stock is on sale now
The Invesco Solar ETF (NYSEMKT: TAN), the go-to barometer for the solar energy industry, reached a new 52-week low on Friday, erasing most of the gains over the last three years.
It's been a brutal year for solar companies, and for good reason. The pace of climate change isn't slowing down, but investor appetite for capital-intensive solar projects, many of which are funded with debt, has taken a hit with today's high interest rates.
At least in the short term, energy investors prefer to go with the proven winners, which are oil and gas companies that can fund growth with cash from a reliable and secure energy source.
Many oil stocks are hitting all-time highs. Meanwhile, Enphase Energy stock is down a brutal 54.7% year to date.
In many ways, the sell-off is reminiscent of what Netflix went through last summer. Like the streaming platform, Enphase was a hypergrowth stock that has transitioned to a fast (but not hypergrowth) stock backed by high margins, sizable cash-flow generation, and profits.
Growth is likely to keep slowing for Enphase in the short term, but it has done a masterful job growing its bottom line and sustaining high margins, especially for a company that mostly sells physical products -- namely, solar inverters that convert DC energy to the AC energy used in households.
The stock now sports a reasonable valuation, which is something that couldn't be said over the last few years. With the long-term tailwinds stronger than ever for the energy transition, Enphase is certainly worth a look.
Starbucks is a worthy dividend stock to buy and hold forever
Over the last decade or so, Starbucks has undergone an identity shift from a rip-roaring growth stock disrupting the coffee and beverage industry to a more stable stock with moderate growth and a nice dividend. Starbucks is following the classic path of many mature companies. After all, there are only so many new stores that Starbucks can build without being borderline reckless with its capital allocation.
Today, a big part of the Starbucks investment thesis centers around the dividend. On Sept. 20, management announced a more than 7% increase in the quarterly dividend to $0.57 per share. The payout has nearly doubled over the last five years and has more than quadrupled over the last decade.
But Starbucks' growth prospects might be better than some investors realize. Pre-pandemic, the focus was on China, with a growing middle class and a booming economy offering a golden opportunity. The pandemic slowed that down. Today, China is picking back up.
Meanwhile, the Starbucks Rewards program supports same-store growth around the world. A silver lining of the pandemic is that it accelerated mobile ordering and rewards sign-ups.
In the most recent quarter, 90-day active Starbucks Rewards customers reached 75 million globally, including 31.4 million in the U.S. and over 20 million in China. Rewards members also made up 57% of U.S. sales last quarter. The Rewards program is a key growth driver for the company and helps boost sales and satisfaction from loyal customers. It should continue to play a key role in growth for the foreseeable future.
Reliable growth stocks for a favorable price
Netflix, Enphase, and Starbucks operate in completely different industries, but all three are similar in that they are growing slower than in the past and are now much more focused on cash flow and bottom-line growth.
These companies might not compound at the same rate as in decades passed, but they have found the sweet spot for what makes a growth stock reliable: earnings and cash flow increasing even if it comes at the expense of slower top-line growth.
Netflix now has a forward price-to-earnings (P/E) ratio of just 31.9, while Starbucks comes in at 27.1 and Enphase is at just 24. All told, investors are getting an excellent price and a lot of diversification from this basket of quality companies.
10 stocks we like better than Netflix
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Netflix 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 September 18, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has positions in Enphase Energy and has the following options: long December 2025 $100 calls on Walt Disney, long June 2025 $105 calls on Walt Disney, long November 2023 $195 calls on Enphase Energy, short June 2025 $110 calls on Walt Disney, and short November 2023 $200 calls on Enphase Energy. The Motley Fool has positions in and recommends Amazon.com, Apple, Enphase Energy, Netflix, Starbucks, and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The struggle to find profitable content has been so bad that Disney is doubling down on its parks business since streaming hasn't panned out as investors initially hoped. The pace of climate change isn't slowing down, but investor appetite for capital-intensive solar projects, many of which are funded with debt, has taken a hit with today's high interest rates. The Rewards program is a key growth driver for the company and helps boost sales and satisfaction from loyal customers.
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Netflix (NASDAQ: NFLX), Enphase Energy (NASDAQ: ENPH), and Starbucks (NASDAQ: SBUX) are three growth stocks that are down big but are worth buying now. Daniel Foelber has positions in Enphase Energy and has the following options: long December 2025 $100 calls on Walt Disney, long June 2025 $105 calls on Walt Disney, long November 2023 $195 calls on Enphase Energy, short June 2025 $110 calls on Walt Disney, and short November 2023 $200 calls on Enphase Energy. The Motley Fool has positions in and recommends Amazon.com, Apple, Enphase Energy, Netflix, Starbucks, and Walt Disney.
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Netflix (NASDAQ: NFLX), Enphase Energy (NASDAQ: ENPH), and Starbucks (NASDAQ: SBUX) are three growth stocks that are down big but are worth buying now. Starbucks is a worthy dividend stock to buy and hold forever Over the last decade or so, Starbucks has undergone an identity shift from a rip-roaring growth stock disrupting the coffee and beverage industry to a more stable stock with moderate growth and a nice dividend. Reliable growth stocks for a favorable price Netflix, Enphase, and Starbucks operate in completely different industries, but all three are similar in that they are growing slower than in the past and are now much more focused on cash flow and bottom-line growth.
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Netflix (NASDAQ: NFLX), Enphase Energy (NASDAQ: ENPH), and Starbucks (NASDAQ: SBUX) are three growth stocks that are down big but are worth buying now. Netflix remains the top streaming stock and a top growth stock to buy now. Meanwhile, Enphase Energy stock is down a brutal 54.7% year to date.
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13349.0
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2023-10-01 00:00:00 UTC
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Will Qualcomm Stock Return To Pre-Inflation Shock Highs Of Over $180?
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AAPL
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https://www.nasdaq.com/articles/will-qualcomm-stock-return-to-pre-inflation-shock-highs-of-over-%24180
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nan
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nan
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Qualcomm stock (NASDAQ:QCOM) currently trades at $108 per share, roughly 43% below its pre-inflation shock high of $189, seen in December 2021, and has the potential for meaningful gains. QCOM saw its stock trading at around $128 in late June 2022, just before the Fed started increasing interest rates, and is now 16% below that level, underperforming the broader markets, considering that the S&P 500 rose almost 12% over this period. The decline in Qualcomm stock over the recent past can be attributed to a considerable slowdown in the smartphone and tablet market, amid cooling consumer spending and weaker demand for computing and mobile devices post Covid-19. Over Q3 FY’23, the most recent quarter, Qualcomm reported a mixed set of results with revenue missing estimates, declining by 23% year-over-year to $8.44 billion, although profits came in ahead of estimates. There have been some positive developments for the stock as well, with Qualcomm announcing earlier this month it had extended an agreement with Apple to supply modem chips to the iPhone maker until 2026. Apple was expected to use an internally developed 5G modem starting in 2024 but is apparently facing some setbacks with its development.
Interestingly, QCOM stock has had a Sharpe Ratio of 0.4 since early 2017, slightly lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 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.
Returning to the pre-inflation shock level means that Qualcomm stock will have to gain 76% from here. However, we do not believe that will materialize anytime soon and estimate Qualcomm valuation to be around $133 per share, implying about 22% gains. This is because of an expected decline in earnings and revenue in the near term due to a weak smartphone market and lower modem demand. Moreover, the recent uncertainty in the financial sector has raised concerns about a potential recession, which may impact Qualcomm’s business.
Our detailed analysis of Qualcomm upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt supply.
April 2021: Inflation rates cross 4% and increase rapidly.
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process.
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses
Since August 2023: Fed has kept interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards.
In contrast, here’s how QCOM stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
Qualcomm and S&P 500 Performance During 2007-08 Crisis
Qualcomm stock declined from $44 in September 2007 (pre-crisis peak) to around $33 in March 2009 (as the markets bottomed out), implying the stock lost over 20% of its pre-crisis value. It recovered from the 2008 crisis to levels of around $46 in early 2010, rising nearly 38% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
Qualcomm Fundamentals Over Recent Years
Qualcomm’s revenue rose from $24 billion in FY’19 to $44 billion in FY’22, driven by surging chipset sales through the Covid-19 pandemic. However, of late, its chipset segment sales have been weighed down by cooling demand for digital devices following the easing of the pandemic and the remote working trend. For the last 12 months, revenue stood at $39 billion. Qualcomm’s operating margin slid from 20.5% in 2019 to 18.7% in 2022. Its EPS rose from $3.60 in 2020 to about $11.50 per share in 2022, although it declined to about $9.40 over the last 12 months.
Does Qualcomm Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
QCOM’s total debt has remained roughly flat at about $16 billion over the last four years. The company garnered $9 billion in cash flows from operations in 2022. Given its cash position of close to $9 billion as of the last quarter, Qualcomm appears to be in a comfortable position to meet its near-term obligations.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe Qualcomm (QCOM) stock has the potential for some gains once fears of a potential recession are allayed. That said, the expected decline in near-term earnings, partly due to the higher inflation and foreign currency translation, remains a risk factor to realizing these gains.
Returns Sep 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
QCOM Return -5% -1% 67%
S&P 500 Return -5% 11% 91%
Trefis Reinforced Value Portfolio -7% 23% 531%
[1] Month-to-date and year-to-date as of 9/27/2023
[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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QCOM saw its stock trading at around $128 in late June 2022, just before the Fed started increasing interest rates, and is now 16% below that level, underperforming the broader markets, considering that the S&P 500 rose almost 12% over this period. The decline in Qualcomm stock over the recent past can be attributed to a considerable slowdown in the smartphone and tablet market, amid cooling consumer spending and weaker demand for computing and mobile devices post Covid-19. That said, the expected decline in near-term earnings, partly due to the higher inflation and foreign currency translation, remains a risk factor to realizing these gains.
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July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since August 2023: Fed has kept interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Qualcomm and S&P 500 Performance During 2007-08 Crisis Qualcomm stock declined from $44 in September 2007 (pre-crisis peak) to around $33 in March 2009 (as the markets bottomed out), implying the stock lost over 20% of its pre-crisis value. Qualcomm Fundamentals Over Recent Years Qualcomm’s revenue rose from $24 billion in FY’19 to $44 billion in FY’22, driven by surging chipset sales through the Covid-19 pandemic.
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July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since August 2023: Fed has kept interest rates unchanged to quell fears of a recession, although another rate hike remains in the cards. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Qualcomm and S&P 500 Performance During 2007-08 Crisis Qualcomm stock declined from $44 in September 2007 (pre-crisis peak) to around $33 in March 2009 (as the markets bottomed out), implying the stock lost over 20% of its pre-crisis value. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe Qualcomm (QCOM) stock has the potential for some gains once fears of a potential recession are allayed.
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Returning to the pre-inflation shock level means that Qualcomm stock will have to gain 76% from here. This is because of an expected decline in earnings and revenue in the near term due to a weak smartphone market and lower modem demand. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe Qualcomm (QCOM) stock has the potential for some gains once fears of a potential recession are allayed.
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2023-09-30 00:00:00 UTC
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7 S&P 500 Stocks Set to Explode Higher
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AAPL
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https://www.nasdaq.com/articles/7-sp-500-stocks-set-to-explode-higher
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With a good deal of uncertainty over interest rate hikes and the potential for recession, markets have been far more volatile. However, if some of the uncertainty fades, we could also see a year-end rally, which I strongly believe could happen. That being said, investors may want to consider these S&P 500 stocks to buy before they push even higher.
S&P 500 Stocks to Buy: Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
One of the top S&P 500 stocks to buy is Apple (NASDAQ:AAPL), a household name, thriving on consumer loyalty and new product launches, including its latest iPhone. Trading at $170 today, the stock is up 36% year to date and over 200% in the past five years. While the company did see a pullback in revenue thanks to lower consumer spending, don’t count Apple out just yet. Besides the wide range of products, the company also generates revenue from the services segment, which is a major contributor to its total revenue. It also plans to expand its product lineup next year and will release its Vision Pro.
Alphabet (GOOG) (GOOGL)
Source: IgorGolovniov / Shutterstock.com
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has a significant user base through its Google products and YouTube. It also serves multiple industries and has become an important part of our lives. The company has been investing in artificial intelligence and is working on improving Google Search with AI. The stock is up 48% year to date and is exchanging hands at $132. Despite a drop in its ad business, it holds an edge over other companies and it can manage to bounce back as the economy improves. It has recently launched a service known as “Duet for Workspace” which will bring AI upgrades to Gmail, Sheets, and Google Docs. Through this, the company aims to attract new users and retain existing ones.
S&P 500 Stocks to Buy: Tesla (TSLA)
Source: Zigres / Shutterstock.com
A leader in the electric vehicle industry, several catalysts are working for Tesla (NASDAQ:TSLA). The company reported record deliveries in the second quarter. And, as it gears up to post third-quarter delivery numbers on Oct. 3, I believe it will set another record. Despite a drop in margins in the second quarter, Tesla reported a revenue growth of 47%. The company will start production of CyberTruck very soon and it also aims to have its Robo Taxis on the road.
It will also generate revenue from its EV charging stations and its energy storage deployments will gain momentum in the coming year. With so much working for the company, Tesla is a no-brainer stock to own. Trading at $241 today, the stock is down 9.79% in the year.
Microsoft (MSFT)
Source: rafapress / Shutterstock.com
Microsoft (NASDAQ:MSFT) just saw a 15% rise in its productivity segment which hit $4.5 billion. In addition, Microsoft 365 subscribers increased by 12% to 67 million. Plus, as it expands its artificial intelligence offerings, the company could see a sizable boost in revenue. It’s also a big name in the gaming sector and continues to generate revenue through Xbox. Up 30% year to date, the MSFT stock is trading at $313 and is a solid buy.
S&P 500 Stocks to Buy: Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) is growing at a rapid pace and is going to dominate the market. People have started using digital payments after the pandemic and this gave a boost to the business. This is one company that will continue to thrive no matter how the economy moves from here.
It is also the largest payment processor and a dividend-paying company. In the recent quarter, the company saw a 9% rise in the payments volume. Trading at $231 today, the stock is moving closer to the 52-week high of $250 and this is one stock to buy and hold forever. It boasts a dividend yield of 0.78% and has recently paid a quarterly dividend of $0.45. There is no stopping the momentum of Visa and it is much ahead of the competitors today.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA) is a long-term buy and hold. The company is a major player in the industry and holds a big share in the graphics processing units. It makes chips that help develop and run AI models. This is why it has become a prominent player in the industry and is the first option for AI-focused companies who want the right hardware.
Its financials have broken records and the stock is up 200% year to date. It is trading at $430 today and has the potential to soar higher. With each quarterly result, the company beats expectations, and the stock soars. For the third quarter, the company expects revenue to be $16 billion-plus. This is one stock that will continue to pay in the long term.
S&P 500 Stocks to Buy: Amazon (AMZN)
Source: Tada Images / Shutterstock.com
E-commerce giant Amazon (NASDAQ:AMZN) is a safe stock to invest in. Its global presence and market dominance have made it a solid stock to own. The company has recently invested $4 billion in Anthropic, an AI company that will use AWS and Amazon chips and allow the technical professionals of Amazon to use its technology. This is considered a solid move in the industry and it is for this reason that the stock is a buy even at a premium value.
It has already been using AI for its products and services, but with this investment, it is taking one step ahead. The business is on a growth path, and it generates revenue from multiple sources, making it a reliable investment in difficult times. AMZN stock is trading at $125 and is up 46% year to date.
On the date of publication, Vandita Jadeja 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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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The post 7 S&P 500 Stocks Set to Explode Higher 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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S&P 500 Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top S&P 500 stocks to buy is Apple (NASDAQ:AAPL), a household name, thriving on consumer loyalty and new product launches, including its latest iPhone. It has recently launched a service known as “Duet for Workspace” which will bring AI upgrades to Gmail, Sheets, and Google Docs. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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S&P 500 Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top S&P 500 stocks to buy is Apple (NASDAQ:AAPL), a household name, thriving on consumer loyalty and new product launches, including its latest iPhone. Alphabet (GOOG) (GOOGL) Source: IgorGolovniov / Shutterstock.com Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has a significant user base through its Google products and YouTube. Microsoft (MSFT) Source: rafapress / Shutterstock.com Microsoft (NASDAQ:MSFT) just saw a 15% rise in its productivity segment which hit $4.5 billion.
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S&P 500 Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top S&P 500 stocks to buy is Apple (NASDAQ:AAPL), a household name, thriving on consumer loyalty and new product launches, including its latest iPhone. Trading at $231 today, the stock is moving closer to the 52-week high of $250 and this is one stock to buy and hold forever. S&P 500 Stocks to Buy: Amazon (AMZN) Source: Tada Images / Shutterstock.com E-commerce giant Amazon (NASDAQ:AMZN) is a safe stock to invest in.
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S&P 500 Stocks to Buy: Apple (AAPL) Source: sylv1rob1 / Shutterstock.com One of the top S&P 500 stocks to buy is Apple (NASDAQ:AAPL), a household name, thriving on consumer loyalty and new product launches, including its latest iPhone. The company has been investing in artificial intelligence and is working on improving Google Search with AI. Up 30% year to date, the MSFT stock is trading at $313 and is a solid buy.
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2023-09-30 00:00:00 UTC
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Every Artificial Intelligence (AI) Stock Warren Buffett Owns, Ranked From Best to Worst
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AAPL
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https://www.nasdaq.com/articles/every-artificial-intelligence-ai-stock-warren-buffett-owns-ranked-from-best-to-worst
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Warren Buffett doesn't invest in what he doesn't understand, and he has readily admitted that he doesn't understand artificial intelligence (AI). So does that mean the legendary investor doesn't have any AI stocks in his portfolio? Nope.
Granted, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) only owns a few AI stocks. However, Berkshire's subsidiary, New England Asset Management (NEAM), features quite a few stocks with solid AI connections among its holdings.
Even though Buffett didn't personally pick all of these stocks, he nonetheless owns them. Here are all of his AI stocks, ranked from best to worst (in my calculated opinion).
1. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is one of those stocks in NEAM's portfolio rather than Berkshire Hathaway's. The company's Google DeepMind unit has made several important AI breakthroughs.
Some believe that AI presents a huge threat to Alphabet. I disagree. Instead, I think that AI will provide a massive tailwind for the company -- especially its Google Cloud unit. With the stock trading at a price/earnings-to-growth (PEG) ratio of around 1.2, Alphabet stands as one of the most attractively valued AI stocks on the market.
2. Amazon
Berkshire does directly own a stake in Amazon (NASDAQ: AMZN). Although one of its two investment managers made the decision to buy the stock, Buffett has referred to himself as "an idiot" for not doing so himself earlier.
The company incorporates AI throughout its operations. Its Amazon Web Services cloud platform should enjoy tremendous growth over the next decade and beyond due to the surge in AI adoption.
3. Apple
Buffett likes Apple (NASDAQ: AAPL) so much that it's by far the largest position in Berkshire's portfolio. The company hasn't been in the AI spotlight as much as other companies this year, but market researcher PitchBook ranks it as the top buyer of AI and machine-learning companies since 2017.
I think it's possible that some of the AI stocks that are lower on my list could deliver greater gains than Apple over the next few years. But the company's moat (namely, its impressive iPhone-centered ecosystem) and the opportunities for its services and new products to generate growth make it worthy of the No. 3 spot, in my opinion.
4. Microsoft
Microsoft (NASDAQ: MSFT) is a NEAM holding that has profited from the interest in generative AI this year. The company's partnership with and investment in ChatGPT developer OpenAI appears to be a game changer.
AI should make nearly all of Microsoft's software products more valuable to users. The company's Azure cloud service platform also stands to grow robustly for years to come just as Google Cloud and Amazon Web Services likely will.
5. Snowflake
Berkshire invested in Snowflake's (NYSE: SNOW) initial public offering in 2020. It was a surprising move, but one that appears to have been made by investment manager Todd Combs rather than Buffett himself.
I don't like the stock's sky-high valuation or the company's hefty level of stock-based compensation. However, I think that Snowflake should have a big opportunity as it integrates AI into its cloud-based data platform.
6. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) is a NEAM-owned stock with an enviable business model. The company had a market share of 58.5% in the semiconductor foundry market at the end of 2022, according to Statista.
I'd rank Taiwan Semi even higher on the list were it not for a couple of concerns. First, the stock is valued at a premium. Second, the threat that China presents to Taiwan is a dark cloud for the company.
7. Qualcomm
Qualcomm (NASDAQ: QCOM) isn't the kind of stock you'd expect to see in Berkshire's portfolio -- and it isn't. However, NEAM has a position in the chip stock.
There's good news and bad news for Qualcomm. The good news is that the company has emerged as a leader in AI chips for mobile devices. Its stock is also cheap, with a PEG ratio of 1.06.
The bad news is that the smartphone market's growth has tapered off. Also, Qualcomm is heavily dependent on Apple, which wants to develop its chips in-house in the future.
8. Broadcom
NEAM holding Broadcom (NASDAQ: AVGO) is a key supplier of AI chips for Google and other companies. Rumors circulated recently that Google was seeking to replace Broadcom or design its own chips internally. However, Google publicly reaffirmed its ongoing relationship with Broadcom.
Broadcom is arguably the second-biggest winner after Nvidia from the generative AI explosion. Unlike Nvidia, though, its stock isn't priced at a steep premium. My main reservation about it is the possibility that Google could change its tune down the road.
9. NXP Semiconductors
As you might guess, NXP Semiconductors (NASDAQ: NXPI) is in NEAM's portfolio but not Berkshire's. The company is a leading provider of chips for automakers.
NXP is another stock that could arguably merit a higher place on the list of Buffett AI stocks. Self-driving cars in particular could be a huge growth market for the company.
10. Cisco Systems
Cisco Systems (NASDAQ: CSCO) is a NEAM holding that is betting in a major way on AI. The networking equipment company's CEO, Chuck Robbins, stated recently that AI "is a huge opportunity for Cisco."
Some Wall Street analysts think that it's going to take a while before Cisco really benefits from its AI initiatives. I suspect they're right.
11. IBM
Berkshire directly owned shares of IBM (NYSE: IBM) in the past but eventually exited the position. However, Big Blue remains a Buffett stock of sorts because of its inclusion in NEAM's portfolio. IBM also remains one of the leaders in AI with its Watson platform.
I don't expect IBM to deliver jaw-dropping growth. The main pluses for the stock, in my view, are its attractive valuation and juicy dividend yield.
12. Texas Instruments
Texas Instruments (NASDAQ: TXN) comes in last on my list because there are several problems for the technology pioneer. Its revenue fell year over year in the second quarter of 2023. The company even posted negative free cash flow for the first time in 19 years.
I do think that Texas Instruments has growth opportunities ahead thanks to AI, but it's the weakest Buffett AI stock for now, in my view.
10 stocks we like better than Alphabet
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See the 10 stocks
*Stock Advisor returns as of September 25, 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, Berkshire Hathaway, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Cisco Systems, Microsoft, Nvidia, Qualcomm, Snowflake, Taiwan Semiconductor Manufacturing, and Texas Instruments. The Motley Fool recommends Broadcom, International Business Machines, and NXP Semiconductors. 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 Buffett likes Apple (NASDAQ: AAPL) so much that it's by far the largest position in Berkshire's portfolio. However, Berkshire's subsidiary, New England Asset Management (NEAM), features quite a few stocks with solid AI connections among its holdings. Its Amazon Web Services cloud platform should enjoy tremendous growth over the next decade and beyond due to the surge in AI adoption.
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Apple Buffett likes Apple (NASDAQ: AAPL) so much that it's by far the largest position in Berkshire's portfolio. Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing (NYSE: TSM) is a NEAM-owned stock with an enviable business model. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Cisco Systems, Microsoft, Nvidia, Qualcomm, Snowflake, Taiwan Semiconductor Manufacturing, and Texas Instruments.
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Apple Buffett likes Apple (NASDAQ: AAPL) so much that it's by far the largest position in Berkshire's portfolio. With the stock trading at a price/earnings-to-growth (PEG) ratio of around 1.2, Alphabet stands as one of the most attractively valued AI stocks on the market. The company hasn't been in the AI spotlight as much as other companies this year, but market researcher PitchBook ranks it as the top buyer of AI and machine-learning companies since 2017.
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Apple Buffett likes Apple (NASDAQ: AAPL) so much that it's by far the largest position in Berkshire's portfolio. Alphabet Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is one of those stocks in NEAM's portfolio rather than Berkshire Hathaway's. The company hasn't been in the AI spotlight as much as other companies this year, but market researcher PitchBook ranks it as the top buyer of AI and machine-learning companies since 2017.
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2023-09-30 00:00:00 UTC
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Apple identifies issues causing overheating in the iPhone 15
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AAPL
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https://www.nasdaq.com/articles/apple-identifies-issues-causing-overheating-in-the-iphone-15
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By Juby Babu
Sept 30 (Reuters) - Apple AAPL.O on Saturday said it has identified a few issues which can cause new iPhones to run warmer than expected, including a bug in the iOS 17 software which will be fixed in an upcoming update.
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."
"Another issue involves some recent updates to third-party apps that are causing them to overload the system," Apple said, adding that it is working with app developers on fixes that are in the process of being rolled out.
The third-party apps causing the issue include game Asphalt 9; Meta's META.O Instagram; and Uber, according to the company. Instagram already fixed the issue with its app on Sept. 27.
The upcoming iOS 17 bug fix will not reduce performance to address the iPhone's temperature.
The Cupertino, California-headquartered company said that the iPhone 15 Pro and Pro Max do not suffer from overheating due to the design, rather the new titanium shells result in improved heat dissipation compared to prior stainless steel models.
Apple also said the issue is not a safety or injury risk, and will not impact the phone's long-term performance.
UPDATE 2-Apple workers in France stage strike on iPhone 15 launch day
Apple's flagship Shanghai store buzzes as iPhone 15 goes on sale
Apple's iPhone seen gaining market share in India as Pro model demand rises
(Reporting by Juby Babu in Bengaluru Editing by Nick Zieminski)
((Juby.Babu@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Juby Babu Sept 30 (Reuters) - Apple AAPL.O on Saturday said it has identified a few issues which can cause new iPhones to run warmer than expected, including a bug in the iOS 17 software which will be fixed in an upcoming update. The third-party apps causing the issue include game Asphalt 9; Meta's META.O Instagram; and Uber, according to the company. UPDATE 2-Apple workers in France stage strike on iPhone 15 launch day Apple's flagship Shanghai store buzzes as iPhone 15 goes on sale Apple's iPhone seen gaining market share in India as Pro model demand rises (Reporting by Juby Babu in Bengaluru Editing by Nick Zieminski) ((Juby.Babu@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Juby Babu Sept 30 (Reuters) - Apple AAPL.O on Saturday said it has identified a few issues which can cause new iPhones to run warmer than expected, including a bug in the iOS 17 software which will be fixed in an upcoming update. The third-party apps causing the issue include game Asphalt 9; Meta's META.O Instagram; and Uber, according to the company. The upcoming iOS 17 bug fix will not reduce performance to address the iPhone's temperature.
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By Juby Babu Sept 30 (Reuters) - Apple AAPL.O on Saturday said it has identified a few issues which can cause new iPhones to run warmer than expected, including a bug in the iOS 17 software which will be fixed in an upcoming update. "Another issue involves some recent updates to third-party apps that are causing them to overload the system," Apple said, adding that it is working with app developers on fixes that are in the process of being rolled out. UPDATE 2-Apple workers in France stage strike on iPhone 15 launch day Apple's flagship Shanghai store buzzes as iPhone 15 goes on sale Apple's iPhone seen gaining market share in India as Pro model demand rises (Reporting by Juby Babu in Bengaluru Editing by Nick Zieminski) ((Juby.Babu@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Juby Babu Sept 30 (Reuters) - Apple AAPL.O on Saturday said it has identified a few issues which can cause new iPhones to run warmer than expected, including a bug in the iOS 17 software which will be fixed in an upcoming update. 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." "Another issue involves some recent updates to third-party apps that are causing them to overload the system," Apple said, adding that it is working with app developers on fixes that are in the process of being rolled out.
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13353.0
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2023-09-30 00:00:00 UTC
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7 ‘Smart Money’ Stocks Set to Explode Higher
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AAPL
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https://www.nasdaq.com/articles/7-smart-money-stocks-set-to-explode-higher
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the dynamic world of investing, there’s always a buzz surrounding “smart money” stocks. This excitement isn’t just about fleeting market trends; it’s rooted in the savvy market decisions made by individuals with incredible financial acumen. While the current market headwinds might tempt many to adopt a more defensive approach, picking up smart money stocks could be a more appropriate strategy.
Hedge funds, particularly the most successful ones, have long been the gold standard in smart investing. Their choices, often backed by insider knowledge, meticulous research, and years of industry experience, set them apart. Thus, as we delve deeper, let’s uncover the allure of these seven smart money stocks and understand what makes them tick.
Smart Money Stocks: Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Total Institutional Investor Holdings: 5.26 billion shares
% of Institutional Ownership: 70.8%
Tech tian, Microsoft (NASDAQ:MSFT) caught a huge break after regulators in the U.K. green-lit its monumental $68 billion acquisition of gaming titan Activision Blizzard (NASDAQ:ATVI). This pivotal move is set to finally dissolve clouds of uncertainty, allowing Microsoft to bolster its video gaming division significantly. With it being a proud owner of renowned franchises such as “Call of Duty” and “World of Warcraft” and other exclusive gaming sagas, it’s likely to inject unprecedented vitality into Microsoft’s Xbox gaming division.
Simultaneously, Microsoft’s robust foray into artificial intelligence (AI), marked by a $10 billion infusion into OpenAI, the brain behind ChatGPT, has added new layers to its growth story. Seamlessly integrating generative AI into Bing and other diverse applications, it showcases a harmonious blend of technology across different realms, including cloud storage to video games. Given these strides, it’s no surprise that MSFT stock enjoys a robust double-digit uptick year-to-date (YTD), reflecting the flourishing trajectory of this tech behemoth.
GSK (GSK)
Source: Willy Barton / Shutterstock.com
Total Institutional Investor Holdings: 278.4 thousand shares
% of Institutional Ownership: 13.6%
Renowned pharmaceutical titan GSK (NYSE:GSK) continues to make waves in the sector with its promising product pipeline. Research heavyweight GlobalData forecasts a whopping $2.5 billion in sales from GSK’s Arexvy vaccine targeting the RSV virus from the current year through to 2029. Moreover, affirming earlier projections, the U.S. FDA recently stamped its approval on Jemperli, GSK’s cancer treatment, for advanced endometrial cancer cases.
Interestingly, while the stock appears undervalued, trading at just two times forward sales estimates, it paints a picture of a powerful financial fortress. GSK’s second quarter report card beams with a revenue hike of 4% and an 11% jump in profits. The crescendo in its vaccine business, especially the 20% year-on-year (YOY) surge for shingles vaccines, generating a cool $1.7 billion in the first half of the year, fortifies its optimism.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Total Institutional Investor Holdings: 9.38 billion shares
% of Institutional Ownership: 60%
Apple (NASDAQ:AAPL) is basking in the spotlight following the debut of its highly anticipated iPhone 15. Early reviews are encouraging, painting a promising canvas of robust sales, even in China, where apprehensions had loomed over potential governmental bans. Moreover, Investment mogul JP Morgan highlights a staggering 50-day average fulfillment time for the iPhone 15 Pro Max orders globally. Additionally, Wedbush analysts unveiled a 10% sales surge for iPhone 15 over its predecessor, the iPhone 14, in its initial weeks.
Apple’s innovation train doesn’t stop there, though, as its horizon gleams with the 2024 introduction of the Vision Pro augmented reality headset. Priced at a premium of $3,500, early reviews hint at another feather in its cap. As the first trailblazing consumer product in over a decade, the Vision Pro is generating palpable excitement. Also, with AAPL stock soaring more than YTD, the tech behemoth is poised for even loftier pinnacles in the financial realm.
Medtronic (MDT)
Source: JHVEPhoto / Shutterstock.com
Total Institutional Investor Holdings: 1.09 billion shares
% of Institutional Ownership: 81.9%
Renowned for its cardiology innovations, Medtronic (NYSE:MDT) has evolved into a medical juggernaut, boasting a diverse portfolio addressing ailments from diabetes to neurology. Moreover, the firm has paid a dividend for the past 44 consecutive quarters, amplifying dividends at a robust average of 10% annually over the past decade.
Recent trends only polish Medtronic’s sterling reputation. With a surging demand for its heart and gastrointestinal devices, the reported second quarter results surpassed market expectations. Consequently, its full-year profit forecast for 2023 was nudged upward, now ranging between $5.08 and $5.16 a share from previous estimates of $5 to $5.10.
As we gaze into the industry’s crystal ball, the horizon seems ripe with promise. Market pundits estimate that by 2030, the global medical device domain, where Medtronic is a key player, could touch a staggering revenue pinnacle of nearly $1 trillion.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Total Institutional Investor Holdings: 6.11 billion shares
% of Institutional Ownership: 59.2%
Navigating the eCommerce sphere, Amazon (NASDAQ:AMZN) continues its meteoric ascent. The titan’s stellar integration of AI, from curating product recommendations to streamlining logistics, has fueled over a 50% surge in its stock price this year. Beyond its core commerce functionalities, Amazon’s revenue streams burgeon with its robust Amazon Web Services. Additionally, the icing on the cake is a jaw-dropping $10.7 billion revenue influx from its burgeoning advertising realm in its most recent quarter.
Furthermore, with foundational e-commerce and cloud ventures steering a steady course, Amazon is now moving full steam ahead into AI. The tech behemoth recently made waves with its announcement of injecting up to $4 billion into AI trailblazer Anthropic. Competing head-to-head with OpenAI, Anthropic finds Amazon anchoring a minority stake. This symbiotic alliance promises Amazon’s cloud patrons a novel AI experience through its “Bedrock” business platform, potentially adding new layers to AMZN’s growth story.
Palantir Technologies (PLTR)
Source: Poetra.RH / Shutterstock.com
Total Institutional Investor Holdings: 747.7 million shares
% of Institutional Ownership: 36.5%
Charting an impressive trajectory, Palantir Technologies (NASDAQ:PLTR) has soared with a staggering 145% YTD return. This ascension isn’t just linked to its impressive numbers but echoes the company’s forward-thinking ventures, underscored by its recent alliance with Babcock International Group. This partnership aims to reshape data management in healthcare, showcasing Palantir’s drive to innovate consistently.
Additionally, selling bespoke data analytics tools, Palantir empowers firms to scrutinize data intricacies and make informed choices. Its clientele? The U.S. government sits at the apex, tapping into Palantir’s expertise for a myriad of endeavors, from health monitoring of diplomats to enhancing combat communication.
Ultimately Palantir sparkles financially, with it delivering second quarter revenue of $533.3 million, marking a 12.7% leap YOY, while its net income ballooned over 100%, reaching $28.1 million. Furthermore, Palantir’s third quarter revenue forecast nudges the bar higher, projecting figures between $553 million and $557 million. To encapsulate, in the fast-evolving realm of AI, Palantir stands tall, making it a prudent choice for those seeking a robust upside ahead.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Total Institutional Investor Holdings: 767.7 million shares
% of Institutional Ownership: 78.9%
In the volatile world of tech stocks, Salesforce (NYSE:CRM) remains a beacon of resilience and innovation. Its recent restructuring blueprint has resulted in strong operational results. It posted a non-GAAP operating margin of 31.6% in the second quarter, showcasing a robust 10% growth YOY. Although external economic factors may temporarily weigh down its stock, its strength and dominance in the customer relationship management sector showcase that any dip is a fleeting opportunity for keen investors.
Moreover, harnessing the AI wave, Salesforce’s Data Cloud has proven to be instrumental, ingesting a whopping six trillion records in the second quarter. This not only fortifies its AI strategy but empowers clients with unparalleled AI-driven insights. Additionally, the company’s diverse product suite, ranging from Sales Cloud to Commerce Cloud integrated seamlessly, continues to elevate user experiences.
Highlighting its credibility, an astounding 90% of Fortune 500 companies entrust Salesforce, leveraging its myriad offerings to optimize operations. In essence, for investors eyeing a blend of stability and growth, Salesforce emerges as a compelling choice.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 7 ‘Smart Money’ Stocks Set to Explode Higher appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Total Institutional Investor Holdings: 9.38 billion shares % of Institutional Ownership: 60% Apple (NASDAQ:AAPL) is basking in the spotlight following the debut of its highly anticipated iPhone 15. Also, with AAPL stock soaring more than YTD, the tech behemoth is poised for even loftier pinnacles in the financial realm. Simultaneously, Microsoft’s robust foray into artificial intelligence (AI), marked by a $10 billion infusion into OpenAI, the brain behind ChatGPT, has added new layers to its growth story.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Total Institutional Investor Holdings: 9.38 billion shares % of Institutional Ownership: 60% Apple (NASDAQ:AAPL) is basking in the spotlight following the debut of its highly anticipated iPhone 15. Also, with AAPL stock soaring more than YTD, the tech behemoth is poised for even loftier pinnacles in the financial realm. Smart Money Stocks: Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Total Institutional Investor Holdings: 5.26 billion shares % of Institutional Ownership: 70.8% Tech tian, Microsoft (NASDAQ:MSFT) caught a huge break after regulators in the U.K. green-lit its monumental $68 billion acquisition of gaming titan Activision Blizzard (NASDAQ:ATVI).
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Total Institutional Investor Holdings: 9.38 billion shares % of Institutional Ownership: 60% Apple (NASDAQ:AAPL) is basking in the spotlight following the debut of its highly anticipated iPhone 15. Also, with AAPL stock soaring more than YTD, the tech behemoth is poised for even loftier pinnacles in the financial realm. Smart Money Stocks: Microsoft (MSFT) Source: Asif Islam / Shutterstock.com Total Institutional Investor Holdings: 5.26 billion shares % of Institutional Ownership: 70.8% Tech tian, Microsoft (NASDAQ:MSFT) caught a huge break after regulators in the U.K. green-lit its monumental $68 billion acquisition of gaming titan Activision Blizzard (NASDAQ:ATVI).
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Total Institutional Investor Holdings: 9.38 billion shares % of Institutional Ownership: 60% Apple (NASDAQ:AAPL) is basking in the spotlight following the debut of its highly anticipated iPhone 15. Also, with AAPL stock soaring more than YTD, the tech behemoth is poised for even loftier pinnacles in the financial realm. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In the dynamic world of investing, there’s always a buzz surrounding “smart money” stocks.
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13354.0
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2023-09-30 00:00:00 UTC
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Apple Has an iPhone Problem
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AAPL
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https://www.nasdaq.com/articles/apple-has-an-iphone-problem
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nan
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nan
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The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. Combine that with prices that make the iPhone extremely expensive, and you face a challenge growing a company the size of Apple.
In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business.
*Stock prices used were end-of-day prices of Sept. 26, 2023. The video was published on Sept. 27, 2023.
Find out why Apple is one of the 10 best stocks to buy now
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*Stock Advisor returns as of September 25, 2023
Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. Combine that with prices that make the iPhone extremely expensive, and you face a challenge growing a company the size of Apple. 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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The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business. *Stock Advisor returns as of September 25, 2023 Travis Hoium has positions in Apple.
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The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services.
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13355.0
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2023-09-30 00:00:00 UTC
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3 Reasons to Buy Meta Platforms Stock Right Now
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AAPL
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https://www.nasdaq.com/articles/3-reasons-to-buy-meta-platforms-stock-right-now
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nan
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nan
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Mark Zuckerberg-owned Meta Platforms (META) has been making waves lately, thanks in part to the launch of Threads - a text-based version of Meta’s photo-sharing app Instagram. However, after onboarding tens of millions of users initially, growth has tapered off.
Of course, the Facebook parent company has expanded well beyond social media in recent years, as highlighted at the conclusion of its annual Meta Connect developers conference. While unveiling its newest virtual reality (VR) headset - the Meta Quest 3 - and announcing a set of smart glasses in collaboration with Ray-Ban, Meta's reveal in the artificial intelligence (AI) space grabbed particular attention. The company unveiled its own AI assistant, Jarvis, along with a number of AI characters based on celebrities like Snoop Dogg, Paris Hilton, and Mr. Beast, among others.
And it's not just the prospect of AI-fueled growth that has investors excited. In the second quarter, Meta's revenues came in at $32 billion, up 11% from the prior year on strength in its core advertising revenues. EPS for the quarter came in at $2.98, up 10% from the year-ago period and above the consensus estimate of $0.91.
Although long-term debt almost doubled from the previous year to $18.4 billion, that was somewhat offset by 42% yearly growth in operating cash flows. In fact, free cash flow more than doubled from the previous year to $11 billion.
Against this backdrop, Meta stock is up a whopping 149.5% on a YTD basis, comfortably outperforming the Nasdaq Composite's ($NASX) rise of about 26% over the same period.
But is it too late to buy into the stock's rally? Here are three reasons to believe META's outperformance is set to continue.
1. Analysts Are Upbeat, with Strong Earnings Estimates
After that blowout second-quarter performance, analysts are projecting robust earnings growth for META going forward, too. For the current quarter, the consensus is calling for earnings growth of 115.2%, followed by 51% in the next quarter.
www.barchart.com
On average, analysts tracking Meta stock have assigned a “Strong Buy” rating, with a mean target price of $361.51. This indicates an upside potential of about 20.4% from current levels - while the Street-high target price of $435 implies expected upside of nearly 45%.
Out of 38 analysts covering the stock, 34 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, 1 has a “Hold” rating, and 1 lone contrarian has a “Strong Sell” rating.
www.barchart.com
2. META is Reasonably Priced for Growth
Considering Meta's massive year-to-date rally and its expected growth forecast, the company's shares appear to be attractively valued at current multiples. The trailing 12-month price/earnings (p/e) ratio of 28.33 is in line with other FAANG rivals like Alphabet (GOOGL) at 27.66, Microsoft (MSFT) at 31.88, and Apple (AAPL) at 28.64.
Plus, the stock is trading at a forward PEG of 1.03, which is below the sector median of 1.72 and META's own 5-year average of 1.51.
Likewise, META's forward ev/sales ratio of 5.78, price/sales of 5.91, and price/cash flow of 14.22 are all below Meta's own 5-year averages for these metrics.
Looking ahead, Meta is expected to grow revenue at a per-annum pace of 31.83% over the next five years, compared to a forecast of 8.5% for the S&P 500 Index ($SPX).
3. Technical Outperformance
And of course, the share price of Meta has been strong technically. Along with its standout year-to-date gain, the stock held up incredibly well amid the market's bout of September volatility. In fact, META added 1.5% on the month, while the broader Nasdaq Composite shed 5.8%.
The stock has been consolidating in the range of $300 for some time, and a breakout from these levels could carry the stock back up to its recent highs of around $325, in a repeat of the rally from this area that took place earlier this year.
www.barchart.com
Final Takeaway
All things considered, Meta stock seems to be ripe for a continued move higher. Along with its impressive relative strength during the stock market's September sell-off, investors should take note of META's attractive valuations relative to its FAANG peers (and its own historical levels), along with the compelling prospects for robust earnings and revenue growth in the quarters ahead.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The trailing 12-month price/earnings (p/e) ratio of 28.33 is in line with other FAANG rivals like Alphabet (GOOGL) at 27.66, Microsoft (MSFT) at 31.88, and Apple (AAPL) at 28.64. Of course, the Facebook parent company has expanded well beyond social media in recent years, as highlighted at the conclusion of its annual Meta Connect developers conference. Against this backdrop, Meta stock is up a whopping 149.5% on a YTD basis, comfortably outperforming the Nasdaq Composite's ($NASX) rise of about 26% over the same period.
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The trailing 12-month price/earnings (p/e) ratio of 28.33 is in line with other FAANG rivals like Alphabet (GOOGL) at 27.66, Microsoft (MSFT) at 31.88, and Apple (AAPL) at 28.64. www.barchart.com On average, analysts tracking Meta stock have assigned a “Strong Buy” rating, with a mean target price of $361.51. META is Reasonably Priced for Growth Considering Meta's massive year-to-date rally and its expected growth forecast, the company's shares appear to be attractively valued at current multiples.
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The trailing 12-month price/earnings (p/e) ratio of 28.33 is in line with other FAANG rivals like Alphabet (GOOGL) at 27.66, Microsoft (MSFT) at 31.88, and Apple (AAPL) at 28.64. Mark Zuckerberg-owned Meta Platforms (META) has been making waves lately, thanks in part to the launch of Threads - a text-based version of Meta’s photo-sharing app Instagram. META is Reasonably Priced for Growth Considering Meta's massive year-to-date rally and its expected growth forecast, the company's shares appear to be attractively valued at current multiples.
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The trailing 12-month price/earnings (p/e) ratio of 28.33 is in line with other FAANG rivals like Alphabet (GOOGL) at 27.66, Microsoft (MSFT) at 31.88, and Apple (AAPL) at 28.64. Here are three reasons to believe META's outperformance is set to continue. www.barchart.com On average, analysts tracking Meta stock have assigned a “Strong Buy” rating, with a mean target price of $361.51.
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13356.0
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2023-09-29 00:00:00 UTC
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Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-9
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nan
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nan
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Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
IUSG is managed by Blackrock, and this fund has amassed over $13.45 billion, which makes it the largest ETF in the Style Box - All Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.04% for IUSG, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.11%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
IUSG's heaviest allocation is in the Information Technology sector, which is about 33.90% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
Its top 10 holdings account for approximately 42.74% of IUSG's total assets under management.
Performance and Risk
So far this year, IUSG has added about 17.68%, and was up about 14.80% in the last one year (as of 09/29/2023). During this past 52-week period, the fund has traded between $78.88 and $100.74.
IUSG has a beta of 1.05 and standard deviation of 21.60% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 482 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity Blue Chip Growth ETF (FBCG) tracks ---------------------------------------- and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. Fidelity Blue Chip Growth ETF has $763.54 million in assets, iShares Morningstar Growth ETF has $1.67 billion. FBCG has an expense ratio of 0.59% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports
iShares Morningstar Growth ETF (ILCG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): 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 iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
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13357.0
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2023-09-29 00:00:00 UTC
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U.S. Stocks: Will the "October Effect" Add More Volatility After a Dismal September?
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AAPL
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https://www.nasdaq.com/articles/u.s.-stocks%3A-will-the-october-effect-add-more-volatility-after-a-dismal-september
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nan
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nan
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U.S. stocks have sold off hard in recent weeks, and despite today's relief rally, September is holding strong to its reputation as the “worst month for stocks.” The S&P 500 Index ($SPX) is down around 4% in September, while the tech-heavy Nasdaq Composite ($NASX) is down almost 5%. As we head toward the final hours of the third quarter, the leading equity market indices are on pace to record their worst month of the year, and second consecutive month of losses.
www.barchart.com
October does not have a good reputation, either, and is associated with the dreaded “October effect” - an anomaly related to the outsized occurrence of crashes in the month. Notably, while the Dow Jones Industrial Average ($DOWI) has gained 0.6% on average in October between 1928 and 2022, according to data from Yardeni Research, 7 of the 10 worst Dow Jones crashes happened in the month of October.
October Effect
Some of the legendary market crashes - like the 1907 panic, the 1929 crash, and Black Monday in 1987 (when the Dow fell over 22% and had its worst single-day crash) - all occurred in October. Amid the Great Financial Crisis, U.S. as well as global stocks collapsed in October 2008 - and more recently, U.S. stocks cratered in October 2018 amid then-President Donald Trump’s trade war and the Fed’s rate hikes.
To be sure, there are multiple such anomalies in the market, including the “May effect" - but there is no analytical basis for most of these effects. In fact, U.S. stocks closed in the green this past May amid a continued rally in artificial intelligence (AI) stocks.
U.S. Stock Market October Forecast: Key Factors to Watch
While the next FOMC meeting will begin on Oct. 31, the policy decision won't be released until Nov. 1. The Fed has lifted its benchmark lending rate to between 5.25%-5.50%, which is the highest since early 2001. Meanwhile, even as markets got a breather from the Fed rate-hike campaign in October, there are several factors that investors need to be wary of going forward. These include:
1. Key Economic Data, Especially Inflation
Some of the recent economic data points, especially the September consumer confidence index, have raised recession fears. Investors should keep a close eye on U.S. economic indicators, including those related to inflation and the job market, as they will set the tone for the Fed’s interest rate policy.
2. China’s Economic Slowdown
China’s economic slowdown has only worsened, and the country’s economic rebound from last year’s COVID-19 lockdowns has been pretty shallow. Along with U.S. economic indicators, investors should also keep an eye on economic data from the world’s second-largest economy - a key market for several U.S. companies, including Apple (AAPL) and Nike (NKE).
3. Don’t Lose Track of Bond Yields
The U.S. 10-year bond yield hit a 15-year high of 4.65% earlier this week, and speaking at CNBC's Delivering Alpha conference, billionaire fund manager Bill Ackman said that yields could approach 5%. In my view, U.S. stocks haven’t yet priced in the possibility of yields rising that high.
www.barchart.com
4. Student Loan Repayments Set to Resume
Student loan repayments are set to resume in October, and while this should be a positive for student loan refinancing companies like SoFi (SOFI), it could be a dampener for the overall economy.
The looming government shutdown and the ongoing strike among autoworkers might also take a toll on the U.S. economy in the fourth quarter.
5. Q3 Earnings Season Begins in October
The Q3 earnings season will soon begin, with results from sectors like banks and tech set to be especially crucial. The AI stock-driven rally helped catapult markets higher in the first half of the year, and the baton now lies with tech majors to convince investors that the AI boom is for real and not merely a fad.
6. Rising Oil Prices Could Also Pressure Stocks
Investors should also keep an eye on oil prices - because if crude futures (CLX23) strengthen further, it could spoil the calculus for not only the Fed, but also most global central banks. An oil price-driven spike in inflation is probably the last thing that policymakers in most markets want right now.
All of that said, markets will soon start factoring in the 2024 numbers, and analysts polled by FactSet predict a 12.2% rise in S&P 500 earnings next year. After the recent weakness in markets, valuations have also reverted towards historical averages. The forward 12-month price-to-earnings ratio is 18x, which is not much higher than the 10-year average of 17.7x.
Overall, I believe that October could be a volatile month for markets given the macro environment. The baton might lie with corporate earnings to set the tone for markets, and if leading companies can provide a rosy outlook for 2024, it should help propel stocks higher in the month.
On the date of publication, Mohit Oberoi had a position in: NKE , AAPL , SOFI . 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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Along with U.S. economic indicators, investors should also keep an eye on economic data from the world’s second-largest economy - a key market for several U.S. companies, including Apple (AAPL) and Nike (NKE). On the date of publication, Mohit Oberoi had a position in: NKE , AAPL , SOFI . U.S. Stock Market October Forecast: Key Factors to Watch While the next FOMC meeting will begin on Oct. 31, the policy decision won't be released until Nov. 1.
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Along with U.S. economic indicators, investors should also keep an eye on economic data from the world’s second-largest economy - a key market for several U.S. companies, including Apple (AAPL) and Nike (NKE). On the date of publication, Mohit Oberoi had a position in: NKE , AAPL , SOFI . Key Economic Data, Especially Inflation Some of the recent economic data points, especially the September consumer confidence index, have raised recession fears.
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Along with U.S. economic indicators, investors should also keep an eye on economic data from the world’s second-largest economy - a key market for several U.S. companies, including Apple (AAPL) and Nike (NKE). On the date of publication, Mohit Oberoi had a position in: NKE , AAPL , SOFI . October Effect Some of the legendary market crashes - like the 1907 panic, the 1929 crash, and Black Monday in 1987 (when the Dow fell over 22% and had its worst single-day crash) - all occurred in October.
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Along with U.S. economic indicators, investors should also keep an eye on economic data from the world’s second-largest economy - a key market for several U.S. companies, including Apple (AAPL) and Nike (NKE). On the date of publication, Mohit Oberoi had a position in: NKE , AAPL , SOFI . Key Economic Data, Especially Inflation Some of the recent economic data points, especially the September consumer confidence index, have raised recession fears.
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13358.0
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2023-09-29 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq gain as softer PCE data supports rate-pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-gain-as-softer-pce-data-supports-rate-pause-hopes
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nan
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nan
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By Shashwat Chauhan and Shristi Achar A
Sept 29 (Reuters) - The S&P 500 and the Nasdaq rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though all three main Wall Street indexes were on track for quarterly declines.
A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
"The data shows that we continue to see more steady progress on core inflation," said David Russell, global head of market strategy at TradeStation.
"It's not (at) 2% but still a big improvement versus where it was. That really keeps a lid on yields overall."
Traders' bets on the benchmark rate remaining unchanged in November and December stood at 85% and 67%, respectively, according to CME's FedWatch tool.
The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 0.7% and 2.3%.
Consumer discretionary .SPLRCDled gains among the major S&P 500 sectors, rising 0.9%.
Meanwhile, the rate-sensitive real estate .SPLRCR sector was on track to be the worst hit.
At 11:55 a.m. ET, the Dow Jones Industrial Average .DJI was down 66.49 points, or 0.20%, at 33,599.85, the S&P 500 .SPX was up 4.75 points, or 0.11%, at 4,304.45, and the Nasdaq Composite .IXIC was up 72.08 points, or 0.55%, at 13,273.36.
Fueling market volatility concerns, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
Traders would also lookout for JPMorgan Hedged Equity Fund as a potential source of additional volatility, as the $16 billion fund is expected to reset its options positions on Friday.
Among individual stocks, Nike NKE.N jumped 6.0% after the sportswear maker posted a better-than-expected first-quarter profit.
Shares of sporting goods retailers Foot Locker FL.N and Dick's Sporting Goods DKS.N added 2.7% and 1.6%, respectively.
CarnivalCCL.N reversed early gains to drop 4.5% after the cruise operator's lingering cost pressures outweighed its upbeat forecast.
Advancing issues outnumbered decliners by a 1.74-to-1 ratio on the NYSE and by a 1.54-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and five new lows, while the Nasdaq recorded 25 new highs and 109 new lows.
(Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru; Editing by Arun Koyyur and Maju Samuel)
((Shashwat.Chauhan@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 0.7% and 2.3%. By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - The S&P 500 and the Nasdaq rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though all three main Wall Street indexes were on track for quarterly declines. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 0.7% and 2.3%. By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - The S&P 500 and the Nasdaq rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though all three main Wall Street indexes were on track for quarterly declines. The S&P index recorded one new 52-week high and five new lows, while the Nasdaq recorded 25 new highs and 109 new lows.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 0.7% and 2.3%. By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - The S&P 500 and the Nasdaq rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though all three main Wall Street indexes were on track for quarterly declines. (Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru; Editing by Arun Koyyur and Maju Samuel) ((Shashwat.Chauhan@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 0.7% and 2.3%. By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - The S&P 500 and the Nasdaq rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though all three main Wall Street indexes were on track for quarterly declines. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
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13359.0
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2023-09-29 00:00:00 UTC
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After Hours Most Active for Sep 29, 2023 : PFE, HBI, CRH, SQQQ, PDBC, AAPL, AFRM, AMZN, QQQ, UGP, T, VZ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-29-2023-%3A-pfe-hbi-crh-sqqq-pdbc-aapl-afrm-amzn-qqq-ugp-t
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 19.43 to 14,734.67. The total After hours volume is currently 103,599,857 shares traded.
The following are the most active stocks for the after hours session:
Pfizer, Inc. (PFE) is unchanged at $33.17, with 6,785,971 shares traded. PFE's current last sale is 74.54% of the target price of $44.5.
Hanesbrands Inc. (HBI) is unchanged at $3.96, with 5,217,661 shares traded. HBI's current last sale is 72% of the target price of $5.5.
CRH PLC (CRH) is unchanged at $54.73, with 4,849,649 shares traded. As reported by Zacks, the current mean recommendation for CRH is in the "strong buy range".
ProShares UltraPro Short QQQ (SQQQ) is -0.14 at $20.30, with 3,295,780 shares traded. This represents a 23.93% increase from its 52 Week Low.
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ET (PDBC) is +0.0021 at $14.95, with 3,055,008 shares traded. This represents a 13.19% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.45 at $171.66, with 2,499,910 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.56. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Affirm Holdings, Inc. (AFRM) is unchanged at $21.27, with 2,094,830 shares traded. AFRM's current last sale is 144.2% of the target price of $14.75.
Amazon.com, Inc. (AMZN) is +0.09 at $127.21, with 2,040,889 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.87 at $359.14, with 2,009,982 shares traded. This represents a 41.25% increase from its 52 Week Low.
Ultrapar Participacoes S.A. (UGP) is unchanged at $3.67, with 1,674,205 shares traded. UGP's current last sale is 94.1% of the target price of $3.9.
AT&T Inc. (T) is +0.0191 at $15.04, with 1,485,636 shares traded. T's current last sale is 75.2% of the target price of $20.
Verizon Communications Inc. (VZ) is +0.03 at $32.44, with 1,252,180 shares traded. VZ's current last sale is 79.12% of the target price of $41.
The views and 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 +0.45 at $171.66, with 2,499,910 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 CRH is in the "strong buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.45 at $171.66, with 2,499,910 shares traded. PFE's current last sale is 74.54% of the target price of $44.5.
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Apple Inc. (AAPL) is +0.45 at $171.66, with 2,499,910 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 103,599,857 shares traded.
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Apple Inc. (AAPL) is +0.45 at $171.66, with 2,499,910 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 19.43 to 14,734.67.
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13360.0
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2023-09-29 00:00:00 UTC
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Wall St Week Ahead-US stock market’s powerhouses tested by soaring bond yields
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-us-stock-markets-powerhouses-tested-by-soaring-bond-yields
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nan
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nan
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By Lewis Krauskopf and Saqib Iqbal Ahmed
NEW YORK, Sept 29 (Reuters) -
Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot.
Seven megacap stocks -- Apple , Microsoft , Alphabet , Amazon , Nvidia , Tesla and Meta Platforms -- have led broader markets higher this year. As of Tuesday, these stocks accounted for more than 80% of the S&P 500's total return for 2023.
Investors see many of the stocks as major beneficiaries of advances in artificial intelligence. Earlier this year, megacaps' strong balance sheets and business models also attracted those looking for a safe haven when regional banking turmoil shook the financial system.
Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks. The so-called Magnificent Seven stocks trade at an average price-to-earnings ratio of 31.8 based on earnings estimates for the next 12 months, according to LSEG Datastream. That far surpasses the S&P 500's ratio of 18.1.
With a collective weighting of 27% in the S&P 500, weakness in the megacaps could further deflate the broader index, now down 6.6% from its July highs, investors said. Year-to-date, the S&P 500 is up over 11%.
"When the big tech stocks start going down ... the indexes go down," said Matt Maley, chief market strategist at Miller Tabak. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.”
The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July. High-flier Nvidia fell nearly 12% in September. Apple remains up 32% for the year, with Nvidia up nearly 200%.
PRESSURE FROM YIELDS
Higher yields on Treasuries - which are sensitive to rate expectations and seen as risk free - offer more investment competition to stocks while raising the cost of borrowing for corporations and households.
The yield on the U.S. benchmark 10-year Treasury stands near its highest level in around 16 years on worries that the Federal Reserve will leave rates around current levels longer than previously expected.
Shares of tech and growth companies, which often have significant expected profit growth in the years ahead, tend to be hit particularly hard when yields rise because their future projected earnings are discounted more severely.
“Because (the megacaps) are more highly valued, that just means that they are going to be more sensitive to changes in real interest rates,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.
Options markets show elevated concern among investors. Thirty-day implied volatility for the Nasdaq-100-tracking Invesco QQQ ETF - a measure of how much traders expect the shares to gyrate in the near term - recently climbed to 22, the highest since mid-April, according to options analytics service Trade Alert.
Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. That sense of complacency makes tech stocks vulnerable to increased volatility should market declines accelerate from here, said Chris Murphy, Susquehanna Financial Group co-head of derivative strategy.
To be sure, some megacap stocks have held up relatively well in the S&P 500's latest slide, including Alphabet, whose shares are down only slightly since late July.
The Nasdaq 100 , a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year. It is down 7% from its highs.
Investors also see other risks for megacap stocks.
A U.S. antitrust lawsuit filed this week against Amazon created a “new line of worry in the megacap space,” said Rick Meckler, partner at Cherry Lane Investments in New Jersey.
And while optimism about increased use of AI applications has helped tech stocks this year, there is some question about the ultimate boost to profits, said J. Bryant Evans, portfolio manager at Cozad Asset Management.
"The whole promise of AI hasn’t... reached fruition yet,” Evans said. (Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) ((Wall St Week Ahead runs every Friday. For thedaily stock marketreport, please click [.N])) Keywords: USA STOCKS/WEEKAHEAD (SCHEDULED COLUMN)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.” The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July. Thirty-day implied volatility for the Nasdaq-100-tracking Invesco QQQ ETF - a measure of how much traders expect the shares to gyrate in the near term - recently climbed to 22, the highest since mid-April, according to options analytics service Trade Alert.
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By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. Seven megacap stocks -- Apple , Microsoft , Alphabet , Amazon , Nvidia , Tesla and Meta Platforms -- have led broader markets higher this year. (Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio) ((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf)) ((Wall St Week Ahead runs every Friday.
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By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. Seven megacap stocks -- Apple , Microsoft , Alphabet , Amazon , Nvidia , Tesla and Meta Platforms -- have led broader markets higher this year. Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks.
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Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. The Nasdaq 100 , a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year. Investors also see other risks for megacap stocks.
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13361.0
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2023-09-29 00:00:00 UTC
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The Full Tech Spectrum: Why the IGM ETF Stands Out
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AAPL
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https://www.nasdaq.com/articles/the-full-tech-spectrum%3A-why-the-igm-etf-stands-out
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nan
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nan
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The iShares Expanded Tech Sector ETF (NYSEARCA:IGM) is a comprehensive ETF that gives investors exposure to the full spectrum of the North American tech sector, as it includes key tech-related stocks that aren't always included in tech ETFs. I believe this $3.1 billion ETF from BlackRock’s (NYSE:BLK) iShares is a good way to invest in a broad swath of the tech sector and an attractive investment opportunity overall. Let's dive in.
What is IGM ETF’s Strategy?
According to iShares, IGM seeks to give investors “broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors," and it invests in "hardware, software, internet marketing, interactive media, and related companies.”
This inclusion of “technology-related companies in the communication services and consumer discretionary sectors” is key, as it gives investors exposure to stocks that are often conspicuous in their absence from other tech ETFs, as we’ll discuss below.
IGM's Top Holdings
As the name implies, IGM invests in an expanded swath of the tech sector. The ETF holds 280 positions, and its top 10 holdings account for 54.2% of the fund. Below, you’ll find an overview of IGM’s top 10 holdings using TipRanks’ holdings tool.
As you can see, Alphabet (NASDAQ:GOOGL) is the fund’s top holding, followed by other blue-chip technology stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META).
The inclusion of Alphabet and Meta Platforms is notable. While these are often some of the first names that come to mind when we think of technology stocks, they are not always found in other leading tech ETFs.
This is because many indices classify these stocks within the communications services sector. Because of this, you’ll find that top tech ETFs like the Technology Select Sector SPDR ETF (NYSEARCA:XLK) eschew Alphabet and Meta Platforms. These stocks are instead found in the Communication Services Select Sector SDPR Fund (NYSEARA:XLC), which groups them with companies like AT&T (NYSE:T) and Verizon (NYSE:VZ).
Other top tech ETFs like the Fidelity MSCI Information Technology ETF (NYSEARCA:FTEC) and the iShares Global Tech ETF (IXN) also pass over these types of stocks. These are all good ETFs, but they all have different ways of classifying what is and isn't a technology stock.
Meanwhile, the Invesco QQQ Trust (NASDAQ:QQQ), another top tech ETF, gives investors access to all of these stocks. However, it’s important to note that QQQ simply invests in the Nasdaq 100 (NDX) index, which is not exclusive to tech stocks, so the fund has large positions in non-tech stocks like Pepsi (NASDAQ:PEP) and Costco (NASDAQ:COST).
This isn’t a bad thing per se, but it’s important to note that this means QQQ isn’t a pure play on technology, even though the name QQQ has, in many ways, become synonymous with tech investing.
Because IGM's underlying index, the S&P North American Expanded Technology Sector Index, includes technology-related stocks in the communications services and consumer discretionary sectors, these stocks are present here, which in my view, gives investors a more holistic, all-encompassing picture of the tech sector.
My only qualm about IGM’s portfolio is that while it gives investors broad exposure to the tech sector, it doesn’t own Amazon (NASDAQ:AMZN), even though this would seem to fit the definition of a technology-related company in the consumer discretionary sector.
Overall, this strategy results in a strong group of holdings, as evidenced by the fact that seven out of IGM’s top 10 holdings feature Outperform-equivalent Smart Scores of 8 or above. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating.
IGM itself features an Outperform-equivalent ETF Smart Score of 8 out of 10.
As you’ll see below, the analyst community is optimistic as well.
Is IGM Stock a Buy, According to Analysts?
Turning to Wall Street, IGM earns a Moderate Buy consensus rating based on 218 Buys, 60 Holds, and two Sell ratings assigned in the past three months. The average IGM stock price target of $462.96 implies 21.3% upside potential.
Performance
How has IGM performed over time? Pretty well. IGM has returned 38.8% over the past year. Over the past three years, the fund’s annualized return stands at 7.8% (as of the end of August). Zooming out to five years, IGM has returned a more exciting 14.6% on an annualized basis, and over the past 10 years, it has returned an even better 18.9% on an annualized basis.
These results compare favorably with those of the broader market. For context, the SPDR S&P 500 ETF (NYSEARCA:SPY), has returned 10.4% over the past three years, 11.0% over the past five years, and 12.7% over the past 10 years.
It’s also worth comparing IGM to other leading tech-specific ETFs like the aforementioned XLK and QQQ. QQQ’s annualized returns over the past three, five, and 10 years come in at 9.3%, 16.0%, and 18.6%, respectively, meaning that IGM trails QQQ over the past three and five years but slightly outperforms it over the past 10 years.
Meanwhile, XLK has outperformed IGM over the past three years with an annualized return of 13.4%, over the past five years with an annualized return of 19.6%, and over the past 10 years with an annualized return of 20.5%.
Ultimately, IGM has slightly outperformed QQQ over a 10-year period and slightly underperformed XLK over the same horizon. But overall, all three of these ETFs have been good performers.
Investing in a fund that is putting up returns of nearly 20% over the course of 10 years will really grow the value of one’s portfolio over time. To illustrate this point, an investor who put $10,000 into IGM in August of 2013 would have $56,400 as of the end of August 2023.
Lastly, IGM has been around for a long time and has generated a near double-digit annualized return of 9.6% since its inception in 2001, turning an initial investment of $10,000 into almost $80,000.
One Notable Downside
The most notable downside of IGM is its expense ratio of 0.41%. While this is a reasonable expense ratio, it’s also higher than that of some of the major aforementioned tech ETFs like XLK and QQQ, which charge 0.10% and 0.20%, respectively.
An investor putting $10,000 into IGM would pay $41 in fees during year one versus $10 for an investor putting the same amount into XLK and $20 for an investor allocating the same amount into QQQ.
The difference in these fees becomes more apparent over time. Assuming that each fund maintains its current expense ratio and returns 5% per year going forward, the same IGM investor would pay $518 in fees over the course of 10 years versus $128 for the XLK investor and $255 for the QQQ investor.
Looking Ahead
IGM gives investors all-encompassing exposure to the technology sector, including stocks like Alphabet, Meta Platforms, and others that many top tech ETFs pass on because they do not classify them as technology stocks. The fund is fairly diversified and has generated strong returns for a prolonged time frame, making it an attractive investment option for investors. The primary downside is that its expense ratio is a bit higher than some of its major competitors, but it's not an egregious fee.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, Alphabet (NASDAQ:GOOGL) is the fund’s top holding, followed by other blue-chip technology stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META). According to iShares, IGM seeks to give investors “broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors," and it invests in "hardware, software, internet marketing, interactive media, and related companies.” This inclusion of “technology-related companies in the communication services and consumer discretionary sectors” is key, as it gives investors exposure to stocks that are often conspicuous in their absence from other tech ETFs, as we’ll discuss below. Lastly, IGM has been around for a long time and has generated a near double-digit annualized return of 9.6% since its inception in 2001, turning an initial investment of $10,000 into almost $80,000.
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As you can see, Alphabet (NASDAQ:GOOGL) is the fund’s top holding, followed by other blue-chip technology stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META). According to iShares, IGM seeks to give investors “broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors," and it invests in "hardware, software, internet marketing, interactive media, and related companies.” This inclusion of “technology-related companies in the communication services and consumer discretionary sectors” is key, as it gives investors exposure to stocks that are often conspicuous in their absence from other tech ETFs, as we’ll discuss below. Because of this, you’ll find that top tech ETFs like the Technology Select Sector SPDR ETF (NYSEARCA:XLK) eschew Alphabet and Meta Platforms.
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As you can see, Alphabet (NASDAQ:GOOGL) is the fund’s top holding, followed by other blue-chip technology stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META). The iShares Expanded Tech Sector ETF (NYSEARCA:IGM) is a comprehensive ETF that gives investors exposure to the full spectrum of the North American tech sector, as it includes key tech-related stocks that aren't always included in tech ETFs. According to iShares, IGM seeks to give investors “broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors," and it invests in "hardware, software, internet marketing, interactive media, and related companies.” This inclusion of “technology-related companies in the communication services and consumer discretionary sectors” is key, as it gives investors exposure to stocks that are often conspicuous in their absence from other tech ETFs, as we’ll discuss below.
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As you can see, Alphabet (NASDAQ:GOOGL) is the fund’s top holding, followed by other blue-chip technology stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META). Because of this, you’ll find that top tech ETFs like the Technology Select Sector SPDR ETF (NYSEARCA:XLK) eschew Alphabet and Meta Platforms. Investing in a fund that is putting up returns of nearly 20% over the course of 10 years will really grow the value of one’s portfolio over time.
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13362.0
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2023-09-29 00:00:00 UTC
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Invesco MSCI USA ETF Experiences Big Inflow
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AAPL
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https://www.nasdaq.com/articles/invesco-msci-usa-etf-experiences-big-inflow
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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 Invesco MSCI USA ETF (Symbol: PBUS) where we have detected an approximate $169.1 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 68,300,000 to 72,250,000). Among the largest underlying components of PBUS, in trading today Apple Inc (Symbol: AAPL) is up about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 1.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.7%. For a complete list of holdings, visit the PBUS Holdings page » The chart below shows the one year price performance of PBUS, versus its 200 day moving average:
Looking at the chart above, PBUS's low point in its 52 week range is $35.65 per share, with $45.89 as the 52 week high point — that compares with a last trade of $43.07. 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 ».
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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:
Real Estate Dividend Stock List
HPK Average Annual Return
Top Ten Hedge Funds Holding OC
The views and 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 PBUS, in trading today Apple Inc (Symbol: AAPL) is up about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 1.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.7%. 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 PBUS, in trading today Apple Inc (Symbol: AAPL) is up about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 1.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.7%. For a complete list of holdings, visit the PBUS Holdings page » The chart below shows the one year price performance of PBUS, versus its 200 day moving average: Looking at the chart above, PBUS's low point in its 52 week range is $35.65 per share, with $45.89 as the 52 week high point — that compares with a last trade of $43.07. Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of PBUS, in trading today Apple Inc (Symbol: AAPL) is up about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 1.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco MSCI USA ETF (Symbol: PBUS) where we have detected an approximate $169.1 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 68,300,000 to 72,250,000). For a complete list of holdings, visit the PBUS Holdings page » The chart below shows the one year price performance of PBUS, versus its 200 day moving average: Looking at the chart above, PBUS's low point in its 52 week range is $35.65 per share, with $45.89 as the 52 week high point — that compares with a last trade of $43.07.
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Among the largest underlying components of PBUS, in trading today Apple Inc (Symbol: AAPL) is up about 0.9%, Microsoft Corporation (Symbol: MSFT) is up about 1.3%, and Amazon.com Inc (Symbol: AMZN) is higher by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco MSCI USA ETF (Symbol: PBUS) where we have detected an approximate $169.1 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 68,300,000 to 72,250,000). Free Report: Top 8%+ Dividends (paid monthly) Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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13363.0
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2023-09-29 00:00:00 UTC
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SPY, CONY: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/spy-cony%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 22,900,000 units, or a 2.5% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 1.3%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the CONY ETF, which added 350,000 units, for a 36.8% increase in outstanding units.
VIDEO: SPY, CONY: Big ETF Inflows
The views and 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 SPY, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 1.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the CONY ETF, which added 350,000 units, for a 36.8% increase in outstanding units. VIDEO: SPY, CONY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 22,900,000 units, or a 2.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the CONY ETF, which added 350,000 units, for a 36.8% increase in outstanding units. VIDEO: SPY, CONY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 22,900,000 units, or a 2.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the CONY ETF, which added 350,000 units, for a 36.8% increase in outstanding units. VIDEO: SPY, CONY: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 22,900,000 units, or a 2.5% increase week over week. Among the largest underlying components of SPY, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 1.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the CONY ETF, which added 350,000 units, for a 36.8% increase in outstanding units.
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13364.0
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2023-09-29 00:00:00 UTC
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US STOCKS-Wall St advances as softer PCE data supports rate-pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-advances-as-softer-pce-data-supports-rate-pause-hopes
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Nike jumps on Q1 profit beat
Aug PCE data softer than expected
Carnival gains after FY profit forecast raise
All three indexes set to log quarterly declines
Indexes up: Dow 0.33%, S&P 0.75%, Nasdaq 1.34%
Updated at 10:02 a.m. ET/ 1402 GMT
By Shashwat Chauhan and Shristi Achar A
Sept 29 (Reuters) - U.S. stocks rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though main indexes were on track to log quarterly declines.
A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
Excluding volatile food and energy components, the core PCE price index rose 0.1% in August month-on-month, compared with estimates of 0.2% advance.
"These are very, very good numbers. Even though the drop isn't spectacular, it's in the right direction," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
"I'm very optimistic that inflation continues to decline and the Fed will note this in their reasoning about interest rates."
Traders' bets on the benchmark rate remaining unchanged in November and December stood at 85% and 67%, respectively, according to CME's FedWatch tool.
The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 1.3% and 3.0%.
A final reading of the September University of Michigan Consumer Sentiment Index came in at 68.1, versus expectations of 67.7.
At 10:02 a.m. ET, the Dow Jones Industrial Average .DJI was up 110.59 points, or 0.33%, at 33,776.93, the S&P 500 .SPX was up 32.28 points, or 0.75%, at 4,331.98, and the Nasdaq Composite .IXIC was up 176.48 points, or 1.34%, at 13,377.75.
The S&P 500 and the Nasdaq are poised for their worst monthly showing of the year amid uncertainty around interest rates. All the three indexes, including the Dow .DJI, are set for their first quarterly decline in 2023.
Riding the current of higher crude prices, energy is set to emerge as the only major S&P 500 sector to notch monthly gains. Meanwhile, rate-sensitive information technology .SPLRCT and real estate were on track to be the worst hit.
Elsewhere, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
Traders would also lookout for JPMorgan Hedged Equity Fund as a potential source of additional volatility, as the $16 billion fund is expected to reset its options positions on Friday.
Among individual stocks, Nike NKE.N jumped 8.4% after the sportswear maker posted a better-than-expected first-quarter profit.
Shares of sporting goods retailers Foot Locker FL.N and Dick's Sporting Goods DKS.N added 4.1% and 2.1%, respectively.
CarnivalCCL.N rose 2.2% after the cruise operator forecast a smaller annual loss than previously estimated and reported a third-quarter profit.
Advancing issues outnumbered decliners by a 3.80-to-1 ratio on the NYSE and by a 2.79-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and two new lows, while the Nasdaq recorded 21 new highs and 60 new lows.
(Reporting by Ankika Biswas, Shashwat Chauhan, Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Maju Samuel)
((Shashwat.Chauhan@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 1.3% and 3.0%. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise. Elsewhere, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 1.3% and 3.0%. Nike jumps on Q1 profit beat Aug PCE data softer than expected Carnival gains after FY profit forecast raise All three indexes set to log quarterly declines Indexes up: Dow 0.33%, S&P 0.75%, Nasdaq 1.34% Updated at 10:02 a.m. ET/ 1402 GMT By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - U.S. stocks rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though main indexes were on track to log quarterly declines. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 1.3% and 3.0%. Nike jumps on Q1 profit beat Aug PCE data softer than expected Carnival gains after FY profit forecast raise All three indexes set to log quarterly declines Indexes up: Dow 0.33%, S&P 0.75%, Nasdaq 1.34% Updated at 10:02 a.m. ET/ 1402 GMT By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - U.S. stocks rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though main indexes were on track to log quarterly declines. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance between 1.3% and 3.0%. Nike jumps on Q1 profit beat Aug PCE data softer than expected Carnival gains after FY profit forecast raise All three indexes set to log quarterly declines Indexes up: Dow 0.33%, S&P 0.75%, Nasdaq 1.34% Updated at 10:02 a.m. ET/ 1402 GMT By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - U.S. stocks rose on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes, though main indexes were on track to log quarterly declines. Excluding volatile food and energy components, the core PCE price index rose 0.1% in August month-on-month, compared with estimates of 0.2% advance.
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13365.0
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2023-09-29 00:00:00 UTC
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US STOCKS-Wall St eyes higher open as softer PCE data supports rate-pause hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-higher-open-as-softer-pce-data-supports-rate-pause-hopes
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nan
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nan
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By Shashwat Chauhan and Shristi Achar A
Sept 29 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes.
A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
Excluding volatile food and energy components, the core PCE price index rose 0.1% in August month-on-month, compared with estimates of 0.2% advance.
"These are very, very good numbers. Even though the drop isn't spectacular, it's in the right direction," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
"I'm very optimistic that inflation continues to decline and the Fed will note this in their reasoning about interest rates."
Traders' bets on the benchmark rate remaining unchanged in November and December stood at 85% and nearly 67%, respectively, according to CME's FedWatch tool.
The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance around 1% in premarket trading.
Market participants now await U.S. consumer sentiment data for September, due shortly after the opening bell.
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were up 202 points, or 0.6%, S&P 500 e-minis EScv1 were up 29.75 points, or 0.69%, and Nasdaq 100 e-minis NQcv1 were up 140.75 points, or 0.95%.
Overnight, Federal Reserve Bank of Richmond President Thomas Barkin backed the central bank's decision to hold rates steady earlier this month, but said it is unclear if more changes will be needed in the future.
Elsewhere, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
The S&P 500 and the Nasdaq are poised for their worst monthly showing of the year amid uncertainty around interest rates. All the three indexes, including the Dow .DJI, are set for their first quarterly decline in 2023.
Riding the current of higher crude prices, energy .SPNY is set to emerge as the only major S&P 500 sector to notch monthly gains. Meanwhile, rate-sensitive information technology .SPLRCT and real estate .SPLRCR were on track to be the worst hit.
Among individual stocks, Nike NKE.N jumped 10.1% after the sportswear maker posted a better-than-expected first-quarter profit.
Shares of sporting goods retailers Foot Locker FL.N and Dick's Sporting Goods DKS.N added 3.2% and 3.1%, respectively.
(Reporting by Ankika Biswas, Shashwat Chauhan and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Maju Samuel)
((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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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance around 1% in premarket trading. By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance around 1% in premarket trading. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise. Excluding volatile food and energy components, the core PCE price index rose 0.1% in August month-on-month, compared with estimates of 0.2% advance.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance around 1% in premarket trading. By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes. A Commerce Department report showed the personal consumption expenditures (PCE) price index, considered to be the Fed's preferred inflation gauge, climbed 0.4% in August month-on-month, against estimates of a 0.5% rise.
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The yield on two-year and 10-year Treasury notes US2YT=RR, US10YT=RR declined, leading growth stocks including Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.O and Nvidia NVDA.O to advance around 1% in premarket trading. By Shashwat Chauhan and Shristi Achar A Sept 29 (Reuters) - Wall Street's main indexes were set to open higher on Friday after a softer-than-expected reading on a crucial inflation metric kept alive hopes of a pause in the Federal Reserve's rate hikes. Excluding volatile food and energy components, the core PCE price index rose 0.1% in August month-on-month, compared with estimates of 0.2% advance.
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13366.0
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2023-09-29 00:00:00 UTC
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Is Nio Stock About to Turn the Corner?
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AAPL
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https://www.nasdaq.com/articles/is-nio-stock-about-to-turn-the-corner
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nan
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nan
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Investing is a long-term game. No one really knows what is about to happen to any given stock. But after a year-long slump, Nio (NYSE: NIO) shares could be ready to turn the corner.
Shares of the Chinese electric vehicle (EV) company already had one attempt at recovery over the summer, but speed bumps in the company's business progress cut that rally short. A look at recent production data and a strong demand environment could signal that it's time for a new rally in Nio stock.
Meaningful shift in productivity
One major reason why Nio's share price was cut in half over the past year is its fundamental lack of progress in growing its production and vehicle deliveries to customers. In the first half of 2023, deliveries only nudged about 7% higher compared to the first half of 2022. That's not nearly the level of growth investors expect from the company.
There were several problems that stifled the company's growth over the last 12 months. They included COVID-19-related delays, a slowdown in the Chinese economy, and increasing competition. But things have changed in the third quarter. July and August were the biggest two months on record for Nio deliveries. Looking at shipments on a trailing-12-month basis shows the impact of those two record months.
Data source: Nio. Chart by author.
Last week Nio announced that it was following through on previously announced plans to introduce its own smartphone, too. Nio's new Android-based smartphone is an attempt to expand its ecosystem of EV owners. The phone pairs with Nio EVs and is similar to how Apple's AirPlay and CarPlay are used by drivers. If it catches on with Chinese EV buyers, Nio could have a competitive advantage to grow its vehicle business.
It's not all clear sailing yet
Nio will need to expand any competitive advantage it can garner, too. And it's not just EV competitors it may have to deal with. Earlier this month the European Commission announced it was initiating a probe into Chinese EV subsidies. In announcing the investigation, the commission's president said: "Global markets are now flooded with cheaper electric cars. And their price is kept artificially low by huge state subsidies."
Any new tariffs imposed in the future would be a big blow to Nio and its expansion plans. Nio began exporting EVs to Europe in 2021 and continues to expand its reach there. The German market is one Nio has entered, and that country's transport minister has already expressed his opposition to any punitive tariffs. Investors will have to monitor that situation carefully as it could have a major impact on the company's growth.
Nio's recent uptick in deliveries is a good sign for the company and its investors. The stock, however, likely won't begin any sustainable move higher until that level of production growth becomes a meaningful trend. That's what investors will need to be watching in the coming months.
10 stocks we like better than Nio
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Nio 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 September 18, 2023
Howard Smith has positions in Apple and Nio. The Motley Fool has positions in and recommends Apple and Nio. 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 look at recent production data and a strong demand environment could signal that it's time for a new rally in Nio stock. The German market is one Nio has entered, and that country's transport minister has already expressed his opposition to any punitive tariffs. The stock, however, likely won't begin any sustainable move higher until that level of production growth becomes a meaningful trend.
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Shares of the Chinese electric vehicle (EV) company already had one attempt at recovery over the summer, but speed bumps in the company's business progress cut that rally short. Meaningful shift in productivity One major reason why Nio's share price was cut in half over the past year is its fundamental lack of progress in growing its production and vehicle deliveries to customers. If it catches on with Chinese EV buyers, Nio could have a competitive advantage to grow its vehicle business.
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Meaningful shift in productivity One major reason why Nio's share price was cut in half over the past year is its fundamental lack of progress in growing its production and vehicle deliveries to customers. 10 stocks we like better than Nio When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of September 18, 2023 Howard Smith has positions in Apple and Nio.
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Meaningful shift in productivity One major reason why Nio's share price was cut in half over the past year is its fundamental lack of progress in growing its production and vehicle deliveries to customers. Earlier this month the European Commission announced it was initiating a probe into Chinese EV subsidies. The Motley Fool has positions in and recommends Apple and Nio.
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13367.0
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2023-09-29 00:00:00 UTC
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3 Cheap Stocks to Buy Near Their 52-Week Lows, According to Wall Street
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AAPL
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https://www.nasdaq.com/articles/3-cheap-stocks-to-buy-near-their-52-week-lows-according-to-wall-street
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nan
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nan
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Growth stocks have been hit hard over the last couple of months, as the combination of stubbornly high inflation, a hawkish Fed, rising bond yields, and economic trouble out of China have all spooked investors. And while some investors are seeking out safe havens, those with bigger appetites for risk just might be looking for heavily sold growth names to buy on the cheap.
With this in mind, here's a roundup of three growth stocks trading near their 52-week lows - all priced under $20, but with the potential to double, according to Wall Street analysts. Now, I won't sugarcoat it; these stocks aren't exactly rock-solid fundamentally, so there's likely a good reason behind that bargain price tag. However, let's see why analysts still like these three beaten-down growth names.
Peloton Interactive: A Fitness Leader at a Bargain Price
Peloton Interactive (PTON) is a company that's all about interactive fitness fun. They offer a lineup of exercise gear like smart bikes, treadmills, and rowers, paired with complementary digital services. You get to join live or on-demand fitness classes and even enjoy some personal coaching – all through their subscription service.
PTON's stock is currently hanging out at $4.90, just a hair above its 52-week low of $4.30. That's quite a tumble from its recent high at $17.86 back in February 2023.
www.barchart.com
Why the sell-off, you ask? A mix of reasons, really. People have been heading back to gyms and outdoor adventures post-pandemic, giving the cold shoulder to Peloton's at-home exercise gear. There were also those not-so-great headlines around recalls. And let's not forget the competition, as giants like Apple (AAPL), NordicTrack, and Echelon have all thrown their hats in the “smart fitness” ring. Plus, Peloton's digital subscription business has hit some post-COVID speed bumps, with slower growth and fatter losses.
Still, there are plenty analysts out there who think Peloton's got some fight left. They've got a dedicated fan club and a name that rings a bell in the fitness world - and a partnership with another strong brand in Lululemon (LULU), as of this week. Plus, they're taking their show to Canada for the holidays with a shiny new toy - the Peloton Row, a connected rowing machine that offers a full-body workout and a variety of classes.
So, where do the experts stand? The consensus among 23 analysts leans towards a moderate buy. Eight say it's a “strong buy,” 14 say “hold,” and one solitary contrarian recommends a “strong sell.” The magic number - the mean target price - is $10.09, which indicates a whopping 105.9% premium to Thursday's close. Dream big, right?
www.barchart.com
Chewy: An Online Pet Retailer with a Loyal Fan Base
Chewy (CHWY) is the online pet paradise where you can find everything your furry friend desires, from kibble to toys. They've got fulfillment centers across the U.S., offering a speedy and complimentary shipping service. Plus, they've got a subscription-based service called Autoship, helping you save on the regular pet supply run. Need help at 3 a.m. because your cat's acting like a ninja? Chewy's got 24/7 customer service. They're all about pets, and it shows.
But let's chat stocks. Chewy's not far from its 52-week low of $17.51, and has lost 50% year-to-date - valuing the company at $7.60 billion. The company also recently filed for a mixed-shelf offering, further diluting existing shareholders’ value.
www.barchart.com
The stock's challenges include heavyweight competition, with Amazon (AMZN) and other rivals vying for a piece of the pet product pie. Chewy's also been shelling out on supply chain and logistics, which isn't cheap.
But don't count Chewy out just yet. Chewy has a posse of devoted fans and a brand that's as recognizable as your pet's favorite squeaky toy. Chewy is also looking to grow its presence in international markets, starting with Canada this year. That's a whole new country's worth of pet-loving customers to tap into, and will allow Chewy to reduce its reliance on the U.S. market.
So, what's the analyst consensus? CHWY's a moderate buy, say the 20 experts in the know. Eight give it a hearty "strong buy," three say "moderate buy," eight opt for "hold," and one throws in a "strong sell." The mean target price is $37.05, hinting at a steep 102.7% upside to Thursday's close.
www.barchart.com
Purple Innovation: A Bedding Innovator with a Strong Brand
Purple Innovation (PRPL) specializes in creating cozy mattresses, pillows, and bedding with its patented Purple Grid technology. They're all about top-notch sleep comfort and breathability, available online and in stores. The company has a modest market cap of just $159 million.
Now, let's tuck into the stock story. PRPL closed Thursday at $1.65, snuggled up close to its 52-week low of $1.51. It's safe to say the stock has had a rocky ride since hitting a high of $6.76 back in February 2023.
www.barchart.com
What's been ruffling their sheets lately? Well, it's those pesky rising costs – think raw materials, labor, and getting stuff from point A to point B. That's put a squeeze on PRPL's margins and bottom line. And then there's the fierce competition, with mattress mavens like Tempur Sealy (TPX) and Sleep Number (SNBR) nipping at their heels. Against this backdrop, PRPL reported a wider net loss of $37.5 million in Q2 2023, compared to $10.4 million in the same quarter last year.
But hold onto your pillows; there's hope on the horizon. Some savvy analysts reckon Purple Innovation's got the chops to bounce back. They just unleashed a truckload of new goodies as part of their "Path to Premium Sleep" plan, which CEO Rob DeMartini called the "largest product and brand refresh in the company's history" - and he added that momentum from the mid-quarter launch is continuing into the current quarter.
So, what’s the word on the Street? It’s a moderate buy, according to nine analysts. Four are shouting “strong buy,” four call it a “hold,” and one says it's a “moderate sell.” The mean target price of $4.75 suggests a robust 187% upside from current levels.
www.barchart.com
Conclusion
These three stocks are clearly not for the faint of heart, as they are highly volatile and risky. But, they are also potentially high-reward plays that analysts haven't given up on just yet.
So if you're on the hunt for cheap stocks that could double or more from their current levels, and you're ready to ride out the turbulence, these three stocks are worth considering at current levels. Just be prepared for volatility, competition, and potential misses on earnings as they invest in growth.
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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And let's not forget the competition, as giants like Apple (AAPL), NordicTrack, and Echelon have all thrown their hats in the “smart fitness” ring. Growth stocks have been hit hard over the last couple of months, as the combination of stubbornly high inflation, a hawkish Fed, rising bond yields, and economic trouble out of China have all spooked investors. They've got a dedicated fan club and a name that rings a bell in the fitness world - and a partnership with another strong brand in Lululemon (LULU), as of this week.
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And let's not forget the competition, as giants like Apple (AAPL), NordicTrack, and Echelon have all thrown their hats in the “smart fitness” ring. Peloton Interactive: A Fitness Leader at a Bargain Price Peloton Interactive (PTON) is a company that's all about interactive fitness fun. www.barchart.com Chewy: An Online Pet Retailer with a Loyal Fan Base Chewy (CHWY) is the online pet paradise where you can find everything your furry friend desires, from kibble to toys.
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And let's not forget the competition, as giants like Apple (AAPL), NordicTrack, and Echelon have all thrown their hats in the “smart fitness” ring. With this in mind, here's a roundup of three growth stocks trading near their 52-week lows - all priced under $20, but with the potential to double, according to Wall Street analysts. Peloton Interactive: A Fitness Leader at a Bargain Price Peloton Interactive (PTON) is a company that's all about interactive fitness fun.
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And let's not forget the competition, as giants like Apple (AAPL), NordicTrack, and Echelon have all thrown their hats in the “smart fitness” ring. Chewy's got 24/7 customer service. They're all about pets, and it shows.
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13368.0
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2023-09-29 00:00:00 UTC
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Hopes rise for IPO recovery after September deal rush
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AAPL
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https://www.nasdaq.com/articles/hopes-rise-for-ipo-recovery-after-september-deal-rush
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nan
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nan
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By Echo Wang and Pablo Mayo Cerqueiro
NEW YORK/LONDON, Sept 29 (Reuters) - Bankers and investors are embracing a degree of optimism for the IPO market following a slew of major market debuts in September that made for one of the busiest months since the start of 2022.
So far this year there have been $423 billion worth of equity capital markets transactions, a 5% increase from the same period last year, according to Dealogic data, though this total remains a far cry from the record levels of 2021.
The performance of a spate of high-profile IPOs is being closely watched as an indicator of investors' appetite for new issues.
In the last four weeks, at least 25 companies in the United States and Europe have joined the stock market, raising hopes that a recovery may be in sight after a lengthy drought in fresh listings.
"We're definitely seeing a bit of a soft open in the IPO market", said Lizzie Reed, global head of the ECM syndicate desk at Goldman Sachs. "The last cohort of IPOs ... provided a case study for issuers who might be contemplating markets access."
British chip designer Arm Holdings ARM.O, marketing automation firm Klaviyo KVYO.N and grocery delivery app Instacart CART.O raised more than $6 billion combined in their September debuts in New York, accounting for over a fifth of total proceeds raised by IPOs in the U.S. and Europe this year.
All three companies priced their IPOs at the top end, or above, their indicated price range, highlighting support from investors.
But while shares rallied on their first day of trading, they have since retreated. Arm and Instacart shares briefly fell below their issue price, suggesting there is still some way before the IPO market fully recovers.
REBUILD MODE
"We're still in a rebuild mode for the market more than an absolute bull market," said Robert Stowe, head of Americas ECM at Barclays. "But we are starting to see more engagement (in IPOs) from both sides."
Bankers are not expecting a deluge of deals to rush to market as a result of the recent issues.
"It's encouraging to see deals being priced, but it will continue to be a gradual re-opening of the market rather than the floodgates opening," said Suneel Hargunani, co-head of ECM at Citigroup for Europe, the Middle East and Africa (EMEA).
In the last month, technology has been the dominant sector for new issues in the U.S., but the full quarter has offered a more varied IPO class.
Medical glass producer Schott Pharma 1SXP.F debuted on the Frankfurt Stock Exchange on Thursday, with shares closing 16% above the IPO price. In July, German hydrogen firm ThyssenKrupp Nucera NCH2.DE and Romanian energy producer Hidrolectrica went public in their home countries.
IPO candidates on both sides of the Atlantic share a common characteristic - they are either already profitable or show a clear path to profitability.
Arm, Instacart and Klaviyo were all profitable at the time of their listings. Klaviyo's shares are now trading at a 21% premium to their IPO price.
"The success of (the) Klaviyo (IPO) is a strong affirmation of profitable growth being a path towards a rewarding valuation by the public markets," said Ross Devor, partner at Thoma Bravo, a software-focused private equity firm.
“Most of the companies in the pipeline, if they're not profitable, they have a definitive path to profitability.” said Samir A. Gandhi, a capital markets lawyer at Sidley Austin.
STABLE OWNERSHIP
Notably, some of this year's most emblematic IPOs have attracted cornerstone investors as a way to reduce risk and ensure stable ownership.
"For companies that are market leaders in their sector and have a long-term thematic element, we find that investors are more likely to consider a cornerstone investment," said Stephane Gruffat, co-head of ECM in EMEA at Deutsche Bank.
That was the case of Arm, a leader in chip technology, which saw an array of clients including Nvidia and Apple snap up shares, and Schott Pharma, which attracted the Qatar Investment Authority, as it pushes into the growing market for injectable drugs.
A narrowing gap between buyers' and sellers' views in valuation has also paved the way for more IPOs to come to market.
Instacart agreed to sell shares to investors at a $9.9 billion valuation in its IPO, a fraction of the $39 billion it fetched in a private fundraising round in March 2021 amid a pandemic-induced boom for online grocery deliveries.
For its part, SoftBank bought the 25% it did not already own in Arm at a $64 billion valuation in August to then sell shares at a lower price a month later.
"For the IPO market to open more broadly in the first quarter in 2024 ... we need the 2023 IPO cohort to continue to perform well," said Josh Weismer, head of U.S. ECM, Mizuho Americas. "And the market needs a bit more clarity from the Fed."
Year-to-Date Global ECM Volumes: 2018-2023 https://tmsnrt.rs/48zw1GD
(Reporting by Echo Wang in New York and Pablo Mayo Cerqueiro in London; Editing by Anousha Sakoui and David Holmes)
((Pablo.MayoCerqueiro@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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"It's encouraging to see deals being priced, but it will continue to be a gradual re-opening of the market rather than the floodgates opening," said Suneel Hargunani, co-head of ECM at Citigroup for Europe, the Middle East and Africa (EMEA). "The success of (the) Klaviyo (IPO) is a strong affirmation of profitable growth being a path towards a rewarding valuation by the public markets," said Ross Devor, partner at Thoma Bravo, a software-focused private equity firm. That was the case of Arm, a leader in chip technology, which saw an array of clients including Nvidia and Apple snap up shares, and Schott Pharma, which attracted the Qatar Investment Authority, as it pushes into the growing market for injectable drugs.
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By Echo Wang and Pablo Mayo Cerqueiro NEW YORK/LONDON, Sept 29 (Reuters) - Bankers and investors are embracing a degree of optimism for the IPO market following a slew of major market debuts in September that made for one of the busiest months since the start of 2022. British chip designer Arm Holdings ARM.O, marketing automation firm Klaviyo KVYO.N and grocery delivery app Instacart CART.O raised more than $6 billion combined in their September debuts in New York, accounting for over a fifth of total proceeds raised by IPOs in the U.S. and Europe this year. Year-to-Date Global ECM Volumes: 2018-2023 https://tmsnrt.rs/48zw1GD (Reporting by Echo Wang in New York and Pablo Mayo Cerqueiro in London; Editing by Anousha Sakoui and David Holmes) ((Pablo.MayoCerqueiro@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Echo Wang and Pablo Mayo Cerqueiro NEW YORK/LONDON, Sept 29 (Reuters) - Bankers and investors are embracing a degree of optimism for the IPO market following a slew of major market debuts in September that made for one of the busiest months since the start of 2022. British chip designer Arm Holdings ARM.O, marketing automation firm Klaviyo KVYO.N and grocery delivery app Instacart CART.O raised more than $6 billion combined in their September debuts in New York, accounting for over a fifth of total proceeds raised by IPOs in the U.S. and Europe this year. "For the IPO market to open more broadly in the first quarter in 2024 ... we need the 2023 IPO cohort to continue to perform well," said Josh Weismer, head of U.S. ECM, Mizuho Americas.
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Arm, Instacart and Klaviyo were all profitable at the time of their listings. Klaviyo's shares are now trading at a 21% premium to their IPO price. "For the IPO market to open more broadly in the first quarter in 2024 ... we need the 2023 IPO cohort to continue to perform well," said Josh Weismer, head of U.S. ECM, Mizuho Americas.
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13369.0
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2023-09-29 00:00:00 UTC
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GRAPHIC-What could break under higher-for-longer interest rates?
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AAPL
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https://www.nasdaq.com/articles/graphic-what-could-break-under-higher-for-longer-interest-rates
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nan
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nan
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LONDON, Sept 29 (Reuters) - As the final stretch of the year approaches, there's relief in markets that the sharpest global monetary tightening cycle in decades is finally nearing an end.
Yet, the strain from interest rate hikes has just started to come through and with central banks signalling that rates will likely stay higher for longer, the notion of something "breaking" remains strong.
Here's a look at some pressure points on the radar.
1/ PROPERTY PAIN
Nowhere is the impact of higher rates being felt more acutely than in real estate, still reeling from COVID-19.
A string of German developers have been tipped into insolvency, London's office market is in a "rental recession" as vacancies hit a 30-year high and U.S. banks revealed spiralling losses from property in first half figures and warned of more to come.
Sweden is the hardest hit in Europe since much of its property debt is short-term, making it a harbinger for the region.
Property group SBB, which owns large tracts of property including hospitals and schools, is scrambling to repair its battered finances, marred by a heavy loss and dwindling cash.
The crisis has also sucked in Sweden's biggest residential landlord, Heimstaden Bostad. The $30 billion investor with swathes of homes from Stockholm to Berlin is grappling with a multi-billion dollar funding crunch.
2/ MADE IN CHINA
Property is also at the heart of China's woes and one reason why the world's No.2 economy has shot up investors' worry list.
China Evergrande Group3333.HK, the world's most indebted developer with over $300 billion in total liabilities, is at the centre of an unprecedented property sector liquidity crisis. Country Garden2007.HK, China's largest private developer, is battling to avoid a default.
Since property accounts for roughly a quarter of the economy, concerns about the impact for China's already faltering growth and the ripple effects have risen.
Chinese real estate was viewed as the most likely source of a global systemic credit event, according to BofA's September fund manager survey.
3/ MONEY PROBLEMS
Corporate debt defaults have started ramping up, even in typically quiet months.
The number of new corporate defaults globally reached 16 in August, the highest August tally since 2009, according to S&P, the latest sign that corporate stress is building.
"There is lots of talk in the market about corporate stress and hidden leverage, but it has not erupted yet. We still think defaults are coming," said Markus Allenspach, head of fixed income research at Julius Baer.
"We have many zombie companies in the United States and Europe from the low interest rates era, and I cannot imagine how they can survive now with high interest rates."
S&P forecast that defaults among junk-rated European companies will reach 3.75% by June 2024 from 3.4% in August.
4/ BANKING ON IT
Banking stress has gone down the worry list since the March crisis wrecked havoc.
Big U.S. banks sailed through the Federal Reserve's annual health check in June. The European Central Bank has asked banks to provide weekly liquidity data so it can carry out more frequent checks on their ability to ward off potential shocks as rates rise.
Guy Miller, chief market strategist at Zurich Insurance Group, said banks are in a better position in terms of their capital and liquidity compared with March.
Still, big question marks remain over their future, not least from a global property rout.
"There is still an inherent vulnerability to deposit flight as well as to commercial real estate and other credit exposures for smaller banks," said Miller.
The S&P 500 U.S. regional banks index .SPLRCBNKS is down almost 40% this year, set for its biggest annual drop since 2008.
Miller noted that European banks are also vulnerable given their bigger size relative to the economy that leaves them more exposed to risks from various pockets.
5/ THAT JAPAN FACTOR
The Bank of Japan has held steadfast to ultra-easy monetary policy but a tighter stance is on the cards. And the risks are rising of a sharp unwind from an era of Japanese cash pumping into everything from U.S. tech stocks to high-yielding emerging market currencies.
Capital Economics expects the BOJ to hike its policy rate in January. It notes that Japanese investors, who have long sought better investment yields elsewhere, own around a trillion dollars of U.S. bonds. They are big holders of European and Australian debt.
Japanese selling of Treasuries could further push up yields -- already at their highest since the global financial crisis. That could hurt equities, which tend to perform worse when investors expect higher returns from low-risk government bonds.
Expect markets to show increased sensitivity to the BoJ in coming months.
The race to raise rates The race to raise rates https://tmsnrt.rs/3LAFq6P
Growing strains on the European housing market https://tmsnrt.rs/46xoQgt
China property sector slump https://tmsnrt.rs/46drY19
Defaults in August reach highest monthly total since 2009 Defaults in August reach highest monthly total since 2009 https://tmsnrt.rs/3PvSRq5
Regional banks underperform https://tmsnrt.rs/3PsdC5W
Japanese holdings of foreign assets Japanese holdings of foreign assets https://tmsnrt.rs/48xOSSr
The views and 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 string of German developers have been tipped into insolvency, London's office market is in a "rental recession" as vacancies hit a 30-year high and U.S. banks revealed spiralling losses from property in first half figures and warned of more to come. Chinese real estate was viewed as the most likely source of a global systemic credit event, according to BofA's September fund manager survey. Guy Miller, chief market strategist at Zurich Insurance Group, said banks are in a better position in terms of their capital and liquidity compared with March.
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Yet, the strain from interest rate hikes has just started to come through and with central banks signalling that rates will likely stay higher for longer, the notion of something "breaking" remains strong. The number of new corporate defaults globally reached 16 in August, the highest August tally since 2009, according to S&P, the latest sign that corporate stress is building. The race to raise rates The race to raise rates https://tmsnrt.rs/3LAFq6P Growing strains on the European housing market https://tmsnrt.rs/46xoQgt China property sector slump https://tmsnrt.rs/46drY19 Defaults in August reach highest monthly total since 2009 Defaults in August reach highest monthly total since 2009 https://tmsnrt.rs/3PvSRq5 Regional banks underperform https://tmsnrt.rs/3PsdC5W Japanese holdings of foreign assets Japanese holdings of foreign assets https://tmsnrt.rs/48xOSSr The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Yet, the strain from interest rate hikes has just started to come through and with central banks signalling that rates will likely stay higher for longer, the notion of something "breaking" remains strong. The European Central Bank has asked banks to provide weekly liquidity data so it can carry out more frequent checks on their ability to ward off potential shocks as rates rise. The race to raise rates The race to raise rates https://tmsnrt.rs/3LAFq6P Growing strains on the European housing market https://tmsnrt.rs/46xoQgt China property sector slump https://tmsnrt.rs/46drY19 Defaults in August reach highest monthly total since 2009 Defaults in August reach highest monthly total since 2009 https://tmsnrt.rs/3PvSRq5 Regional banks underperform https://tmsnrt.rs/3PsdC5W Japanese holdings of foreign assets Japanese holdings of foreign assets https://tmsnrt.rs/48xOSSr The views and 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 number of new corporate defaults globally reached 16 in August, the highest August tally since 2009, according to S&P, the latest sign that corporate stress is building. It notes that Japanese investors, who have long sought better investment yields elsewhere, own around a trillion dollars of U.S. bonds. They are big holders of European and Australian debt.
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13370.0
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2023-09-29 00:00:00 UTC
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Better Buy: Amazon vs Apple
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-amazon-vs-apple
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nan
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nan
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Many investors may own Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) in their portfolios but may have a difficult time choosing which stock is a better buy right now. These are both dominant businesses in their respective industries with great growth prospects, so either stock would make a fine addition to a well-diversified portfolio.
But this is certain: One of these stocks will outperform the other over the next five years. Let's review the strengths and opportunities for these companies to determine which one that is likely to be.
Amazon: The leader in e-commerce and cloud services
Amazon generates $538 billion of annual revenue, with 17% of that total coming from its cloud services unit Amazon Web Services. It benefits from diverse revenue streams and a large customer base that is attracted to a wide selection of merchandise, streaming entertainment, and other services.
Amazon faces an increasingly competitive e-commerce market, but it continues to grow online store sales by continuing to get faster in delivery with same-day and one-day shipping for more customers domestically. After sales slowed growth last year due to macroeconomic headwinds, Amazon has bounced back. Sales grew 11% year over year in the second quarter. Amazon is also improving efficiency across its fulfillment network, which led to operating profit more than doubling year over year.
Growth might be slowing as the company gets bigger, but Amazon's strength is a smooth, rising line in annual revenue. That reflects a lot of repeat purchases from an army of loyal Prime shoppers, in addition to recurring revenue from nonretail businesses, such as Amazon Web Services.
AMZN Revenue (TTM) data by YCharts
Amazon may never grow at the high rates it did before the pandemic, when it saw over 20% growth per year. But it offers such a wide selection and fast delivery that it should continue to grow at double-digit rates for many more years. That's because there is still a very long runway of growth in the global e-commerce market that is worth trillions and continues to grow.
Even with Amazon's lead in e-commerce, investors should know that most of the company's revenue comes from nonretail services. Revenue from third-party fulfillment fees, subscription services, advertising, and cloud services totaled 56% of Amazon's business in the first half of 2023, and these revenue streams have been growing much faster than the retail side in recent years.
These nonretail businesses generate a higher profit margin than retail, so as Amazon continues to invest in these areas, it should lead to more profitable growth over the long term.
One area that continues to look promising is cloud services. Despite the increasing competition from Alphabet's Google Cloud and Microsoft Azure, Amazon is holding its share of spending of the cloud market steady in the 32% to 34% range, according to Synergy Research Group. Amazon just announced a $4 billion investment in Anthropic, an artificial intelligence (AI) research company, which will accelerate Amazon's push into generative AI services for its cloud customers.
Apple: One of the most profitable brands around
At first glance, some investors might think Amazon is a better business. While Amazon generates more consistent revenue growth every year, Apple depends on millions of people choosing to buy an iPhone, which generates nearly half of the company's revenue. The dependency on iPhone sales has exposed Apple to less consistency on the top line, especially as the global smartphone market matures.
However, there's a good reason Warren Buffett has plowed billions into Apple stock. Apple is less consistent than Amazon in generating sales growth, but it says a lot about Apple's brand power that even with its dependency on the iPhone, it is a more profitable business than Amazon. This is not only due to earning a healthy margin on pricey hardware devices, but it also reflects Apple's lucrative business of selling subscriptions and apps to its growing installed base of devices.
Through the first three quarters of the fiscal year ending in September, Apple's product sales fell nearly 6% year over year. This was due to lower sales across all its products, including Mac and iPad, in addition to wearables, home, and accessories. The only sales category that grew was services (e.g., subscriptions and app sales).
While a dip in product sales is nothing new at Apple, it does point to the primary weakness with Apple's business: lengthening upgrade cycles. Many iPhone users may only upgrade about once every five years, which isn't as ideal as having a large pool of customers make repeat purchases on a regular basis, such as at Amazon. But Apple is making up for this with its growing services business.
AAPL Revenue (TTM) data by YCharts
The new iPhone 15 is reportedly seeing strong preorders that are running 10% to 12% higher than iPhone 14, so Apple might have another banner year for fiscal 2024. As Apple's revenue history shows, slow growth years are usually followed by a growth spurt, as customers might find features on the new models appealing enough to upgrade.
To better understand Apple's future direction as a business, a more important metric to watch is the growth of the installed base of devices, which reached an all-time high of 2 billion at the start of 2022 and has doubled over the last seven years. This bodes well for continued growth in service sales, which makes up 21% of the business. The growth from higher-margin services should continue to drive earnings growth and shareholder returns.
AAPL data by YCharts
Amazon and Apple benefit from high customer loyalty, but Apple sets itself apart by being able to invest massive sums in technology, new products, and services while converting its annual sales into consistent free cash flow. On a trailing-12-month basis, Apple generated $101 billion in free cash flow compared to Amazon's $3.2 billion. Those enormous cash resources allow Apple to pay a growing dividend to shareholders while also making investments in important technologies like AI that could lead to new services over time that fuel profitable growth.
Apple has the look of a better-performing stock
Apple is a more profitable business and trades at a cheaper valuation. At current share prices, Apple trades at a forward price-to-earnings (P/E) ratio of 28 compared to Amazon's forward P/E of 57.
Based on free cash flow (FCF), Apple is also the cheaper stock, trading at a P/FCF multiple of 26. Even using Amazon's previous peak trailing-12-month free cash flow of $27 billion, the e-commerce leader trades at an expensive P/FCF multiple of 50.
Apple's consistency on the bottom line has contributed to better returns to investors. Over the last five years, shares tripled in value, beating the small 33% gain from shares of Amazon.
These are both outstanding companies, but I would allocate money to Apple stock, since it offers investors more value at current share prices.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Ballard has positions in Amazon.com. 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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Many investors may own Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) in their portfolios but may have a difficult time choosing which stock is a better buy right now. AAPL Revenue (TTM) data by YCharts The new iPhone 15 is reportedly seeing strong preorders that are running 10% to 12% higher than iPhone 14, so Apple might have another banner year for fiscal 2024. AAPL data by YCharts Amazon and Apple benefit from high customer loyalty, but Apple sets itself apart by being able to invest massive sums in technology, new products, and services while converting its annual sales into consistent free cash flow.
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Many investors may own Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) in their portfolios but may have a difficult time choosing which stock is a better buy right now. AAPL Revenue (TTM) data by YCharts The new iPhone 15 is reportedly seeing strong preorders that are running 10% to 12% higher than iPhone 14, so Apple might have another banner year for fiscal 2024. AAPL data by YCharts Amazon and Apple benefit from high customer loyalty, but Apple sets itself apart by being able to invest massive sums in technology, new products, and services while converting its annual sales into consistent free cash flow.
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Many investors may own Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) in their portfolios but may have a difficult time choosing which stock is a better buy right now. AAPL Revenue (TTM) data by YCharts The new iPhone 15 is reportedly seeing strong preorders that are running 10% to 12% higher than iPhone 14, so Apple might have another banner year for fiscal 2024. AAPL data by YCharts Amazon and Apple benefit from high customer loyalty, but Apple sets itself apart by being able to invest massive sums in technology, new products, and services while converting its annual sales into consistent free cash flow.
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Many investors may own Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) in their portfolios but may have a difficult time choosing which stock is a better buy right now. AAPL Revenue (TTM) data by YCharts The new iPhone 15 is reportedly seeing strong preorders that are running 10% to 12% higher than iPhone 14, so Apple might have another banner year for fiscal 2024. AAPL data by YCharts Amazon and Apple benefit from high customer loyalty, but Apple sets itself apart by being able to invest massive sums in technology, new products, and services while converting its annual sales into consistent free cash flow.
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13371.0
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2023-09-29 00:00:00 UTC
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1 Green Flag for Apple in 2023, and 1 Red Flag
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AAPL
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https://www.nasdaq.com/articles/1-green-flag-for-apple-in-2023-and-1-red-flag-2
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nan
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nan
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Apple (NASDAQ: AAPL) hasn't had the easiest 2023, with its stock falling 12% since the start of August. Three consecutive quarters of revenue declines have concerned investors as the company continues to fight against macroeconomic headwinds.
Businesses across tech are dealing with similar challenges, with U.S. smartphone shipments decreasing by 24% year over year in the second quarter of 2023 and global PC shipments tumbling 13%.
However, Apple has a long history of offering investors consistent gains, making its recent stock dip a potential buying opportunity. The company's dominance in tech could help its shares soar once market challenges subside. As a result, now is an excellent time to learn more about this tech giant and consider a long-term investment in the stock.
Here's one green flag and one red flag for Apple in 2023.
Green flag: Signs of high demand for the newest iPhone
Apple's iPhone 15 hit stores on Sept. 22, offering upgraded cameras, a charging port change to USB-C, various software updates, and more. iPhone revenue declines in the first half of this year had many analysts bracing for a poor launch. However, data from Counterpoint Research suggests the opposite is true.
In the U.S., the wait time for the base model iPhone 15 is 10 days, almost double what it was last year when the iPhone 14 was released. Meanwhile, the most expensive model seems to be a hit. Shoppers currently need to wait 48 days for the iPhone 15 Pro Max, when last year's version had consumers waiting 39 days.
In China, wait times for the base model have quadrupled from last year despite growing competition from Huawei. Counterpoint attributed part of the high demand to Apple's trade-in program, which has reduced "psychological barriers for those contemplating a new phone purchase" and is an "increasingly vital contributor to Apple's market dominance."
In Apple's most recent quarter (Q3 2023), revenue declined in three of its four product segments, with iPhone revenue slipping 2% year over year. As a result, signs of strong demand for the iPhone 15 are promising and could signal a return to form for the company.
Red flag: Repeated revenue declines
Apple's revenue slipped 1% year over year in the three months ending in July 2023 and 3% in the previous nine months. The company suffered from sales declines in its iPhone, Mac, and iPad segments, with the last hit the hardest after a 20% dip in sales.
Apple's leading market share in multiple product categories has made the company especially vulnerable in an economic downturn. However, it also means it could have more to gain from the market's eventual recovery.
In the meantime, Apple is showing its resilience by continuing to deliver significant profits. In Q3 2023, operating income stayed almost equal to the year-ago period, hitting $23 billion despite revenue declines. The company is benefiting from its strategically diverse earnings streams as it leans more on its services business amid poor market conditions.
Apple's services segment includes income from the App Store and subscription services such as Apple TV+, Music, and iCloud. The digital business has become the company's second-highest-earning segment, with profit margins of about 70%. Comparatively, product profit margins often hover around 35%.
Services have proven their strength over the last year, regularly beating the iPhone in revenue growth. In fact, services reported the most growth in Q3 2023, with revenue rising 8% year over year.
Apple has been in a tight spot this year, delivering dismal earnings results quarter after quarter. However, its market dominance is still worth a long-term investment. The company could be on track for a recovery in 2024 with high demand for the iPhone 15. Meanwhile, its booming services business has strengthened its financial future.
With Apple shares down 12% since Aug. 1, it could be a smart move to buy the dip before the stock starts trending upward.
Find out why Apple is one of the 10 best stocks to buy now
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) hasn't had the easiest 2023, with its stock falling 12% since the start of August. However, Apple has a long history of offering investors consistent gains, making its recent stock dip a potential buying opportunity. Apple's leading market share in multiple product categories has made the company especially vulnerable in an economic downturn.
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Apple (NASDAQ: AAPL) hasn't had the easiest 2023, with its stock falling 12% since the start of August. Green flag: Signs of high demand for the newest iPhone Apple's iPhone 15 hit stores on Sept. 22, offering upgraded cameras, a charging port change to USB-C, various software updates, and more. In Apple's most recent quarter (Q3 2023), revenue declined in three of its four product segments, with iPhone revenue slipping 2% year over year.
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Apple (NASDAQ: AAPL) hasn't had the easiest 2023, with its stock falling 12% since the start of August. Counterpoint attributed part of the high demand to Apple's trade-in program, which has reduced "psychological barriers for those contemplating a new phone purchase" and is an "increasingly vital contributor to Apple's market dominance." In Apple's most recent quarter (Q3 2023), revenue declined in three of its four product segments, with iPhone revenue slipping 2% year over year.
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Apple (NASDAQ: AAPL) hasn't had the easiest 2023, with its stock falling 12% since the start of August. The company's dominance in tech could help its shares soar once market challenges subside. In Apple's most recent quarter (Q3 2023), revenue declined in three of its four product segments, with iPhone revenue slipping 2% year over year.
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83% of Warren Buffett's $347 Billion Portfolio Is Invested in Only 8 Stocks
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https://www.nasdaq.com/articles/83-of-warren-buffetts-%24347-billion-portfolio-is-invested-in-only-8-stocks
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When it comes to making money on Wall Street, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is, arguably, in a class of his own. In the 58 years that the Oracle of Omaha has led Berkshire Hathaway, his company's Class A shares have enjoyed a nearly 20% annualized return. That's roughly double the total annualized returns, including dividends paid, for the benchmark S&P 500 over the same stretch.
However, outperformance isn't the only reason Buffett is revered by professional and everyday investors. His willingness and openness to share his investment philosophy has won the Oracle of Omaha quite the fan base.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what's often overlooked about Warren Buffett's success is that he's no fan of diversification. While he and his investment lieutenants, Ted Weschler and Todd Combs, have packed Berkshire Hathaway's portfolio with more than 50 securities (including exchange-traded funds), the vast majority of the company's invested assets can be traced to just a handful of stocks.
As of the closing bell on Sept. 22, 2023, 83% ($288.5 billion) of Warren Buffett's nearly $347 billion portfolio was invested in just eight stocks.
1. Apple: $160,030,799,170 (46.1% of invested assets)
The clearest indication that Buffett favors putting a lot of money to work in his top investment ideas can be seen with tech stock Apple (NASDAQ: AAPL). The largest publicly traded company in the U.S. accounts for more than 46% of Berkshire Hathaway's invested assets.
What makes Apple so special is that it checks all the appropriate boxes from an operating and capital-return standpoint. With regard to the former, Apple is one of the world's most recognized brands, its iPhone is the U.S. leader in smartphone share, and its burgeoning services segment should enhance customer loyalty and lift the company's operating margin over the long run.
However, Buffett's favorite aspect about Apple might be its shareholder-friendly capital-return program. Apple is parsing out $15 billion in dividend payments each year and repurchased in the ballpark of $600 billion worth of its common stock since introducing an aggressive buyback program in 2013.
The most aggressive rate-hiking cycle in decades is working in Bank of America's favor. Effective Federal Funds Rate data by YCharts.
2. Bank of America: $28,548,029,446 (8.2% of invested assets)
The second-largest holding in Berkshire Hathaway's portfolio is Bank of America (NYSE: BAC). Buffett's company holds more than 1 billion shares of BofA, equating to a 13% stake.
What the Oracle of Omaha loves about bank stocks is their ability to ride the U.S. economy's coattails to big gains over the long run. Though Buffett is well aware that economic downturns are both normal and inevitable, he also knows that recessions are short-lived. He's angled his portfolio to be highly cyclical so it can take advantage of disproportionately longer periods of economic expansion. Bank of America's loan and investment portfolio should do just that.
It also doesn't hurt that Bank of America has the highest interest-rate sensitivity of the big U.S. banks. The steepest rate-hiking cycle from the Fed in four decades is padding BofA's coffers with billions of dollars in added net-interest income each quarter.
3. American Express: $23,208,565,956 (6.7% of invested assets)
Another top holding in Buffett's portfolio is credit-services provider American Express (NYSE: AXP). AmEx, as it's more commonly known, accounts for more than $23 billion of invested assets and is a 30-year continuous holding for Berkshire Hathaway.
The company's success stems from its ability to generate income from both sides of a transaction. It's the No. 3 player in payment processing in the U.S. and also generates fees and interest income by lending to cardholders worldwide. Similar to Bank of America, it's taking advantage of long-winded periods of economic expansion.
The other competitive advantage for AmEx is that it has a knack for attracting high-earning cardholders. High-income individuals are less likely to alter their buying habits or fail to pay their bills during minor economic disruptions.
Image source: Coca-Cola.
4. Coca-Cola: $23,040,000,000 (6.6% of invested assets)
Beverage stock Coca-Cola (NYSE: KO) clocks in as Berkshire Hathaway's fourth-largest holding and the company's longest-held stock (35 years and counting). Thanks to a very low-cost basis of $3.2475 per share in Coca-Cola, Berkshire is enjoying a nearly 57% yield, relative to cost.
One reason Coca-Cola continues to thrive is its virtually unparalleled geographic diversity. With the exception of Cuba, North Korea, and Russia, Coke has operations ongoing in every other country. This allows it to generate predictable operating results in developed markets, while leaning on higher organic growth in developing/emerging countries.
Like Apple, Coca-Cola is also one of the most recognized brands in the world. It's had success leaning on digital advertising to cater to a younger generation of consumers but can still rely on brand-name ambassadors to connect with more mature audiences. Warren Buffett tends to love businesses viewed as wholesome brands.
A meaningful rally in the spot price of crude oil has helped Chevron reduce its net debt. WTI Crude Oil Spot Price data by YCharts.
5. Chevron: $20,472,413,554 (5.9% of invested assets)
In recent years, energy stocks have accounted for a meaningful percentage of Warren Buffett's portfolio. Oil and gas stock Chevron (NYSE: CVX) is leading that charge.
While Buffett's big investment in Chevron is a pretty clear bet on higher crude oil spot prices, he's likely intrigued even more by Chevron being an integrated energy company.
Though it generates its highest operating margin from drilling, Chevron also owns transmission pipelines, chemical plants, and refineries. These ancillary operations bring in significant revenue for the company and help to hedge the downside in the spot price of crude oil.
Furthermore, Chevron's balance sheet is exceptionally flexible for a major energy company, with its net-debt ratio coming in at just 7%, as of the end of June. With top-tier financial flexibility, Chevron has the luxury of pulling the trigger on acquisitions or major projects.
6. Occidental Petroleum: $14,095,484,885 (4.1% of invested assets)
Yet another energy stock that the Oracle of Omaha and his investing lieutenants have piled into is Occidental Petroleum (NYSE: OXY). Occidental, like Chevron, is an integrated operator -- but with two distinct differences.
Whereas Chevron brings in a good amount of revenue from its transmission pipelines, refineries, and chemical plants, Occidental generates most of its revenue from drilling, with a significantly smaller portion derived from chemical plants. In other words, it's far more sensitive to fluctuations in the spot price of crude oil than Chevron (and most other major drillers, for that matter).
The other big difference between Chevron and Occidental Petroleum can be seen in their balance sheets. Despite reducing its net debt by more than $15 billion in two years, Occidental is still lugging around close to $19.7 billion in net debt. There's far less financial flexibility with Occidental than global energy major Chevron.
Kraft Heinz may have issues, but outpacing the highest inflation rate in 40 years in 2022 hasn't been one of them. US Inflation Rate data by YCharts.
7. Kraft Heinz: $11,123,685,383 (3.2% of invested assets)
Even the best investors are capable of being wrong, and consumer staples stock Kraft Heinz (NASDAQ: KHC) represents one of Buffett's few mistakes. Despite being a drag on Berkshire's portfolio, Kraft Heinz still accounts for more than 3% of invested assets.
On the bright side, Kraft Heinz sells extremely well-known packaged foods, snacks, and condiments. The familiarity of its brands, coupled with food being a necessity, has helped the company pass along price hikes and outpace historically high inflation rates since the COVID-19 pandemic began.
However, Kraft Heinz is fighting its competition with one arm tied behind its proverbial back. It closed out its fiscal second quarter (ended July 1, 2023) with just $947 million in cash and cash equivalents, compared to $20 billion in debt. Additionally, overpriced acquisitions have Kraft Heinz carrying almost $31 billion in goodwill on its balance sheet. Such a large figure may signal that another sizable write-down is in the company's future.
8. Moody's: $7,998,435,423 (2.3% of invested assets)
The eighth and final stock that, with the other seven holdings listed, collectively adds up to 83% of Warren Buffett's nearly $347 billion portfolio is credit-ratings agency Moody's (NYSE: MCO). With the exception of Coca-Cola and AmEx, Moody's is Berkshire's third longest-held stock (23 years).
For more than a decade, Moody's credit-rating division benefited from historically low lending rates. The desire of businesses and governments to raise cheap capital by issuing debt kept Moody's bond-rating division busy. But with lending rates climbing at a rapid pace, demand for bond ratings is tapering.
The good news for Moody's is that it has another highly successful operating segment to pick up the slack. Moody's Analytics is perfectly suited to an economic environment dominated by uncertainty. Demand for its risk analysis and compliance services should only grow in the coming quarters.
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
American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. The Motley Fool recommends Chevron, 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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Apple: $160,030,799,170 (46.1% of invested assets) The clearest indication that Buffett favors putting a lot of money to work in his top investment ideas can be seen with tech stock Apple (NASDAQ: AAPL). With regard to the former, Apple is one of the world's most recognized brands, its iPhone is the U.S. leader in smartphone share, and its burgeoning services segment should enhance customer loyalty and lift the company's operating margin over the long run. The familiarity of its brands, coupled with food being a necessity, has helped the company pass along price hikes and outpace historically high inflation rates since the COVID-19 pandemic began.
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Apple: $160,030,799,170 (46.1% of invested assets) The clearest indication that Buffett favors putting a lot of money to work in his top investment ideas can be seen with tech stock Apple (NASDAQ: AAPL). When it comes to making money on Wall Street, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is, arguably, in a class of his own. Though it generates its highest operating margin from drilling, Chevron also owns transmission pipelines, chemical plants, and refineries.
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Apple: $160,030,799,170 (46.1% of invested assets) The clearest indication that Buffett favors putting a lot of money to work in his top investment ideas can be seen with tech stock Apple (NASDAQ: AAPL). Bank of America: $28,548,029,446 (8.2% of invested assets) The second-largest holding in Berkshire Hathaway's portfolio is Bank of America (NYSE: BAC). Coca-Cola: $23,040,000,000 (6.6% of invested assets) Beverage stock Coca-Cola (NYSE: KO) clocks in as Berkshire Hathaway's fourth-largest holding and the company's longest-held stock (35 years and counting).
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Apple: $160,030,799,170 (46.1% of invested assets) The clearest indication that Buffett favors putting a lot of money to work in his top investment ideas can be seen with tech stock Apple (NASDAQ: AAPL). In the 58 years that the Oracle of Omaha has led Berkshire Hathaway, his company's Class A shares have enjoyed a nearly 20% annualized return. As of the closing bell on Sept. 22, 2023, 83% ($288.5 billion) of Warren Buffett's nearly $347 billion portfolio was invested in just eight stocks.
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2023-09-29 00:00:00 UTC
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NFL-The 'Taylor Swift effect' brings spending boost to football
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https://www.nasdaq.com/articles/nfl-the-taylor-swift-effect-brings-spending-boost-to-football
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By Amy Tennery and Helen Reid
NEW YORK, Sept 29 (Reuters) - The "Swift Effect" will be in full force when the Super Bowl champion Kansas City Chiefs travel to New York on Sunday, as a connection between pop music phenomenon Taylor Swift and NFL tight end Travis Kelce has sent fans into a frenzy.
The rumored relationship marks a collision between two of the most powerful forces in American pop culture, the juggernaut Swift in the middle of her record-breaking "Eras Tour", and the National Football League.
The pairing seemed all but confirmed when Swift showed up in Travis Kelce's suite at Arrowhead stadium on Sunday, where she cheered wildly as the tight end caught a three-yard touchdown pass in a 41-10 drubbing of the Chicago Bears.
Her appearance set social media ablaze as fans dissected Swift's every behavior, from her banter with Kelce's mom, Donna, to the sauces she paired with a mid-game chicken finger snack. The television broadcast of the game even replayed Swift's celebrations in slow motion.
Fans are now hoping to say "Welcome to New York" - or rather, East Rutherford, New Jersey - when the Chiefs take on the host Jets, as rumors swirl that Swift may make a repeat appearance.
"She has owned the live event industry over the past year and continues to as her tour continues," Adam Budelli, spokesperson for ticket resale platform StubHub, told Reuters.
"Matched with the NFL, which we all know is driving the biggest TV ratings and interest across the entire sports landscape... I don't want to call it a marriage, but clearly a match made in heaven for the short term, from a media standpoint as well as even (a) ticketing story."
Since Swift's appearance in Kansas City, Jets ticket sales for their game against the Chiefs have soared, with sales in a single day more than doubling the previous record for this season, aside from the team's opening game, marking the Jets debut of star quarterback Aaron Rodgers, according to StubHub.
Swift's appearance also preceded a nearly three-fold increase in sales in a 24-hour window for Chiefs home games on StubHub.
Digital streaming device-maker Roku said the largest demographic increase for the Chiefs-Bears game was among women ages 18-49, jumping 63% week-over-week, even as the NFL has long enjoyed a roughly 50% female audience.
Swift and her army of fans, known as Swifties, could help move the needle for the NFL as it seeks to further break into the European market, said Tom Scott, CEO of London-based communications consultancy Trippant, which has worked with the Philadelphia Eagles on their international exposure.
The league may get a chance to make its biggest overseas splash yet in November, when the Chiefs play the Miami Dolphins in Frankfurt.
"Taylor Swift being at NFL games is gold dust for the league," Scott said.
Swift's "Eras Tour" includes international venues that span five continents. Her most ambitious and sweeping tour to date will keep her busy through most of 2024.
'WHAT'S REAL'
High profile athlete-celebrity relationships are nothing new. Jets Hall of Fame quarterback Joe Namath was famous for his off-the-field exploits with models and actresses that built his reputation as one of the Big Apple's most eligible bachelors in the '60s and '70s.
But Swift, whose fame far eclipses that of Kelce's, brings a megawatt starpower that is virtually unprecedented - even in the NFL.
Sports merchandise retailer Fanatics, the NFL's official e-commerce partner, said there was a nearly 400% spike in sales of Travis Kelce jerseys on its websites including NFLShop.com on Sunday, placing it in the top five best-selling NFL jerseys.
Kelce, who guest hosted "Saturday Night Live" after hoisting the Lombardi Trophy this year, is no stranger to the spotlight as ratings and supersized attention follow Super Bowl winners.
But Swift's appearance at Sunday's game prompted an explosion of interest in the eight-time Pro Bowler, whose social media followers grew by a reported 300,000.
Kelce said on his "New Heights" podcast - which climbed from 158th on the Apple AAPL.O charts at the start of the month to No. 1 one this week - that he has started spotting paparazzi outside his house.
"I brought all this attention to me," said Kelce. "What's real is that it is my personal life and I want to respect both of our lives."
(Reporting by Amy Tennery in New York and Helen Reid in London; Editing by Bill Berkrot)
((Amy.Tennery@thomsonreuters.com; 917-361-8594;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Kelce said on his "New Heights" podcast - which climbed from 158th on the Apple AAPL.O charts at the start of the month to No. The pairing seemed all but confirmed when Swift showed up in Travis Kelce's suite at Arrowhead stadium on Sunday, where she cheered wildly as the tight end caught a three-yard touchdown pass in a 41-10 drubbing of the Chicago Bears. Her appearance set social media ablaze as fans dissected Swift's every behavior, from her banter with Kelce's mom, Donna, to the sauces she paired with a mid-game chicken finger snack.
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Kelce said on his "New Heights" podcast - which climbed from 158th on the Apple AAPL.O charts at the start of the month to No. By Amy Tennery and Helen Reid NEW YORK, Sept 29 (Reuters) - The "Swift Effect" will be in full force when the Super Bowl champion Kansas City Chiefs travel to New York on Sunday, as a connection between pop music phenomenon Taylor Swift and NFL tight end Travis Kelce has sent fans into a frenzy. Since Swift's appearance in Kansas City, Jets ticket sales for their game against the Chiefs have soared, with sales in a single day more than doubling the previous record for this season, aside from the team's opening game, marking the Jets debut of star quarterback Aaron Rodgers, according to StubHub.
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Kelce said on his "New Heights" podcast - which climbed from 158th on the Apple AAPL.O charts at the start of the month to No. By Amy Tennery and Helen Reid NEW YORK, Sept 29 (Reuters) - The "Swift Effect" will be in full force when the Super Bowl champion Kansas City Chiefs travel to New York on Sunday, as a connection between pop music phenomenon Taylor Swift and NFL tight end Travis Kelce has sent fans into a frenzy. Since Swift's appearance in Kansas City, Jets ticket sales for their game against the Chiefs have soared, with sales in a single day more than doubling the previous record for this season, aside from the team's opening game, marking the Jets debut of star quarterback Aaron Rodgers, according to StubHub.
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Kelce said on his "New Heights" podcast - which climbed from 158th on the Apple AAPL.O charts at the start of the month to No. By Amy Tennery and Helen Reid NEW YORK, Sept 29 (Reuters) - The "Swift Effect" will be in full force when the Super Bowl champion Kansas City Chiefs travel to New York on Sunday, as a connection between pop music phenomenon Taylor Swift and NFL tight end Travis Kelce has sent fans into a frenzy. Fans are now hoping to say "Welcome to New York" - or rather, East Rutherford, New Jersey - when the Chiefs take on the host Jets, as rumors swirl that Swift may make a repeat appearance.
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Apple, China met to discuss Beijing's crackdown on western apps- WSJ
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https://www.nasdaq.com/articles/apple-china-met-to-discuss-beijings-crackdown-on-western-apps-wsj-0
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Adds details from WSJ report and background in paragraphs 3 to 6
Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its app store in the country, the Wall Street Journal reported on Friday.
The officials told Apple that it must strictly implement the rules which ban unregistered foreign apps, the report said, citing people familiar with the matter.
Apple did not immediately reply to Reuters' request for comment.
Beijing has been expanding oversight of smartphone and mobile app usage over the past several years, and now requires mobile app stores and mobile apps to submit business details to the government.
(Reporting by Jose Joseph in Bengaluru; Editing by Nivedita Bhattacharjee and Varun H K)
((Jose.Joseph@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 details from WSJ report and background in paragraphs 3 to 6 Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its app store in the country, the Wall Street Journal reported on Friday. The officials told Apple that it must strictly implement the rules which ban unregistered foreign apps, the report said, citing people familiar with the matter. (Reporting by Jose Joseph in Bengaluru; Editing by Nivedita Bhattacharjee and Varun H K) ((Jose.Joseph@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 details from WSJ report and background in paragraphs 3 to 6 Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its app store in the country, the Wall Street Journal reported on Friday. The officials told Apple that it must strictly implement the rules which ban unregistered foreign apps, the report said, citing people familiar with the matter. Beijing has been expanding oversight of smartphone and mobile app usage over the past several years, and now requires mobile app stores and mobile apps to submit business details to the government.
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Adds details from WSJ report and background in paragraphs 3 to 6 Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its app store in the country, the Wall Street Journal reported on Friday. The officials told Apple that it must strictly implement the rules which ban unregistered foreign apps, the report said, citing people familiar with the matter. Beijing has been expanding oversight of smartphone and mobile app usage over the past several years, and now requires mobile app stores and mobile apps to submit business details to the government.
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Adds details from WSJ report and background in paragraphs 3 to 6 Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its app store in the country, the Wall Street Journal reported on Friday. The officials told Apple that it must strictly implement the rules which ban unregistered foreign apps, the report said, citing people familiar with the matter. Apple did not immediately reply to Reuters' request for comment.
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US STOCKS-Futures climb as Treasury yields ease ahead of key inflation data
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https://www.nasdaq.com/articles/us-stocks-futures-climb-as-treasury-yields-ease-ahead-of-key-inflation-data
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.39%, S&P 0.40%, Nasdaq 0.57%
Sept 29 (Reuters) - U.S. stock index futures rose on Friday as Treasury yields eased from multi-year highs and powered gains in megacap stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy.
Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, and Amazon.com AMZN.O advanced between 0.7% and 1.4% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined.
"A move lower in bond yields has given equity markets a much-needed reprieve," said Tim Waterer, chief market analyst at KCM Trade.
With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric- the personal consumption expenditures (PCE) price index, seen increasing 0.5% in August against a 0.2% gain in July.
The core rate, which excludes the volatile food and energy components, is expected to have increased 0.2% in August, similar to July's reading.
"If the Core PCE Price Index print produces any sort of surprise to the upside, then this reprieve for risk assets may be short lived. Any signs of core pressures rising would increase the odds of a November hike," Waterer said.
Traders' bets on the benchmark rate remained unchanged in November and December at around 83% and 66%, respectively, according to CME's FedWatch tool.
Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to around 36% in June and July.
U.S. consumer sentiment data for September is also due after the opening bell.
At 4:56 a.m. ET, Dow e-minis 1YMcv1 were up 133 points, or 0.39%, S&P 500 e-minis EScv1 were up 17.25 points, or 0.4%, and Nasdaq 100 e-minis NQcv1 were up 85 points, or 0.57%.
Meanwhile, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
Wall Street ended higher on Thursday, with investors assessing a fresh batch of economic data that depicted a generally stable economy with some pockets of weakness.
The S&P 500 and Nasdaq are poised for their worst monthly showing of the year amid uncertainty around interest rates. All the three indexes are set for their first quarterly decline in 2023.
Riding the current of higher crude prices, energy .SPNY is set to emerge as the only major S&P 500 sector to notch monthly gains. Meanwhile, rate-sensitive information technology .SPLRCT and real estate .SPLRCR were on track to be the worst hit.
Among single stocks, Nike NKE.N jumped 7.9% after the sportswear maker posted better-than-expected first-quarter profit.
(Reporting by Ankika Biswas in Bengaluru; Editing by Arun Koyyur)
((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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Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, and Amazon.com AMZN.O advanced between 0.7% and 1.4% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. "If the Core PCE Price Index print produces any sort of surprise to the upside, then this reprieve for risk assets may be short lived. Meanwhile, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
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Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, and Amazon.com AMZN.O advanced between 0.7% and 1.4% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. Futures up: Dow 0.39%, S&P 0.40%, Nasdaq 0.57% Sept 29 (Reuters) - U.S. stock index futures rose on Friday as Treasury yields eased from multi-year highs and powered gains in megacap stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy. With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric- the personal consumption expenditures (PCE) price index, seen increasing 0.5% in August against a 0.2% gain in July.
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Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, and Amazon.com AMZN.O advanced between 0.7% and 1.4% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. Futures up: Dow 0.39%, S&P 0.40%, Nasdaq 0.57% Sept 29 (Reuters) - U.S. stock index futures rose on Friday as Treasury yields eased from multi-year highs and powered gains in megacap stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy. With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric- the personal consumption expenditures (PCE) price index, seen increasing 0.5% in August against a 0.2% gain in July.
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Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, and Amazon.com AMZN.O advanced between 0.7% and 1.4% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric- the personal consumption expenditures (PCE) price index, seen increasing 0.5% in August against a 0.2% gain in July. The core rate, which excludes the volatile food and energy components, is expected to have increased 0.2% in August, similar to July's reading.
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13376.0
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2023-09-29 00:00:00 UTC
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Don’t Miss the Boom: 7 Blue-Chip Stocks Set to Explode Higher
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AAPL
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https://www.nasdaq.com/articles/dont-miss-the-boom%3A-7-blue-chip-stocks-set-to-explode-higher
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Looking for the best blue-chip stocks to buy might seem boring, especially compared to stocks that make big moves.
In fortifying your investment portfolio, dipping your toes into the volatile waters of penny and small-cap stocks can be incredibly tempting. However, a seasoned investor would know the unmistakable value of anchoring a portfolio with top-tier blue-chip stocks to buy.
These titans represent businesses boasting both dominant market positions and enviable competitive advantages. These aren’t just large corporations; they’re the cream of the crop, commanding a market capitalization north of $10 billion.
Often, the reputation of blue-chip stocks is crafted on the bedrock of product excellence and unshakeable investor confidence in its mission and leadership.
Many of these blue-chip stocks to buy discussed in the article are currently undervalued due to fleeting external factors. This presents an intriguing window of opportunity, especially when we glimpse emerging catalysts.
With that said, let’s dive in and unearth these gems together.
Alphabet (GOOG, GOOGL)
Source: rvlsoft / Shutterstock.com
Harnessing the power of its search engine, tech behemoth Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is one of the biggest tech giants in the world, steadily widening its footprint in the burgeoning realms of cloud computing, AI, and autonomous vehicles.
Beyond its core, it’s focused its efforts on cementing its position as a juggernaut in the artificial intelligence (AI) sphere. In doing so, it recently unveiled Gemini, a large language model set to rival OpenAI’s ChatGPT.
As Alphabet delves deeper into AI, the revelation of an enhanced Bard chatbot and its integration with Google’s comprehensive suite of tools, including the likes of YouTube and Google Drive, could add new layers to Alphabet’s growth story.
The revamped Bard is designed to be a versatile companion, aiding users in a variety of tasks, such as drafting notes and planning trips, while also flaunting multilingual communication and advanced fact-checking capabilities.
Riding on these innovations, it’s hardly a surprise that GOOGL stock has swelled by a robust 45.9% year-to-date, reflecting the market’s upbeat sentiment towards Alphabet’s flourishing diversification and technological advancements.
McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
For those scouting for the best picks in the restaurant industry, McDonald’s (NYSE:MCD) effortlessly wears the crown.
This fast-food behemoth has pioneered a consistent and replicable customer experience across its outlets, ensuring its patrons enjoy the same quality and ambiance in virtually every part of the world. From its humble beginnings, it now boasts a portfolio of more than 38,000 locations across 100 countries.
The company’s financial prowess is evident in its recent report, with a 14% surge in second quarter sales, amassing $6.47 billion, and a staggering 94% leap in net income from the previous year, totaling $2.31 billion.
McDonald’s sweetens the deal for investors with its dividend offering, currently yielding a tad over 2%. Recent revelations indicate the company’s strategic move to raise its royalty fees from 4% to 5% for new U.S. franchisees.
This step aims to sharpen McDonald’s competitive positioning and top-line performance. MCG is one of the perennially reliable blue-chip stocks to buy.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) boasts the title of the world’s most valuable company, with a colossal market cap north of $2.7 trillion, and remains a titan in the tech universe.
Despite experiencing a modest 1% decline in its recent quarter’s revenue because of a tepid consumer spending environment, it’s imperative to look beyond the surface.
Apple’s services revenue, a growing pillar of its business model, witnessed an 8% surge year-over-year. Coupled with this is the impressive profit uptick to $19.8 billion.
Apple’s array of new products, spearheaded by the latest iPhone, is anticipated to capture growing demand as the holiday season unfolds.
Triggered by Morgan Stanley’s recent report, AAPL stock is on an uptrend, reflecting the iPhone 15’s burgeoning demand.
After achieving record lead times in North America, the device’s potential has been incredible, especially given its initially subdued reception.
Echoing this sentiment, Dan Ives, a seasoned analyst from Wedbush Securities, projects a bullish trajectory for AAPL, forecasting a climb to $240 per share this year. That makes it one of the more intriguing blue-chip stocks to buy.
Netflix (NFLX)
Source: izzuanroslan / Shutterstock.com
Shares of streaming pioneer Netflix (NASDAQ:NFLX) are down almost 9% this month following the comments of its CFO, Spence Neumann, regarding the limited immediate revenue from its ad tier.
As the global shift leans more towards streaming, Netflix finds itself in an incredibly helpful position. With competitors grappling with waning traditional TV metrics, Netflix’s primary challenge is in amplifying its streaming market share.
Despite raking in a massive trailing twelve-month revenue of over $32 billion, there’s immense growth potential on the horizon.
Given the staggering total addressable market size exceeding $500 billion and the promising growth trajectory of ad revenues, Netflix remains a compelling proposition. Diving into the numbers, Netflix’s financial health is radiant.
Boasting a free cash flow of $18 billion over the past year, it reigns as the most lucrative in its niche. With a current average price target of $474.2 from TipRanks analysts, the stock shows potential for an upside exceeding 25%. NFLX is the best of the streaming blue-chip stocks to buy.
Starbucks (SBUX)
Source: monticello / Shutterstock.com
March ushered in a significant leadership transition for Starbucks (NASDAQ:SBUX), with its iconic leader, Howard Schultz, stepping down and passing the baton to Laxman Narasimhan.
Schultz’s tenure was transformative, where he effectively combatted the winds of unionization and spearheaded a rebranding that accentuated the restaurant giant’s global presence.
While the challenges are inherent in its niche, Starbucks continually demonstrates resilience and adaptability. The brand faced a considerable setback in China during the pandemic, but the latest figures are illuminating.
As we approach 2024, Starbucks’ rebound in China, its second-largest market, is nothing short of remarkable. The third quarter report showed a robust 46% same-store sales growth post-pandemic.
As for its financial muscle, the Seattle-based giant boasts a YOY growth rate of 9.5%, with projections skyrocketing to 11%.
To further sweeten the pot for investors, Starbucks offers a delectable dividend with a 2.46% yield, underpinned by 12 consecutive years of growth.
Nvidia (NVDA)
Source: Shutterstock
Diving into the realms of innovative technology, Nvidia (NASDAQ:NVDA) shines as a major contender, particularly in the exhilarating realm of AI.
Unlike many businesses that tentatively explore AI, Nvidia is leaps and bounds ahead, showcasing tremendous prowess and expertise.
Given that we’re still scratching the surface of what the technology can truly offer, Nvidia’s accomplishments underscore its critical role in any forward-thinking investor’s portfolio.
The voracious demand for its AI training and inference chips continues to expand its growth potential. HGX systems, integral to powering vast language models and generative AI, find themselves effectively integrated across all major cloud platforms.
This tech marriage has propelled the company to an eye-popping $13.51 billion in the second quarter. Most notably, the data center division reported a staggering 171% growth YOY.
Analysts from Citigroup expect Nvidia clinching over 90% of the AI chip market share, a testament to NVDA stock’s meteoric ascent.
United Airlines (UAL)
Source: travelview / Shutterstock.com
United Airlines (NASDAQ:UAL) emerges as a notable exception to its peers adjusting their earnings outlook downwards for the third quarter.
While not immune to the challenges of escalating fuel prices, United stands tall as the world’s fourth-largest carrier, poised to capitalize on potential market share gains.
A key factor steering this optimism is its expansive network, reaching over 120 international destinations, and with international travel maintaining a robust demand, the airliner is in an attractive position.
Despite grappling with industry-wide concerns such as the scarcity of pilots and air traffic controllers, United continues on its trajectory of fleet expansion.
Its second quarter saw a promising 17% revenue hike, touching $14.2 billion and an income of $1.08 billion, translating to $5.03 per share. The airliner reported an average of more than 2,400 flights per day in the quarter.
United’s upward revision of its full-year guidance, forecasting earnings per share between $11 to $12, instills additional confidence.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post Don’t Miss the Boom: 7 Blue-Chip Stocks Set to Explode Higher 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: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) boasts the title of the world’s most valuable company, with a colossal market cap north of $2.7 trillion, and remains a titan in the tech universe. Triggered by Morgan Stanley’s recent report, AAPL stock is on an uptrend, reflecting the iPhone 15’s burgeoning demand. Echoing this sentiment, Dan Ives, a seasoned analyst from Wedbush Securities, projects a bullish trajectory for AAPL, forecasting a climb to $240 per share this year.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) boasts the title of the world’s most valuable company, with a colossal market cap north of $2.7 trillion, and remains a titan in the tech universe. Triggered by Morgan Stanley’s recent report, AAPL stock is on an uptrend, reflecting the iPhone 15’s burgeoning demand. Echoing this sentiment, Dan Ives, a seasoned analyst from Wedbush Securities, projects a bullish trajectory for AAPL, forecasting a climb to $240 per share this year.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) boasts the title of the world’s most valuable company, with a colossal market cap north of $2.7 trillion, and remains a titan in the tech universe. Triggered by Morgan Stanley’s recent report, AAPL stock is on an uptrend, reflecting the iPhone 15’s burgeoning demand. Echoing this sentiment, Dan Ives, a seasoned analyst from Wedbush Securities, projects a bullish trajectory for AAPL, forecasting a climb to $240 per share this year.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) boasts the title of the world’s most valuable company, with a colossal market cap north of $2.7 trillion, and remains a titan in the tech universe. Triggered by Morgan Stanley’s recent report, AAPL stock is on an uptrend, reflecting the iPhone 15’s burgeoning demand. Echoing this sentiment, Dan Ives, a seasoned analyst from Wedbush Securities, projects a bullish trajectory for AAPL, forecasting a climb to $240 per share this year.
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13377.0
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2023-09-29 00:00:00 UTC
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US STOCKS-Futures rise as Treasury yields take a breather; eyes on inflation data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-rise-as-treasury-yields-take-a-breather-eyes-on-inflation-data
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Sept 29 (Reuters) - U.S. stock index futures advanced on Friday as Treasury yields eased from multi-year highs and powered gains in growth stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy.
Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.Oand Nvidia NVDA.O advanced between 0.7% and 1.5% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined.
"A move lower in bond yields has given equity markets a much-needed reprieve," said Tim Waterer, chief market analyst at KCM Trade.
With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric, the personal consumption expenditures (PCE) price index, which is seen increasing 0.5% in August against a 0.2% gain in July.
The core rate, which excludes the volatile food and energy components, is expected to have increased 0.2% in August, similar to July's reading.
"If the core PCE price index print produces any sort of surprise to the upside, then this reprieve for risk assets may be short lived. Any signs of core pressures rising would increase the odds of a November hike," Waterer said.
Traders' bets on the benchmark rate remained unchanged in November and December at around 83% and 66%, respectively, according to CME's FedWatch tool.
Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to around 36% in June and July.
U.S. consumer sentiment data for September is also due shortly after the opening bell.
At 7:03 a.m. ET, Dow e-minis 1YMcv1 were up 166 points, or 0.49%, S&P 500 e-minis EScv1 were up 21.25 points, or 0.49%, and Nasdaq 100 e-minis NQcv1 were up 92.5 points, or 0.62%.
Overnight, Federal Reserve Bank of Richmond President Thomas Barkin backed the central bank's decision to hold rates steady earlier this month, but said it is unclear if more changes will be needed in the future.
Elsewhere, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
The S&P 500 and the Nasdaq are poised for their worst monthly showing of the year amid uncertainty around interest rates. All the three indexes, including the Dow .DJI, are set for their first quarterly decline in 2023.
Riding the current of higher crude prices, energy .SPNY is set to emerge as the only major S&P 500 sector to notch monthly gains. Meanwhile, rate-sensitive information technology .SPLRCT and real estate .SPLRCR were on track to be the worst hit.
Wall Street's main stock indexes ended higher on Thursday, with investors assessing a fresh batch of economic data that depicted a generally stable economy with some pockets of weakness.
Among individual stocks, Nike NKE.N jumped 8.5% after the sportswear maker posted a better-than-expected first-quarter profit.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur and Maju Samuel)
((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, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.Oand Nvidia NVDA.O advanced between 0.7% and 1.5% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. "If the core PCE price index print produces any sort of surprise to the upside, then this reprieve for risk assets may be short lived. Elsewhere, investors gauged the prospects of averting a government shutdown as the Democratic-led Senate forged ahead on Thursday with a bipartisan stopgap, while the House began voting on partisan Republican spending bills.
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Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.Oand Nvidia NVDA.O advanced between 0.7% and 1.5% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. By Ankika Biswas and Shashwat Chauhan Sept 29 (Reuters) - U.S. stock index futures advanced on Friday as Treasury yields eased from multi-year highs and powered gains in growth stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy. With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric, the personal consumption expenditures (PCE) price index, which is seen increasing 0.5% in August against a 0.2% gain in July.
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Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.Oand Nvidia NVDA.O advanced between 0.7% and 1.5% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. By Ankika Biswas and Shashwat Chauhan Sept 29 (Reuters) - U.S. stock index futures advanced on Friday as Treasury yields eased from multi-year highs and powered gains in growth stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy. With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric, the personal consumption expenditures (PCE) price index, which is seen increasing 0.5% in August against a 0.2% gain in July.
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Apple AAPL.O, Microsoft MSFT.O, Tesla TSLA.O, Alphabet GOOGL.O, Amazon.com AMZN.Oand Nvidia NVDA.O advanced between 0.7% and 1.5% in premarket trading as two-year and 10-year Treasury yields US2YT=RR, US10YT=RR declined. By Ankika Biswas and Shashwat Chauhan Sept 29 (Reuters) - U.S. stock index futures advanced on Friday as Treasury yields eased from multi-year highs and powered gains in growth stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy. With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank's preferred inflation metric, the personal consumption expenditures (PCE) price index, which is seen increasing 0.5% in August against a 0.2% gain in July.
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13378.0
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2023-09-29 00:00:00 UTC
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These 7 Dividend Stocks Pay $98 Billion Annually, Combined, to Their Shareholders
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AAPL
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https://www.nasdaq.com/articles/these-7-dividend-stocks-pay-%2498-billion-annually-combined-to-their-shareholders
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nan
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nan
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Wall Street accommodates a variety of investment styles. Buying and holding time-tested dividend stocks over long periods just happens to be one of the more successful strategies.
The power of income investing is truly exemplified by a study released 10 years ago from the wealth management division of JPMorgan Chase (NYSE: JPM). This study found that public companies initiating and growing their payouts between 1972 and 2012 produced an annualized return of 9.5%. Comparatively, public companies that didn't offer a payout trudged their way to an annualized return of just 1.6% over the same period.
Although most investors tend to focus on yield, some brand-name businesses stand out for the sheer size of their nominal-dollar payouts. What follows are some of the biggest "givers" on Wall Street. These seven dividend stocks combine to pay out $98.2 billion annually to their shareholders.
Image source: Getty Images.
1. Microsoft: $22.29 billion in annual dividends paid to shareholders
Don't let its modest yield of 0.9% fool you: Tech stock Microsoft (NASDAQ: MSFT) is a dividend juggernaut! It has raised its base annual payout for 14 consecutive years and is currently doling out more than $22 billion to its shareholders each year (based on its $0.75-a-share quarterly payout).
The not-so-subtle secret to Microsoft's success continues to be its blending of the old with the new. Most investors overlook the company's legacy operations (e.g., its Windows operating system) without realizing that these generally slow-growing segments still generate boatloads of operating cash flow and have well-identified moats. This cash allows Microsoft to invest in higher-growth initiatives and undertake earnings-accretive acquisitions.
As for the "new," Microsoft has gone full bore into cloud services. Its Azure is the world's No. 2 cloud infrastructure service provider, and it's been gaining on Amazon, whose Amazon Web Services holds the top market share. Microsoft's sustained double-digit growth rate and massive cash balance bode well for its future.
Apple's quarterly payout has grown by nearly 154% since recommencing its dividend in August 2012. AAPL dividend per share (quarterly) data by YCharts.
2. Apple: $15 billion in annual dividends
Another dividend stock that could have income investors scratching their heads is Apple (NASDAQ: AAPL), the largest publicly traded company in the United States. Though the company's yield is a paltry 0.6%, its $0.24 quarterly payout works out to $15 billion in annual dividends for shareholders.
What Apple brings to the table is one of the most-trustworthy and recognized brands. Consumers tend to be very loyal to its products, and the company's iPhone has absolutely dominated in the U.S. since a 5G-capable version hit store shelves in the fourth quarter of 2020.
But what it really thrives on is innovation, with CEO Tim Cook currently overseeing the transformation of Apple into a platforms company. Although it has no intention of abandoning the physical products that endeared the company to consumers (the iPhone, iPad, and Mac), it's evolving as a business to focus even more on subscription services. This move should improve the company's operating margin over time and further enhance customer loyalty.
3. ExxonMobil: $14.52 billion in annual dividends
The energy sector is typically known for healthy dividends, and big oil is certainly no slouch. Integrated oil and gas company ExxonMobil (NYSE: XOM), which has increased its base annual payout for 40 consecutive years, is expected to parse out just over $14.5 billion to its shareholders over the next 12 months.
One reason ExxonMobil has been such a steady payer for income seekers is its operating structure. As an integrated energy company, it generates its juiciest margins from drilling. However, it also operates downstream assets, such as refineries and chemical plants. If the price of crude oil declines, demand for downstream products tends to increase. This acts as a hedge to help ensure a steady stream of operating cash flow.
Macroeconomic factors have also mostly worked in ExxonMobil's favor. Since the pandemic began, crude oil supply has been tight. This is to say that reduced capital investment from global energy majors, coupled with Russia's invasion of Ukraine (which has no clear end date), has constrained global oil supply. This should provide a lift to the spot price of crude oil.
Image source: Getty Images.
4. JPMorgan Chase: $12.22 billion in annual dividends
Along with energy, financial stocks -- more specifically, bank stocks -- are known to return quite a bit of capital to their shareholders. America's leading bank by assets, JPMorgan Chase, is expected to distribute more than $12.2 billion in dividends to its shareholders in the coming 12 months.
The fuel behind that dividend is interest rates and time. Although consumers with credit card debt and recent homebuyers aren't enjoying the cumulative 525-basis-point increase in the federal funds rate since March 2022, banks certainly are. Every Federal Reserve rate hike is resulting in added net-interest income for banks with outstanding variable-rate loans.
Time is also the friend of JPMorgan Chase. Though banks are cyclical, and therefore prone to loan losses and delinquencies during recessions, downturns in the U.S. and global economies are relatively short-lived. Of the 12 U.S. recessions following World War II, just three have lasted at least 12 months. It means bank stocks are thriving and making loans far more often than they're on the defensive.
A historically high spot price for crude oil has fueled Chevron's capital-return program. WTI crude oil spot price data by YCharts.
5. Chevron: $11.54 billion in annual dividends
Did I mention that big oil pays out some hearty dividends? Integrated oil and gas stock Chevron (NYSE: CVX) has increased its base annual payout in each of the past 36 years, and it's on pace to pay shareholders more than $11.5 billion in dividends on an annual basis.
Chevron benefits from many of the same catalysts as ExxonMobil. Its upstream drilling operations are thriving from tight global oil supply, and its integrated operations lead to transparent and predictable operating cash flow.
Being able to accurately forecast operating cash flow at least a year in advance is what gives Chevron's management and board the confidence to outlay capital for new projects and approve a share buyback program for up to $75 billion.
Its balance sheet is also pristine. Though ExxonMobil is no slouch, Chevron's net-debt ratio at the end of the June quarter clocked in at just 7%. This gives it superior financial flexibility when compared to other energy majors.
6. Johnson & Johnson: $11.47 billion in annual dividends
Healthcare stock Johnson & Johnson (NYSE: JNJ) is known for padding investors' pocketbooks. J&J has increased its base annual dividend in each of the last 61 years and is expected to pay close to $11.5 billion to its shareholders over the next year.
Its revenue mix has been one of the key catalysts fueling its dividend growth. For more than a decade, the company has been shifting its sales focus to pharmaceuticals. Though brand-name drugs have finite periods of sales exclusivity, they generate superior margins and afford Johnson & Johnson exceptional pricing power. Continuing to invest in drug research and collaborations can further grow J&J's operating margin.
The other factor responsible for the company's dividend growth is leadership continuity. In the 137 years since J&J was founded, it has had just eight CEOs, including current CEO Joaquin Duato. Having consistency in key leadership positions ensures that growth initiatives are being properly implemented from start to finish.
7. Verizon Communications: $11.17 billion in annual dividends
The seventh and final dividend stock that doles out a hearty nominal payout is telecom Verizon Communications (NYSE: VZ). Based on its quarterly dividend of $0.665 per share, it should pay almost $11.2 billion to its shareholders over the next 12 months.
There look to be two factors propelling Verizon's lofty dividend. To start with, its needle is pointing modestly higher due to the 5G revolution. Faster download speeds are encouraging consumers to use more data, which is a boon for Verizon's wireless segment. At the same time, 5G speeds are helping the company add broadband users at the fastest rate in years.
The other positive for Verizon is that it provides near-essential services. Regardless of how well or poorly the U.S. economy performs, consumers are fairly reluctant to give up their smartphones, wireless service, or internet access. Historically low churn rates mean Verizon can count on predictable cash flow.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Amazon.com and ExxonMobil. The Motley Fool has positions in and recommends Amazon.com, Apple, JPMorgan Chase, and Microsoft. The Motley Fool recommends Chevron, Johnson & Johnson, and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL dividend per share (quarterly) data by YCharts. Apple: $15 billion in annual dividends Another dividend stock that could have income investors scratching their heads is Apple (NASDAQ: AAPL), the largest publicly traded company in the United States. The power of income investing is truly exemplified by a study released 10 years ago from the wealth management division of JPMorgan Chase (NYSE: JPM).
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AAPL dividend per share (quarterly) data by YCharts. Apple: $15 billion in annual dividends Another dividend stock that could have income investors scratching their heads is Apple (NASDAQ: AAPL), the largest publicly traded company in the United States. Integrated oil and gas company ExxonMobil (NYSE: XOM), which has increased its base annual payout for 40 consecutive years, is expected to parse out just over $14.5 billion to its shareholders over the next 12 months.
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Apple: $15 billion in annual dividends Another dividend stock that could have income investors scratching their heads is Apple (NASDAQ: AAPL), the largest publicly traded company in the United States. AAPL dividend per share (quarterly) data by YCharts. Microsoft: $22.29 billion in annual dividends paid to shareholders Don't let its modest yield of 0.9% fool you: Tech stock Microsoft (NASDAQ: MSFT) is a dividend juggernaut!
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AAPL dividend per share (quarterly) data by YCharts. Apple: $15 billion in annual dividends Another dividend stock that could have income investors scratching their heads is Apple (NASDAQ: AAPL), the largest publicly traded company in the United States. Though the company's yield is a paltry 0.6%, its $0.24 quarterly payout works out to $15 billion in annual dividends for shareholders.
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13379.0
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2023-09-29 00:00:00 UTC
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Can PayPal Stock Hit $70 by the End of 2023?
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AAPL
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https://www.nasdaq.com/articles/can-paypal-stock-hit-%2470-by-the-end-of-2023
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nan
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nan
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To say that PayPal Holdings (NASDAQ: PYPL) stock has disappointed investors the past two years would be a major understatement. At recent prices, shares of the leader in electronic payments are more than 80% below their all-time high. And they trade at a dirt cheap trailing price-to-earnings ratio around 16.
After that huge slide, I see three potential catalysts coming up this year that could push the stock back up to $70, which would be a roughly 20% gain. To be clear, nobody can predict where stocks will move in the short term -- that's why we preach at least a three-year holding period. But long-term investing means focusing on the business, and that's what this exercise is all about. Let's take a closer look at what investors should know before deciding to add the fintech stock to their portfolios.
Strong third-quarter financial results
The most obvious event that could push PayPal's stock price up in no time is if the company reports stellar financial results for the three-month period that ends Sept. 30. These quarterly reports, which reveal key metrics that indicate the direction a business is heading in, can have a huge influence on shareholder sentiment.
Management expects revenue to total $7.4 billion, good for an 8% year-over-year increase on a currency-neutral basis. They also believe adjusted earnings per share will rise between 13% and 14%. In order to adopt an optimistic perspective, investors will probably need to see better growth rates than these.
It would be really encouraging for PayPal to also post strong growth when it comes to total payment volume (TPV) and transactions per active account. These are two of the most important data points investors can look at with this company, because they provide a clear indication not only of the expansion of the payments platform, but how engaged users are.
Favorable macro backdrop
Even if PayPal manages to crush Wall Street expectations with its Q3 results, the stock could still fail to reach $70 by the end of 2023. That's because it's always possible that the macroeconomic environment might change for the worse in the near term. Just look at what happened in 2022, as interest rates rose quickly and both the S&P 500 and the Nasdaq Composite Index crashed by double-digit percentages.
Financial experts and economists have been surprised at how resilient the U.S. economy has remained this year, even though interest rates have continued to rise. A recession -- whether mild or severe -- could pressure the overall stock market. If the Federal Reserve believes that inflation still needs to come down, it can decide to raise interest rates one more time before the year's over. Markets could view this in a negative light, sending share prices lower.
On the other hand, if rates stay flat, and the Fed instead provides commentary about potentially cutting rates, then growth stocks -- including PayPal -- could be poised for a bull run.
While the macro backdrop is certainly important, it's impossible for investors to predict what's going to happen. But this is a potential catalyst.
Surging holiday usage
It's not a surprise that a business like PayPal, which facilitates e-commerce transactions, might see more activity around the holidays, when people are spending more. If data is revealed that shows PayPal's TPV or accounts have gone up significantly, it can provide shareholders with the confidence they need, and that could lift the stock.
In November last year, spending data showed that Apple Pay's usage jumped 59% during the month in the U.S., a fast rate of growth compared to the 4% decline PayPal was experiencing. That certainly isn't a positive sign, because it demonstrates how competitive the industry is becoming. Plus, having Apple as a rival to worry about isn't welcome news for any business.
For what it's worth, PayPal is accepted as a checkout option at 79% of the top 1,500 retailers in North America and Europe, making it the most widely used digital wallet. That definitely holds some weight. Nonetheless, investors will need to follow any data releases that provide insights into adoption rates.
Major boost needed?
PayPal shares have gotten so crushed that it might just need all three of the above factors to happen over the next three months for the stock to hit $70 by year-end. Again, I really have no idea if these catalysts will lift PayPal's stock in the next three months -- if they play out this year at all. But PayPal investors should still keep an eye on all three, because strong results and an improving macro environment would be a major boost.
10 stocks we like better than PayPal
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal 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 September 25, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and 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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Favorable macro backdrop Even if PayPal manages to crush Wall Street expectations with its Q3 results, the stock could still fail to reach $70 by the end of 2023. In November last year, spending data showed that Apple Pay's usage jumped 59% during the month in the U.S., a fast rate of growth compared to the 4% decline PayPal was experiencing. For what it's worth, PayPal is accepted as a checkout option at 79% of the top 1,500 retailers in North America and Europe, making it the most widely used digital wallet.
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Strong third-quarter financial results The most obvious event that could push PayPal's stock price up in no time is if the company reports stellar financial results for the three-month period that ends Sept. 30. It would be really encouraging for PayPal to also post strong growth when it comes to total payment volume (TPV) and transactions per active account. In November last year, spending data showed that Apple Pay's usage jumped 59% during the month in the U.S., a fast rate of growth compared to the 4% decline PayPal was experiencing.
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To say that PayPal Holdings (NASDAQ: PYPL) stock has disappointed investors the past two years would be a major understatement. On the other hand, if rates stay flat, and the Fed instead provides commentary about potentially cutting rates, then growth stocks -- including PayPal -- could be poised for a bull run. See the 10 stocks *Stock Advisor returns as of September 25, 2023 Neil Patel and his clients have no position in any of the stocks mentioned.
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If data is revealed that shows PayPal's TPV or accounts have gone up significantly, it can provide shareholders with the confidence they need, and that could lift the stock. In November last year, spending data showed that Apple Pay's usage jumped 59% during the month in the U.S., a fast rate of growth compared to the 4% decline PayPal was experiencing. The Motley Fool has positions in and recommends Apple and PayPal.
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13380.0
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2023-09-29 00:00:00 UTC
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Apple, China met to discuss Beijing's crackdown on western apps- WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-china-met-to-discuss-beijings-crackdown-on-western-apps-wsj
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nan
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nan
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Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its iPhone app store in the country, the Wall Street Journal reported on Friday.
Chinese officials told Apple that it must strictly implement rules banning unregistered foreign apps, the report said citing people familiar with the matter.
(Reporting by Jose Joseph in Bengaluru; Editing by Nivedita Bhattacharjee)
((Jose.Joseph@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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Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its iPhone app store in the country, the Wall Street Journal reported on Friday. Chinese officials told Apple that it must strictly implement rules banning unregistered foreign apps, the report said citing people familiar with the matter. (Reporting by Jose Joseph in Bengaluru; Editing by Nivedita Bhattacharjee) ((Jose.Joseph@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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Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its iPhone app store in the country, the Wall Street Journal reported on Friday. Chinese officials told Apple that it must strictly implement rules banning unregistered foreign apps, the report said citing people familiar with the matter. (Reporting by Jose Joseph in Bengaluru; Editing by Nivedita Bhattacharjee) ((Jose.Joseph@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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Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its iPhone app store in the country, the Wall Street Journal reported on Friday. Chinese officials told Apple that it must strictly implement rules banning unregistered foreign apps, the report said citing people familiar with the matter. (Reporting by Jose Joseph in Bengaluru; Editing by Nivedita Bhattacharjee) ((Jose.Joseph@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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Sept 29 (Reuters) - Apple AAPL.O staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its iPhone app store in the country, the Wall Street Journal reported on Friday. Chinese officials told Apple that it must strictly implement rules banning unregistered foreign apps, the report said citing people familiar with the matter. (Reporting by Jose Joseph in Bengaluru; Editing by Nivedita Bhattacharjee) ((Jose.Joseph@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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13381.0
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2023-09-28 00:00:00 UTC
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US STOCKS-Wall St set for lower open on rate jitters; Powell on deck
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-for-lower-open-on-rate-jitters-powell-on-deck
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Sept 28 (Reuters) - Wall Street's main indexes eyed a lower open on Thursday aselevated oil prices muddled the inflation outlook amid worries over prolonged restrictive monetary policy, while investors assessed data and awaited Federal Reserve chief Jerome Powell's remarks.
The scope for interest rates staying higher for longer than anticipated has solidified with soaring energy prices keeping headline inflation elevated.
Deepening the concerns, U.S. oil futures jumped to a more than one-year high on Thursday.
Riding on the back of higher crude prices, energy .SPNY is set to emerge as the only major S&P 500 sector to notch monthly gains. Meanwhile, rate-sensitive information technology .SPLRCT and real estate .SPLRCT were on track to be the worst hit.
Further, data showed the U.S. economy maintained a fairly strong pace of growth in the second quarter, the government confirmed on Thursday, and appears to have gathered momentum this quarter amid a resilient labor market.
"A sharp rise in unemployment and claims isn't a prerequisite for the Fed to stop raising rates," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
"Fed Chair Powell made clear last week, however, that the Fed needs to see other signs that the labor market is continuing to come into better balance if it is to refrain from further rate hikes."
As U.S. Treasury yields resumed their uptrend after briefly slipping following the data, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 1.2% in premarket trading.
At 8:52 a.m. ET, Dow e-minis 1YMcv1 were down 32 points, or 0.09%, S&P 500 e-minis EScv1 were down 6.75 points, or 0.16%, and Nasdaq 100 e-minis NQcv1 were down 45 points, or 0.31%.
All the three indexes are set for their first quarterly decline in 2023.
Also on radar will be comments by Powell at 4 p.m. ET, as well as remarks by voting member Lisa Cook during the day.
With a partial government shutdown just three days away, a procedural vote on a bipartisan short-term spending measure by the Senate on Thursday will also be closely watched.
Among individual movers, Micron TechnologyMU.O dropped 2.8% after forecasting a bigger-than-expected first-quarter loss.
WorkdayWDAY.O dipped 9.8% after the human resources software company lowered its subscription revenue growth outlook for the next three years.
Meme darling GameStopGME.N jumped 7.3% after the company named billionaire activist investor Ryan Cohen as its CEO and chairman.
(Reporting by Ankika Biswas and Shashwat Chauhan; Editing by Sriraj Kalluvila and Maju Samuel)
((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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As U.S. Treasury yields resumed their uptrend after briefly slipping following the data, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 1.2% in premarket trading. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - Wall Street's main indexes eyed a lower open on Thursday aselevated oil prices muddled the inflation outlook amid worries over prolonged restrictive monetary policy, while investors assessed data and awaited Federal Reserve chief Jerome Powell's remarks. "A sharp rise in unemployment and claims isn't a prerequisite for the Fed to stop raising rates," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
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As U.S. Treasury yields resumed their uptrend after briefly slipping following the data, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 1.2% in premarket trading. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - Wall Street's main indexes eyed a lower open on Thursday aselevated oil prices muddled the inflation outlook amid worries over prolonged restrictive monetary policy, while investors assessed data and awaited Federal Reserve chief Jerome Powell's remarks. ET, Dow e-minis 1YMcv1 were down 32 points, or 0.09%, S&P 500 e-minis EScv1 were down 6.75 points, or 0.16%, and Nasdaq 100 e-minis NQcv1 were down 45 points, or 0.31%.
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As U.S. Treasury yields resumed their uptrend after briefly slipping following the data, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 1.2% in premarket trading. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - Wall Street's main indexes eyed a lower open on Thursday aselevated oil prices muddled the inflation outlook amid worries over prolonged restrictive monetary policy, while investors assessed data and awaited Federal Reserve chief Jerome Powell's remarks. Further, data showed the U.S. economy maintained a fairly strong pace of growth in the second quarter, the government confirmed on Thursday, and appears to have gathered momentum this quarter amid a resilient labor market.
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As U.S. Treasury yields resumed their uptrend after briefly slipping following the data, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 1.2% in premarket trading. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - Wall Street's main indexes eyed a lower open on Thursday aselevated oil prices muddled the inflation outlook amid worries over prolonged restrictive monetary policy, while investors assessed data and awaited Federal Reserve chief Jerome Powell's remarks. Riding on the back of higher crude prices, energy .SPNY is set to emerge as the only major S&P 500 sector to notch monthly gains.
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13382.0
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2023-09-28 00:00:00 UTC
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SCHX ETF: A Large-Cap ETF for Large Gains
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AAPL
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https://www.nasdaq.com/articles/schx-etf%3A-a-large-cap-etf-for-large-gains
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nan
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nan
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The Schwab U.S. Large-Cap ETF (NYSEARCA:SCHX) stands out as an attractive investment opportunity for its minimal fees, diversified portfolio of large-cap, blue-chip U.S. stocks, and the solid returns it has generated over the years. Therefore, let’s take a look at this $32.8 billion large-cap fund from Charles Schwab (NYSE:SCHW).
What is the SCHX ETF’s Strategy?
Charles Schwab explains that SCHX’s “goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index.” Doing this gives investors “simple access to the 750 largest U.S. companies as ranked by full market capitalization.”
SCHX's Holdings
One thing that I really like about the Schwab U.S. Large-Cap ETF is that it offers investors real diversification. One way that SCHX does this is by holding positions in 755 stocks. However, many funds own a lot of stocks but are less diversified than this would imply because their top holdings account for a large portion of the fund, often greater than 50% or even higher.
That isn’t the case at all with SCHX, which offers true diversification in that its top 10 holdings account for just 28.4% of the fund. By holding an extra 250 or so stocks, SCHX also offers a bit more diversification than the typical S&P 500 (SPX) fund.
Below, you’ll find an overview of SCHX’s top 10 holdings using TipRanks’ holdings tool.
As its name implies, SCHX’s top 10 holdings consist of blue chip, large-cap U.S. stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). While SCHX is not a tech ETF, its top holdings currently skew heavily toward technology because these are the largest stocks in the market right now.
But once you get outside of these top holdings, SCHX owns plenty of non-tech names, and its holdings run the gamut of the U.S. economy. In fact, breaking it down by sector, technology accounts for just 28% of SCHX's holdings.
Healthcare is the fund's second-largest sector with a weighting of 13.3%, and the sector is well-represented through the likes of UnitedHealth (NYSE:UNH), Eli Lilly (NYSE:LLY) and Johnson & Johnson (NYSE:JNJ). Financials come in third with a 12.7% weighting and include stocks like Berkshire Hathaway (NYSE:BRK.B), JPMorgan Chase (NYSE:JPM), Visa (NYSE:V), and Mastercard (NYSE:MA).
This well-rounded group of holdings enables investors to harness the power of a large portion of the U.S. economy in their portfolios using one ETF.
Is SCHX Stock a Buy, According to Analysts?
Turning to Wall Street, SCHX earns a Moderate Buy consensus rating based on 606 Buys, 138 Holds, and 11 Sell ratings assigned in the past three months. The average SCHX stock price target of $61.05 implies 20.4% upside potential.
Get Smart
While Wall Street analysts are bullish on SCHX, so is TipRank’s Smart Score system. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. SCHX features an Outperform-equivalent ETF Smart Score of 8.
Long-Term Performance
In addition to its strong portfolio of diversified holdings, favorable consensus rating from analysts, and Outperform-equivalent Smart Score, SCHX also has a solid track record of long-term performance.
Over the past three years, SCHX has had an annualized return of 9.9% (as of the end of August). Over the past five years, SCHX’s annualized return stands at 10.8%, and over the past 10 years, it comes in at an even better 12.6%.
These results are roughly on par with those of the broader market over time, albeit trailing them by a narrow margin. The SPDR S&P 500 ETF (NYSEARCA:SPY), a good representation of the S&P 500 index, has returned 10.4% over the past three years, 11.0% over the past five years, and 12.7% over the past 10 years. While SPY narrowly beats SCHX over these time frames, the difference is relatively marginal (amounting to a 0.1% difference annualized over 10 years), and both ETFs have generated great returns for their investors.
Below, you'll find a comparison of SCHX and SPY using TipRanks' ETF comparison tool, which allows investors to compare up to 20 ETFs at a time based on a wide variety of customizable factors.
Tiny Expense Ratio
SCHX is notable for its minuscule expense ratio of just 0.03%, which is just about as low as you will find in today’s market. This ultra-low expense ratio means that an investor putting $10,000 into SCHX would pay just $3 in fees during their first year of investing in the fund.
The effect of these savings really adds up over time. Assuming the fund returns 5% a year going forward and the expense ratio remains 0.03%, after three years, this same investor would pay just $10 in fees. After five years, this investor would pay just $17 in fees, and over the course of a decade, this investor would pay just a paltry $39 in fees. Investing in low-cost funds like SCHX is key for preserving the principal value of your portfolio over time.
Dividend Payout
It should also be noted that SCHX is a dividend payer. While SCHX's dividend yield of 1.5% isn't enough to put it on the radar of income investors, it still adds to total returns over time. Furthermore, SCHX has been paying its holders a dividend for 13 consecutive years, and there is plenty of room for this dividend payout to grow over time as the companies it owns grow their earnings and increase their own payouts over the years.
Investor Takeaway
Ultimately, SCHX is an attractive option for investors to consider adding to their investment portfolios. The fund has produced double-digit annualized returns over the past decade. Additionally, it features a negligible expense ratio, and it gives investors plenty of diversification, both in terms of the large number of stocks that it holds and its low concentration towards its top 10 holdings.
Lastly, SCHX also enjoys a favorable outlook from analysts and an outperform-equivalent Smart Score from TipRanks. Altogether, there are plenty of reasons to like this ETF.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As its name implies, SCHX’s top 10 holdings consist of blue chip, large-cap U.S. stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). Charles Schwab explains that SCHX’s “goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index.” Doing this gives investors “simple access to the 750 largest U.S. companies as ranked by full market capitalization.” SCHX's Holdings One thing that I really like about the Schwab U.S. Large-Cap ETF is that it offers investors real diversification. This ultra-low expense ratio means that an investor putting $10,000 into SCHX would pay just $3 in fees during their first year of investing in the fund.
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As its name implies, SCHX’s top 10 holdings consist of blue chip, large-cap U.S. stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). The Schwab U.S. Large-Cap ETF (NYSEARCA:SCHX) stands out as an attractive investment opportunity for its minimal fees, diversified portfolio of large-cap, blue-chip U.S. stocks, and the solid returns it has generated over the years. Turning to Wall Street, SCHX earns a Moderate Buy consensus rating based on 606 Buys, 138 Holds, and 11 Sell ratings assigned in the past three months.
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As its name implies, SCHX’s top 10 holdings consist of blue chip, large-cap U.S. stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). The Schwab U.S. Large-Cap ETF (NYSEARCA:SCHX) stands out as an attractive investment opportunity for its minimal fees, diversified portfolio of large-cap, blue-chip U.S. stocks, and the solid returns it has generated over the years. Charles Schwab explains that SCHX’s “goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index.” Doing this gives investors “simple access to the 750 largest U.S. companies as ranked by full market capitalization.” SCHX's Holdings One thing that I really like about the Schwab U.S. Large-Cap ETF is that it offers investors real diversification.
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As its name implies, SCHX’s top 10 holdings consist of blue chip, large-cap U.S. stocks like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). Charles Schwab explains that SCHX’s “goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index.” Doing this gives investors “simple access to the 750 largest U.S. companies as ranked by full market capitalization.” SCHX's Holdings One thing that I really like about the Schwab U.S. Large-Cap ETF is that it offers investors real diversification. While SPY narrowly beats SCHX over these time frames, the difference is relatively marginal (amounting to a 0.1% difference annualized over 10 years), and both ETFs have generated great returns for their investors.
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13383.0
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2023-09-28 00:00:00 UTC
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IYW ETF: A Long-Term Winner in the Tech Sector
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AAPL
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https://www.nasdaq.com/articles/iyw-etf%3A-a-long-term-winner-in-the-tech-sector
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nan
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nan
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Looking for a long-term winner in the tech sector? Look no further than The iShares U.S. Technology ETF (NYSEARCA:IYW). Not only has this $10.7 billion tech ETF from BlackRock's (NYSE:BLK) iShares posted double-digit annualized returns for years, but as of the end of the most recent month, it sported an annualized return of over 20% over the past decade. Therefore, let’s take a closer look at this powerhouse tech ETF.
What is the IYW ETF’s Strategy?
IYW seeks to give investors “targeted access to domestic technology stocks” by investing in U.S.-based information technology, electronics, and computer software and hardware companies.
IYW's Long-Term Track Record
As discussed above, IYW has put up phenomenal results over the years. As of the end of August, IYW returned 12.2% on an annualized basis over the past three years. Looking further out, the fund’s five-year return is an even more impressive 18.6% on an annualized basis. Going all the way out to 10 years, IYW has generated a stellar 20.2% return on an annualized basis.
Looking at things cumulatively, IYW’s 10-year return was an incredible 544.2%, meaning that an investor who put $10,000 into the fund 10 years ago would have a stake worth $64,420 as of the end of August.
These results soundly beat those of the broader market over the same time frame. For example, the Vanguard S&P 500 ETF (NYSEARCA:VOO) has returned 10.5% annualized over the last three years, 11.1% annualized over the past five years, and 12.8% over the past decade.
At the same time, IYW’s results are roughly on par with those of some of the market’s biggest and most well-known tech ETFs, the Technology Select Sector SPDR ETF (NYSEARCA:XLK) and the Invesco QQQ Trust (NASDAQ:QQQ). XLK’s annualized returns over the past three, five, and 10 years stand at 13.4%, 19.7%, and 20.5%, respectively, just a hair above IYW’s over each time frame.
Meanwhile, IYW has slightly outperformed QQQ over each of the same time frames. QQQ’s annualized returns over the past three, five, and 10 years come in at 9.3%, 16.0%, and 18.6%, respectively.
At the end of the day, these are all great ETFs, and IYW is right there in the mix with them. Below, you’ll find a comparison of IYW, QQQ, and XLK using TipRanks’ ETF comparison tool, which gives investors the ability to compare ETFs on a variety of customizable factors.
IYW's Holdings
With 137 holdings, IYW offers decent diversification. However, the fund is also fairly concentrated in that its top 10 holdings account for 63.2% of assets. Below, you’ll find an overview of IYW’s top 10 holdings using TipRanks’ holdings tool.
As you can see, the fund’s largest two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up over one-third of the fund’s assets. The two classes of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) shares also combine to make up over 10% of the fund.
What I like about IYW’s overall group of holdings is that it gives investors a nice mix of exposure to all aspects of the technology sector. About 40.9% of IYW’s holdings fall under the software and services subsector, and 21.8% are classified as semiconductors and semiconductor equipment. Another 20.9% are classified as tech hardware and equipment, while media and entertainment accounts for a 14.9% weighting.
This allows investors to tap into the full range of what the tech sector has to offer, whether it’s semiconductor giants like Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO), enterprise software providers like Oracle (NYSE:ORCL) and Salesforce (NYSE:CRM), or multifaceted tech behemoths like Alphabet and Meta Platforms (NASDAQ:META).
Collectively, IYW’s top holdings are the owners of some strong Smart Scores. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. Seven of IYW’s top 10 holdings feature Smart Scores of 8 or above, led by Nvidia and Broadcom, which have 'Perfect 10' Smart Scores. IYW itself has an Outperform-equivalent ETF Smart Score of 8.
Is IYW Stock a Buy, According to Analysts?
Turning to Wall Street, IYW earns a Moderate Buy consensus rating based on 109 Buys, 27 Holds, and one Sell rating assigned in the past three months. The average IYW stock price target of $126.63 implies 20.9% upside potential.
Expense Ratio
Outside of the high concentration in its top holdings, the only real negative of IYW is its expense ratio. While its expense ratio of 0.40% is reasonable, it’s also higher than those of comparable ETFs like the aforementioned QQQ and XLK, which charge 0.20% and 0.10%, respectively.
An investor allocating $10,000 into IYW would pay $40 in fees and expenses during their first year of investing versus $20 for an investor putting the same amount into QQQ or $10 for a $10,000 investment in XLK.
While these are all reasonable amounts, IYW is the most expensive of the group. The difference in fees would also compound over time. Assuming that each fund returns 5% per year going forward and that each maintains its current expense ratio, the IYW investor would pay $505 in fees over the course of 10 years, versus $128 for the XLK investor and $255 for the QQQ investor.
When a fund is returning 20% or more on an annualized basis, this might not be a major consideration, but it’s still something that investors should be aware of.
Investor Takeaway
Ultimately, IYW is another top tech ETF that has proven itself as a long-term winner. The fund has achieved excellent annualized returns of over 20% over the past 10 years, creating significant long-term wealth for its investors in that time.
Also, the ETF gives investors broad exposure to all facets of the U.S. technology sector while having an Outperform-equivalent ETF Smart Score of 8 and a Moderate Buy rating from analysts. The only real downside is its expense ratio, which while reasonable, is higher than those of its larger competitors. Nonetheless, IYW's long-term performance and proven track record make it a solid choice for investors to consider adding to their portfolios.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you can see, the fund’s largest two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up over one-third of the fund’s assets. Looking at things cumulatively, IYW’s 10-year return was an incredible 544.2%, meaning that an investor who put $10,000 into the fund 10 years ago would have a stake worth $64,420 as of the end of August. The fund has achieved excellent annualized returns of over 20% over the past 10 years, creating significant long-term wealth for its investors in that time.
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As you can see, the fund’s largest two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up over one-third of the fund’s assets. Below, you’ll find a comparison of IYW, QQQ, and XLK using TipRanks’ ETF comparison tool, which gives investors the ability to compare ETFs on a variety of customizable factors. This allows investors to tap into the full range of what the tech sector has to offer, whether it’s semiconductor giants like Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO), enterprise software providers like Oracle (NYSE:ORCL) and Salesforce (NYSE:CRM), or multifaceted tech behemoths like Alphabet and Meta Platforms (NASDAQ:META).
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As you can see, the fund’s largest two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up over one-third of the fund’s assets. At the same time, IYW’s results are roughly on par with those of some of the market’s biggest and most well-known tech ETFs, the Technology Select Sector SPDR ETF (NYSEARCA:XLK) and the Invesco QQQ Trust (NASDAQ:QQQ). An investor allocating $10,000 into IYW would pay $40 in fees and expenses during their first year of investing versus $20 for an investor putting the same amount into QQQ or $10 for a $10,000 investment in XLK.
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As you can see, the fund’s largest two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up over one-third of the fund’s assets. Assuming that each fund returns 5% per year going forward and that each maintains its current expense ratio, the IYW investor would pay $505 in fees over the course of 10 years, versus $128 for the XLK investor and $255 for the QQQ investor. The fund has achieved excellent annualized returns of over 20% over the past 10 years, creating significant long-term wealth for its investors in that time.
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13384.0
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2023-09-28 00:00:00 UTC
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Don’t Miss the Boom: 7 Dow Stocks Set to Explode Higher
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AAPL
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https://www.nasdaq.com/articles/dont-miss-the-boom%3A-7-dow-stocks-set-to-explode-higher
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The top Dow stocks serve as a bellwether for the health of the U.S. economy. This year, the Dow has trailed the other two major U.S. indices with a 1% gain. Meanwhile, the tech-heavy NASDAQ gained 25% year to date, as the S&P 500 index shot up about 11%. While the rally has not yet favored the more mature and established blue-chip stocks that comprise the 30 names in the Dow, that could soon change. So, we wanted to take a quick look at the very Dow stocks to strongly consider.
Dow Stocks: Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Things are looking up at Apple (NASDAQ:AAPL) with the recent launch of the new iPhone 15. Reviews of the new smartphone have been largely positive and sales are reported to be brisk, even in China where there had been concerns the government was banning the devices. This is all welcomed news at Apple after its most recent earnings reports indicated a slowdown in sales of its electronic devices. Looking ahead, Apple has a big catalyst ahead with the 2024 launch of its Vision Pro augmented reality headset. Reviews of the Vision Pro, which will retail at $3,500, have also been strong. The Vision Pro is the first entirely new consumer product from Apple in more than a decade. The stock is up 37% year to date, with further gains likely.
Walt Disney Co. (DIS)
Source: Shutterstock
Analysts at JPMorgan Chase (NYSE:JPM) say Walt Disney Co. (NYSE:DIS) could climb 50% higher from current levels. The bullish call came days after Disney announced plans to double the amount it invests in its theme parks and on reports DIS is planning to sell its legacy media properties for as much as $10 billion.
Disney executives said they plan to spend nearly $60 billion to update and expand their theme parks and cruise lines. The theme parks generated $32 billion over the last 12 months, making them one of the top revenue streams for the Mouse House. At the same time, Disney is rumored to be considering a sale of its ABC network and affiliates that could earn it as much as $10 billion. No deal has been announced just yet. Disney is also reported to be considering the sale of specialty sports network ESPN, which could earn it more than $50 billion. DIS stock has declined 10% this year and is down 32% over five years. But a comeback looks to be in the works.
Dow Stocks: Chevron (CVX)
Source: Sundry Photography / Shutterstock.com
Chevron (NYSE:CVX) should benefit from oil at $95 a barrel, and from forecasts for $100 a barrel. In addition, the company announced record profits in 2022 after crude oil peaked at $122 per barrel. The great news for investors is that CVX stock looks to be on sale right now even with oil prices moving higher. Year to date, Chevron’s share price is down 2% and currently trading 10% below its 52-week high. The stock is also trading at a price-to-earnings (P/E) ratio of 10, which is low compared to other stocks in the S&P 500 index. Better, CVX offers a quarterly dividend of $1.51 per share.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Microsoft (NASDAQ:MSFT) got a big break after UK regulators said they would likely approve its $68 billion acquisition of Activision Blizzard (NASDAQ:ATVI). All of which should remove a big cloud of uncertainty that had been hanging over the tech giant.
Microsoft also continues to be a major player in the artificial intelligence (AI) space thanks to its $10 billion investment in ChatGPT creator OpenAI. Microsoft has integrated generative AI into its Bing search engine and is developing new applications for the technology across its suite of products that range from cloud storage to video games. AI can be expected to remain a big catalyst for Microsoft going forward. MSFT stock is up 30% year to date.
Goldman Sachs (GS)
Source: shutterstock.com/CC7
Goldman Sachs (NYSE:GS) is reportedly near a deal to sell its consumer banking unit GreenSky. According to multiple reports, Goldman Sachs is in talks with a group of investors that include the firms Sixth Street (NYSE:TSLX) and KKR (NYSE:KKR) to sell GreenSky, which specializes in lending money to consumers for home improvement projects and offers deposit accounts and personal loans.
The sale of GreenSky comes as Goldman Sachs abandons its plans to become a major player in consumer banking. Efforts aimed at providing consumers with deposit accounts and credit cards proved less successful than executives had hoped, dragging down the stock as a result. Goldman Sachs CEO David Solomon has said that the investment bank plans to focus on its traditional strengths of deals and trading as the market for initial public offerings (IPOs) begins to return. GS stock has risen 11% over the last 12 months.
McDonald’s (MCD)
Source: Tama2u / Shutterstock
McDonald’s (NYSE:MCD) future earnings should be positively impacted by news it plans to raise the royalty fee it charges on new U.S. restaurant franchisees. At the moment, the company is considering raising the fee to 5% from 4% as of Jan, 1 next year. McDonald’s currently operates more than 13,000 restaurants in the U.S., with 95% of those locations run by franchisees.
McDonald’s has said that the increased royalty fee will help it to maintain its “competitive edge.” It should also provide a boost to the company’s revenues, which already top $23 billion a year. News of the royalty fee increase comes after McDonald’s executives said they expect global sales to moderate in the second half of 2023 and leading into 2024 as consumer spending slows. Still, the company managed to beat Wall Street expectations for its second-quarter financial results.
MCD stock is flat on the year (down less than 1%).
Intel (INTC)
Source: JHVEPhoto / Shutterstock.com
Shares of Intel (NASDAQ:INTC) are recovering after it returned to profitability following two consecutive quarters of heavy financial losses. INTC stock is now up nearly 30% this year and has rallied 18% in the last six months. The move higher comes after Intel reported earnings per share of 13 cents compared to a loss of 3 cents that had been expected on Wall Street.
Intel has also provided strong guidance for the current third quarter, saying it expects earnings of 20 cents a share on revenue of $13.4 billion. That compares to consensus expectations for 16 cents a share on $13.23 billion in revenue. The company is also ramping up its cost-cutting initiatives as it shifts its business to become a microchip and semiconductor foundry rather than a chip designer. INTC stock is still down more than 25% over five years but looks to be on an upswing now.
On the date of publication, Joel Baglole held long positions in AAPL, DIS, and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post Don’t Miss the Boom: 7 Dow Stocks Set to Explode Higher 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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Dow Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Things are looking up at Apple (NASDAQ:AAPL) with the recent launch of the new iPhone 15. On the date of publication, Joel Baglole held long positions in AAPL, DIS, and MSFT. Goldman Sachs CEO David Solomon has said that the investment bank plans to focus on its traditional strengths of deals and trading as the market for initial public offerings (IPOs) begins to return.
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Dow Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Things are looking up at Apple (NASDAQ:AAPL) with the recent launch of the new iPhone 15. On the date of publication, Joel Baglole held long positions in AAPL, DIS, and MSFT. Goldman Sachs (GS) Source: shutterstock.com/CC7 Goldman Sachs (NYSE:GS) is reportedly near a deal to sell its consumer banking unit GreenSky.
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Dow Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Things are looking up at Apple (NASDAQ:AAPL) with the recent launch of the new iPhone 15. On the date of publication, Joel Baglole held long positions in AAPL, DIS, and MSFT. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The top Dow stocks serve as a bellwether for the health of the U.S. economy.
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Dow Stocks: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Things are looking up at Apple (NASDAQ:AAPL) with the recent launch of the new iPhone 15. On the date of publication, Joel Baglole held long positions in AAPL, DIS, and MSFT. DIS stock has declined 10% this year and is down 32% over five years.
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2023-09-28 00:00:00 UTC
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How Verizon and AT&T Can Upend Cable TV
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AAPL
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https://www.nasdaq.com/articles/how-verizon-and-att-can-upend-cable-tv
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nan
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nan
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The cable industry has lost about 25 million subscribers over the last five years and cord-cutting seems to be accelerating. The bundle that drove record profits for media companies is evaporating before our eyes. But that doesn't mean media is going anywhere and with streaming proliferating it's likely a new bundle emerges.
In this video, Travis Hoium makes the argument that telecom companies like Verizon (NYSE: VZ) and AT&T (NYSE: T) are uniquely positioned to rebundle cellular service with streaming TV.
*Stock prices used were end-of-day prices of Sept. 24, 2023. The video was published on Sept. 26, 2023.
10 stocks we like better than Verizon Communications
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 25, 2023
Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple, Walmart, and Walt Disney. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The cable industry has lost about 25 million subscribers over the last five years and cord-cutting seems to be accelerating. The bundle that drove record profits for media companies is evaporating before our eyes. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of September 25, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple, Walmart, and Walt Disney.
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In this video, Travis Hoium makes the argument that telecom companies like Verizon (NYSE: VZ) and AT&T (NYSE: T) are uniquely positioned to rebundle cellular service with streaming TV. 10 stocks we like better than Verizon Communications When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of September 25, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney.
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See the 10 stocks *Stock Advisor returns as of September 25, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends T-Mobile US and Verizon Communications. Their opinions remain their own and are unaffected by The Motley Fool.
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13386.0
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2023-09-28 00:00:00 UTC
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Microsoft executive says Google deals kept Bing small
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AAPL
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https://www.nasdaq.com/articles/microsoft-executive-says-google-deals-kept-bing-small-0
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nan
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nan
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(Adds questioning by Google lawyer, paragraphs 6-8)
By Diane Bartz
WASHINGTON, Sept 28 - Apple and other smartphone makers turned down revenue-sharing agreements that would have helped Microsoft's Bing search engine and instead kept Google as the default search engine, a Microsoft executive testified on Thursday.
Jonathan Tinter, a Microsoft vice president whose job has been to help Bing grow, testified at the U.S. Justice Department's antitrust trial against Alphabet's Google in U.S. District Court in Washington.
DOJ accuses Google of paying $10 billion annually to wireless carriers and smartphone makers to ensure that Google search is the default on their devices. The government argues Google has abused its monopoly in search and some aspects of search advertising.
Tinter said that Bing has struggled to win default status on smartphones sold in the United States and that this smaller scale translated into poorer quality search.
Under Justice Department questioning, Tinter testified that Bing was not the default installed in any Android or Apple smartphone sold in the U.S. in the past decade, even though Microsoft would at times offer to give more than 100% of revenue - or more - to its partner.
A lawyer for Google pressed Tinter on whether it was money or poor quality which prevented Bing from ousting Google as the default search engine on smartphones and other devices.
He pointed to an analysis done by Keystone Strategies from 2010 which found that people who discover Bing use it only for a very short time.
"The number of Bing users that stay is in single digits," he said. "More than half of new users have only one active day on Bing mobile before leaving," the attorney said. Tinter declined to agree. (Reporting by Diane Bartz; Editing by Jonathan Oatis and Howard Goller) ((Diane.Bartz@thomsonreuters.com;)) Keywords: TECH ANTITRUST/GOOGLE MICROSOFT (UPDATE 1, 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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Jonathan Tinter, a Microsoft vice president whose job has been to help Bing grow, testified at the U.S. Justice Department's antitrust trial against Alphabet's Google in U.S. District Court in Washington. Tinter said that Bing has struggled to win default status on smartphones sold in the United States and that this smaller scale translated into poorer quality search. Under Justice Department questioning, Tinter testified that Bing was not the default installed in any Android or Apple smartphone sold in the U.S. in the past decade, even though Microsoft would at times offer to give more than 100% of revenue - or more - to its partner.
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(Adds questioning by Google lawyer, paragraphs 6-8) By Diane Bartz WASHINGTON, Sept 28 - Apple and other smartphone makers turned down revenue-sharing agreements that would have helped Microsoft's Bing search engine and instead kept Google as the default search engine, a Microsoft executive testified on Thursday. Under Justice Department questioning, Tinter testified that Bing was not the default installed in any Android or Apple smartphone sold in the U.S. in the past decade, even though Microsoft would at times offer to give more than 100% of revenue - or more - to its partner. A lawyer for Google pressed Tinter on whether it was money or poor quality which prevented Bing from ousting Google as the default search engine on smartphones and other devices.
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(Adds questioning by Google lawyer, paragraphs 6-8) By Diane Bartz WASHINGTON, Sept 28 - Apple and other smartphone makers turned down revenue-sharing agreements that would have helped Microsoft's Bing search engine and instead kept Google as the default search engine, a Microsoft executive testified on Thursday. Under Justice Department questioning, Tinter testified that Bing was not the default installed in any Android or Apple smartphone sold in the U.S. in the past decade, even though Microsoft would at times offer to give more than 100% of revenue - or more - to its partner. A lawyer for Google pressed Tinter on whether it was money or poor quality which prevented Bing from ousting Google as the default search engine on smartphones and other devices.
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(Adds questioning by Google lawyer, paragraphs 6-8) By Diane Bartz WASHINGTON, Sept 28 - Apple and other smartphone makers turned down revenue-sharing agreements that would have helped Microsoft's Bing search engine and instead kept Google as the default search engine, a Microsoft executive testified on Thursday. The government argues Google has abused its monopoly in search and some aspects of search advertising. A lawyer for Google pressed Tinter on whether it was money or poor quality which prevented Bing from ousting Google as the default search engine on smartphones and other devices.
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13387.0
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2023-09-28 00:00:00 UTC
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Traders wary of volatility as JP Morgan fund's big options trade looms
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AAPL
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https://www.nasdaq.com/articles/traders-wary-of-volatility-as-jp-morgan-funds-big-options-trade-looms
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nan
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By Saqib Iqbal Ahmed
NEW YORK, Sept 28 (Reuters) - A $16 billion JP Morgan fund, expected to reset its options positions on Friday, is drawing traders' attention as a potential source of additional volatility at the end of the worst month for U.S. stocks this year.
The JPMorgan Hedged Equity Fund, with about $16.05 billion in assets, holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter.
Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O.
The fund's sheer size means its options reset can rack up a massive surge in trading volume in S&P 500 options and set off related hedging activity that can aggravate market moves.
The position adjustment comes at a tricky time for U.S. stocks as a surge in U.S. Treasury yields has hit equities, pulling down the S&P 500 5.2% for September, putting it on pace for the worst month for the index since December.
The recent slide in the market has carried the benchmark stock index close to the level where some of the trade's options could be triggered.
"There are times when it is not as impactful but I think it is more impactful this time," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group.
How the fund's rebalancing could end up affecting the whole market has to do with market makers - typically big financial institutions that facilitate trading but seek to remain market-neutral.
As things stand, with the S&P 500 trading around the 4,290 level, market makers are short about 40,000 September 29 S&P 500 options at the 4,210 strike.
Market makers who have sold these put options must sell stock futures to minimize their own risk, as the market drifts closer to the strike price of the sold options.
"As we move lower, market makers need to sell and as we move higher market makers need to buy it back," Murphy said.
"So it does exacerbate the move," he said.
The trade's sway on the market may extend even beyond that, Murphy said.
Traders, aware of the impending position adjustment and the potential for associated market ruction, may keep from turning buyers of stocks till the trade is out of the way, Murphy said.
One silver lining is that as the Friday expiration gets closer and the market stays well above the 4,210 level, market makers have less reason to be actively buying and selling stock futures.
If the market holds round the 4,300 level into Friday the options position should not hold much sway on the market, said Brent Kochuba, founder of options analytic service SpotGamma.
"We need to get under 4,250 for the position to have any real pull into Friday," he said.
(Reporting by Saqib Iqbal Ahmed; editing by Megan Davies and Nick Zieminski)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971; Reuters Messaging: saqib.ahmed.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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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed NEW YORK, Sept 28 (Reuters) - A $16 billion JP Morgan fund, expected to reset its options positions on Friday, is drawing traders' attention as a potential source of additional volatility at the end of the worst month for U.S. stocks this year. The position adjustment comes at a tricky time for U.S. stocks as a surge in U.S. Treasury yields has hit equities, pulling down the S&P 500 5.2% for September, putting it on pace for the worst month for the index since December.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed NEW YORK, Sept 28 (Reuters) - A $16 billion JP Morgan fund, expected to reset its options positions on Friday, is drawing traders' attention as a potential source of additional volatility at the end of the worst month for U.S. stocks this year. Market makers who have sold these put options must sell stock futures to minimize their own risk, as the market drifts closer to the strike price of the sold options.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. Market makers who have sold these put options must sell stock futures to minimize their own risk, as the market drifts closer to the strike price of the sold options. "As we move lower, market makers need to sell and as we move higher market makers need to buy it back," Murphy said.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed NEW YORK, Sept 28 (Reuters) - A $16 billion JP Morgan fund, expected to reset its options positions on Friday, is drawing traders' attention as a potential source of additional volatility at the end of the worst month for U.S. stocks this year. "As we move lower, market makers need to sell and as we move higher market makers need to buy it back," Murphy said.
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13388.0
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2023-09-28 00:00:00 UTC
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Mild, Medium & Hot: 3 Unusually Active Option Plays for Thursday
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AAPL
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https://www.nasdaq.com/articles/mild-medium-hot%3A-3-unusually-active-option-plays-for-thursday
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nan
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nan
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Several stocks made big moves in Wednesday trading despite a flat day for the index. Leading the charge was MillerKnoll (MLKN). It gained 27% on the day with 7.6 million shares traded, nearly 8x its 30-day average.
As for unusual options activity Wednesday, Apple’s (AAPL) Oct. 20 $195 put wins the highest Vol/OI ratio award at 243.84x, nearly 3x the second-highest, also an Apple put.
As I write this on Thursday morning, the usual suspects lead the way in the options market. Tesla (TSLA), Apple, and Nvidia (NVDA) occupy the top three spots for options volume with 549,250, 397,838, and 366,847, respectively.
Regarding unusual options activity, Palantir (PLTR) leads the way with a Vol/OI ratio of 28.71x.
Scanning the top 100, three unusually active options to play have caught my eye.
Oh, Canada!
As a Canadian, it warms the cockles of my heart that the Royal Bank of Canada (RY) has one of the top 10 most unusually active options on Thursday. A Canadian bank would qualify as a mild selection.
The option in question is the April 19/2024 $90 call with volume of 1,750, open interest of 130, and a Vol/OI of 13.46x. It currently has an ask price of $4.40, less than 5% of the strike price, and a reasonable down payment to secure the right to buy 100 shares of its stock at $90.
So, in the next 7.5 months, its shares would have to appreciate by at least 6.8% for you to seriously consider exercising your right to buy shares. However, you’ve got a bit of an escape value: the delta is 0.47771, which means you could generate a 33% return on your money by selling the call before expiration if RY stock increases in value by $3 over the next 204 days.
That’s very doable.
As for the bank’s business, Canada’s Competition Bureau approved its deal to buy HSBC’s (HSBC) Canadian operations for $10 billion on Sept. 1. The HSBC assets were one of the few remaining opportunities to move the needle in Canadian domestic banking.
HSBC, the seventh-largest bank in Canada by assets, is merging with the largest. Together, the top six banks in Canada control 80% of banking assets. While Royal Bank’s growth is in the U.S. market, the HSBC acquisition solidifies its position as Canada’s largest bank.
Yielding 4.5%, it’s an excellent way for American investors to generate higher income on their bank investment.
AI Remains a Big Focus
Nvidia (NVDA) is my medium selection because the chip stock provides a front-row seat to the global growth in artificial intelligence. However, even with the stock’s cooldown over the past month (-7.5%), it’s still up 203% year-to-date and 517% over the past five years.
It’s bound to have an even more significant correction in the weeks and months ahead. Isn’t it?
After all, from November 2021 highs ($315) to its October 2022 lows ($112), it lost 64% of its value. It could happen again.
But will it? The company’s Q2 2024 results announced in August were off-the-charts good.
Revenue in the second quarter was $13.51 billion, 88% higher than Q1 2024 and 101% above Q2 2023. Its Data Center revenue, which includes AI, was $10.32 billion (76% overall), 141% higher than the previous quarter and 171% better than a year ago.
That’s the top line. On the bottom line, it had a net income of $6.19 billion, 203% higher than Q1 2024 and 843% higher than a year ago.
Its free cash flow for the first six months of fiscal 2024 was $8.69 billion, more than 4x the amount from the same period a year ago. It could easily hit $20 billion for the entire year, more than 5x what it was in 2023.
There’s no way to candy-coat just how well Nvidia, the business, is performing right now. It’s exceptional.
As for Nvidia’s unusual options activity, I’m looking at a bit of an income play.
The Feb. 16/2024 $345 put expires in 141 days. If you sell the put, your premium is $11.60, an annualized yield of 7.0% based on the $432.31 share price. The Feb. 16/2024 $340 put has a bid price of $10.55 for an annualized yield of 6.2%.
From that perspective, you have to go with the first one. However, what happens if NVDA does go on that big correction? The net price of the $340 is $329.45, $3.95 less than the $345.
Those four bucks could be the difference in a market meltdown that takes Nvidia with it.
A Lot of Spice
Finishing with my hot selection is Palantir. I mentioned in the intro that the developer of data analytics software platforms for government and commercial customers had the most unusually active option on Thursday.
However, rather than the Oct. 27 $16 put, I like the Oct. 13 $16 put. It expires two weeks earlier, yet its bid price of $1 is only 21 cents lower. As a result, if you sell the Oct. 13 put, the annualized yield based on a $15.50 share price is 158.2%. In the money by 50 cents, you won’t be losing money unless it falls to $14.99.
Given Palantir is up nearly 10% in the past five days and 95% over the past six months, it is a stock that remains on a roll. Barring some unforeseen lousy news, its business is doing fine.
In yesterday’s news, William Blair analyst Louie DiPalma said that the $250 million, three-year contract awarded to Palantir by the U.S. Army on Tuesday was excellent news for its Q4 2023 results and into 2024.
“While this contract adds fuel to the argument that Palantir is more like a government service provider, this contract bodes well for Palantir's fourth-quarter and 2024 revenue,” Investor’s Business Daily reported DiPalma’s comments to clients.
Analysts are very mixed about the stock -- of the 20 that cover it, only four rate it a Buy or Moderate Buy with a target price of $15 -- which suggests they believe that all of the momentum gained by PLTR in the past year is likely to come to an end in the next 12 months.
Palantir has put together three consecutive quarters of GAAP profitability. Something tells me it continues throughout the remainder of fiscal 2023.
It’s a risky bet, but the rewards could be oversized.
More Options News from Barchart
Beyond Belief: The Unexpected Resurgence of BYND Stock in the Market’s Underbelly
How To Buy MRK For A 5% Discount, Or Achieve An 13% Annual Return
2 Stocks to Buy Making Big Price Moves Today
Unusual Put Options Activity in Duke Energy Stock Highlights Its Value
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As for unusual options activity Wednesday, Apple’s (AAPL) Oct. 20 $195 put wins the highest Vol/OI ratio award at 243.84x, nearly 3x the second-highest, also an Apple put. However, you’ve got a bit of an escape value: the delta is 0.47771, which means you could generate a 33% return on your money by selling the call before expiration if RY stock increases in value by $3 over the next 204 days. AI Remains a Big Focus Nvidia (NVDA) is my medium selection because the chip stock provides a front-row seat to the global growth in artificial intelligence.
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As for unusual options activity Wednesday, Apple’s (AAPL) Oct. 20 $195 put wins the highest Vol/OI ratio award at 243.84x, nearly 3x the second-highest, also an Apple put. Regarding unusual options activity, Palantir (PLTR) leads the way with a Vol/OI ratio of 28.71x. More Options News from Barchart Beyond Belief: The Unexpected Resurgence of BYND Stock in the Market’s Underbelly How To Buy MRK For A 5% Discount, Or Achieve An 13% Annual Return 2 Stocks to Buy Making Big Price Moves Today Unusual Put Options Activity in Duke Energy Stock Highlights Its Value On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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As for unusual options activity Wednesday, Apple’s (AAPL) Oct. 20 $195 put wins the highest Vol/OI ratio award at 243.84x, nearly 3x the second-highest, also an Apple put. As a Canadian, it warms the cockles of my heart that the Royal Bank of Canada (RY) has one of the top 10 most unusually active options on Thursday. More Options News from Barchart Beyond Belief: The Unexpected Resurgence of BYND Stock in the Market’s Underbelly How To Buy MRK For A 5% Discount, Or Achieve An 13% Annual Return 2 Stocks to Buy Making Big Price Moves Today Unusual Put Options Activity in Duke Energy Stock Highlights Its Value On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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As for unusual options activity Wednesday, Apple’s (AAPL) Oct. 20 $195 put wins the highest Vol/OI ratio award at 243.84x, nearly 3x the second-highest, also an Apple put. As a Canadian, it warms the cockles of my heart that the Royal Bank of Canada (RY) has one of the top 10 most unusually active options on Thursday. As for Nvidia’s unusual options activity, I’m looking at a bit of an income play.
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13389.0
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2023-09-28 00:00:00 UTC
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Alphabet (GOOGL) Boosts Chromebook Features With ChromeOS 117
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-boosts-chromebook-features-with-chromeos-117
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Reportedly, in a bid to bring advancements to Chromebooks, Alphabet’s GOOGL Google is rolling out ChromeOS 117.
Notably, ChromeOS includes Material You and other usability improvements.
The Material You redesign in Quick Settings features rounded rectangles for grid layout, smaller cards for Wi-Fi, Bluetooth, Nearby Share, Cast Screen, VPN and screen capture, with larger buttons and a separate notification panel.
Further, the device update features a volume slider, Live Caption button, brightness, Night Light, Power off, Restart, Sign out, Lock menu, battery and time remaining and a shortcut to the full Settings app.
This apart, Google has introduced a Dynamic Color theme based on users’ wallpaper, allowing them to choose from four accent colors that adapt to the system's light/dark theme and can be controlled from the Wallpaper & style app.
Additionally, the latest update boasts several other features like the ability to search for GIFs in the emoji picker, simultaneous audio streaming from Android apps and the web, time-lapse enabled video recording in the Camera app, and improved search results for OS version, battery, RAM, storage and CPU status.
We believe that Google is expected to gain solid traction among Chromebook users on the back of the latest move.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Chromebook Updates
Apart from the latest move, Alphabet recently partnered with policymakers and data-privacy regulators to bring new features including data processor mode, data controls, and camera and mic toggles on Chromebook, enabling privacy-focused education services.
Further, Google unveiled the world's first cloud-based Chromebook laptops on the back of its partnership with Acer, ASUS and Lenovo, offering gaming hardware, cloud-based access to games, and advanced gaming software.
All the abovementioned endeavors are in sync with Alphabet’s growing efforts to strengthen its Google Services segment.
In second-quarter 2023, Google Services’ revenues increased 5.5% year over year to $66.3 billion, accounting for 88.8% of total revenues.
Our model projects Google Services revenues for 2023 at $267.05 billion, indicating growth of 5.3% from 2022.
We believe growing momentum in the underlined segment will likely aid its overall financial performance. This, in turn, will likely instill investor optimism in the stock.
Our model estimate for 2023 total revenues stands at $300.45 billion, indicating year-over-year growth of 6.2%.
Alphabet has gained 48% on a year-to-date basis compared with the industry’s growth of 46.1%.
Stiff Competition
Alphabet's Chromebook update is expected to strengthen its competitive edge against rivals like Apple AAPL and Microsoft MSFT, which are also making strong efforts to enhance their offerings.
Apple recently unveiled the 15-inch MacBook Air, Mac Studio and Mac Pro, powered by Apple silicon. These laptops feature a Liquid Retina display, M2 Ma -x and Ultra performance, and PCIe expansion, offering significant upgrades for Intel-based users and PC users.
Further, Apple's macOS Sonoma update, which has introduced improvements over its predecessor, Venture, is now available for compatible Macs.
Meanwhile, Microsoft recently launched Surface Laptop Studio 2, the first Microsoft laptop with a dedicated VPU AI accelerator, offering Windows 11 Copilot functionality, expanded port selection and high battery life.
Additionally, Microsoft unveiled the Surface Laptop Go 3, a 2-in-1 portable laptop featuring a 12th-Gen Alder Lake mobile architecture for efficient multi-tasking, running on the Intel Core i5-1235U with 10 cores and 12 threads configuration.
Zacks Rank & Another Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Applied Materials AMAT, which carries 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 38.6% in the year-to-date period. AMAT’s long-term earnings growth rate is currently projected at 6.10%.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : 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 Alphabet's Chromebook update is expected to strengthen its competitive edge against rivals like Apple AAPL and Microsoft MSFT, which are also making strong efforts to enhance their offerings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, the device update features a volume slider, Live Caption button, brightness, Night Light, Power off, Restart, Sign out, Lock menu, battery and time remaining and a shortcut to the full Settings app.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stiff Competition Alphabet's Chromebook update is expected to strengthen its competitive edge against rivals like Apple AAPL and Microsoft MSFT, which are also making strong efforts to enhance their offerings. Our model projects Google Services revenues for 2023 at $267.05 billion, indicating growth of 5.3% from 2022.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stiff Competition Alphabet's Chromebook update is expected to strengthen its competitive edge against rivals like Apple AAPL and Microsoft MSFT, which are also making strong efforts to enhance their offerings. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growing Chromebook Updates Apart from the latest move, Alphabet recently partnered with policymakers and data-privacy regulators to bring new features including data processor mode, data controls, and camera and mic toggles on Chromebook, enabling privacy-focused education services.
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Stiff Competition Alphabet's Chromebook update is expected to strengthen its competitive edge against rivals like Apple AAPL and Microsoft MSFT, which are also making strong efforts to enhance their offerings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Reportedly, in a bid to bring advancements to Chromebooks, Alphabet’s GOOGL Google is rolling out ChromeOS 117.
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2023-09-28 00:00:00 UTC
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Block (SQ) Boosts Reach to Canada With Tap to Pay on Android
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AAPL
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https://www.nasdaq.com/articles/block-sq-boosts-reach-to-canada-with-tap-to-pay-on-android
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Block SQ continues to make strong efforts to bolster its presence in Canada on the back of its comprehensive solutions. This is evident from its latest launch of Tap to Pay on Android for sellers in Canada.
Tap to Pay on Android, designed to meet the growing demand for contactless payment, is backed by Square’s software, which offers a smooth and straightforward checkout experience.
Tap to Pay on Android allows sellers to accept contactless payments made via a contactless credit card or credit card with a digital wallet seamlessly.
With the underlined feature, sellers are not required to bear additional costs for their payment setup. Payments will be easily done through a compatible Android device and the Square point-of-sale app.
The feature ensures that sellers never miss a sale and gain more flexibility to use new commerce tools.
We believe Square is expected to gain momentum among various sellers in Canada with Tap to Pay on Android. This, in turn, will likely aid growth in the overall seller base of the company as part of the Square ecosystem.
In second-quarter 2023, Square ecosystem generated $1.93 billion in net revenues, up 12% year over year. It yielded a gross payment volume (GPV) worth $54.15 billion (91.8% of the total GPV) in the same quarter, up 13% year over year.
Our model estimate for 2023 Square ecosystem revenues stands at $7.34 billion, indicating growth of 9.6% year over year.
Block, Inc. Price and Consensus
Block, Inc. price-consensus-chart | Block, Inc. Quote
Strong Contactless Payment Efforts
The latest move bodes well with Block’s growing initiatives toward offering seamless contactless payment options to its sellers.
In addition to Canada, Square launched Tap to Pay on Android for its U.K. retailers in the first half of 2023.
Recently, Block formed a partnership with Apple AAPL to integrate the Square Point of Sale (POS) app with the latter’s contactless payment acceptance feature named Tap to Pay on iPhone.
Apple’s Tap to Pay on iPhone incorporates Block’s broader ecosystem of tools, which help sellers smoothly start, run and grow their businesses.
Sellers with an iPhone and Square POS app will be able to accept in-person contactless payments safely and seamlessly.
This apart, Block offers a contactless chip reader, which helps sellers quickly receive money in their bank account by accepting chip cards, contactless NFC (near-field communication) cards, Apple Pay and Google Pay from anywhere.
Growth Prospects
These growing efforts are helping this Zacks Rank #3 (Hold) company expand its presence in the booming contactless payment market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The underlined market is witnessing significant growth owing to rising demand for seamless and faster processing of payments. A surge in digitalization and an increase in online shopping across the globe are acting as key factors.
Per a Precedence Research report, the global contactless payment market is expected to reach $132.42 billion by 2032, witnessing a CAGR of 16.1% between 2023 and 2032.
The abovementioned efforts are also likely to boost Block’s footprint in the digital payment market. A Statista report shows that transaction value in this market is expected to hit $9.5 trillion in 2023 and reach $14.8 trillion by 2027, registering a CAGR of 11.8% between 2023 and 2027.
The growing prospects of Square in these booming markets are expected to instill investor optimism in the stock.
However, rising competition from some notable players like PayPal PYPL and Shopify SHOP in the digital payment space remains a concern for SQ.
Block has lost 29.8% on a year-to-date basis against the industry’s growth of 12.6%.
PayPal has been benefiting from its peer-to-peer payment service, Venmo, for a while. Venmo’s improving monetization efforts and its rising adoption rate across various platforms are aiding growth in total active accounts, which is noteworthy. The solid momentum of core peer-to-peer and PayPal Checkout experiences is another tailwind.
Shopify is winning merchants regularly owing to its robust product offerings, including Shop Pay and Shop Pay Installments. Checkout using Shopify Payments, which is directly integrated with Google, Facebook and Instagram, enables merchants to sell across these channels easily. This is helping Shopify strengthen its momentum among merchants.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
Block, Inc. (SQ) : 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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Recently, Block formed a partnership with Apple AAPL to integrate the Square Point of Sale (POS) app with the latter’s contactless payment acceptance feature named Tap to Pay on iPhone. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Tap to Pay on Android, designed to meet the growing demand for contactless payment, is backed by Square’s software, which offers a smooth and straightforward checkout experience.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Recently, Block formed a partnership with Apple AAPL to integrate the Square Point of Sale (POS) app with the latter’s contactless payment acceptance feature named Tap to Pay on iPhone. Tap to Pay on Android allows sellers to accept contactless payments made via a contactless credit card or credit card with a digital wallet seamlessly.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Recently, Block formed a partnership with Apple AAPL to integrate the Square Point of Sale (POS) app with the latter’s contactless payment acceptance feature named Tap to Pay on iPhone. Tap to Pay on Android allows sellers to accept contactless payments made via a contactless credit card or credit card with a digital wallet seamlessly.
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Recently, Block formed a partnership with Apple AAPL to integrate the Square Point of Sale (POS) app with the latter’s contactless payment acceptance feature named Tap to Pay on iPhone. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. We believe Square is expected to gain momentum among various sellers in Canada with Tap to Pay on Android.
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2023-09-28 00:00:00 UTC
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Dow Movers: IBM, UNH
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-ibm-unh
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In early trading on Thursday, shares of UnitedHealth Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. Year to date, UnitedHealth Group has lost about 3.9% of its value.
And the worst performing Dow component thus far on the day is International Business Machines, trading down 1.9%. International Business Machines is lower by about 0.3% looking at the year to date performance.
Two other components making moves today are Apple, trading down 1.1%, and JPMorgan Chase, trading up 0.8% on the day.
VIDEO: Dow Movers: IBM, UNH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of UnitedHealth Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. And the worst performing Dow component thus far on the day is International Business Machines, trading down 1.9%. International Business Machines is lower by about 0.3% looking at the year to date performance.
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Year to date, UnitedHealth Group has lost about 3.9% of its value. And the worst performing Dow component thus far on the day is International Business Machines, trading down 1.9%. International Business Machines is lower by about 0.3% looking at the year to date performance.
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In early trading on Thursday, shares of UnitedHealth Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.1%. And the worst performing Dow component thus far on the day is International Business Machines, trading down 1.9%. Two other components making moves today are Apple, trading down 1.1%, and JPMorgan Chase, trading up 0.8% on the day.
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Year to date, UnitedHealth Group has lost about 3.9% of its value. And the worst performing Dow component thus far on the day is International Business Machines, trading down 1.9%. VIDEO: Dow Movers: IBM, UNH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2023-09-28 00:00:00 UTC
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Got $1,000? 5 Buffett Stocks to Buy and Hold Forever
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https://www.nasdaq.com/articles/got-%241000-5-buffett-stocks-to-buy-and-hold-forever-7
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If you walked down the street and asked random people to name a famous investor, I'm willing to bet that Warren Buffett's name gets mentioned more than anybody else. He's been the poster child for investing success, and it's rightfully deserved when you consider the success he and his company, Berkshire Hathaway, achieved.
Buffett and Berkshire Hathaway's success has put them in a position where investors choose to mirror their investments to try to replicate a bit of their success.
For investors looking for Buffett stocks to add to their portfolios, Berkshire Hathaway's top five holdings are a good go-to. With $1,000, I would invest $200 into each company and trust the long-term results.
COMPANY PERCENTAGE OF BERKSHIRE HATHAWAY PORTFOLIO
Apple (NASDAQ: AAPL) 46.3%
Bank of America (NYSE: BAC) 8.2%
American Express (NYSE: AXP) 6.7%
Coca-Cola (NYSE: KO) 6.6%
Chevron (NYSE: CVX) 6%
Data source: Berkshire Hathaway's 13F filing. As of Aug. 14, 2023.
1. Apple
The world's most valuable public company needs no introduction. Apple revolutionized a lot of the tech industry and made many investors a lot of money along the way. In the past 10 years, the stock is up over 900%.
Apple came to dominance largely because of the iPhone, which you could argue is the most successful consumer product of all time. The iPhone still represents a large portion of Apple's revenue (48% in its fiscal third quarter), but the company has been diversifying its revenue streams and becoming less reliant on it.
As Apple expands into different services, it has the bank account and technological expertise to be a real disruptor regardless of industry.
2. Bank of America
It hasn't been the best year for Bank of America's stock, but the financial industry is cyclical in nature. It shouldn't be too much cause for concern for long-term investors.
Bank of America is one of only eight banks that the U.S. Federal Reserve deems as "too big to fail," or globally systematically important. It's received that designation because it's intertwined into the U.S. financial system to the point that its failure could be catastrophic. Along with this comes more regulatory oversight and stress testing, which should help protect the bank from any significant downturns from mismanagement.
With a yield consistently double the S&P 500 average, Bank of America can be a 2-for-1 for investors.
3. American Express
When it comes to total volume for credit cards, American Express comes in third place, trailing Visa and Mastercard, with $427 billion in total network volume in Q2 2023.
What separates American Express from companies like Visa and Mastercard is how its payment network is set up. Visa and Mastercard process credit card transactions, but they don't issue credit cards -- their partner banks do. American Express, on the other hand, issues credit cards and processes transactions.
This setup helps American Express increase its share of revenue from transaction fees, and it seems to be paying off. The company increased its revenue by 70% in the past three years (although a pandemic slump helped this).
American Express has done a better job than any credit card company when it comes to courting customers via its world-class rewards programs and customer service. It has found its lane and operates in it very well.
4. Coca-Cola
Coca-Cola may very well have the world's most recognizable brand with its flagship soda. However, the company has expanded beyond that to include household name brands in water, coffee, tea, sports drinks, and ready-to-drink alcohol.
Coca-Cola has impressively managed to get distribution to most of the world, and it seems like its sole focus on beverages has allowed it to operate more efficiently than its competitors. PepsiCo is Coca-Cola's biggest competitor and brings in around $10 billion more in revenue. Despite that, both companies have comparable net income.
Coca-Cola is a shareholder-friendly blue-chip stock that offers a consistent dividend and stable long-term growth.
5. Chevron
Chevron is the third-largest oil and gas company in the world, with a market cap of over $320 billion. Since it plummeted in March 2020, Chevron's stock has increased over 180%.
The oil business divides operations into three broad segments: upstream, midstream, and downstream. Luckily for Chevron (and its investors), it operates in all three. It handles exploration and production, transportation and storage, and refining and marketing.
Having operations in all phases of the pipeline allows Chevron to hedge against the cyclical nature of the oil and gas industry. For example, downstream operations tend to be more profitable when oil prices are low, and upstream operations generally perform better when oil prices are high.
Chevron is a more stable investment option than competitors specializing in a single segment.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) 46.3% Bank of America (NYSE: BAC) 8.2% American Express (NYSE: AXP) 6.7% Coca-Cola (NYSE: KO) 6.6% Chevron (NYSE: CVX) 6% Data source: Berkshire Hathaway's 13F filing. However, the company has expanded beyond that to include household name brands in water, coffee, tea, sports drinks, and ready-to-drink alcohol. Coca-Cola has impressively managed to get distribution to most of the world, and it seems like its sole focus on beverages has allowed it to operate more efficiently than its competitors.
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Apple (NASDAQ: AAPL) 46.3% Bank of America (NYSE: BAC) 8.2% American Express (NYSE: AXP) 6.7% Coca-Cola (NYSE: KO) 6.6% Chevron (NYSE: CVX) 6% Data source: Berkshire Hathaway's 13F filing. Visa and Mastercard process credit card transactions, but they don't issue credit cards -- their partner banks do. The Motley Fool recommends Chevron and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, and short January 2025 $380 calls on Mastercard.
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Apple (NASDAQ: AAPL) 46.3% Bank of America (NYSE: BAC) 8.2% American Express (NYSE: AXP) 6.7% Coca-Cola (NYSE: KO) 6.6% Chevron (NYSE: CVX) 6% Data source: Berkshire Hathaway's 13F filing. Bank of America It hasn't been the best year for Bank of America's stock, but the financial industry is cyclical in nature. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Mastercard, and Visa.
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Apple (NASDAQ: AAPL) 46.3% Bank of America (NYSE: BAC) 8.2% American Express (NYSE: AXP) 6.7% Coca-Cola (NYSE: KO) 6.6% Chevron (NYSE: CVX) 6% Data source: Berkshire Hathaway's 13F filing. Bank of America It hasn't been the best year for Bank of America's stock, but the financial industry is cyclical in nature. Luckily for Chevron (and its investors), it operates in all three.
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13393.0
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2023-09-28 00:00:00 UTC
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US STOCKS-Nasdaq falls as rate worries take center stage; Powell on deck
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-falls-as-rate-worries-take-center-stage-powell-on-deck
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By Ankika Biswas and Shashwat Chauhan
Sept 28 (Reuters) - The Nasdaq lagged major U.S. stock indexes on Thursday as megacaps came under pressure with Treasury yields resuming their upward charge, while investors assessed fresh economic data and awaited Federal Reserve chief Jerome Powell's remarks.
As the 10-year Treasury yields US10YT=RR regained steam, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O shed between 0.4% and 2.2%.
Technology .SPLRCT led declines amongst major S&P 500 sectors, down 0.7%, while healthcare .SPXHC added 0.5%.
At 9:41 a.m. ET, the Dow Jones Industrial Average .DJI was down 5.50 points, or 0.02%, at 33,544.77, the S&P 500 .SPX was down 5.18 points, or 0.12%, at 4,269.33, and the Nasdaq Composite .IXIC was down 54.28 points, or 0.41%, at 13,038.57.
Meanwhile, data showed the U.S. economy maintained a fairly strong pace of growth in the second quarter, the government confirmed on Thursday. It also appeared to have gathered momentum this quarter amid a resilient labor market.
"We expect a weakening labor market and mounting headwinds to disposable incomes will drive a sharper slowdown in consumption and the broader economy over the rest of the year," said Michael Pearce, lead U.S. economist at Oxford Economics.
Pearce added that a sharp slowdown into year-end will keep policymakers on the sidelines, rather than following through with an additional rate hike as planned.
Chicago Fed President Austan Goolsbee said the U.S. central bank may be on the cusp of "something rare" by lowering inflation without a major blow to jobs and growth.
Deepening inflation concerns, U.S. oil futures jumped to a more than one-year high on earlier on Thursday.
The scope for interest rates staying higher for longer than anticipated has solidified with soaring energy prices keeping headline inflation elevated.
All the three indexes are set for their first quarterly decline in 2023.
With a partial government shutdown just three days away, a procedural vote on a bipartisan short-term spending measure by the Senate on Thursday will also be closely watched.
Among individual movers, Micron TechnologyMU.O dropped 4.7% after forecasting a bigger-than-expected first-quarter loss.
CarMaxKMX.N lost 11.2% after the used-car retailer posted a lower-than-expected quarterly profit.
AccentureACN.N slumped 4.4% after the IT services firm forecast full-year earnings and first-quarter revenue below Wall Street targets.
Advancing issues outnumbered decliners by a 1.34-to-1 ratio on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and eight new lows, while the Nasdaq recorded 15 new highs and 88 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan; Editing by Sriraj Kalluvila and Maju Samuel)
((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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As the 10-year Treasury yields US10YT=RR regained steam, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O shed between 0.4% and 2.2%. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - The Nasdaq lagged major U.S. stock indexes on Thursday as megacaps came under pressure with Treasury yields resuming their upward charge, while investors assessed fresh economic data and awaited Federal Reserve chief Jerome Powell's remarks. "We expect a weakening labor market and mounting headwinds to disposable incomes will drive a sharper slowdown in consumption and the broader economy over the rest of the year," said Michael Pearce, lead U.S. economist at Oxford Economics.
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As the 10-year Treasury yields US10YT=RR regained steam, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O shed between 0.4% and 2.2%. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - The Nasdaq lagged major U.S. stock indexes on Thursday as megacaps came under pressure with Treasury yields resuming their upward charge, while investors assessed fresh economic data and awaited Federal Reserve chief Jerome Powell's remarks. The S&P index recorded two new 52-week highs and eight new lows, while the Nasdaq recorded 15 new highs and 88 new lows.
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As the 10-year Treasury yields US10YT=RR regained steam, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O shed between 0.4% and 2.2%. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - The Nasdaq lagged major U.S. stock indexes on Thursday as megacaps came under pressure with Treasury yields resuming their upward charge, while investors assessed fresh economic data and awaited Federal Reserve chief Jerome Powell's remarks. "We expect a weakening labor market and mounting headwinds to disposable incomes will drive a sharper slowdown in consumption and the broader economy over the rest of the year," said Michael Pearce, lead U.S. economist at Oxford Economics.
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As the 10-year Treasury yields US10YT=RR regained steam, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Alphabet GOOGL.O shed between 0.4% and 2.2%. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - The Nasdaq lagged major U.S. stock indexes on Thursday as megacaps came under pressure with Treasury yields resuming their upward charge, while investors assessed fresh economic data and awaited Federal Reserve chief Jerome Powell's remarks. ET, the Dow Jones Industrial Average .DJI was down 5.50 points, or 0.02%, at 33,544.77, the S&P 500 .SPX was down 5.18 points, or 0.12%, at 4,269.33, and the Nasdaq Composite .IXIC was down 54.28 points, or 0.41%, at 13,038.57.
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13394.0
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2023-09-28 00:00:00 UTC
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Wall Street's "Magnificent Seven" May Be a Mammoth Liability for the Stock Market
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AAPL
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https://www.nasdaq.com/articles/wall-streets-magnificent-seven-may-be-a-mammoth-liability-for-the-stock-market
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When the going gets tough on Wall Street, investors have often turned to time-tested businesses that offer a history of outperforming the broader market. In 2023, the "Magnificent Seven" fits that definition perfectly.
When I refer to the Magnificent Seven, I mean:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Tesla (NASDAQ: TSLA)
Meta Platforms (NASDAQ: META)
Image source: Getty Images.
The Magnificent Seven stocks do two things really, really well. To begin with, they bring well-defined competitive advantages to the table.
Apple is the leading smartphone provider in the U.S., and its capital-return program, which has delivered around $600 billion in aggregate buybacks since the start of 2013, is unmatched.
Microsoft's Windows operating system still dominates on personal computers, while Azure is the global No. 2 in cloud infrastructure service sales.
Alphabet's Google has accounted for at least 90% of worldwide monthly search share for over eight years, while YouTube is the global No. 2 among most-visited social sites.
Amazon accounts for around 40% of U.S. online retail sales and owns Amazon Web Services, the global No. 1 in cloud infrastructure service sales.
Nvidia is being fueled by artificial intelligence (AI) excitement and is expected to hold about 90% of the share for AI-driven graphics processing units used in high-compute data centers.
Tesla is North America's leading electric-vehicle (EV) manufacturer and the only pure-play EV maker that's producing a recurring profit.
Meta Platforms owns the top social media real estate on the planet and attracted 3.88 billion monthly active users during the June-ended quarter.
AAPL data by YCharts.
The second thing the Magnificent Seven have a penchant for is outperformance. These seven stocks have been virtually unstoppable since the green flag waved in 2023.
But while everything appears great for the Magnificent Seven on the surface, this small group of outperformers may be a mammoth liability for the stock market.
History hasn't been kind when the major indexes are highly concentrated
On one hand, these seven companies (eight securities, counting Alphabet's two classes of shares) have singlehandedly lifted the benchmark S&P 500 (SNPINDEX: ^GSPC) and Nasdaq 100 to phenomenal year-to-date gains of 12.5% and 34.4%, through Sept. 22, 2023. On the flip side, the equal-weighted S&P 500 is up by a mere 1% on a year-to-date basis, suggesting that the rest of market isn't thriving.
As of the closing bell on Sept. 22, the 10 largest S&P 500 components made up a historically high percentage of the benchmark index's weighting:
Apple: 7.046478%
Microsoft: 6.544554%
Amazon: 3.23713%
Nvidia: 2.792888%
Alphabet (Class A, GOOGL): 2.13343%
Tesla: 1.946472%
Alphabet (Class C, GOOG): 1.827586%
Berkshire Hathaway (Class B, BRK.B): 1.82635%
Meta Platforms: 1.811949%
UnitedHealth Group: 1.279699%
For those without calculators, or a desire to go five decimal places deep, we're looking at the 10 largest-weighted stocks in the S&P 500 comprising about 30.45% of the index's total weighting.
However, a research report from Morgan Stanley finds that the average weighting of the 10 largest components of the S&P 500 has averaged around 20% over the past 35 years. The current 30.45% weighting is even higher than the concentration seen in the S&P 500 during the dot-com bubble.
The Nasdaq 100, which is comprised of the 100 largest nonfinancial companies listed on the Nasdaq exchange, is even more concentrated than the S&P 500:
Apple: 11.056%
Microsoft: 9.529%
Amazon: 5.39%
Nvidia: 4.158%
Meta Platforms: 3.77%
Tesla: 3.145%
Alphabet (Class A, GOOGL): 3.127%
Alphabet (Class C, GOOG): 3.081%
Broadcom: 2.969%
^NDX data by YCharts.
On an aggregate basis, these nine components account for 46.23% of the Nasdaq 100. The other 92 components -- Alphabet has two classes of shares, thus why there are 101 components and not 100 in the Nasdaq 100 -- account for less than 54% of the weighing of the index.
Historically speaking, when the major indexes become highly concentrated, things have "broken." To be clear, I'm not saying high concentration is why big downturns have previously occurred in the broader market. Rather, I'm pointing out that a high concentration in relatively few names has often left the major indexes susceptible to sizable downturns in the past.
Valuation and recession concerns are issues, too
If you're looking for reasons why a high concentration in the major stock indexes can lead to a breakdown in the broader market, look no further than recessionary concerns and the valuation of the Magnificent Seven companies.
For much of the past year, there has been no shortage of economic datapoints and predictive indicators pointing to a U.S. recession. This includes a decline in U.S. M2 money supply, meaningful tightening in commercial bank lending practices, a one-year contraction in the ISM Manufacturing New Orders Index, and a 17-month decline in The Conference Board Leading Economic Index.
A few of the Magnificent Seven stocks are cyclical and would struggle mightily if U.S. economic growth slowed or shifted into reverse. For example, Meta generates more than 98% of its revenue from advertising, with Alphabet in a similar boat. Advertisers are quick to pare back their spending at the first hint of economic weakness. Given the weighting Meta and Alphabet are responsible for in the S&P 500 and Nasdaq 100, they could be serious drags on these two indexes if/when the U.S. economy weakens.
There are also serious valuation concerns given the degree of uncertainty there is regarding economic growth in the coming quarters. For instance, Tesla is an auto stock trading at more than 70 times Wall Street's forecast earnings in 2023. Nvidia is commanding a higher price-to-cash-flow multiple than at pretty much any point in the past decade. Even Apple is going for a historically high 29 times forecast earnings this year despite the fact that its sales and profits are expected to decline by a low-single-digit percentage.
During periods of uncertainty, investors are less tolerant of outsized valuations -- even when they're attached to brand-name, time-tested, outperforming companies like Tesla, Nvidia, and Apple. In other words, the Magnificent Seven are in a precarious position, which, in turn, means the stock market may be, too.
Image source: Getty Images.
Patience is a virtue on Wall Street
Although the puzzle pieces would seem to suggest that choppy waters may be ahead for Wall Street, patience has proved to be an invaluable tool for long-term investors. Even if the Magnificent Seven stocks take the benchmark S&P 500 and Nasdaq 100 lower in the coming quarters, patient investors have a few things to look forward to.
For one, they'll be able to buy into or add to high-quality businesses at a perceived discount. Even though we'll never know ahead of time when stock market corrections will start, how long they'll last, or how steep the decline will be, we do know that every major decline in the major indexes has, eventually, been cleared away by a bull market. At minimum, it means index fund investors should use corrections as a surefire opportunity to pounce.
Long-term investors can also take solace in the fact that the proverbial sunny days handily outpace the rainy days on Wall Street.
According to an analysis from wealth management company Bespoke Investment Group, the average bear market since September 1929 has lasted 286 calendars days, or about 9.5 months. By comparison, the typical bull market over the past 94 years has lasted 1,011 calendar days, or roughly 3.5 times as long. Being a patient optimist strongly puts these figures in your favor.
No matter what the immediate future holds for stocks, long-term investors have every reason to smile.
Find out why Apple is one of the 10 best stocks to buy now
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*Stock Advisor returns as of September 18, 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. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom, Nasdaq, and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When I refer to the Magnificent Seven, I mean: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Image source: Getty Images. AAPL data by YCharts. Nvidia is being fueled by artificial intelligence (AI) excitement and is expected to hold about 90% of the share for AI-driven graphics processing units used in high-compute data centers.
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When I refer to the Magnificent Seven, I mean: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Image source: Getty Images. AAPL data by YCharts. As of the closing bell on Sept. 22, the 10 largest S&P 500 components made up a historically high percentage of the benchmark index's weighting: Apple: 7.046478% Microsoft: 6.544554% Amazon: 3.23713% Nvidia: 2.792888% Alphabet (Class A, GOOGL): 2.13343% Tesla: 1.946472% Alphabet (Class C, GOOG): 1.827586% Berkshire Hathaway (Class B, BRK.B): 1.82635% Meta Platforms: 1.811949% UnitedHealth Group: 1.279699% For those without calculators, or a desire to go five decimal places deep, we're looking at the 10 largest-weighted stocks in the S&P 500 comprising about 30.45% of the index's total weighting.
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When I refer to the Magnificent Seven, I mean: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Image source: Getty Images. AAPL data by YCharts. As of the closing bell on Sept. 22, the 10 largest S&P 500 components made up a historically high percentage of the benchmark index's weighting: Apple: 7.046478% Microsoft: 6.544554% Amazon: 3.23713% Nvidia: 2.792888% Alphabet (Class A, GOOGL): 2.13343% Tesla: 1.946472% Alphabet (Class C, GOOG): 1.827586% Berkshire Hathaway (Class B, BRK.B): 1.82635% Meta Platforms: 1.811949% UnitedHealth Group: 1.279699% For those without calculators, or a desire to go five decimal places deep, we're looking at the 10 largest-weighted stocks in the S&P 500 comprising about 30.45% of the index's total weighting.
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When I refer to the Magnificent Seven, I mean: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Image source: Getty Images. AAPL data by YCharts. The Nasdaq 100, which is comprised of the 100 largest nonfinancial companies listed on the Nasdaq exchange, is even more concentrated than the S&P 500: Apple: 11.056% Microsoft: 9.529% Amazon: 5.39% Nvidia: 4.158% Meta Platforms: 3.77% Tesla: 3.145% Alphabet (Class A, GOOGL): 3.127% Alphabet (Class C, GOOG): 3.081% Broadcom: 2.969% ^NDX data by YCharts.
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13395.0
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2023-09-28 00:00:00 UTC
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Riding the Cloud Wave: Why Meta Platforms Is a Stock to Watch
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AAPL
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https://www.nasdaq.com/articles/riding-the-cloud-wave%3A-why-meta-platforms-is-a-stock-to-watch
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The key word for those considering an investment in Meta Platforms (NASDAQ:META) stock is “platforms.”
Meta is what I call a “Cloud Czar.” It’s one of only five companies in the world that fully controls its digital destiny and, by extension, that of everyone else.
The others are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.Com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOGL).
Because Meta doesn’t rent out its cloud capacity, using it only for its own global services, it’s controversial and misunderstood.
That’s not reflected in META stock. Over the last two years Meta has the same chart pattern as Alphabet and Amazon, which also extensively use advertising in their business models. All three fell hard in 2022. All three have risen in 2023.
A Closer Look at META Stock
Meta’s fall, and hence its rise, are just exaggerated. Those who bought in September 2021, near the top of the last bull market, are down about 14% on Meta stock since then. The best of the three is Alphabet, which still shows a loss. Amazon is still down nearly 25%.
The problem, for analysts, is that we tend to evaluate investments based on numbers, reputation, and what we think of the CEO. Investors look at what drives the numbers. It’s the cloud.
Generative AI is, at its heart, a cloud application. It requires the power of the cloud to train and manipulate large language models on huge amounts of training data. The model can change, the data can change, so can the target market, but that’s the business.
What’s essential to that business is access to the cloud. It’s taking billions in new investment to prepare the clouds for AI. Cloud investment grew $10 billion, year-over-year, in the first quarter of 2023. Meta spent $7.1 billion of that.
Owning a cloud is like controlling an oilfield was in the last generation, or an enormous factory complex in the generation before that.
Meta CEO Mark Zuckerberg committed his company to the cloud over a decade ago, before he had the cash flow to sustain it. It was like Henry Ford building his River Rouge plant. It was defining.
Meta’s AI Play
No matter how Meta chose to play the AI game, it was going to be a winner.
Meta has chosen to play it with open source, licensing its code so that it can be tested, tweaked, and improved by millions of developers around the world.
Since Meta controls the license, Meta can pull the code back any time it wants. (True open source only comes from a Foundation dedicated to the principle, not from a corporate entity.)
This puts Meta in the catbird’s seat when it comes to AI, and at the lowest possible cost. It’s the same approach it used in building its cloud through the Open Compute Foundation. The difference is it has more control this time because it has the license.
The Bottom Line
META stock is going to be a winner in the generative AI space because Meta owns the stadium where the game is being played.
Will it do as well as Microsoft, which is adding AI to its software stack? Maybe not. Microsoft is up almost 20% over the last two years.
Will it do as well as Alphabet and Amazon? That’s also debatable.
What’s clear to me is that META stock will do well. Its stock will be worth more a year from now, as will stock in the other Cloud Czars. Because it’s good to be the King.
As of this writing, Dana Blankenhorn held LONG positions in AMZN, MSFT, GOOGL and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The post Riding the Cloud Wave: Why Meta Platforms Is a Stock to Watch 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 others are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.Com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOGL). As of this writing, Dana Blankenhorn held LONG positions in AMZN, MSFT, GOOGL and AAPL. Meta has chosen to play it with open source, licensing its code so that it can be tested, tweaked, and improved by millions of developers around the world.
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The others are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.Com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOGL). As of this writing, Dana Blankenhorn held LONG positions in AMZN, MSFT, GOOGL and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The key word for those considering an investment in Meta Platforms (NASDAQ:META) stock is “platforms.” Meta is what I call a “Cloud Czar.” It’s one of only five companies in the world that fully controls its digital destiny and, by extension, that of everyone else.
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The others are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.Com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOGL). As of this writing, Dana Blankenhorn held LONG positions in AMZN, MSFT, GOOGL and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The key word for those considering an investment in Meta Platforms (NASDAQ:META) stock is “platforms.” Meta is what I call a “Cloud Czar.” It’s one of only five companies in the world that fully controls its digital destiny and, by extension, that of everyone else.
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The others are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.Com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOGL). As of this writing, Dana Blankenhorn held LONG positions in AMZN, MSFT, GOOGL and AAPL. Over the last two years Meta has the same chart pattern as Alphabet and Amazon, which also extensively use advertising in their business models.
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13396.0
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2023-09-28 00:00:00 UTC
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Is Apple Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-now-3
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nan
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nan
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It's rarely a bad idea to consider buying Apple's (NASDAQ: AAPL) stock. Shares have soared 217% in the last five years and 900% over the last decade. It has dominating positions in several areas of tech thanks to the immense brand loyalty the company built with consumers, which has boosted its stock over the long term.
However, Apple hasn't had it easy in 2023. The company reported three consecutive quarters of revenue declines as macroeconomic headwinds curbed consumer spending. Apple continued to outperform its competitors in product sales but has been unable to deliver growth. As a result, you might wonder if the company is still worth an investment.
Despite the setbacks, Apple remains an excellent option for long-term-minded investors. Here's why.
A tumbling stock price
Shares in Apple dropped more than 11% since its third quarter of 2023 earnings release at the start of August. Revenue fell 1% year over year during the quarter, with declines in iPhone, Mac, and iPad segments. Dwindling iPhone sales made stockholders particularly uneasy, as the smartphone accounts for nearly 50% of the company's total revenue.
However, stock declines across the market suggest decreasing excitement for tech in general. The growth potential for industries like artificial intelligence (AI) and virtual/augmented reality (VR/AR) sent many stocks skyrocketing in the first half of 2023.
Yet, the chart below shows companies across the tech industry have experienced declines in share prices since Aug. 1. Wall Street seems to know that while these companies and their sectors have solid long-term outlooks, macro factors may continue to pose challenges over the next year.
Data by YCharts
The good news is recent declines essentially put Apple's stock on sale. Its price-to-earnings ratio (P/E) of about 29 is at one of its lowest points in the last three months. The company's P/E is also lower than all of the companies above except for Alphabet, making it one of the cheapest ways to invest in tech. Poor economic conditions won't last forever, and a long-term investment in Apple could offer significant gains as the company recovers.
Apple is diversifying in multiple areas
In addition to an attractive stock price, Apple is gradually strengthening its business with diversification. Its product lineup will expand next year with the release of the Vision Pro, the company's first VR/AR headset. Meanwhile, Apple has ramped up its plan to increase manufacturing outside of China by heavily investing in India.
A Bloomberg report from this week reveals Apple surpassed $7 billion in production in India and aims to hit $40 billion within the next five years. The company is now manufacturing 2023's iPhone 15 in the country, with plans to start AirPod production there next year. The move reduces Apple's supply chain risk by decreasing its dependency on China.
Moreover, the tech giant is further fortifying its future earnings with a massive expansion into digital services. Income from its App Store and subscription-based platforms like Apple TV+, Music, iCloud, and more allows the company to lean less on product sales during uncertain times.
The digital business has become an increasingly lucrative area for Apple. Profit margins for the services segment often hover around 70%, while products come in at 36%. Meanwhile, services has the potential to eventually surpass the iPhone as Apple's highest-earning segment. Services is currently its second-highest earning segment, and in fiscal 2022, services reported revenue growth of 14% year over year, double the iPhone's growth.
Then, in Q3 2023, services revenue growth hit 8% year over year, expanding more than any other part of Apple's business. Services' continued growth illustrates its resilience during economically challenging conditions, which bodes well for the company's long-term future.
Apple shares may be on a downward trajectory for the rest of the year as it contends with reductions in consumer spending. However, its dominance in tech and its booming services business could offer substantial gains over the next five to 10 years as the market improves.
Apple is playing the long game, diversifying different areas of its business to secure its financial future. As a result, the company is worth investing in this month and potentially for the rest of the year if its stock continues to fall.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's rarely a bad idea to consider buying Apple's (NASDAQ: AAPL) stock. It has dominating positions in several areas of tech thanks to the immense brand loyalty the company built with consumers, which has boosted its stock over the long term. Income from its App Store and subscription-based platforms like Apple TV+, Music, iCloud, and more allows the company to lean less on product sales during uncertain times.
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It's rarely a bad idea to consider buying Apple's (NASDAQ: AAPL) stock. A Bloomberg report from this week reveals Apple surpassed $7 billion in production in India and aims to hit $40 billion within the next five years. Services is currently its second-highest earning segment, and in fiscal 2022, services reported revenue growth of 14% year over year, double the iPhone's growth.
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It's rarely a bad idea to consider buying Apple's (NASDAQ: AAPL) stock. Apple is diversifying in multiple areas In addition to an attractive stock price, Apple is gradually strengthening its business with diversification. Services is currently its second-highest earning segment, and in fiscal 2022, services reported revenue growth of 14% year over year, double the iPhone's growth.
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It's rarely a bad idea to consider buying Apple's (NASDAQ: AAPL) stock. Revenue fell 1% year over year during the quarter, with declines in iPhone, Mac, and iPad segments. Services is currently its second-highest earning segment, and in fiscal 2022, services reported revenue growth of 14% year over year, double the iPhone's growth.
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13397.0
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2023-09-28 00:00:00 UTC
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Case Builds for Tech Dividends
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AAPL
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https://www.nasdaq.com/articles/case-builds-for-tech-dividends
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nan
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nan
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It’s not a stretch to say a generation, perhaps two, of investors are hardwired to believe technology isn’t the sector dividends investors should embrace. However, that scenario has markedly improved in recent years.
Indeed, exchange traded funds such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) sport tiny dividend yields. Yet that belies impressive dividend growth among tech stocks (nearly half of those ETFs’ rosters). In dollar terms, technology is now the largest dividend-paying sector in the S&P 500.
That’s good news for QQQ and QQQM investors. The “cohort of companies that make a long-term decision to pay an annually recurring dividend [is what would lead] to longer-term appreciation, inclusion in large cap indexes (survivorship bias), and lower volatility during market downturns,” said Morgan Stanley in its newly released 2023 Dividend Playbook.
More Reasons to Consider QQQ, QQQM Dividends Potency
In the 2023 Dividend Playbook, Morgan Stanley examined the impact of dividend payers on the various GICS sectors. The bank noted dividends, broadly speaking are “detrimental” to the consumer discretionary sector – the third-largest sector weight in QQQ and QQQM. It also noted that tech dividend payers outperformed rivals that don’t have payouts.
The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Those two tech giants have rapidly grown payouts in recent years. That’s good news for QQQ and QQQM investors because those stocks combine for more than 20% of the ETFs’ rosters.
Still, only half, including Apple and Microsoft, of the top 10 holdings in the Invesco ETFs are dividend payers. Some market observers believe other companies should get in on the act. In a recent article, Al Root of Barron’s argues that Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG), and Facebook parent Meta Platforms (NASDAQ: META) are overdue to become dividend payers.
“Going by Apple and Microsoft, somewhere between 10 and 15 years after an IPO seems like a good idea. By that standard, the tech giants are lagging. Amazon went public in 1997, some 26 years ago. Alphabet went public in 2004, about 19 years ago. Meta, the relative newbie, went public in 2012, 11 years ago. It’s about time they started paying dividends,” wrote Root.
That trio of stocks, which have the free cash flow to support dividends, combine for more than 15% of the QQQ and QQQM lineups.
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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The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). The “cohort of companies that make a long-term decision to pay an annually recurring dividend [is what would lead] to longer-term appreciation, inclusion in large cap indexes (survivorship bias), and lower volatility during market downturns,” said Morgan Stanley in its newly released 2023 Dividend Playbook. Still, only half, including Apple and Microsoft, of the top 10 holdings in the Invesco ETFs are dividend payers.
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The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). It also noted that tech dividend payers outperformed rivals that don’t have payouts. In a recent article, Al Root of Barron’s argues that Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG), and Facebook parent Meta Platforms (NASDAQ: META) are overdue to become dividend payers.
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The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). More Reasons to Consider QQQ, QQQM Dividends Potency In the 2023 Dividend Playbook, Morgan Stanley examined the impact of dividend payers on the various GICS sectors. In a recent article, Al Root of Barron’s argues that Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG), and Facebook parent Meta Platforms (NASDAQ: META) are overdue to become dividend payers.
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The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). That’s good news for QQQ and QQQM investors. That’s good news for QQQ and QQQM investors because those stocks combine for more than 20% of the ETFs’ rosters.
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13398.0
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2023-09-28 00:00:00 UTC
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US STOCKS-Futures flat ahead of economic data, Powell remarks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-flat-ahead-of-economic-data-powell-remarks
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nan
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nan
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By Ankika Biswas and Shashwat Chauhan
Sept 28 (Reuters) - U.S. stock index futures were muted on Thursday ahead of key economic data and Federal Reserve Chair Jerome Powell's remarks, while higher crude prices muddled the inflation outlook amid worries over a prolonged restrictive monetary policy.
As the 10-year Treasury US10YT=RR yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 0.9% in premarket trading.
Investors' focus will be on the final gross domestic product (GDP) estimate for the second quarter and weekly jobless claims data - due at 8:30 a.m. ET - to gauge the strength of the U.S. economy and the labor market.
On radar will be a speech by Powell at 4 p.m. ET, as well as remarks by voting members Chicago Fed President Austan Goolsbee and Board Governor Lisa Cook during the day.
The scope for interest rates staying higher for longer than anticipated has solidified with soaring energy prices keeping headline inflation elevated.
Deepening the concerns, U.S. oil futures jumped to a more than one-year high on Thursday.
"Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer," said Russ Mould, investment director at AJ Bell.
"The market is worried that supplies of oil are going to be tight and if prices keep going, it is going to cause a real headache for businesses and consumers."
With a partial government shutdown just three days away, a procedural vote on a bipartisan short-term spending measure by the Senate on Thursday will also be closely watched.
At 7:25 a.m. ET, Dow e-minis 1YMcv1 were up 35 points, or 0.1%, S&P 500 e-minis EScv1 were up 1.75 points, or 0.04%, and Nasdaq 100 e-minis NQcv1 were down 17.5 points, or 0.12%.
Riding on the back of higher crude prices, energy .SPNY is set to emerge as the only major S&P 500 sector to notch monthly gains. Meanwhile, rate-sensitive information technology .SPLRCT and real estate .SPLRCT were on track to be the worst hit.
The S&P 500 and the Nasdaq are on course for their worst monthly performance of the year as Treasury yields hit multi-year highs on uncertainty around interest rates.
All the three indexes are set for their first quarterly decline in 2023.
Traders' bets on the benchmark rate remaining unchanged in November and December stood around 77% and 58%, respectively, according to CME's FedWatch tool. Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to over 30% in June and July.
Among individual movers, Micron TechnologyMU.O dropped 4.1% after forecasting a bigger-than-expected first-quarter loss.
WorkdayWDAY.O dipped 10.0% after the human resources software company lowered its subscription revenue growth outlook for the next three years.
Meme darling GameStopGME.N jumped 7.2% after the company named billionaire activist investor Ryan Cohen as its CEO and chairman.
(Reporting by Ankika Biswas and Shashwat Chauhan; Editing by Maju Samuel and Sriraj Kalluvila)
((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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As the 10-year Treasury US10YT=RR yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 0.9% in premarket trading. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - U.S. stock index futures were muted on Thursday ahead of key economic data and Federal Reserve Chair Jerome Powell's remarks, while higher crude prices muddled the inflation outlook amid worries over a prolonged restrictive monetary policy. The scope for interest rates staying higher for longer than anticipated has solidified with soaring energy prices keeping headline inflation elevated.
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As the 10-year Treasury US10YT=RR yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 0.9% in premarket trading. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - U.S. stock index futures were muted on Thursday ahead of key economic data and Federal Reserve Chair Jerome Powell's remarks, while higher crude prices muddled the inflation outlook amid worries over a prolonged restrictive monetary policy. The scope for interest rates staying higher for longer than anticipated has solidified with soaring energy prices keeping headline inflation elevated.
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As the 10-year Treasury US10YT=RR yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 0.9% in premarket trading. By Ankika Biswas and Shashwat Chauhan Sept 28 (Reuters) - U.S. stock index futures were muted on Thursday ahead of key economic data and Federal Reserve Chair Jerome Powell's remarks, while higher crude prices muddled the inflation outlook amid worries over a prolonged restrictive monetary policy. "Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer," said Russ Mould, investment director at AJ Bell.
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As the 10-year Treasury US10YT=RR yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.1% and 0.9% in premarket trading. "Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer," said Russ Mould, investment director at AJ Bell. The S&P 500 and the Nasdaq are on course for their worst monthly performance of the year as Treasury yields hit multi-year highs on uncertainty around interest rates.
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13399.0
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2023-09-28 00:00:00 UTC
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Roku Might Be Showing Signs of Growing Up. But Is It Enough to Buy the Stock?
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AAPL
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https://www.nasdaq.com/articles/roku-might-be-showing-signs-of-growing-up.-but-is-it-enough-to-buy-the-stock
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nan
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nan
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The back half of 2022 and most of 2023 have been pretty tumultuous for corporations. While investors may be distracted by the myriad challenges facing businesses of all sizes due to the hype around artificial intelligence (AI) and the possibility of a new bull market, make no mistake -- challenges still linger.
The S&P 500 index and Nasdaq Composite Index are up over 10% and 25%, respectively, so far in 2023. However, investors should keep in mind that the rising demand for generative AI and machine learning are not the only catalysts pushing equities higher. Several companies, especially in Big Tech, resorted to layoffs in an effort to curb bloated expense profiles and return to a path of profitability, while for some, revenue growth has slowed.
To put it bluntly, layoffs are an unfortunate component of organizational structure. From time to time, companies hire too quickly or pursue initiatives that are well beyond the core pillars of the business. If these investments do not contribute to some form of top-line growth, a business may be forced to make some difficult decisions.
One of the most recent high-profile companies making a cost-reduction effort is streaming platform Roku (NASDAQ: ROKU). Since its initial public offering in September 2017, Roku stock has returned over 190%. However, after reaching stratospheric trading levels during the summer of 2021, Roku stock has returned to orbit.
If you bought Roku stock during the last three years, there have been some lucrative trading windows. But at the same time, these pockets have been short-lived. Given its extreme volatility, is Roku really investable? Let's dig into what the company is doing and determine if its current trajectory makes it a compelling long-term buy.
The cost reduction details
Earlier this month, Roku disclosed the details of a cost reduction initiative in a regulatory filing with the Securities and Exchange Commission (SEC). Per the details, the company aims to decrease its expense profile by restructuring office space leases, reviewing its streaming portfolio, terminating vendor expenses, and reducing headcount by 10%.
Similar to its cohorts, Roku expects to book a number of impairment and restructuring charges related to these efforts. Severance and benefits costs from the headcount reductions are estimated to be in the range of $45 million to $65 million. On top of that, the company expects additional charges of up to $265 million related to the removal of some licensed content from its streaming catalog as well as costs incurred from office space lease termination.
While the impairment charges related to office space and licensed content look hefty, investors should realize that the actual cash outflow that Roku may experience will likely be much different than these figures. Impairment charges are important line items for GAAP financials but do not necessarily equate to actual cash leaving the balance sheet.
Image source: Getty Images
Is this enough to buy the stock?
The streaming landscape is filled with loads of competitors. While Netflix may be the industry leader, Big Tech firms such as Apple, Amazon, and Alphabet have all entered the realm and are aggressively pursuing market share. Moreover, traditional media and entertainment companies such as Walt Disney have struggled mightily to compete in a meaningful way.
ROKU Cash and Equivalents (Quarterly) data by YCharts
Purely from a balance sheet perspective, Roku doesn't carry anywhere near the dry powder (i.e. cash) that its competition does. Furthermore, the majority of the names in the chart above are investing in new content, not restructuring existing content.
I do not believe that Roku is a broken operation, per se. However, the cost reduction efforts, while necessary, seem to be too little, too late. Most of Big Tech is emerging from several rounds of layoffs and trimming expenses. Moreover, given the return to growing cash flow and profits, many of these companies can now begin investing carefully in future operations.
From my perspective, Roku still has a lot to prove before it makes sense as a long-term investment. There will likely be opportunities where money can be made when momentum traders enter. But these opportunities will be fleeting and, candidly, pretty risky. For now, Roku may not be an ideal candidate for long-term investors seeking consistent growth.
10 stocks we like better than Roku
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Roku 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 September 25, 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. Adam Spatacco has positions in Alphabet, Amazon.com, and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Roku, and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Several companies, especially in Big Tech, resorted to layoffs in an effort to curb bloated expense profiles and return to a path of profitability, while for some, revenue growth has slowed. On top of that, the company expects additional charges of up to $265 million related to the removal of some licensed content from its streaming catalog as well as costs incurred from office space lease termination. While the impairment charges related to office space and licensed content look hefty, investors should realize that the actual cash outflow that Roku may experience will likely be much different than these figures.
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Per the details, the company aims to decrease its expense profile by restructuring office space leases, reviewing its streaming portfolio, terminating vendor expenses, and reducing headcount by 10%. While the impairment charges related to office space and licensed content look hefty, investors should realize that the actual cash outflow that Roku may experience will likely be much different than these figures. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Roku, and Walt Disney.
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One of the most recent high-profile companies making a cost-reduction effort is streaming platform Roku (NASDAQ: ROKU). ROKU Cash and Equivalents (Quarterly) data by YCharts Purely from a balance sheet perspective, Roku doesn't carry anywhere near the dry powder (i.e. cash) that its competition does. See the 10 stocks *Stock Advisor returns as of September 25, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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From my perspective, Roku still has a lot to prove before it makes sense as a long-term investment. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Roku, and Walt Disney.
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