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13500.0
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2023-09-22 00:00:00 UTC
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Technology Sector Update for 09/22/2023: INTC, AAPL, MSFT, ATVI
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-09-22-2023%3A-intc-aapl-msft-atvi
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nan
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nan
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Tech stocks were advancing Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.4% and the Philadelphia Semiconductor index adding 1.2%.
In company news, Intel (INTC) has been fined 376.4 million euros ($400.9 million) by the European Commission for anticompetitive practices in the computer chip market, the EU regulator said Friday. Intel shares were down past 1%.
Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Apple shares rose nearly 1%.
Microsoft's (MSFT) restructured merger deal with Activision Blizzard (ATVI) "substantially addresses" the UK's Competition and Markets Authority's previous cloud-gaming concerns, the regulator said Friday. Microsoft was down 0.6% and Activision rose nearly 2%.
The views and 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) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Tech stocks were advancing Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.4% and the Philadelphia Semiconductor index adding 1.2%. In company news, Intel (INTC) has been fined 376.4 million euros ($400.9 million) by the European Commission for anticompetitive practices in the computer chip market, the EU regulator said Friday.
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Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Intel shares were down past 1%. Apple shares rose nearly 1%.
|
Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. In company news, Intel (INTC) has been fined 376.4 million euros ($400.9 million) by the European Commission for anticompetitive practices in the computer chip market, the EU regulator said Friday. Microsoft's (MSFT) restructured merger deal with Activision Blizzard (ATVI) "substantially addresses" the UK's Competition and Markets Authority's previous cloud-gaming concerns, the regulator said Friday.
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Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Tech stocks were advancing Friday afternoon, with the Technology Select Sector SPDR Fund (XLK) rising 0.4% and the Philadelphia Semiconductor index adding 1.2%. Apple shares rose nearly 1%.
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13501.0
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2023-09-22 00:00:00 UTC
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Has the Birkenstock IPO News Grabbed Your Attention?
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AAPL
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https://www.nasdaq.com/articles/has-the-birkenstock-ipo-news-grabbed-your-attention
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nan
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nan
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss:
How oil at $90 is and isn't an inflationary pressure.
What to make of Apple's latest iPhone release.
The scoop on two new IPOs: Arm Holdings and Birkenstock.
Two stocks worth watching: PayPal and Schwab.
Author Ben Mezrich talks about the origin story of a meme stock and his book-turned-movie, Dumb Money.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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
This video was recorded on Sept. 15, 2023
Dylan Lewis: We're digging into two IPOs, one for your phone and one for your toes. Motley Fool Money starts now.
It's the Motley Fool Money radio show. I'm Dylan Lewis. Joining me in studio Motley Fool Senior Analyst Jason Moser, Bill Mann, great to have you both here.
Jason Moser: Hey.
Bill Mann: How are you doing, Dylan?
Dylan Lewis: We've got the inside story on the movie Dumb Money, the skinny on two new IPOs and stocks on our radar. We're going kick off today talking about Texas Tea. Bill, oil is up to $90 a barrel. Up 50% since lows this summer. What's going on here?
Bill Mann: Black gold is back. You thought that oil was yesterday's story? Oil is one of those things that I think because we use it all the time and we see every time we go out of the house, we see pricing we're very sensitive to it. The price of oil is definitely looked through as the lens of future economic growth globally it goes into absolutely everything. Obviously, OPEC and particularly the Saudi's cutting production by a million barrels a day, they did two million earlier this year, has mattered because oil ultimately is a very narrow supply and demand story. It does not take much of a dislocation for oil prices to go up quite a bit.
Dylan Lewis: This is one of those stories that has a lot of different facets to it and a lot of different tack-on effects here. Jason, we have spent so much time on the show talking about how tight the average household budget is. This seems to me like one of those things that's just going to add a little bit more cost to keep finding dollars in those budgets for consumers.
Jason Moser: It is absolutely something that households are concerned with and rightly so. When you look at it from the bigger picture, household expenditures on gasoline, for example, obviously gasoline is a direct result of oil. Household expenditures on gasoline are consistently the most expensive category of household spending related directly to energy and they can actually quantify that. In 2021, the US Bureau of Labor Statistics Consumer Expenditure Survey, that's a mouthful, I know.
Bill Mann: But good words there, pal.
Jason Moser: Back to 2021, the average annual household spending on gasoline totaled $2,148 over the course of that year. That's slightly more than electricity, natural gas, and fuel oil combined. Think about that for a second. You realize how that plays in your day to day. It all of a sudden makes very clear sense as to why the fluctuations in oil prices can have such a drastic impact on consumers in such a short period of time.
Dylan Lewis: Bill, is this something we have to start factoring into the inflation story and things that we're monitoring there as well? I try to go this show without talking about it but here we are.
Bill Mann: No, here we are. Look, if you really want to worry about oil I just want to make a point. Fifteen years ago, oil was above $100 a share and now it's approaching 90. The rest of inflation in the United States in that period of time has been about 38% so your dollar from 2008 now buys, let's do the math real quick, $0.62 worth of stuff. In that same period of time, oil hasn't moved. If we're thinking about it as an inflationary story, it's only because it has fluctuated again very quickly. Oil prices as a component of GDP, oil as a component of GDP is as small a percentage as it has been since the 1960s. It goes into everything and it has moved very quickly and it feels bad and because we are stretched from a credit standpoint, it may feel really bad. But ultimately, we have to keep in mind that oil is not an inflationary instrument over the long term.
Dylan Lewis: Is this one of the few things that goes up in price and actually comes back down in price when we're looking at inflation?
Bill Mann: It is. It's one of those things and I always love/hate when our government takes credit for these things. Oil prices are absolutely built into the rate of inflation. Like CPI and then you have core CPI, CPI contains oil in it. What in the world has the government done to either make oil prices go up or down? This government, not that much. The Saudi government, maybe a little bit but it's not something long-term that has tended to be permanent. I think that that's a really important thing to remember.
Dylan Lewis: Keeping the focus short-term, we've also seen this show up in reports from companies and updates from companies, specifically airline businesses. We got warnings from Delta, American, and Spirit talking about how the profit picture for them might be looking a little bit different in the upcoming quarters, Bill.
Bill Mann: Come on. Not come on because obviously, they're throwing metal into the sky and it takes oil to get them there. They obviously consume oil and a lot of it but they also hedge everything. They hedge. Why is it that they are talking about oil prices as being the driver? The reason why they are is that it's the easiest thing for all of us to tell ourselves is true. Oil prices are up.
Jason Moser: But it's because everybody else is doing it too. When you think about oil prices, they have a greater impact on producer prices because of the role of key input.
Bill Mann: Thank you.
Jason Moser: Then it becomes a matter of what companies can pass along what prices. Airline tickets are different than burritos I think we can all agree so it does vary.
Bill Mann: One is delicious.
Dylan Lewis: One gets you two burritos.
Jason Moser: How much power a company has to be able to pass those prices along versus others is another key component. To your point, yeah they love to say it because everybody else is doing it.
Dylan Lewis: It's a convenient excuse. Is that the right way to be looking at this?
Bill Mann: That is mildly unfair but it's not 100% unfair. If you think that the airlines are pulling their planes up to the tanks and just buying oil at spot, whatever the prices are now and they're just, well, that's the price. They're not. They have hedges to make sure that they have control over their oil prices. Now, maybe they got their hedges wrong and that's a different thing but they're not telling you that. They're just simply saying, well, our fuel is more expensive.
Jason Moser: I feel like we've got the sequel to an inconvenient truth, a convenient excuse.
Dylan Lewis: Bill, I appreciate you holding me and the airlines accountable. It goes a long way. If we do see consumer spending tighten up and while it's become a little bit less quick to come out, that may be something Jason has started to affect the interest and demand for Apple's latest iPhone line. We saw an update there in their annual update this fall. What did you see when you looked at the product line?
Jason Moser: Well, I think we're seeing the same thing over and over again with these presentations. Over the last several years we've probably all asked ourselves, is this really necessary? They haven't really been able to give us that next big thing. I know some would probably argue that, well, they got this Vision Pro and that's the next big thing. Well, let's let some time go by here because I would push back on that for now. They are ultimately really stuck in the $6,000,000 man loop. Instead of better, stronger, faster, it's just thinner, lighter, faster. That's just every time one of these presentations comes out. We're seeing basically the same thing in a slightly new iteration and I don't fault them for that. It's worth remembering, the iPhone was absolutely lightning in a bottle. We just can't underestimate or rather overestimate how special and how important the smartphone and the iPhone really has become to us over time. It's a difficult act to follow up. We all are hoping for that next big thing. They just haven't really been able to come up with it yet. It leaves you wanting more for these presentations.
Dylan Lewis: To your point, Jason, it is the product that gave birth to the largest company on the market. It is the engine for this company. Bill, looking at some of the press and some of the details we've seen from Apple announcements. Anything jump out to you?
Bill Mann: I love the way that Jason put it but I would say at this point it's fasterer, thinnerer. [laughs]
Dylan Lewis: But it still looks and smells like an iPhone.
Bill Mann: It's expensive as well. With any company and with any product there is a trajectory at some point you do not as a consumer have the same need to update to the next and to the next one. They have really suffered on the tablet side. I still have my same iPad from 2017 so they're trying to get past that. From a product standpoint, rolling out new features. But at some point those features become, marginal, I would say. The only reason that I happen to know that there's a big Apple event coming up is because the press keeps telling me that there's a big Apple event to come up.
Jason Moser: I'm so glad that I could help remind you, Bill.
Bill Mann: Thank you.
Jason Moser: One thing I would say to keep in mind in regard to iPhones, one thing I think that Apple has done so well through the years, they've really benefited from this because the overwhelming majority of iPhones are sold through the carriers. Apple sells one in five iPhones directly to consumers. Most of us get that phone through our carrier and the carrier is able ultimately, to subsidize that through that contract agreement that you have with them. Now, for a long time, those agreements were essentially two years. You'd pay that phone off over two years and then in two years, you would upgrade. It's worth noting, you look at the big carriers like your Verizons and AT&T of the world. I noticed this myself last year when we upgraded in our household, it went to a new three-year arrangement. Now, of course, that makes my phone bill a little bit better, I don't mind that at all. But it also makes me think, well, I'm not going to be upgrading another phone for three years now. It has extended that upgrade cycle. We saw that upgrade cycle already extending just by virtue of the fact that the quality of these phones has just gotten better and better through the years. But now the carriers play a little bit into this calculus as well, which is worth remembering.
Dylan Lewis: All right, coming up after the break, we dig into two upcoming IPOs including one that could benefit from some iPhone buzz. Stay right here. This is Motley Fool Money.
Welcome back to Motley Fool Money. I'm Dylan Lewis, joined in studio by Bill Mann and Jason Moser. For the past year, we have been lamenting the lack of IPOs and new splashy names coming public. We've got a couple new ones to look at. We're going to start with the year's biggest. Bill, shares of Arm Holding listed on the Nasdaq this week to an incredibly warm reception at listing company's worth $60 billion shares up 25% on the first day. What is behind the buzz?
Bill Mann: Do you consider that to be a successful IPO?
Dylan Lewis: I think, for buzz, certainly for the people who own shares and sold them to the market. I don't know.
Bill Mann: See that's exactly where I was going. SoftBank, which has had, I guess we could describe it as a fairly bad decade so far.
Dylan Lewis: It's been a little rough.
Bill Mann: It's been a little rough. Their Vision Fund, $100 billion venture capital fund is less than $100 billion by quite a bit now because of poor choices and poor outcomes. They desperately needed a win. I feel like they engineered a win by under-pricing the Arm IPO to make absolutely sure that they got this pop. When you think about the selling shareholder, and it is only one in this case. How much money did they leave on the table to make sure that they get good marketing news. So far, about a billion dollars.
Dylan Lewis: It's quite a bit. It's a business that legitimately could have used that money.
Bill Mann: They legitimately could have used that money. Now, they did go out, and so Apple got shares and was investing at the IPO and Nvidia was. SoftBank has given a number of its customers a really good deal and some really good news with a quick hit off of an IPO that I think was somewhat underpriced.
Dylan Lewis: For folks that maybe aren't familiar with this name and are just learning it for the first time. There's a little bit of a hint at what this company does with some of those businesses you just mentioned. Jason, this is a company that is squarely in the smartphone world. They are heavily involved in a lot of the tech that we have in our pockets and I look at the involvement from some of the big tech names. Bill mentioned, Apple, Google, Nvidia in there too. But pick any company that makes chips and they were probably exposed to this in some way and probably an investor in some way says a lot about where this company fits into the smartphone ecosystem.
Jason Moser: It's essential. I think this is really one of those companies, we talk about companies if they shut their doors tomorrow, the world would feel that impact. This is one of those businesses for sure. Now that being said, that doesn't mean you just go out and buy the stock because it's supposed to be a great company. I thought it was really funny and I hate to say this is funny, but it was funny. I saw an interview with Aswath Damodaran, I think it was yesterday on TV. They were asking about Arm and he said, listen, everything else being equal, this is a SoftBank story, and when you see it's a SoftBank story, you run the other way.
Bill Mann: That's right. Well, what is a Columbia Business School professor know?
Jason Moser: That to me was very telling. I think in regard to the valuation part of that, we've got demand for this stock. I think part of it is a function of this excitement for an IPO, but also the fact that there's a very limited supply of shares that were actually floated on the market for purchase in the first place. The valuation looks out of control. This is a company that generated $2.7 billion in revenue over the last year. We see that valuation hit upwards of $72 billion I think at one point. You're talking a 25-30 times sales. Somewhere in the neighborhood of 130 times earnings. I'm not saying this is a bad business, I think it's a good business, it's an important business. But I think it's also one to listen, we've learned a lot of lessons over the last few years here. Let's put those lessons to work; be patient, let this thing come back then it might make more sense.
Bill Mann: Here's your tell, this morning, Instacart, which is going public this next week, raised the price of its IPO up to $28-30 a share based on Arm's successful IPO. I've said this before, but IPOs are sold and not bought. To individual investors who get excited about IPOs, just know that you are being sold something at a period of time in which it is at the leisure of the seller.
Dylan Lewis: It's a good thing to remember there, Bill. From cutting edge tech to the cobblers of the 1700s, there's a new old name coming to the market soon as well. Jason, Birkenstock. I almost wore my Arizona's to the studio today, but I wanted to make sure I was keeping things formal.
Jason Moser: I love this so much.
Dylan Lewis: You looked at the company, what did you see?
Jason Moser: I feel like you came up with the title for this specific show, they're the cobblers of the 1700s, that was good. I tell you, I was a bit surprised in going through this company's F1. As I really thought I would be a little bit more dismissive, they really started to capture my attention. They tell a very good story. As the great Cosmo Kramer once said, you don't sell the steak, you sell a sizzle, [laughs] and they are selling the sizzle. Look at this, a brands at 1774 and you hear the word footbed mentioned in the F1 109 times. Yes, that's proprietary technology for a shoe company. I just find it amazing because, hey, listen, I had a pair of Birkenstocks in college.
Bill Mann: You still have them, don't you? Come on.
Jason Moser: Possibly. We'll get to that later. But when you look at the actual numbers here it's really impressive. In 2022, they generated $1.24 billion in revenue. They had a gross margin of 60%. They have been able to grow revenue 20% annualized from 2014-2022. I get it. Everybody needs shoes, but I think when you start looking under the hood and you see how well run this business is and how diverse it is, yeah, you could think maybe this is really a European story, not so fast, 54% of revenue generated from the Americas versus Europe's 36. The only thing maybe makes you wonder a little bit, it tilts very far toward the female spectrum. 72% of their customers are women versus 28% men. But all things considered, while I'm not saying I'm excited for this thing to go public, I certainly I'm going to enjoy following the story and learning a little bit more.
Dylan Lewis: Jason, you had them in your dorm room so did I. I have continued to buy them over the years and have them waiting for me when I get at home those comfortable footbeds. Bill, one of the things I think about when I look at a retail brand and a consumer name like this, especially in fashion, is these can be highly cyclical businesses and businesses that catch lightning in a bottle. Is that something you worry about with a company like Birkenstock?
Bill Mann: Absolutely. I would say that Birkenstock is a luxury brand. We might not think of it, we think of it as being the thing that you're going to see it on My Morning Jacket show in volume, but it's a luxury brand. It is owned 20% by LVMH, which is the largest luxury brand house in the world. They are having their fashion-forward moment, like you find Birkenstocks now in Vogue Magazine, they were in the Barbie movie. It is not for nothing that this company was bought by private equity a little more than two years ago for $4.3 billion and it's being sold now at $8 billion. Just to go back to what I was saying before about IPOs, and I'm not making any commentary about Birkenstock, I am saying that it is being sold very well so investors who might be interested in the name, probably good just to wait just a little bit and let them get seasoned as a public company.
Dylan Lewis: I have a thread between these two; Arm Holdings and Birkenstock, and I'm going to run it by you guys, bear with me here for a second. I see a similarity in that these are two businesses that nailed it with their design and architecture and are now enjoying the long term benefits, does that feel fair? Bill Mann, Jason Moser, we're going to see you guys a little bit later in the show. Up next, we've got to look at the origin of the meme stock story. Stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. I'm Dylan Lewis. Remember back in early 2021 when everyone was stuck at home and a small corner of Reddit became the epicenter of an investing movement? This weekend, a movie recounting the drama of GameStop and WallStreetBets hits theaters. It's called Dumb Money and it's based on a book called The Antisocial Network by Ben Mezrich. Head of the nationwide premiere of the movie, we caught up with Ben about his latest book turn movie, the pace of writing in today's entertainment age and what buy and hold investors need to remember from the Meme stock saga. Ben, this Friday of your book, The Antisocial Network will hit the big screen as dumb money. How does it feel to see another one of your books come to life like this?
Ben Mezrich: It feels like a miracle. It's so hard to make a movie, especially a movie aimed at adults that doesn't have superheroes running around in capes and it's just wild that it happened again. It happened just incredibly fast. We were living through the GameStop drama just two years ago and now here we are. But it's awesome. It's just as good as it gets for an author.
Dylan Lewis: It's been fun to see all these characters I know and follow start to become the Wall Street insiders and the characters that they are in the book. I think in some ways the material and the characters are somewhat fresh to us. It's relatively recent and its history that we lived through with the GameStop saga and the short squeeze of 2021. But I also feel the pandemic has made everything from the last couple of years feel it was maybe a decade ago. For folks that haven't been following the story over the last couple of years, can you just kind of walk folks through it?
Ben Mezrich: Basically, this happened in the worst part of the pandemic, pretty much when everyone was stuck at home. Stay home for two weeks and everyone was pretty much locked up and wearing masks everywhere. In the midst of all that, this dude in his basement, basically, started live streaming about a stock that he loved, GameStop. You know GameStop? It's that place we all go to buy video games. It's in the mall. It's a store that is very odd when you walk through it because there's a Mickey Mouse stall next to a chainsaw. [laughs] It's the oddest store in the world, but we love it. It's basically doing very poorly at the time because it's a pandemic. They've been run poorly, they're running out of money. Big hedge funds are shorting it, which means they're betting that it's going to go down to zero and go bankrupt. This dude in his basement who called himself Roaring Kitty starts making all of these videos saying this stock is going to go to the moon. I love this stock and everyone's making fun of him. Then slowly but surely he builds this following on Reddit. That's really where the main place it was happening on something called WallStreetBets, which was a very irreverent full of bad words and all this stuff, Reddit board and by the end of the story, there's nine million people on Reddit all buying this one stock to stick it to Wall Street. It becomes a battle between regular people and rich people. It was epic at the time. It happened really fast. The stock from three dollars and something to $500 in a period of a few days. All because regular people were throwing a few $100 in here and there just to fight Wall Street.
Dylan Lewis: I distinctly remember the experience of all of this happening. Because there's an indicator for me as someone who works in the media of this world. Where if I start hearing from friends and family members about something, it has officially broken into the mainstream and become something that everyone is paying attention to. That was certainly the case with this story back in 2021. What got it on your radar and what made it something that you wanted to tell?
Ben Mezrich: I've always been kind of a gambler and I've always been a penny stock person and I've always been someone who's attuned to all that. I've written about this stuff a lot, going all the way back to the MIT Blackjack team. It was Wednesday morning in the middle of that week when everything went crazy with GameStop. I was watching the price action. I was like, this is completely insane. I started getting emails from lots of people and tweets from lots of people saying this is something you should be writing about. You got to be writing about this. I thought about it and I was like, I wonder if I have enough sources. Can I get to Roaring Kitty? Can I get to these hedge fund guys? At this point in my career, I know a lot of people and I know how to get to people. I realized I think I could. That night I wrote a 12-page book proposal. I sent it to my Hollywood agent first and by Friday of that week, we had a bidding war with five studios bidding on it. It was literally two days later and I sold it that Friday night at midnight to MGM Studios and then I sold the book on Monday morning. I hadn't written anything. Ye I had a 12-page proposal already. Screenwriters were jumping in. Studio was jumping in. It was nuts. Then I just dove in. I was writing it while it was happening because I was writing as they get to the congressional hearing, I was writing through every beat of that story, which was nuts. Melvin Capital was still in existence when I was writing. [laughs] It was really deep in the story, but I wrote the book very quickly. I think it was 12 weeks from start to finish and we had the movie in development. It's wild when it happens like that. But it was a race too. There were other studios trying to make it. It was Netflix was doing something. HBO was doing something. There were a dozen other projects. I knew that the key was getting a book together before everybody else.
Dylan Lewis: For the aspiring writers out there that are listening to the show, would you recommend that writing process?
Ben Mezrich: The aspiring writers hate me. [laughs] No, I love the in aspiring writers. This has become my methodology. I've always been a quick writer. Bringing down the house I wrote in 11 weeks, the social network book, I wrote in about 11 or 12 weeks. I just write it in three months. That's it. I write a book every three months. I don't recommend it because it's torturous. It's a very difficult way to live. Basically, be delusional and insane and confident enough that you lock yourself up and just write the book. But on the other hand, everything is so fast paced now, a story breaks and it's huge and then it's gone and it happens like in these arcs over and over again. If you want to make something that resonates that makes it to a movie or a television show, you have to move very quickly. You can't take three years to write a book if you want to see it on the screen and have people love it. I think you have to move fast if you want to be in this field. Every writer is different. I have a different process than a lot of other writers and it's just the way I've always been.
Dylan Lewis: Here at the Fool we are all about the average retail investor, that is our audience, that is our bread and butter. That's what we do. We approach it perhaps a little differently than the more trader world of WallStreetBets. But we are long term buy and hold. We are very much about people being on the ground and understanding these businesses that they own, being invested in them and really following them. I'm curious, we have the retail investor and hedge fund story here with Money and with your book. But what about the class of investors in between, that is maybe retail but not necessarily the speculative retail? More in our lane of long term buy and hold, do you feel there are maybe takeaways for that group?
Ben Mezrich: That's a great question. I think that they're on the sidelines in this story to some extent because the volatility is so insane that you can't really think rationally in that moment. You have to think emotionally because that's how both sides were thinking. To be fair, it wasn't just retail that was being emotional. You saw Gay Plotkin double down on his short even as the stock is obviously exploding and that's essentially in one way led to his demise. I think that there's emotions on both sides. I think if you're taking the stance that the fundamentals matter, let's find something to hold for the long term, you have to look at a much longer window and not be frightened by these little things that go on in between. But then again, I think you're going to lose out on a lot of things too, if you're not paying attention to the emotion of the moment. But I do think things are changing. I think that you need to work the irrationality into your models. You need to work social media into your models. The idea that something can catch and it's not really going to be relevant how much money the company makes if they either piss off the retail trader or that the retail trader falls in love with them.
Dylan Lewis: I think it has to be something that we process and are used to ingesting, even if it's not something that we are participating in as part of the wave.
Ben Mezrich: Exactly, I think so. Listen, participating in the wave can be very dangerous. You need to get in at the right time and get out at the right time. I, myself was watching this whole thing happen and writing about it as it happened. But I was terrified to actually buy GameStop until I did end up dabble in and out. But it was hard to pick. You can never pick the top and you can never pick the bottom of something like this. It's nearly impossible to do. You either find something that you fall in love with, which is what Roaring Kitty did, buy it and hold, which is what he did. He still holds, supposedly. That's a probably better way to face GameStop, is buy it in the beginning and sit on it, although it's all the way back down at 17 now. But the idea is at least you can be comfortable that you didn't jump in and out, just trying to make a book that you found something you liked. I don't know. I think falling in love with the stock is a good thing. Not a bad thing as long as you can live with it.
Dylan Lewis: The book published in 2021, the movies now coming out in 2023. Is there anything in the years between that you would have loved to have been able to talk about and bring into the book? Because this was a story that was moving so quickly and developing so quickly.
Ben Mezrich: That's a great question. I think that some stuff came out afterwards about Ken Griffin and Robin Hood in the mystery that went on there. When Robin Hood got rid of the buy button for a little while and destroyed and crater the stock, it could have made a good epilogue. I don't know how much you can say in a book with Ken Griffin rumbling around as the villain. [laughs] You have to be a little careful. But I think there's a little bit to go into there. A lot of game stop. People are still very much believing that the thing is still to happen. That it was the sneeze and not the squeeze. I think there's something very interesting about that part of the story. You could go into in a chapter for sure and see whether there's reality to that or not. It's very heated. It's incredibly heated discussion, but it would be fun to a look at that and see where that leads. It's a rabbit hole that I don't know where it goes. Yeah, I think I could get into that stuff for sure in a chapter or two afterwards, but I like people to talk about. I think that to me, there's something about an origin story, the social network is a perfect example. Most of the Facebook story happened after the social network. The social network is just that first year. Just like if you watch the Marvel movies, most of Wolverine's story happens after the movie Wolverine. You don't tell that story because later on he joins the X Men. You want to tell the origin of something and I think that Dumb Money is the origin of the mean stock movement and the social network is the origin of social media, really. That's my goal, to tell the origin story.
Dylan Lewis: Dumb money is in theaters beginning September 15, and Ben Mezrich's, next one, Breaking Twitter is out this fall. No need for speculation. We'll be having him back when it hits shelves. Coming up after the break, Bill Mann and Jason Moser returned with a couple of stocks on their radar. Stay right here, you are listening to Motley Fool Money.
Dylan Lewis: As always, people on the program may have interest in the stocks they talk about, and Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Dylan Lewis, joined again by Bill Mann and Jason Moser. We've got stocks on our radar coming up in a minute. But before that, we were talking airlines early in the show, gentlemen. It's not all bad news in the friendly skies, at least if you are Delta Airlines, the company announced that seven times Super Bowl winner and goat, Tom Brady will be a strategic advisor to Delta. He will be working with Delta's employees on on-boarding cultural familiarity and immersion. Bill, could you imagine a first day orientation pep talk from TB?
Bill Mann: I know where their profit warning just came from. [laughs] The talk would go something like this, "Look, most of the money in this room is right here. But I need you to do your job better." I don't know what he's going to say.
Dylan Lewis: I've seen him on the sidelines. He gets hot.
Jason Moser: The first thing that came to mind here, do you remember that episode of The Office? Dunder Mifflin getting acquired by Sabre. They show that little video of touring the Saber campus and out of nowhere there's Christian Slater and he starts talking about the merits and the values and virtues of Sabre. He has that line, "Have you ever tasted a rainbow? At Sabre, you will".
Dylan Lewis: That's pretty good. I think if you're looking for ties and maybe how this makes sense. Brady's mother worked as a flight attendant, so he has a soft spot in his heart for the airlines, which I think is interesting. It's a good tie. It's a little thin. To me, it's not as on the money as Amazon Prime Studios linking up with Coach Prime, Deon Sanders, for a docu-series about Colorado football. I'm curious, Jason, if you were to link up a celebrity with company, wave a magic wand and make it happen, what are you doing?
Jason Moser: My mind immediately goes to golf, just because I've played golf all my life and Chipotle is a close second there. My two worlds came together recently when Viktor Hovland, a Norwegian professional golfer, recently won the Tour Championship at East Lake and in Atlanta. After he won, you saw him wandering around the grounds. He's just sitting there munching on Chipotle chips in guacamole. There are like videos all over Twitter and social media with him doing this. It's just like it's an ongoing ad for Chipotle and if you watch interviews with Viktor, you see very quickly like he's got his wits about him. He's a long-term-thinking kind of guy. I bet you he's a pretty good investor. I think tying up Viktor with Chipotle would be a pretty good move.
Dylan Lewis: You're telling me they couldn't write something with On The Green and avocados and guacamole, come on.
Bill Mann: You're writing it right now.
Dylan Lewis: You're welcome.
Bill Mann: Give us a call.
Dylan Lewis: Bill. What about you?
Bill Mann: Man, I feel like Timberland needs to be doing Timberland.
Dylan Lewis: How has that not happened?
Bill Mann: How is that not happening?
Jason Moser: He did it for them.
Dylan Lewis: You got to love that. Let's get over to the stocks on our radar. Our man behind the glass, Rick Engdahl, is going to hit you with a question. Bill, you're up first, what are you looking at this week?
Bill Mann: My company is Charles Schwab. Talk to Chuck. Charles Schwab, over this last week has completed its merger. Well, it bought TD Ameritrade a couple of years ago, but it has finished the merger of the customer experience. If you had a TD Ameritrade account, you now have a Schwab account and as always happens, a lot of times you have either individuals or businesses who move their accounts at that point and it's a normal attrition, but we're about to find out what that level of attrition is going to be. Schwab is a company that I really admire, but when you ever you have a change like this, it's hard to track.
Dylan Lewis: Rick, a question about Chuck?
Rick Engdahl: Yeah, I had a TD Ameritrade account and I had a Schwab account. Now, I have more Schwab accounts. I don't really care. Why would people leave?
Bill Mann: Well, I appreciate that, but a lot of times advisors will leave because of margin rates or because of services they get with one broker or another, and there may be things that they got from TD Ameritrade that Schwab is not going to provide. To me, that is a little bit of who's holding the conch shell.
Dylan Lewis: Well, it's an interesting point because we generally think of brokerages as being incredibly sticky Bill, and the switching costs being pretty high. But are you saying it's more of a concern for people who maybe manage other people's money than the retail investor or the average investor?
Bill Mann: Yeah, I think so. If you think about it, yes, they are very sticky until you're given an excuse to pay attention and maybe to change your mind. Schwab has this built into their model. When they bought TD Ameritrade, they knew at some point there'd be a migration and they also knew at some point that there would be an attrition of some level of accounts. But it is very important, especially given the year that Schwab has had. If you remember, Schwab was one of the banks that was pointed to in the aftermath of Silicon Valley as being under stress. I thought that was overstated by a lot, but it was out there, and so Schwab has not had a great year so it's a very interesting time for them to be doing this transition.
Dylan Lewis: Jason, what do you have in your radar this week?
Jason Moser: Yeah. Taking a look at PayPal, ticker PYPL, the disdain for this company right now is palpable, everybody hates it. I would say that's partly deserved. I also don't think it's something that lasts forever. At the end of the day it's still a business of 431 million active accounts that saw 6.1 billion payment transactions last quarter, representing 10% growth from the previous year. But we saw this week it's expanding its relationship with Uber. That's a great thing. Any time you're getting in deeper with Uber, I think because that's another tremendous network and Uber will continue to leverage that PayPal Braintree platform to expand things like debit network, routing value-added services, the hyper wallet solution and whatnot. They're launching combined incentives with the Uber 1, which I think is a smart move as well. Uber is becoming more and more of a commerce app and I think PayPal becoming more and more a part of that is not a bad thing at all.
Dylan Lewis: Rick, a question about Paypal.
Rick Engdahl: Yeah. Paypal owns Venmo.
Dylan Lewis: Correct.
Rick Engdahl: Venmo is a sleek little app that everybody uses. But Paypal itself still looks Y2K. Why is that?
Jason Moser: Well, I think that's one of those unforced errors. They had this mindset not too terribly long ago to go into that super app mode and try to become all things to all people. I think that took a little bit away from the innovation of the Paypal platform. It'll be interesting to see how this new CEO stepping in decides to approach that problem.
Dylan Lewis: All right Rick. You got two very different companies here. Which one is going on your watch list this week?
Rick Engdahl: Neither one really. There are two foreign companies to me.
Dylan Lewis: You got to pick one. I'm going to put you on the spot. You got to pick one.
Rick Engdahl: I'll pick Schwab.
Dylan Lewis: He's talking to Chuck. Rick. I always appreciate you weighing in on our radar stocks. Bill, Jason, always appreciate you guys coming on the show and bringing it every single week that's going to do it for this week's Motley Fool Money Radio show. Show is mixed by Rick Engdahl. I'm Dylan Lewis. Thank you for listening. Catch you next time.
Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Bill Mann has positions in Alphabet and Charles Schwab. Dylan Lewis has no position in any of the stocks mentioned. Jason Moser has positions in Alphabet, Apple, Chipotle Mexican Grill, and PayPal. Rick Engdahl has positions in Alphabet, Apple, Chipotle Mexican Grill, Netflix, Nvidia, and PayPal. The Motley Fool has positions in and recommends Alphabet, Apple, Chipotle Mexican Grill, Netflix, Nvidia, and PayPal. The Motley Fool recommends Charles Schwab, Delta Air Lines, and Verizon Communications and recommends the following options: short December 2023 $67.50 puts on PayPal and short September 2023 $47.50 puts on Charles Schwab. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss: How oil at $90 is and isn't an inflationary pressure. If we do see consumer spending tighten up and while it's become a little bit less quick to come out, that may be something Jason has started to affect the interest and demand for Apple's latest iPhone line. Dylan Lewis: As always, people on the program may have interest in the stocks they talk about, and Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear.
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss: How oil at $90 is and isn't an inflationary pressure. The Motley Fool has positions in and recommends Alphabet, Apple, Chipotle Mexican Grill, Netflix, Nvidia, and PayPal. The Motley Fool recommends Charles Schwab, Delta Air Lines, and Verizon Communications and recommends the following options: short December 2023 $67.50 puts on PayPal and short September 2023 $47.50 puts on Charles Schwab.
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss: How oil at $90 is and isn't an inflationary pressure. I'm Dylan Lewis, joined in studio by Bill Mann and Jason Moser. I'm Dylan Lewis, joined again by Bill Mann and Jason Moser.
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Now, of course, that makes my phone bill a little bit better, I don't mind that at all. Dylan Lewis: It's a good thing to remember there, Bill. Bill Mann, Jason Moser, we're going to see you guys a little bit later in the show.
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2023-09-22 00:00:00 UTC
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Apple's Superpower? It's About the Ecosystem.
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https://www.nasdaq.com/articles/apples-superpower-its-about-the-ecosystem.
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Apple's (NASDAQ: AAPL) success as a company today is less about one product and more about how the ecosystem drives everything from accessories to services revenue. In this video, Travis Hoium highlights the numbers.
*Stock prices used were end-of-day prices of Sept. 15, 2023. The video was published on Sept. 18, 2023.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of September 18, 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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Apple's (NASDAQ: AAPL) success as a company today is less about one product and more about how the ecosystem drives everything from accessories to services revenue. Find out why Apple is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple's (NASDAQ: AAPL) success as a company today is less about one product and more about how the ecosystem drives everything from accessories to services revenue. In this video, Travis Hoium highlights the numbers. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple's (NASDAQ: AAPL) success as a company today is less about one product and more about how the ecosystem drives everything from accessories to services revenue. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of September 18, 2023 Travis Hoium has positions in Apple.
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Apple's (NASDAQ: AAPL) success as a company today is less about one product and more about how the ecosystem drives everything from accessories to services revenue. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple.
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13503.0
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2023-09-22 00:00:00 UTC
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Here's How Nvidia, Apple, and Microsoft Could Pay You $1,000 Per Year in Dividend Income
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https://www.nasdaq.com/articles/heres-how-nvidia-apple-and-microsoft-could-pay-you-%241000-per-year-in-dividend-income
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Most investors classify Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) as growth stocks, and for very good reason:
Since Nvidia was listed on the public markets in 1999, it has gained roughly 176,000%.
Apple stock has fared even better, gaining roughly 178,000% since its initial public offering (IPO) in 1980.
But Microsoft stock crushes both of them, delivering a whopping return of roughly 451,000% since its public listing in 1986.
Had you invested $1,000 in any of those stocks at the date of their IPO and held on, you'd be a millionaire today. And the growth hasn't stopped, because shares of Nvidia have rocketed 195% this year alone on the back of the artificial intelligence (AI) wave.
All three stocks also pay a dividend. Their yield (or annual percentage return) is relatively small, which is why they get overlooked as income producers. But that doesn't mean investors can't earn some extra money while they enjoy the fruits of these growth stories.
Below, I'll explain how you can earn $1,000 in dividend income each year by owning shares of Nvidia, Apple, and Microsoft.
All three companies are supported by rock-solid fundamentals
In order to pay investors a regular dividend, companies must first generate consistent profits. Nvidia, Microsoft, and Apple tick that box thanks to their focus on innovation, which has spurred strong demand for their products and services for decades.
Nvidia has captured the spotlight in 2023 on the back of its dominant position in the market for AI data center chips. The company's H100 graphics chip is designed to accelerate the development and training of AI models, and tech companies are clamoring to get their hands on as many as they can.
In the recent fiscal 2024 second quarter (ended July 30), Nvidia's data center revenue rocketed 171% year over year. And since the AI industry is still in its infancy, that might simply be a preview of things to come.
Microsoft is possibly the most diverse technology company in the world. It has a globally recognized software business led by its Windows operating system, and it produces a line of popular personal computers and devices. The company is also home to the Xbox gaming brand and Azure, which is the world's second-largest cloud computing platform for businesses.
In 2023, however, Microsoft has aggressively pursued AI through in-house development combined with investments in leading start-ups like ChatGPT developer OpenAI.
Apple was once considered a direct competitor to Microsoft, but the two companies have diverged. While Microsoft expanded into new businesses, Apple has always remained laser-focused on consumer products.
Its iPhone is the most popular smartphone in the world, and its Mac line of computers and notebooks has set the benchmark for quality in the PC industry. Today, Apple is the largest company on the planet with a $2.8 trillion market capitalization.
In the most recent quarter, the three tech companies earned a combined $46.1 billion in net income, which leaves them with plenty of cash to pay dividends.
How you can earn $1,000 a year by owning all three stocks
Income and growth don't always go hand in hand. For example, stocks that pay a high dividend yield typically won't offer explosive capital growth (banks and real estate investment trusts are good examples). On the flip side, fast-growing stocks like Nvidia, Apple, and Microsoft tend to offer much lower dividend yields.
Why? Because the tech sector moves at a faster pace than banking or real estate. Therefore, those three companies usually reinvest their excess capital back into their operations to fuel more growth, rather than returning it to shareholders. Nevertheless, below are the current dividend yields for the tech trio:
Nvidia pays shareholders a dividend of $0.04 per share each quarter, which equates to an annual yield of 0.036%. (Yes, that's a really low yield.)
Apple tends to increase its dividend each year, and it currently stands at $0.24 per quarter, which represents an annual yield of 0.55%.
Microsoft also raises its dividend around once per year, and the current payout is $0.68 per quarter, which is equivalent to an annual yield of 0.82%.
It's important to remember those yields fluctuate as the stock price of each company changes. For example, Nvidia's yield is extremely low because its stock has tripled in value this year, meaning a dividend of $0.04 per share represents a smaller percentage of its stock price.
Based on current prices, if you wanted to split a sum of money equally among shares of Nvidia, Apple, and Microsoft, you would earn a blended dividend yield of 0.47%. That means you would have to deploy $213,372 to earn $1,000 in dividend income per year.
I know what you're thinking: That's a massive outlay for very little income. But remember, as I mentioned at the top, what these tech giants lack in income production, they make up for in capital growth.
Past performance isn't a good indicator of future performance, but all three stocks are supported by robust long-term fundamentals. Therefore, consider the dividend payments as a bonus on top of what could be strong capital growth from each stock in the coming years.
10 stocks we like better than Nvidia
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia 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
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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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Most investors classify Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) as growth stocks, and for very good reason: Since Nvidia was listed on the public markets in 1999, it has gained roughly 176,000%. It has a globally recognized software business led by its Windows operating system, and it produces a line of popular personal computers and devices. In the most recent quarter, the three tech companies earned a combined $46.1 billion in net income, which leaves them with plenty of cash to pay dividends.
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Most investors classify Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) as growth stocks, and for very good reason: Since Nvidia was listed on the public markets in 1999, it has gained roughly 176,000%. For example, stocks that pay a high dividend yield typically won't offer explosive capital growth (banks and real estate investment trusts are good examples). For example, Nvidia's yield is extremely low because its stock has tripled in value this year, meaning a dividend of $0.04 per share represents a smaller percentage of its stock price.
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Most investors classify Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) as growth stocks, and for very good reason: Since Nvidia was listed on the public markets in 1999, it has gained roughly 176,000%. Nevertheless, below are the current dividend yields for the tech trio: Nvidia pays shareholders a dividend of $0.04 per share each quarter, which equates to an annual yield of 0.036%. For example, Nvidia's yield is extremely low because its stock has tripled in value this year, meaning a dividend of $0.04 per share represents a smaller percentage of its stock price.
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Most investors classify Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT) as growth stocks, and for very good reason: Since Nvidia was listed on the public markets in 1999, it has gained roughly 176,000%. All three stocks also pay a dividend. For example, Nvidia's yield is extremely low because its stock has tripled in value this year, meaning a dividend of $0.04 per share represents a smaller percentage of its stock price.
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13504.0
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2023-09-22 00:00:00 UTC
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Technology Sector Update for 09/22/2023: COHR, INTC, AAPL, MSFT, ATVI
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https://www.nasdaq.com/articles/technology-sector-update-for-09-22-2023%3A-cohr-intc-aapl-msft-atvi
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Tech stocks were advancing late Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index adding 1.1%.
In company news, Coherent (COHR) attracted investment interest in its silicon-carbide business from four Japanese conglomerates, Reuters reported Friday. Its shares jumped 8.4%.
Intel (INTC) has been fined 376.4 million euros ($400.9 million) by the European Commission for anticompetitive practices in the computer chip market, the EU regulator said Friday. Intel shares were down 1%.
Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Apple shares rose 0.6%.
Microsoft's (MSFT) restructured merger deal with Activision Blizzard (ATVI) "substantially addresses" the UK's Competition and Markets Authority's previous cloud-gaming concerns, the regulator said Friday. Microsoft was down 0.6% and Activision rose 1.7%.
The views and 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) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Tech stocks were advancing late Friday afternoon with the Technology Select Sector SPDR Fund (XLK) rising 0.5% and the Philadelphia Semiconductor index adding 1.1%. In company news, Coherent (COHR) attracted investment interest in its silicon-carbide business from four Japanese conglomerates, Reuters reported Friday.
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Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Intel shares were down 1%. Apple shares rose 0.6%.
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Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Intel (INTC) has been fined 376.4 million euros ($400.9 million) by the European Commission for anticompetitive practices in the computer chip market, the EU regulator said Friday. Microsoft's (MSFT) restructured merger deal with Activision Blizzard (ATVI) "substantially addresses" the UK's Competition and Markets Authority's previous cloud-gaming concerns, the regulator said Friday.
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Apple (AAPL) launched the iPhone 15 Friday, with demand for the newest edition to the company's lineup likely to be more than 10% higher from the iPhone 14, according to analysis from Wedbush. Intel shares were down 1%. Apple shares rose 0.6%.
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13505.0
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2023-09-22 00:00:00 UTC
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Qualcomm (QCOM) at Crossroads in China: Should Investors Fret?
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https://www.nasdaq.com/articles/qualcomm-qcom-at-crossroads-in-china%3A-should-investors-fret
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Over the past few weeks, Qualcomm Incorporated QCOM shares have been skidding as concerns regarding China refuse to subside. With one of the biggest footprints in the communist nation by a U.S.-based firm, the market uncertainties seem to be taking a toll on its stock-market performance. 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.
This, in turn, is believed to have led to a tit-for-tat action against Apple Inc. AAPL, with various media reports claiming a purported move by Beijing 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.
The impact is further likely to be compounded by the fact that Qualcomm recently entered into a multi-year agreement with Apple to supply Snapdragon 5G Modem-RF systems for all the upcoming iPhone models.
Amid such adversities, Qualcomm is reportedly undertaking job cuts and retrenchments to sustain its business. 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.
However, China-based firms like Honor have vouched to continue procuring core chips from Qualcomm despite nationalist calls to support domestic manufacturers. It stated that QCOM chips enable efficient optimization of Honor handsets and enrich its performance standards. Moreover, it has historically supplied older-generation 4G chips to Huawei, which are believed to be safe and do not jeopardize national security interests. Consequently, the company is likely to avoid any penal action by the U.S. Commerce Department regarding any wrongdoings that harm the safety and integrity of the nation.
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 strike the right chords in the near future.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This, in turn, is believed to have led to a tit-for-tat action against Apple Inc. AAPL, with various media reports claiming a purported move by Beijing 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. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Qualcomm modems have been a key feature in iPhone models, connecting the device to cellular networks for fast web browsing and instant app access.
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This, in turn, is believed to have led to a tit-for-tat action against Apple Inc. AAPL, with various media reports claiming a purported move by Beijing 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. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. 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.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This, in turn, is believed to have led to a tit-for-tat action against Apple Inc. AAPL, with various media reports claiming a purported move by Beijing 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. 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.
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Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. This, in turn, is believed to have led to a tit-for-tat action against Apple Inc. AAPL, with various media reports claiming a purported move by Beijing 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 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.
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2023-09-22 00:00:00 UTC
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Apple's flagship Shanghai store buzzes as iPhone 15 goes on sale
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https://www.nasdaq.com/articles/apples-flagship-shanghai-store-buzzes-as-iphone-15-goes-on-sale
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By Nicoco Chan and Yelin Mo
SHANGHAI/BEIJING, Sept 22 (Reuters) - Over a hundred customers queued inside Apple's AAPL.O flagship store in the Chinese financial hub of Shanghai on Friday, waiting to pick up their iPhone 15 orders on the first day of in-store availability.
How Apple's latest iPhone sells in China is under close scrutiny by fans and market watchers alike, after widening curbs on iPhone use by government staff and the release of a high-end rival from domestic manufacturer Huawei HWT.UL sparked concern about demand for the device in its third-largest market.
But the strength of pre-orders in the world's second-largest economy, which began last Friday, has eased worries, with delivery times pushed into November and the premium iPhone 15 Pro and Pro Max selling out in just one minute on Alibaba's 9988.HK Tmall e-commerce site.
Local media reported the queue at the store on Shanghai's East Nanjing road shopping belt started forming at 5 a.m. (1000 GMT).
Among those at the store was social media influencer Zhang Ming, 25, who said she wanted to try out the iPhone 15 after being unsuccessful in pre-ordering online.
"I always like to look (at the new devices). When I buy Apple products I only look at the colour. If I like the colour I will buy it," she said.
The iPhone 15 includes a new titanium shell, a faster chip and improved videogame-playing abilities. Apple also surprised by not raising prices, reflecting the global smartphone slump.
But some customers at the store lamented the lack of significant upgrades from the previous model. Real estate worker Wang Puyu, 29, said he was only purchasing a new model because he had promised to give his iPhone 14 to his nephew.
"I normally upgrade every year. But this year, I am not very satisfied."
(Reporting by Nicoco Chan in Shanghai and Yelin Mo in Beijing; Additional reporting by Shanghai newsroom; Editing by Brenda Goh and Christopher Cushing)
((yelin.mo@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 Nicoco Chan and Yelin Mo SHANGHAI/BEIJING, Sept 22 (Reuters) - Over a hundred customers queued inside Apple's AAPL.O flagship store in the Chinese financial hub of Shanghai on Friday, waiting to pick up their iPhone 15 orders on the first day of in-store availability. How Apple's latest iPhone sells in China is under close scrutiny by fans and market watchers alike, after widening curbs on iPhone use by government staff and the release of a high-end rival from domestic manufacturer Huawei HWT.UL sparked concern about demand for the device in its third-largest market. Local media reported the queue at the store on Shanghai's East Nanjing road shopping belt started forming at 5 a.m. (1000 GMT).
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By Nicoco Chan and Yelin Mo SHANGHAI/BEIJING, Sept 22 (Reuters) - Over a hundred customers queued inside Apple's AAPL.O flagship store in the Chinese financial hub of Shanghai on Friday, waiting to pick up their iPhone 15 orders on the first day of in-store availability. But the strength of pre-orders in the world's second-largest economy, which began last Friday, has eased worries, with delivery times pushed into November and the premium iPhone 15 Pro and Pro Max selling out in just one minute on Alibaba's 9988.HK Tmall e-commerce site. (Reporting by Nicoco Chan in Shanghai and Yelin Mo in Beijing; Additional reporting by Shanghai newsroom; Editing by Brenda Goh and Christopher Cushing) ((yelin.mo@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 Nicoco Chan and Yelin Mo SHANGHAI/BEIJING, Sept 22 (Reuters) - Over a hundred customers queued inside Apple's AAPL.O flagship store in the Chinese financial hub of Shanghai on Friday, waiting to pick up their iPhone 15 orders on the first day of in-store availability. How Apple's latest iPhone sells in China is under close scrutiny by fans and market watchers alike, after widening curbs on iPhone use by government staff and the release of a high-end rival from domestic manufacturer Huawei HWT.UL sparked concern about demand for the device in its third-largest market. (Reporting by Nicoco Chan in Shanghai and Yelin Mo in Beijing; Additional reporting by Shanghai newsroom; Editing by Brenda Goh and Christopher Cushing) ((yelin.mo@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 Nicoco Chan and Yelin Mo SHANGHAI/BEIJING, Sept 22 (Reuters) - Over a hundred customers queued inside Apple's AAPL.O flagship store in the Chinese financial hub of Shanghai on Friday, waiting to pick up their iPhone 15 orders on the first day of in-store availability. How Apple's latest iPhone sells in China is under close scrutiny by fans and market watchers alike, after widening curbs on iPhone use by government staff and the release of a high-end rival from domestic manufacturer Huawei HWT.UL sparked concern about demand for the device in its third-largest market. "I normally upgrade every year.
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2023-09-22 00:00:00 UTC
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Apple's Latest Event and the Fundamentals of Reinsurance
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https://www.nasdaq.com/articles/apples-latest-event-and-the-fundamentals-of-reinsurance
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In this podcast, Motley Fool analysts Tim Beyers and Bill Mann, along with hosts Dylan Lewis and Ricky Mulvey, discuss:
Apple's fall update and details on the iPhone 15 and 15 Plus.
The promise of Vision Pro headsets.
The fundamentals of reinsurance and one misconception about Florida's home insurance woes.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of September 18, 2023
This video was recorded on Sept. 13, 2023
Dylan Lewis: Another fall, another iPhone launch, Motley Fool Money starts now. I'm Dylan Lewis and I'm joined with the airwaves by Motley Fool Analyst, Tim Beyers. Tim, thanks for joining me.
Tim Beyers: Thanks, Dyl. Fully caffeinated, ready to go more iPhones as usual.
Dylan Lewis: It's just the steady march and the constant truth of tech. There will always be more iPhones Tim. We are talking today about the iPhone unveiling, which happened yesterday. Another tech event this week we have Salesforce's annual Dream Forest Conference going down in San Francisco, but we're going to start with a regularly scheduled hardware update. We got to look at the iPhone 15 and the iPhone 15 plus yesterday, that took a lot of the headlines Tim, with this Apple event, when you start digging into some of the details for these phones, what sticks out to you?
Tim Beyers: I'll go under the hood first here because I think a lot of things that we see in the iPhones, they are incremental awesomeness, if we want to be honest. The improved cameras, the better battery life, the increased processing power, but I'll say Apple should get more credit for how much work it does in silicon and building incredibly powerful chips. I think this is a heck of an advertisement, Dylan, for the Arm IPO, because whether you realize it or not, Apple builds its newest silicon. In this case, when we're talking about the newer iPhones, the bionic chips on top of the Arm platform that's highly power efficient, has a long history of being a platform of significance for mobile devices. Apple has taken full advantage of that and done a lot of their own engineering to make incredible chip sets. A lot of the things that we're seeing in the all of the iPhone 15 models, Dylan are going to be based on that A16 bionic chip. There's a lot of stuff in here. What they said was two high performance cores that use 20% less power four high efficiency cores. There's a six core CPU, that's a lot of compute power. There's a five core graphics processing unit that has 50% more memory. That's for streaming, that's for gaming. Then you have a 16 core neural engine, for computing up to, this is what Apple says. I'm quoting from the press release here, 17 trillion operations per second. That's a lot, Dylan.
Dylan Lewis: That sounds like a lot [laughs].
Tim Beyers: The silicon is very impressive here. I think Arm has to be very happy to see this announcement coming out.
Dylan Lewis: I love that we had an Arm discussion earlier this week on Motley Fool Money. If you want a little bit of a mini dive into that company, check out the episode from earlier this week we have that there. Tim looking at the details, you mentioned the incremental innovation, and I am someone who currently has an iPhone XR or 10R, however you want to say it, whatever your nomenclature is. I feel like every year the details feel incremental in what we get with these phones, but if you've been sitting on the sidelines using the same tech for a couple years, all of a sudden the new phone looks like a spaceship. I was looking at what we had here compared to what I have in my pocket and saying this looks like a much more powerful device. Looks like some heavy investments in cameras. You start to see that separate a little bit year to year over a three or five-year period.
Tim Beyers: There's no doubt, and this is not a contest. I'm not trying to one up you here, Dylan, but I have the original iPhone SE. I can't even upgrade to IOS 16, let alone IOS 17, which is what they rolled out here during the conference, but it's a very good phone, it does the work. It's very old, but if it looks like a spaceship to you with your iPhone 10 design it must look like an alien world to me if I get a chance to see this thing, but you're right. Incremental innovations do add up, and I think the basics. When you're talking about a mobile device, it is important to remember that the basics really do matter. There are some basics that are fundamental to a mobile device like an iPhone, a great camera, a highly efficient battery, so that you don't have to carry around a power brick, which I'll admit this, I have to do that. I have to run my iPhone on battery saving mode all the time, because the battery is essentially dead, but I'm not replacing it because it's still a really great phone, but these things are important, and every new iteration, Apple makes improvements to make that camera just a little bit better, to improve the software to increase things like error correction resolution, giving you more options as you use that camera. It is amazing what these little tweaks add up to over the course of generations. People will upgrade to them because they do like the way that it feels in the hand, the things that they can do with it. It doesn't take too many generations to feel like it's a seismic upgrade from let's just say like the iPhone 12 to the 15. The population of iPhones out there is big enough that these incremental upgrades do become meaningful to a subset of these populations. For Apple, I expect us to be driving revenue and earnings for quite some time.
Dylan Lewis: I think while you might be sitting on the sidelines very happy with an older phone, there are probably going to be some people that are tempted to upgrade based on what we've seen here and the pricing details here Tim. iPhone 15 starts at just under $800 goes up to $1,100 The iPhone 15 plus starts at $900 up to $1,200. There's going to be some money in it for Apple. We pay attention to this because it is the big portion of the top line, it's about half the revenue. It's nice to hear that you feel like there's a solid foundation for the company's meal ticket product.
Tim Beyers: There's no doubt in my mind. I recognize I'm the outlier here, Dylan. Honestly, but there are tens of millions of mobile device users. This is common now. Just try to take somebody's mobile device, whether you're talking Android or IOS, it doesn't matter, but just try to take somebody's mobile device for 24 hours. Just strip that away from them and see how they react. I guarantee you they will be more angry, more frustrated, more annoying to be around, because it's an extra appendage. It really is, and because it is a new habit that has resulted in many years ago, the coining of the term Paradigm shift. The introduction of a mobile device, a computer in our pocket that we use as a daily companion, like a co-pilot, that's a paradigm shift we are not moving away from. We can continue to service that market over a long period of time, Apple can continue to service that market. I do think this is something that we can look forward to. There's no pressure, let me put it this way, there is no pressure on Apple to introduce massive breakthroughs, but one thing they don't want to do is introduce something that would break the habit. They wanted to feel familiar, they wanted to feel comfortable, and they wanted to feel powerful and attractive. Those are the things that matter. A giant breakthrough isn't necessarily what you want. What you want is a better version of the familiar, if that makes sense.
Dylan Lewis: I think it does. I do want to move us from the iPhone discussion to some of the other things they unveiled because iPhone got a lot of headlines, but we also, I think, got a glimpse at how iPhone could play into some of the company's other product ambitions. One of the things that jumped out to me Tim was buried in the features for the new iPhone pro was the ability to record three 3D spatial video, which can be later viewed on the company's Vision Pro headsets which will be arriving in 2024. I feel like we've all been wondering what these vision pro headsets, it's like is the content ecosystem going to be there? It seems like Apple's may be saying we're going to put you in a spot where you can contribute to that content ecosystem.
Tim Beyers: Everybody is part of Ready Player One now.
Dylan Lewis: That's right.
Tim Beyers: That's where we are instead of one master creator. So for those who don't know, and I actually, I'd never seen Ready Player One, Dylan. But it's a popular science fiction book that was made into a movie in 2018. The idea was the creator of a metaverse has died and has introduced a contest and the contest is to take over that metaverse and be the new master of the metaverse domain. So it's a big, messy race to see who ultimately wins this and it's a good versus evil battle and all this thing. But it's a metaverse, and so in this particular case, you're right. Like we don't know what the world that the Vision Pro, which is still to come in 2024 will introduce us to. Apple has said, hey, why don't you tell us so you can map out the world that maybe you want to see inside of the Vision Pro when it does come out. I think that is brilliant. There are a lot of companies that have profited from user generated content. This is a way for Apple to get into the user generated content style. It's not specific. You may be recording things that are in the real world and maybe putting your own spin on it. I don't know exactly how this is going to work. But it does feel like a little bit of UGC. We all know the company that has profited from this more than any other and its Youtube. So this is Apple doing a little judo, taking a page out of the Youtube playbook and maybe create seeding a little ground, let's call it for the Vision Pro when it comes out. Already Beta testers are giving the Vision Pro some really good reviews. So it'll be interesting to see, it'll be very interesting to see what it comes out with now that we've got, tens of millions of potential devices out there. World building for the vision pro before it even becomes a product alive on the market.
Dylan Lewis: Tim, you mentioned, Ready Player One. I read it on recommendation from David Gardner and it was written several years ago before the metaverse really expanded and became what we know it to be today and part of the big ambitions for big tech companies. It is worth reading, I think if you want to get a sense of what this world could look like, extended out a little bit and imagined. It is not far off, it turns out, from where some of these companies are looking to go.
Tim Beyers: For sure. I mean, it's a fascinating idea and how much we might value things that are not real but are part of a world in which there are real stakes. Which is the message of Ready Player One. I definitely think it's worth diving into a little bit because we are entering a time when the stakes in the metaverse are getting more and more real and Apple is going to play a part of that for sure.
Dylan Lewis: How can they not, largest company in the world. They have to have a place in that. Tim, from Cupertino to San Francisco, there's another big tech event this week. Salesforce has their annual DreamForce conference and that kicked off on Monday. It is being billed on the event page and in materials as the AI event of the year. Do you feel like it is living up to that hype so far?
Tim Beyers: Come on. [laughs] No, of course not. But that is, that is Salesforce. If you don't hear that from Salesforce, that's when you get worried. The hyperbole is just, I mean, those are the table stakes. If you are invested in or following Salesforce, you know you're going to get the hyperbole. If you don't get it, that's when you start scratching your head. You know that's what's coming and then you decide, OK, I know what they've told me, but what's really going on here? So it's definitely not living up to the AI event of the year. No, that would be insane to say that, because there's so much AI hype that I don't think you can really distinguish. However, there are interesting things that Salesforce is doing. And the primary thing that I think is interesting is they have talked up the Einstein AI platform, which has been around for a while. The Einstein platform has been around. So that's not new. What is new is that they're talking up Einstein AI as a multi layered platform that has a data cloud attached to it. There are some interesting integrations that they're talking up with both snowflake and data bricks. In other words, your customers live across and your customer data lives across a huge number of applications. What if you could use AI to rationalize all that data and then be able to query it and get real insight and do real meaningful things with it.
So creating this highly integrated data cloud does make some sense and those partnerships might have some legs. So I thought that was interesting, Dylan. Then on the other part of it, on the front end of it they talked about a thing called the Einstein AI co pilot which this is something that you know, for those who follow this weekend text show that I do with Tim White. Tim and I have been talking about this for a long time. The idea that the ideal use case for AI is as a co pilot to you do a thing, and then the AI helps you do the thing better by spotting errors or giving you some hints. Something to automate and accelerate the work you're doing. Not replace it, but do it with you and alongside you. So this idea of an Einstein AI co pilot I think is completely fascinating to automate and accelerate the work that you do inside the Salesforce suite. That's great. But there is one thing that's missing from it, which is it doesn't seem in the press release where they talk about this, Dylan, they mentioned slack a grand total of twice. I really expected like once you got to this co pilot type of tool, I thought that's the thing that's going to make Slack infinitely more useful, and that still may come. But I was really expecting to see that in the announcements, the rollout of this. The fact that I didn't see it makes me go, where is it?
Dylan Lewis: I'm glad you brought up Slack, Tim, because this is the 21st time that Salesforce has hosted DreamForce. It is generally when they show both what is a priority for them as a business and the current state of the tech landscape and what is the most important there. Slack was an incredibly big splashy acquisition back in 2021 and I feel like we've all been kind of waiting for some updates there to understand how it fits into Salesforce's business, how they benefit from what Salesforce can bring down to it and how it plugs in. I don't know that we've really gotten that.
Tim Beyers: Not yet. Well, I'm going to say maybe we are starting to get it, but I haven't seen any big red flashing signs that says, OK, here it is. Slack is materially improved and here are the five ways it is materially improved and what it's going to do for Salesforce. That could be coming, it could be something that's in development, it could be something we don't yet see. But I think you're right to say, I'd love to see where we're going with this. But for right now, what we see is that this was a very big acquisition. We're waiting for it to add all of the value we thought it was going to add. The fact that we're still waiting is a slight concern. But it may very well be, Dylan, that the AI strategy that Salesforce is pursuing will ultimately get us there where Salesforce is using Slack as the gateway to all of its other suite of applications. The co pilot exists with Slack first, and Slack is your entry way. If that happens, I will eat my words and say, great job, Salesforce this acquisition was absolutely worth it. But we're not seeing that yet and I really thought we were going to see a little bit more of it at DreamForce. The fact that we aren't seeing it, it just leaves me with some questions that I wish I didn't have to ask.
Dylan Lewis: There's still another day or two or content. So we'll see. But I'm with you, Tim.
Tim Beyers: We'll see.
Dylan Lewis: I'm a little impatient. That's all it is. Tim Beyers, thank you so much for helping me keep tabs on all things tech and tech events related. Always great talking to you.
Tim Beyers: Thanks, Dylan.
Dylan Lewis: Tim mentioned this week in Tech On The Show, that's his weekly program on our premium members-only livestream. If you're a Motley Fool US premium member you can access the show and the daily stream at live.fool.com. If you want to become a premium member you can learn more about our flagship products, Stock Advisor, and get a free report, five stocks under $49 for free at fool.com/report. That's right, five stocks totally free at fool.com/report. Coming up, we go from talking about Apple, one of Warren Buffett's favorite companies to another, reinsurance. Motley Fool analyst Bill Mann joins Ricky Mulvey to break down the fundamentals and one misconception about Florida's home insurance woes.
Ricky Mulvey: Bill, you were having a conversation on the morning show which is on the Motley Fool livestream which is available to members any Motley Fool service, just a quick plug there. About property and casualty insurance and I thought it was interesting so I want to talk about our Motley Fool money.
Bill Mann: You're the one who thought it was interesting.
Ricky Mulvey: I'm serious, because though it's timely you got the storms and hurricanes in Florida, you have insurers leaving the state. It's going to be a big deal even if it seems a little boring on the surface. We're going to make it interesting, hopefully. I guess I can't promise that but we'll try.
Bill Mann: Send emails too.
Ricky Mulvey: Podcasts@fool.com. Podcasts with an S at fool.com. I guess now I can just lead on you. Can you explain how property and casualty insurance generally works before getting to the Florida stuff?
Bill Mann: Yeah, so we can talk about the structure a little bit. A lot of people tend to think of property and casualty insurance companies as being really worried about claims. Obviously, in the continuum of pay money out and not pay money out, they'd rather not pay money out. But the way that the insurance companies work is a type of balance where they're trying to find risks across geographies, across types of claims, across types of properties, and they have a very broad set of risks that they are facing. That's the front line of the property and casualty insurance. Are we holding up, are you still interested?
Ricky Mulvey: I'm still interested, yeah. You're explaining the first part and then you're checking in I thought there is a second part.
Bill Mann: There is a second and a third part, which is this. When big claims come in, and they usually come in the form of natural disasters, you have hurricanes, earthquakes, tornadoes, will sometimes get to be large enough. These are things that are called super catastrophes. When you have a super catastrophe, and the super catastrophe is not determined by the weather. It's determined by the size of the overall loss from an event. When you have a catastrophe that's large enough, that's going to become a problem for the front line insurers. The front line insurers, they also have insurance, and very fancily enough that's called reinsurance.
Ricky Mulvey: One of the surprising things to me is Berkshire Hathaway, which owns GEICO. Even though they do car insurance, which may be your experience with that organization this is the bigger business for Berkshire Hathaway, the reinsurance stuff.
Bill Mann: You can think of reinsurance as being something where they don't pay it out often, but when they do pay out they pay out huge. It would work like this, a front line insurer, and let's call it Travelers just as an example. Has exposure in an area that has suffered a catastrophe of above a billion dollars. Beyond the billion dollars the reinsurance company will pay their claims for them. It's a really high hurdle but it doesn't happen very often.
Ricky Mulvey: I go to the image of picking up nickels in front of a steam roller for this?
Bill Mann: Yes, exactly right.
Ricky Mulvey: But if you can do the math right you might be able to pick up enough nickels. Then there's the other side of this which I think is now the third side, which is the reinsurance for reinsurers, which I didn't know existed until you're talking about it on the morning show.
Bill Mann: You can imagine if you have like Hurricane Ian when it hit the west coast of Florida last year caused somewhere in the range of $60 billion in damages. If you can think about a reinsurance company even one as big as Berkshire Hathaway, every dollar above that billion dollar threshold, that's money going out very quickly. They in turn want a balance and that balance comes from a reinsurance for the reinsurers, which are called retrocessionaires. Most of them that operate in the US are based in Bermuda. They will be something like anything above $20 billion in damage for a reinsurer, we've got you beyond that. It could be on a one to one basis, like you pay some, we pay some, it depends on the coverage. But for the mega super catastrophes there are the retrocessionaires. You can imagine for them they pay out almost never but when they do pay out, they pay out in huge dollar amounts.
Ricky Mulvey: See, that's weird to me. If I were to just say, "Hey, we have an organization that pays out $20 billion on an unlikely event, where do you think it's located? We're going to give you three options, Chicago, New York City, or Bermuda?" I wouldn't pick the third option.
Bill Mann: [laughs] That's right. Bermuda is the Hartford of the reinsurance world. That is, there are laws, there are reasons why so many of the reinsurance companies are based there but a lot of the retrocessionaires are based there as well.
Ricky Mulvey: Bill, what's going on in Florida?
Bill Mann: A lot of people point to the severity of damage that's happening in Florida due to climate change as being the issue, and that's probably a longer tail issue. There are two very specific issues in Florida. The first of which is that Florida has 9% of the nation's insurance policies, and 79% of the insurance lawsuits in the country. It has to do with basically a loophole that was set up that allows contractors to sue on the behalf of homeowners. It turns out when you allow them to do that, and you have a law on the books that requires the defendant to pay plaintiffs fees that becomes a pretty attractive line of business.
Ricky Mulvey: You get Pareto's principle as well.
Bill Mann: Exactly, right. It turns out if lawsuits are free then somebody's going to figure out how to sue all the time. That's a huge problem. They did pass a law this last year that should make that a little bit better but that doesn't change the structure of the industry in Florida, and they had $1.7 billion in underwriting losses last year across the insurance companies that are still there. These aren't insurance losses that can be pushed onto a reinsurer, each lawsuit is its own loss. That's one issue. The other issue in Florida is simply one of the structure of the state. Remember earlier I was talking about the balance that insurance companies have to try and hit to lay off risks from one to another. Almost all of the value of the real estate in the state of Florida is within five miles of a coast. Obviously, there's Orlando and there is Disney. But most of Florida is susceptible to storm surge which is hugely impactful and it is very high value coastline property. I frankly don't know how you solve that. There's not a mountain range in Florida where you could lay off for a different kind of risk. That's a structural issue that people have known about for a long time. But it is now really raising its head.
Ricky Mulvey: Well, the solution they've presented is basically bringing in a state backed insurer.
Bill Mann: That's right, but that's what insurer of last resort, so citizens doesn't want to be in the insurance business. I think that they are insuring about 2.7 million households now. They still require you to go out and get flood insurance on your own and I don't know if you might believe this about Florida but a lot of their damage is coming from flood instead of wind. It is not a solution that brings pricing down that much for a lot of its more vulnerable citizens of the state.
Ricky Mulvey: Just so I can have a headline for this episode it's not the fundamentals of reinsurance? Why is this one of Warren Buffett's favorite businesses?
Bill Mann: Well, because if you, and I started by saying that insurance companies and reinsurance companies are not really worried about risk payouts. I think that is something that is generally misunderstood about insurance companies. If they never paid anything out the argument would be why do we have insurance? What they are interested in is pricing risks correctly and then making sure that those risks are as uncorrelated as possible. It's all like a giant science fair experiment involving super catastrophes. They are not particularly focused on whether they have to pay. What they're focused on is when they have to pay do they have the risks priced properly so that it doesn't take the company out. It's one of those things, how they describe being an airline pilot is 99% boredom and 1% terror. That's exactly this business.
Dylan Lewis: I think I need to get you on the phone the next time I have a car insurance claim because it be good to remind them that they're not really worried about this small payout so they can just take care of it. You're worried about the big stuff. [laughs]
Bill Mann: These are not the droids you're looking for. Actually, these are the droids we're looking for.
Ricky Mulvey: This is exactly the droid and this is the check you're supposed to write so let's stop screwing around. I think that goes into your test though of basically how you determine a good versus bad insurance company.
Bill Mann: That's exactly right. Unfortunately, especially with the reinsurance companies, sometimes you find out after the fact. After Hurricane Katrina which on a inflation-adjusted basis is still the largest single event of loss ever, that actually got into the retrocessionaries. There's a very famous case of one called the PXRE Group which didn't have enough money to pay off its claims because the claims just absolutely overwhelmed it. You could say, because they poorly balanced out the risk but I think Katrina was one of those catastrophes that defined the next generation of them. But in general, for reinsurance companies, you're looking for a rather low cost to provide the insurance itself.
Dylan Lewis: As always, people in the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against so don't buy or sell anything based solely on what you hear. I'm Dylan Lewis. Thanks for listening. We'll be back tomorrow.
Bill Mann has no position in any of the stocks mentioned. Dylan Lewis has positions in Salesforce. Ricky Mulvey has no position in any of the stocks mentioned. Tim Beyers has positions in Apple and Salesforce. The Motley Fool has positions in and recommends Apple and Salesforce. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool analysts Tim Beyers and Bill Mann, along with hosts Dylan Lewis and Ricky Mulvey, discuss: Apple's fall update and details on the iPhone 15 and 15 Plus. Motley Fool analyst Bill Mann joins Ricky Mulvey to break down the fundamentals and one misconception about Florida's home insurance woes. Dylan Lewis: As always, people in the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against so don't buy or sell anything based solely on what you hear.
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In this podcast, Motley Fool analysts Tim Beyers and Bill Mann, along with hosts Dylan Lewis and Ricky Mulvey, discuss: Apple's fall update and details on the iPhone 15 and 15 Plus. *Stock Advisor returns as of September 18, 2023 This video was recorded on Sept. 13, 2023 Dylan Lewis: Another fall, another iPhone launch, Motley Fool Money starts now. Motley Fool analyst Bill Mann joins Ricky Mulvey to break down the fundamentals and one misconception about Florida's home insurance woes.
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In this podcast, Motley Fool analysts Tim Beyers and Bill Mann, along with hosts Dylan Lewis and Ricky Mulvey, discuss: Apple's fall update and details on the iPhone 15 and 15 Plus. I have to run my iPhone on battery saving mode all the time, because the battery is essentially dead, but I'm not replacing it because it's still a really great phone, but these things are important, and every new iteration, Apple makes improvements to make that camera just a little bit better, to improve the software to increase things like error correction resolution, giving you more options as you use that camera. Bill Mann: You can think of reinsurance as being something where they don't pay it out often, but when they do pay out they pay out huge.
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In this podcast, Motley Fool analysts Tim Beyers and Bill Mann, along with hosts Dylan Lewis and Ricky Mulvey, discuss: Apple's fall update and details on the iPhone 15 and 15 Plus. Bill Mann: That's right, but that's what insurer of last resort, so citizens doesn't want to be in the insurance business. Bill Mann: Well, because if you, and I started by saying that insurance companies and reinsurance companies are not really worried about risk payouts.
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13508.0
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2023-09-22 00:00:00 UTC
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Why Broadcom Stock Was on the Rebound Today
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AAPL
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https://www.nasdaq.com/articles/why-broadcom-stock-was-on-the-rebound-today
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What happened
After sliding yesterday on a report by the tech news website The Information that Broadcom (NASDAQ: AVGO) could lose Alphabet's(NASDAQ: GOOG) (NASDAQ: GOOGL) Google as a customer for its AI chips, the company's shares were bouncing back today as multiple sources pushed back on that idea.
As a result, Broadcom stock finished Friday up 2.6%, essentially recouping all of its losses from yesterday.
So what
Several Wall Street analysts questioned the notion that Google would ditch Broadcom as its tensor processing unit supplier. Truist called such a move "possible, but not likely" saying the report was more likely a price negotiation tactic and that Broadcom has substantial intellectual property and expertise.
Bank of America made a similar comment, seeing the report as "more contract negotiation rather than a major threat." The research firm also said that a similar negotiation played out between Broadcom and Apple before leading to a multiyear deal.
Reuters also reported yesterday that Google did not see any change in its relationship with Broadcom. A Google spokesperson told the news service: "Our work to meet our internal and external Cloud needs benefit from our collaboration with Broadcom. They have been an excellent partner, and we see no change in our engagement."
Now what
Investors can likely breathe a sigh of relief because Broadcom's relationship with Google appears to be safe. Truist had noted that 55% of Broadcom's AI-related revenue comes from Google, 11% of total revenue, and 8% of earnings, so the relationship is an important one for Broadcom to maintain.
The company, which might be best known for its networking solutions, is building out its position in AI, and CEO Hock Tan said in June that AI chips could account for more than a quarter of its semiconductor revenue next year.
If Broadcom can establish itself as a major player in AI, the stock seems likely to move higher, since it currently trades at a reasonable price-to-earnings ratio of 25.5.
10 stocks we like better than Broadcom
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Broadcom 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
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Bank of America and Broadcom. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Truist Financial. The Motley Fool recommends Broadcom. 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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So what Several Wall Street analysts questioned the notion that Google would ditch Broadcom as its tensor processing unit supplier. Truist called such a move "possible, but not likely" saying the report was more likely a price negotiation tactic and that Broadcom has substantial intellectual property and expertise. A Google spokesperson told the news service: "Our work to meet our internal and external Cloud needs benefit from our collaboration with Broadcom.
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What happened After sliding yesterday on a report by the tech news website The Information that Broadcom (NASDAQ: AVGO) could lose Alphabet's(NASDAQ: GOOG) (NASDAQ: GOOGL) Google as a customer for its AI chips, the company's shares were bouncing back today as multiple sources pushed back on that idea. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Truist Financial.
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What happened After sliding yesterday on a report by the tech news website The Information that Broadcom (NASDAQ: AVGO) could lose Alphabet's(NASDAQ: GOOG) (NASDAQ: GOOGL) Google as a customer for its AI chips, the company's shares were bouncing back today as multiple sources pushed back on that idea. Truist had noted that 55% of Broadcom's AI-related revenue comes from Google, 11% of total revenue, and 8% of earnings, so the relationship is an important one for Broadcom to maintain. See the 10 stocks *Stock Advisor returns as of September 18, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Reuters also reported yesterday that Google did not see any change in its relationship with Broadcom. See the 10 stocks *Stock Advisor returns as of September 18, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Truist Financial.
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13509.0
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2023-09-22 00:00:00 UTC
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Acquisition Watch: Time to Buy Microsoft (MSFT) or Activision Blizzard (ATVI) Stock?
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AAPL
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https://www.nasdaq.com/articles/acquisition-watch%3A-time-to-buy-microsoft-msft-or-activision-blizzard-atvi-stock
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In a turn of events, the United Kingdom’s Competition and Markets Authority (CMA) now views Microsoft’s MSFT restructured deal to acquire game developer Activision Blizzard ATVI as a positive for the nation's merger and acquisition sector (M&A).
This comes after the E.U. and U.S. have already approved the deal with the U.K.’s provisional decision likely to be the final nod. Today’s news of such has Activision Blizzard’s stock up roughly +2% and near Microsoft’s acquisition offer of $95 a share with the deal valued at $68.7 billion.
As for Microsoft, shares are virtually flat upon the announcement although MSFT’s +33% YTD performance has still topped ATVI’s +23% and the broader indexes.
Image Source: Zacks Investment Research
Restructured Deal
The CMA’s provisional agreement to accept Microsoft’s acquisition of Activision Blizzard is reliant upon the transfer of cloud gaming rights to UbiSoft Entertainment UBSFY which has seen its stock pop over +4% today.
Ubisoft is a French video game publisher and all of Activision Blizzard’s cloud gaming rights will be shared with the company over the next 15 years so that Microsoft can’t exclusively release the games on its Xbox Cloud.
This includes rights to the iconic Call of Duty brand, in return, Ubisoft will compensate Microsoft for the rights with a one-time payment based on usage.
Growth Potential
With Microsoft addressing the CMA’s monopoly concerns investors can start to gravitate toward the growth conversation of a potential Activision Blizzard takeover.
Taking a look at total sales, we can ponder the prospects. Microsoft’s sales are forecasted to rise 10% in its current fiscal 2024 to $233.80 billion with Activision Blizzard sales expected to jump 13% this year at $9.66 billion.
Theoretically, the nearly $10 billion revenue boost would give Microsoft a 70% growth increase over the last five years with sales at $143.01 billion in its fiscal 2020.
Image Source: Zacks Investment Research
This would easily eclipse Apple’s AAPL 47% sales growth over the last five years with AAPL having the largest market cap on U.S. stock exchanges just ahead of Microsoft.
Furthermore, it’s likely that Microsoft’s growth will be substantially compounded considering Activision Blizzard has seen a 49% increase in sales since 2019 which also beats Apple’s top-line expansion rate.
Image Source: Zacks Investment Research
EPS Outlook & P/E Valuations
Regarding their bottom lines, Microsoft’s earnings are projected to rise 11% in FY24 and leap another 14% in FY25 to $12.42 per share. Microsoft’s stock trades at 29.3X forward earnings which is above the S&P 500’s 20.2X but mostly on par with the Zacks Computer-Software Industry average and the company is a historical leader in the space.
Image Source: Zacks Investment Research
Pivoting to Activision Blizzard, annual earnings are expected to climb 23% this year and rise another 4% in FY24 at $4.37 per share. Plus, Activision Blizzard’s stock trades at a 21.9X forward earnings multiple which is closer to the benchmark and not a stretched premium to its Zacks Toys-Games-Hobbies Industry average of 17.6X and is a leader in its market as well.
Image Source: Zacks Investment Research
Takeaway
The prospects for a potential Microsoft and Activision Blizzard deal looks promising for both parties at the moment. Microsoft will reap the long-term benefits with its stock landing a Zacks Rank #3 (Hold) and Activision Blizzard’s stock sports a Zacks Rank #2 (Buy) as it edges closer to its acquisition price.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
UbiSoft Entertainment Inc. (UBSFY) : 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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Image Source: Zacks Investment Research This would easily eclipse Apple’s AAPL 47% sales growth over the last five years with AAPL having the largest market cap on U.S. stock exchanges just ahead of Microsoft. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UbiSoft Entertainment Inc. (UBSFY) : Free Stock Analysis Report To read this article on Zacks.com click here. In a turn of events, the United Kingdom’s Competition and Markets Authority (CMA) now views Microsoft’s MSFT restructured deal to acquire game developer Activision Blizzard ATVI as a positive for the nation's merger and acquisition sector (M&A).
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Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UbiSoft Entertainment Inc. (UBSFY) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research This would easily eclipse Apple’s AAPL 47% sales growth over the last five years with AAPL having the largest market cap on U.S. stock exchanges just ahead of Microsoft. In a turn of events, the United Kingdom’s Competition and Markets Authority (CMA) now views Microsoft’s MSFT restructured deal to acquire game developer Activision Blizzard ATVI as a positive for the nation's merger and acquisition sector (M&A).
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Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UbiSoft Entertainment Inc. (UBSFY) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research This would easily eclipse Apple’s AAPL 47% sales growth over the last five years with AAPL having the largest market cap on U.S. stock exchanges just ahead of Microsoft. Image Source: Zacks Investment Research Restructured Deal The CMA’s provisional agreement to accept Microsoft’s acquisition of Activision Blizzard is reliant upon the transfer of cloud gaming rights to UbiSoft Entertainment UBSFY which has seen its stock pop over +4% today.
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Image Source: Zacks Investment Research This would easily eclipse Apple’s AAPL 47% sales growth over the last five years with AAPL having the largest market cap on U.S. stock exchanges just ahead of Microsoft. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report UbiSoft Entertainment Inc. (UBSFY) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Restructured Deal The CMA’s provisional agreement to accept Microsoft’s acquisition of Activision Blizzard is reliant upon the transfer of cloud gaming rights to UbiSoft Entertainment UBSFY which has seen its stock pop over +4% today.
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13510.0
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2023-09-22 00:00:00 UTC
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B of A Securities Reiterates Apple (AAPL) Neutral Recommendation
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AAPL
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https://www.nasdaq.com/articles/b-of-a-securities-reiterates-apple-aapl-neutral-recommendation
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Fintel reports that on September 22, 2023, B of A Securities reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation.
Analyst Price Forecast Suggests 17.69% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 17.69% from its latest reported closing price of 173.93.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6416 funds or institutions reporting positions in Apple. This is an increase of 29 owner(s) or 0.45% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.33%. Total shares owned by institutions increased in the last three months by 0.28% to 9,941,593K shares.
The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on September 22, 2023, B of A Securities reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.33%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on September 22, 2023, B of A Securities reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.33%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on September 22, 2023, B of A Securities reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.33%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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Fintel reports that on September 22, 2023, B of A Securities reiterated coverage of Apple (NASDAQ:AAPL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.33%. The put/call ratio of AAPL is 0.89, indicating a bullish outlook.
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13511.0
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2023-09-22 00:00:00 UTC
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1 Growth Stock Poised to Join Alphabet, Nvidia, Apple, Amazon, and Microsoft in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/1-growth-stock-poised-to-join-alphabet-nvidia-apple-amazon-and-microsoft-in-the-%241
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Fool.com contributor Parkev Tatevosian highlights one growth stock that is likely to join the coveted $1 trillion market capitalization milestone in the coming years.
*Stock prices used were the afternoon prices of Sept. 19, 2023. The video was published on Sept. 21, 2023.
Find out why Tesla is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian highlights one growth stock that is likely to join the coveted $1 trillion market capitalization milestone in the coming years. Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. *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.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of 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. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Microsoft, Nvidia, and Tesla.
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Find out why Tesla is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. Tesla is on the list -- but there are nine others you may be overlooking. Parkev Tatevosian, CFA has positions in Alphabet and Apple.
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13512.0
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2023-09-22 00:00:00 UTC
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Better Buy: This Top-Shelf Renewable Energy ETF or a 50/50 Split of Enphase and SolarEdge?
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-this-top-shelf-renewable-energy-etf-or-a-50-50-split-of-enphase-and-solaredge
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It's no secret that 2023 has been a brutal year for renewable energy stocks, especially the once-red-hot solar energy industry. The Invesco Solar ETF (NYSEMKT: TAN) rose 233.6% in 2020 while most of the stock market was floundering. After a follow-up jolt from the Inflation Reduction Act in 2022, it's been all downhill for solar stocks in 2023.
The multi-decade growth prospects of the solar industry are undeniable. The question for some investors isn't whether to invest in the industry, but rather which part of the industry holds the most promise.
Let's look at how the Invesco Solar ETF, down over 25% year-to-date and pretty much flat over the last three years, stacks up against two of the most popular solar stocks -- Enphase Energy (NASDAQ: ENPH) and SolarEdge Technologies (NASDAQ: SEDG).
Image source: Getty Images.
A lesson in margin compression
When a new idea with limited competition hits the ground running, it typically enjoys high margins and pricing power. But over time, competition seeps in, and margins compress. At least in most cases.
Some companies, like Apple (NASDAQ: AAPL), have impeccable brand equity and vertical integration that protects their high margins despite droves of competition. That isn't usually the case in industries that are providing a commodity, like electricity.
Solar panel manufacturers have undergone a global price war, which has hurt the industry but benefited project operators thanks to lower panel costs. However, higher interest rates reduce the return on investment for utility-scale solar projects, and also dissuade residential buyers from installing rooftop solar by extending the time it takes to recoup the installation's initial investment.
Today, it's not just the panel manufacturers that are under pressure. The whole industry is feeling the heat as growth slows. Another factor at stake is the stability and security of oil and gas, two traits that are top of mind given geopolitical disruptions. Energy-dependent countries may turn to a proven solution like oil and gas instead of intermittent energy resources. And since oil and gas prices are relatively high, many companies in that industry can fund growth with cash flow instead of debt, giving them yet another leg up on renewable energy companies.
In sum, the energy transition is having a tough time stacking up against the near-term advantages of oil and gas.
How to approach a solar investment
The Invesco Solar ETF is an excellent starting point for investors interested in the solar industry. It features a nice blend of renewable energy equipment and information technology companies like Enphase and SolarEdge. Over 37% of the fund is in utilities and industrial companies as well. Most importantly, over 45% of the fund is allocated toward companies outside of the United States, so international exposure to countries like China, Germany, and Spain are real factors to consider here.
Enphase and SolarEdge are the largest and third-largest holdings in the fund, respectively, making up just shy of 20% of the total fund's holdings. For some investors, it may make the most sense to simply go with Enphase and SolarEdge instead of a more diversified approach.
Both companies have seen sizable sell-offs despite the fundamentals holding up nicely. The biggest issue is slowing revenue growth. But besides that, margins have held up in what has been a very challenging time for the solar inverter and power optimizer market, especially in Europe.
ENPH data by YCharts
In the above chart, you can see that revenue and earnings growth have stalled but are still strong, while gross margins remain above 30% for both companies.
Premium stocks for a below-premium price
Enphase and SolarEdge are excellent values for investors who believe the companies can sustain their high margins and growth over time. And even if you think the growth rates will slow and the margin advantages may give ground, which they very well could, both stocks are not nearly as expensive as they used to be.
Enphase trades at just a 23.4 forward price to earnings ratio, while SolarEdge clocks in at just 14.7. These valuations are reasonable for the bear cases that argue that both companies will slow down. But in the event that growth does return and margins hold up better than many expect, these valuations will start to look very cheap.
A sell-off worth taking advantage of
The Invesco Solar ETF has a lot to offer and remains an excellent starting point for investors looking to dip their toes into the beaten-down international solar industry. But simply buying a 50/50 split of Enphase and SolarEdge may be an even better play.
Both companies have strong fundamentals and haven't succumbed to price wars, competition, and margin compression thus far. And to top it all off, the stocks have been crushed and are not as expensive as they once were.
The situation is likely to get worse before it gets better. But if you're willing to be patient, now seems like a great time to take a closer look at Enphase and SolarEdge.
10 stocks we like better than Enphase Energy
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 Enphase Energy 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
Daniel Foelber has positions in Enphase Energy and has the following options: long November 2023 $195 calls on Enphase Energy and short November 2023 $200 calls on Enphase Energy. The Motley Fool has positions in and recommends Apple and Enphase Energy. The Motley Fool recommends SolarEdge Technologies. 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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Some companies, like Apple (NASDAQ: AAPL), have impeccable brand equity and vertical integration that protects their high margins despite droves of competition. Most importantly, over 45% of the fund is allocated toward companies outside of the United States, so international exposure to countries like China, Germany, and Spain are real factors to consider here. Premium stocks for a below-premium price Enphase and SolarEdge are excellent values for investors who believe the companies can sustain their high margins and growth over time.
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Some companies, like Apple (NASDAQ: AAPL), have impeccable brand equity and vertical integration that protects their high margins despite droves of competition. Let's look at how the Invesco Solar ETF, down over 25% year-to-date and pretty much flat over the last three years, stacks up against two of the most popular solar stocks -- Enphase Energy (NASDAQ: ENPH) and SolarEdge Technologies (NASDAQ: SEDG). How to approach a solar investment The Invesco Solar ETF is an excellent starting point for investors interested in the solar industry.
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Some companies, like Apple (NASDAQ: AAPL), have impeccable brand equity and vertical integration that protects their high margins despite droves of competition. Let's look at how the Invesco Solar ETF, down over 25% year-to-date and pretty much flat over the last three years, stacks up against two of the most popular solar stocks -- Enphase Energy (NASDAQ: ENPH) and SolarEdge Technologies (NASDAQ: SEDG). Premium stocks for a below-premium price Enphase and SolarEdge are excellent values for investors who believe the companies can sustain their high margins and growth over time.
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Some companies, like Apple (NASDAQ: AAPL), have impeccable brand equity and vertical integration that protects their high margins despite droves of competition. How to approach a solar investment The Invesco Solar ETF is an excellent starting point for investors interested in the solar industry. Premium stocks for a below-premium price Enphase and SolarEdge are excellent values for investors who believe the companies can sustain their high margins and growth over time.
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13513.0
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2023-09-22 00:00:00 UTC
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4 Tech Stocks to Double Down on Today
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AAPL
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https://www.nasdaq.com/articles/4-tech-stocks-to-double-down-on-today
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nan
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nan
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Technology companies are still in a great position to add value to shareholders over the long term. In this video, Travis Hoium covers four companies that he thinks could still be big winners over the next decade.
*Stock prices used were end-of-day prices of Sept. 15, 2023. The video was published on Sept. 18, 2023.
10 stocks we like better than Alphabet
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 Alphabet 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
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, Dropbox, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Apple, Fiverr International, and Spotify Technology. 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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In this video, Travis Hoium covers four companies that he thinks could still be big winners over the next decade. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet, Apple, Fiverr International, and Spotify Technology.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium has positions in Alphabet, Apple, Dropbox, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Apple, Fiverr International, and Spotify Technology.
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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 18, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, Fiverr International, and Spotify Technology.
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In this video, Travis Hoium covers four companies that he thinks could still be big winners over the next decade. That's right -- they think these 10 stocks are even better buys. Travis Hoium has positions in Alphabet, Apple, Dropbox, and Spotify Technology.
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13514.0
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2023-09-21 00:00:00 UTC
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JP Morgan Reiterates Apple (AAPL) Overweight Recommendation
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AAPL
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https://www.nasdaq.com/articles/jp-morgan-reiterates-apple-aapl-overweight-recommendation
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nan
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nan
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Fintel reports that on September 21, 2023, JP Morgan reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation.
Analyst Price Forecast Suggests 16.64% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 16.64% from its latest reported closing price of 175.49.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6414 funds or institutions reporting positions in Apple. This is an increase of 26 owner(s) or 0.41% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.66%. Total shares owned by institutions increased in the last three months by 0.28% to 9,941,590K shares.
The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on September 21, 2023, JP Morgan reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.66%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 21, 2023, JP Morgan reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.66%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 21, 2023, JP Morgan reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.66%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 21, 2023, JP Morgan reiterated coverage of Apple (NASDAQ:AAPL) with a Overweight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.66%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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13515.0
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2023-09-21 00:00:00 UTC
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IVV, XHYE: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/ivv-xhye%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 iShares Core S&P 500 ETF, which added 10,150,000 units, or a 1.3% increase week over week. Among the largest underlying components of IVV, in morning trading today Apple is trading flat, and Microsoft is relatively unchanged.
And on a percentage change basis, the ETF with the biggest increase in inflows was the XHYE ETF, which added 150,000 units, for a 37.3% increase in outstanding units.
VIDEO: IVV, XHYE: 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 iShares Core S&P 500 ETF, which added 10,150,000 units, or a 1.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the XHYE ETF, which added 150,000 units, for a 37.3% increase in outstanding units. VIDEO: IVV, XHYE: 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 iShares Core S&P 500 ETF, which added 10,150,000 units, or a 1.3% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the XHYE ETF, which added 150,000 units, for a 37.3% increase in outstanding units. VIDEO: IVV, XHYE: 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 iShares Core S&P 500 ETF, which added 10,150,000 units, or a 1.3% increase week over week. Among the largest underlying components of IVV, in morning trading today Apple is trading flat, and Microsoft is relatively unchanged. And on a percentage change basis, the ETF with the biggest increase in inflows was the XHYE ETF, which added 150,000 units, for a 37.3% increase in outstanding units.
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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 iShares Core S&P 500 ETF, which added 10,150,000 units, or a 1.3% increase week over week. Among the largest underlying components of IVV, in morning trading today Apple is trading flat, and Microsoft is relatively unchanged. And on a percentage change basis, the ETF with the biggest increase in inflows was the XHYE ETF, which added 150,000 units, for a 37.3% increase in outstanding units.
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13516.0
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2023-09-21 00:00:00 UTC
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Apple's iPhone seen gaining market share in India as Pro model demand rises
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AAPL
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https://www.nasdaq.com/articles/apples-iphone-seen-gaining-market-share-in-india-as-pro-model-demand-rises
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nan
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nan
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By Yuvraj Malik
Sept 22 (Reuters) - Apple AAPL.O is expected to gain a larger share of India's smartphone sales, with the high-end iPhone 15 Pro and Pro Max models accounting for more of its shipments.
The company is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint shared exclusively with Reuters.
The tech giant has been touting India as its next big growth driver amid declining sales of its flagship device. Its suppliers have also been ramping up manufacturing operations in the region amid weakening demand and regulatory pressure in China.
Wait times in India for Apple's latest 15 Pro and Pro Max models, that go on sale Friday, are stretching up to late October, mirroring trends seen in China and the U.S.
Counterpoint estimated the models will account for 25% of overall iPhone 15 shipments in India in the fourth quarter, a 4% increase from what the previous generation top-range models accounted for a year earlier.
"The premium smartphone market in India has climbed tremendously from 0.8% of the total market in 2019 to 6.1% in the first half of 2023 and this is largely attributed to Apple's success," Nabila Popal, a research director at market intelligence firm IDC, said.
Apple is the largest player in the segment for smartphones priced over $800 in India, with a 67% share in the first half, according to IDC data. Samsung accounted for 31% of the segment.
Apple opened two flagship stores in the country earlier this year and CEO Tim Cook said in August that the company hit "record" revenue in India in the June quarter.
Still, Apple has a long way to go before the country could bring in sales seen in the company's major markets.
Morgan Stanley, in a note earlier this month, estimated that Apple's revenue from India is about half that of China.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Shounak Dasgupta)
((yuvraj.malik@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 Yuvraj Malik Sept 22 (Reuters) - Apple AAPL.O is expected to gain a larger share of India's smartphone sales, with the high-end iPhone 15 Pro and Pro Max models accounting for more of its shipments. The company is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint shared exclusively with Reuters. The tech giant has been touting India as its next big growth driver amid declining sales of its flagship device.
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By Yuvraj Malik Sept 22 (Reuters) - Apple AAPL.O is expected to gain a larger share of India's smartphone sales, with the high-end iPhone 15 Pro and Pro Max models accounting for more of its shipments. The company is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint shared exclusively with Reuters. Wait times in India for Apple's latest 15 Pro and Pro Max models, that go on sale Friday, are stretching up to late October, mirroring trends seen in China and the U.S.
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By Yuvraj Malik Sept 22 (Reuters) - Apple AAPL.O is expected to gain a larger share of India's smartphone sales, with the high-end iPhone 15 Pro and Pro Max models accounting for more of its shipments. Counterpoint estimated the models will account for 25% of overall iPhone 15 shipments in India in the fourth quarter, a 4% increase from what the previous generation top-range models accounted for a year earlier. "The premium smartphone market in India has climbed tremendously from 0.8% of the total market in 2019 to 6.1% in the first half of 2023 and this is largely attributed to Apple's success," Nabila Popal, a research director at market intelligence firm IDC, said.
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By Yuvraj Malik Sept 22 (Reuters) - Apple AAPL.O is expected to gain a larger share of India's smartphone sales, with the high-end iPhone 15 Pro and Pro Max models accounting for more of its shipments. The company is projected to account for 7% of all smartphone sales in the country from July to December, up from 5% in the first half of 2023, according to data from market researcher Counterpoint shared exclusively with Reuters. Counterpoint estimated the models will account for 25% of overall iPhone 15 shipments in India in the fourth quarter, a 4% increase from what the previous generation top-range models accounted for a year earlier.
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13517.0
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2023-09-21 00:00:00 UTC
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Apple (AAPL) Stock Moves -0.89%: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-stock-moves-0.89%3A-what-you-should-know
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nan
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nan
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Apple (AAPL) closed at $173.93 in the latest trading session, marking a -0.89% move from the prior day. This change was narrower than the S&P 500's 1.64% loss on the day. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 1.82%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 3.11% over the past month, lagging the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 0.89% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. On that day, Apple is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 7.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $88.87 billion, down 1.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.05 per share and revenue of $382.66 billion, which would represent changes of -0.98% and -2.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.04% higher. Apple is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Apple's current valuation metrics, including its Forward P/E ratio of 29.03. This represents a premium compared to its industry's average Forward P/E of 11.44.
We can also see that AAPL currently has a PEG ratio of 2.56. 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. The Computer - Mini computers industry currently had an average PEG ratio of 2.56 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 195, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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Apple (AAPL) closed at $173.93 in the latest trading session, marking a -0.89% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.56. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed at $173.93 in the latest trading session, marking a -0.89% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.56.
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Apple (AAPL) closed at $173.93 in the latest trading session, marking a -0.89% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.56. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed at $173.93 in the latest trading session, marking a -0.89% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.56. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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13518.0
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2023-09-21 00:00:00 UTC
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Netflix (NFLX) Resurrects Onimusha with Epic Anime Revival
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-resurrects-onimusha-with-epic-anime-revival
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nan
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nan
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Netflix NFLX is bringing back the iconic Onimusha with an anime adaptation. Based on Capcom's renowned video game, the new series will premiere globally on Nov 2.
Takashi Miike, known for his groundbreaking swordplay in 13 Assassins and Blade of the Immortal, leads as supervising director, while director Shinya Sugai and animation studio Sublimation aim to bring a unique perspective to Onimusha, aiming to revolutionize anime.
The anime focuses on Miyamoto Musashi, inspired by Japanese legend Toshiro Mifune, during the peaceful Edo Period. An older Musashi embarks on a secret mission with the powerful "Oni Gauntlet," confronting hidden demons, and the emotional theme song THE LONELIEST by Maneskin enhances the story's depth.
Onimusha's fusion of cutting-edge 3D CGI character animations and exquisitely hand-drawn backgrounds stands out. This blending of traditional and modern animation techniques offers a fresh and immersive experience for both long-time fans and newcomers.
Expanding Portfolio & Partner Base Aids Growth
Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date. The outperformance can be attributed to an expanding subscriber base and robust content offerings.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL.
Shares of Apple and Amazon have returned 35.1% and 61.1%, respectively, on a year-to-date basis. Disney’s shares have declined 2.8%.
Netflix, which currently has a Zacks Rank #3 (Hold), is expected to benefit from its diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It also benefits from an expanding portfolio that is helping Netflix keep subscribers engaged. On Aug 29, Netflix announced the launch of four new games - SNK Corporation’s Samurai Shodown, LEGO Legacy: Heroes Unboxed by Gameloft, WrestleQuest by Mega Cat Studios, and Cut the Rope Daily by Zeptolab.
Netflix now expects revenue growth to accelerate in the second half of 2023, driven by the launch of the paid sharing initiative and an expanding content offering. However, it anticipates foreign-exchange neutral average revenues per membership to be flat to slightly down year over year due to limited price increases over the past 12 months and immaterial revenues from advertising and paid-sharing.
For the third quarter of 2023, Netflix now forecasts earnings of $3.52 per share, indicating an almost 10% increase from the figure reported in the year-ago quarter. Total revenues are anticipated to be $8.52 billion, suggesting growth of 7% year over year and on a forex-neutral basis.
The Zacks Consensus Estimate for Netflix's third-quarter revenue is pegged at $8.53 billion, indicating 7.59 year-over-year growth. The consensus mark for earnings increased by a penny over the past 30 days to $3.49 per share.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. An older Musashi embarks on a secret mission with the powerful "Oni Gauntlet," confronting hidden demons, and the emotional theme song THE LONELIEST by Maneskin enhances the story's depth.
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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Expanding Portfolio & Partner Base Aids Growth Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date.
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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Expanding Portfolio & Partner Base Aids Growth Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date.
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Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Expanding Portfolio & Partner Base Aids Growth Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date.
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13519.0
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2023-09-21 00:00:00 UTC
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US STOCKS-US stocks close at lowest since June, Treasury yields spike on hawkish Fed
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AAPL
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https://www.nasdaq.com/articles/us-stocks-us-stocks-close-at-lowest-since-june-treasury-yields-spike-on-hawkish-fed
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nan
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nan
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By Stephen Culp
NEW YORK, Sept 21 (Reuters) - Wall Street tanked in a broad sell-off on Thursday, as investor risk appetite was dashed by worries that the Federal Reserve's restrictive monetary policy will remain in place for longer than anticipated.
All three major U.S. stock indexes tumbled more than 1% and benchmark U.S. Treasury yields touched a 10-year peak the day after Fed Chairman Jerome Powell warned inflation still has a long way to go before approaching the central bank's 2% target.
Interest rate-sensitive megacaps, led by Amazon.com AMZN.O, Nvidia Corp NVDA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O dragged the S&P 500 and the Nasdaq to their lowest closing levels since June.
On Wednesday, at the conclusion of its two-day monetary policy meeting, the central bank left the Fed funds target rate unchanged at 5.25%-5.50%, as expected.
But revised economic projections, including the closely watched dot plot, showed interest rates will remain elevated through next year, dampening hopes for easing of policy before 2025.
"If you do have rates higher for longer, you have more strain on the system and more pressure on the economy," said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta. "It gives people another chance to say that the lag time of higher rates – which we're just starting to feel – might really bite."
"We’re ratcheting up the possibility that we won’t get a soft landing," Martin said, citing economic pressure from higher rates, along with student loan payments resuming, the UAW strike, a potential government shutdown, higher Treasury yields, climbing crude prices and a strengthening dollar.
An unexpected 9% drop in initial U.S. jobless claims, to the lowest level in eight months, played into the Fed's notion that the labor market remains too tight, putting upward pressure on wages, and the economy is resilient enough to withstand higher rates for longer.
"Higher for longer" has become a common credo among the central banks of the world's biggest economies as global policy tightening, in order to tame inflation, reaches its peak.
"The headlines this morning were quite something when it came to central banks," Martin said. "All of them were hawkish."
At 4:12PM ET, the Dow Jones Industrial Average .DJI fell 370.46 points, or 1.08%, to 34,070.42, the S&P 500 .SPX lost 72.2 points, or 1.64%, to 4,330 and the Nasdaq Composite .IXIC dropped 245.14 points, or 1.82%, to 13,223.99.
All 11 major sectors of the S&P 500 lost nearly 1% or more, with real estate stocks .SPLRCR suffering its biggest one-day percentage drop since March.
Semiconductor firm Broadcom AVGO.O slid 2.7% following a report that Alphabet-owned Google's executives discussed dropping the company as a supplier of artificial intelligence chips as early as 2027.
The Philadelphia chip index .SOX shed 1.8%.
Klaviyo Inc KVYO.K gained 2.9% the day after its debut as a public company, while another recent IPO, Arm Holdings ARM.O lost 1.4% to just a dollar above its $51 offer price.
Shares of FedEx FDX.N jumped 4.5% after the package delivery company delivered a big profit beat.
Fox Corp FOXA.O and News Corp NWSA.O gained 3.2% and 1.3%, respectively, following news that Rupert Murdoch will step aside as chairman.
Declining issues outnumbered advancing ones on the NYSE by a 5.89-to-1 ratio; on Nasdaq, a 2.80-to-1 ratio favored decliners.
The S&P 500 posted three new 52-week highs and 29 new lows; the Nasdaq Composite recorded 22 new highs and 373 new lows.
Volume on U.S. exchanges was 10.76 billion shares, compared with the 10.12 billion average for the full session over the last 20 trading days.
The race to raise rates https://tmsnrt.rs/44ZQXDM
The Fed’s dot plot https://tmsnrt.rs/3EK59WT
(Reporting by Stephen Culp in New York; Additional reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by David Gregorio)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interest rate-sensitive megacaps, led by Amazon.com AMZN.O, Nvidia Corp NVDA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O dragged the S&P 500 and the Nasdaq to their lowest closing levels since June. By Stephen Culp NEW YORK, Sept 21 (Reuters) - Wall Street tanked in a broad sell-off on Thursday, as investor risk appetite was dashed by worries that the Federal Reserve's restrictive monetary policy will remain in place for longer than anticipated. All three major U.S. stock indexes tumbled more than 1% and benchmark U.S. Treasury yields touched a 10-year peak the day after Fed Chairman Jerome Powell warned inflation still has a long way to go before approaching the central bank's 2% target.
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Interest rate-sensitive megacaps, led by Amazon.com AMZN.O, Nvidia Corp NVDA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O dragged the S&P 500 and the Nasdaq to their lowest closing levels since June. On Wednesday, at the conclusion of its two-day monetary policy meeting, the central bank left the Fed funds target rate unchanged at 5.25%-5.50%, as expected. At 4:12PM ET, the Dow Jones Industrial Average .DJI fell 370.46 points, or 1.08%, to 34,070.42, the S&P 500 .SPX lost 72.2 points, or 1.64%, to 4,330 and the Nasdaq Composite .IXIC dropped 245.14 points, or 1.82%, to 13,223.99.
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Interest rate-sensitive megacaps, led by Amazon.com AMZN.O, Nvidia Corp NVDA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O dragged the S&P 500 and the Nasdaq to their lowest closing levels since June. "We’re ratcheting up the possibility that we won’t get a soft landing," Martin said, citing economic pressure from higher rates, along with student loan payments resuming, the UAW strike, a potential government shutdown, higher Treasury yields, climbing crude prices and a strengthening dollar. An unexpected 9% drop in initial U.S. jobless claims, to the lowest level in eight months, played into the Fed's notion that the labor market remains too tight, putting upward pressure on wages, and the economy is resilient enough to withstand higher rates for longer.
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Interest rate-sensitive megacaps, led by Amazon.com AMZN.O, Nvidia Corp NVDA.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O dragged the S&P 500 and the Nasdaq to their lowest closing levels since June. All three major U.S. stock indexes tumbled more than 1% and benchmark U.S. Treasury yields touched a 10-year peak the day after Fed Chairman Jerome Powell warned inflation still has a long way to go before approaching the central bank's 2% target. "If you do have rates higher for longer, you have more strain on the system and more pressure on the economy," said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta.
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13520.0
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2023-09-21 00:00:00 UTC
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What Weak Economy? Customers Are Flocking to Order Apple's Newest iPhones.
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AAPL
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https://www.nasdaq.com/articles/what-weak-economy-customers-are-flocking-to-order-apples-newest-iphones.
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nan
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nan
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Given the current uncertain macroeconomic environment featuring high interest rates and inflationary pressures, investors might expect Apple's (NASDAQ: AAPL) latest iPhone launch to fall flat. But iPhones are proving to be less of a discretionary expense than Wall Street anticipated. Over the last week, several analysts have observed that sales of new iPhones -- particularly the iPhone 15 Pro Max -- seem to be trending well.
Let's look at exactly why analysts are upbeat about the iPhone 15 lineup and what it means for the tech stock.
iPhone could provide a lift for Apple stock
On Monday, a Morgan Stanley analyst said that the pre-order data it uses to gauge the new model's success indicates that there's been "a solid early start to the cycle," particularly as it relates to the most expensive new iPhone: the iPhone 15 Pro Max. Meanwhile, a Wedbush analyst said new iPhone pre-orders seem to be trending significantly better than expected, while a Credit Suisse analyst recently pointed out much longer lead times for iPhone 15 Pro Max orders.
The most recent analyst to chime in with bullish sentiment on the new iPhone was Goldman Sachs' Michael Ng. While acknowledging that there's very little visibility into iPhone supply, one thing is clear: Demand for the new lineup seems to be outpacing supply, he said in a note to investors this week.
Like the other mentioned analysts, Ng is bullish on the stock. He rates it a buy, with a $216 12-month price target. Analysts at Morgan Stanley, Wedbush, and Credit Suisse have targets of $215, $240, and $220, respectively.
With the iPhone accounting for more than half of Apple's revenue, it's obviously good news to see demand for the newest iPhones outstripping supply. Even more, with the pricier versions of the phone having the longest lead times, demand seems to be skewing toward the more expensive devices.
One reason to be cautious
But not all analysts are bullish. Barclays analyst Tim Long said that his channel checks on iPhone 15 pre-orders in China suggest a "difficult" sales cycle for the new lineup in the key market. Further, Long sees a slight shift toward the lower-priced iPhones in the new lineup, compared to last year's estimated mix in the country.
The analyst has a $167 12-month price target for the stock.
Helping justify the analyst's comparatively bearish sentiment for the stock, Apple's Greater China segment accounted for about 19% of its fiscal 2022 sales. So a tough sales cycle for iPhone in the large market could weigh on the stock.
But investors could also look at Long's channel check as a positive. He estimates that overall unit orders in the market are only down 5% year over year. Considering that the consensus about China in the media lately seems to be that a recovery has fizzled out and weakness is emerging, such a slight decline in the vital market means that any decline in iPhone sales in the region may do little to hold back potential strength in North America and other markets.
While no one can know precisely how iPhone sales are faring, it's good news that demand for the new devices seems to be outstripping supply, despite a challenging macroeconomic environment.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple and Goldman Sachs Group. The Motley Fool recommends Barclays Plc. 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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Given the current uncertain macroeconomic environment featuring high interest rates and inflationary pressures, investors might expect Apple's (NASDAQ: AAPL) latest iPhone launch to fall flat. Barclays analyst Tim Long said that his channel checks on iPhone 15 pre-orders in China suggest a "difficult" sales cycle for the new lineup in the key market. Helping justify the analyst's comparatively bearish sentiment for the stock, Apple's Greater China segment accounted for about 19% of its fiscal 2022 sales.
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Given the current uncertain macroeconomic environment featuring high interest rates and inflationary pressures, investors might expect Apple's (NASDAQ: AAPL) latest iPhone launch to fall flat. Meanwhile, a Wedbush analyst said new iPhone pre-orders seem to be trending significantly better than expected, while a Credit Suisse analyst recently pointed out much longer lead times for iPhone 15 Pro Max orders. Analysts at Morgan Stanley, Wedbush, and Credit Suisse have targets of $215, $240, and $220, respectively.
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Given the current uncertain macroeconomic environment featuring high interest rates and inflationary pressures, investors might expect Apple's (NASDAQ: AAPL) latest iPhone launch to fall flat. Over the last week, several analysts have observed that sales of new iPhones -- particularly the iPhone 15 Pro Max -- seem to be trending well. iPhone could provide a lift for Apple stock On Monday, a Morgan Stanley analyst said that the pre-order data it uses to gauge the new model's success indicates that there's been "a solid early start to the cycle," particularly as it relates to the most expensive new iPhone: the iPhone 15 Pro Max.
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Given the current uncertain macroeconomic environment featuring high interest rates and inflationary pressures, investors might expect Apple's (NASDAQ: AAPL) latest iPhone launch to fall flat. He rates it a buy, with a $216 12-month price target. Barclays analyst Tim Long said that his channel checks on iPhone 15 pre-orders in China suggest a "difficult" sales cycle for the new lineup in the key market.
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13521.0
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2023-09-21 00:00:00 UTC
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7 Warren Buffett Stocks That Should Be On Every Investor’s Radar This Fall
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AAPL
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https://www.nasdaq.com/articles/7-warren-buffett-stocks-that-should-be-on-every-investors-radar-this-fall
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is an investing legend. The stock portfolio of his holding company Berkshire Hathaway (NYSE:BRK-A/NYSE:BRK-B) is closely followed by investors all over the world. That’s because these top Warren Buffett stocks are the cream of the crop — the very blue-chip companies with stable earnings, cash, yields, and buy backs. In fact, here are seven of the top Warren Buffett stocks you may want to consider before the fall season.
Warren Buffett Stocks: Apple (AAPL)
Source: Yalcin Sonat / Shutterstock.com
We begin with Buffett’s largest holding, Apple (NASDAQ:AAPL). Owning more than 915 million shares, the tech stock is, by far, the largest single holding of Berkshire Hathaway. What’s remarkable is that Buffett only began building a position in AAPL stock in 2016 after studiously avoiding nearly all technology stocks for most of his investing career.
Better, the billionaire continues to praise the company, its products, and its management team at every opportunity. At this year’s Berkshire Hathaway annual meeting, Buffett noted that most people would rather go without a second car than give-up their iPhone. However, while concerns have been raised about slowing sales of Apple’s electronic devices and Buffett’s outsized concentration in the stock. However, Buffett remains defiant and continues to buy AAPL stock every time
the share price dips. AAPL stock has gained 13% in the past 12 months.
Coca-Cola (KO)
Source: monticello / Shutterstock
One of Buffett’s largest and oldest holdings is in Coca-Cola (NYSE:KO). Berkshire Hathaway holds 400 million shares of KO stock, a position it has had for more than 30 years. Buffett likes many things about Coke, including its strong brand, competitive moat and strong financial results. He especially likes the annual dividend that Coca-Cola pays. With an annual dividend payout of $1.84 per share, Berkshire will collect $736 million from Coca-Cola this year alone.
Other investors should also consider acquiring KO stock. Beyond its dividend, the beverage giant also continues to be a best-in-class American company. Most recently, Coca-Cola reported strong second-quarter financial results, announcing earnings per share of 78 cents compared to 72 cents that was forecast among analysts on Wall Street. Revenue in Q2 totaled $11.97 billion versus $11.75 billion that was forecast. The company also raised its forward guidance. KO stock is down 3% over the past 12 months, presenting a buying opportunity.
Warren Buffett Stocks: Amazon (AMZN)
Source: Tada Images / Shutterstock.com
One of Buffett’s smaller positions is e-commerce giant, Amazon (NASDAQ:AMZN). Buffett owns a little more than 10 million shares of AMZN stock, worth about $1.5 billion currently. Despite the small position, the fact that Buffett invested in Amazon at all is a vote of confidence in the company that dominates the online retail space.
The good news for Buffett and other investors is that Amazon seems to have course-corrected and is in a good position once again. After overbuilding and over hiring during the pandemic, Amazon has shelved several expansion projects and cut tens of thousands of jobs. The changes appear to be paying off. The company’s Q2 earnings print was exceptionally strong. In fact, it was Amazon’s biggest earnings beat since the fourth quarter of 2020.
The Prime Day sales event held in July of this year generated $12 billion in sales for Amazon, making it the most successful such event in the company’s history. The next Prime Day sales event is scheduled for October 10 and 11. AMZN stock has risen 13% over the last 12 months.
Bank of America (BAC)
Source: shutterstock.com/CC7
Warren Buffett’s favorite lender is Bank of America (NYSE:BAC). The Oracle of Omaha currently owns over one billion shares of BAC stock worth $29.59 billion. It’s one of his largest positions, comprising nearly 10% of Berkshire Hathaway’s portfolio. At one time or another, Buffett owned shares in all of the largest U.S. lenders. However, he has exited his positions in most bank stocks in recent years, with selling increasing as interest rates began to rise in 2022. However, Buffett remains long on Bank of America.
In interviews, Buffett has praised the management style of Bank of America CEO Brian Moynihan. He also seems to like BAC stock’s low valuation (it trades at eight times future earnings, high dividend (it offers a yield of 3.33%) and its strong financial performance. That BAC stock has been pulled lower this year due to turmoil in the banking sector and the failure of regional lenders such as Silicon Valley Bank and Signature Bank has not seemed to bother Buffett. He’s holding on even though BAC stock is down 16% over the last 12 months.
Warren Buffett Stocks: Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
From Buffett’s favorite bank to his favorite oil company, Occidental Petroleum (NYSE:OXY). Buffett has been most aggressive about buying OXY stock over the last 18 months. Beginning with the rise in crude oil prices in early 2022, Buffett has accumulated more than 224 million shares of Occidental Petroleum for a stake worth $14.75 billion. In fact, Buffett now owns a quarter (25%) of Occidental Petroleum, and rumors persist that he might end up buying the entire oil company, though Buffett denies those reports.
Like Bank of America, Buffett has said that he likes the way Occidental Petroleum is being managed and its business strategy. That startegy includes growth through acquisitions. Flush with cash following last year’s record profits, Occidental Petroleum has been on a buying spree lately, announcing that it is acquiring start-up company Carbon Engineering for $1.1 billion as it focuses on efforts to remove carbon dioxide from the atmosphere.
American Express (AXP)
Source: First Class Photography / Shutterstock.com
Another one of Buffett’s oldest and largest positions is in credit card giant American Express (NYSE:AXP). Buffett first took a position in AXP stock back in the 1970s when the company’s “Don’t leave home without it” advertisements were flooding the airwaves. Today, Berkshire Hathaway owns more than 150 million shares of American Express valued at $25.16 billion. While there are many credit card companies to choose from, Buffett has said that he likes American Express’ competitive position when it comes to cards issued for business purposes.
Like most of his other holdings, AXP stock has a reasonable valuation, pays a regular dividend that appears to be secure, and has a track record of steady earnings growth. Most recently, American Express reported a Q2 profit that beat Wall Street forecasts and reaffirmed its full-year 2023 guidance. American Express said that it is seeing record levels of spending on its credit cards, notably through purchases related to travel and entertainment following the Covid-19 pandemic. AXP stock has gained 4% over the last 12 months.
General Motors (GM)
Source: Katherine Welles / Shutterstock.com
Warren Buffett only owns one automotive stock and that’s General Motors (NYSE:GM). Berkshire Hathaway currently holds 22 million shares of GM stock worth nearly $747 million. Buffett’s position isn’t surprising given that GM is the largest U.S. automaker and a classic American manufacturing brand. GM stock also pays a quarterly dividend and has a rock bottom valuation, trading at only four times future earnings. General Motors is also aggressively transitioning its fleet of cars, trucks and SUVs to fully electric versions.
That said, Buffett did recently sell some of his GM stock ahead of the current strike by the United Auto Workers (UAW). In August, it was revealed that Berkshire Hathaway sold 45% of its stake in GM, reducing its holding from 40 million shares to 22 million, according to a filing made with the U.S. Securities and Exchange Commission (SEC). Despite the sale, which came amid contract negotiations and reports of an impending strike, General Motors remains a long-term holding of Buffett. GM stock has decreased 13% over the past 12 months.
On the date of publication, Joel Baglole held long positions in AAPL and BAC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post 7 Warren Buffett Stocks That Should Be On Every Investor’s Radar This Fall 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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Warren Buffett Stocks: Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com We begin with Buffett’s largest holding, Apple (NASDAQ:AAPL). What’s remarkable is that Buffett only began building a position in AAPL stock in 2016 after studiously avoiding nearly all technology stocks for most of his investing career. However, Buffett remains defiant and continues to buy AAPL stock every time the share price dips.
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Warren Buffett Stocks: Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com We begin with Buffett’s largest holding, Apple (NASDAQ:AAPL). What’s remarkable is that Buffett only began building a position in AAPL stock in 2016 after studiously avoiding nearly all technology stocks for most of his investing career. However, Buffett remains defiant and continues to buy AAPL stock every time the share price dips.
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Warren Buffett Stocks: Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com We begin with Buffett’s largest holding, Apple (NASDAQ:AAPL). What’s remarkable is that Buffett only began building a position in AAPL stock in 2016 after studiously avoiding nearly all technology stocks for most of his investing career. However, Buffett remains defiant and continues to buy AAPL stock every time the share price dips.
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Warren Buffett Stocks: Apple (AAPL) Source: Yalcin Sonat / Shutterstock.com We begin with Buffett’s largest holding, Apple (NASDAQ:AAPL). What’s remarkable is that Buffett only began building a position in AAPL stock in 2016 after studiously avoiding nearly all technology stocks for most of his investing career. However, Buffett remains defiant and continues to buy AAPL stock every time the share price dips.
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13522.0
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2023-09-21 00:00:00 UTC
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DuckDuckGo says market share constrained by rival Google's huge wallet
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AAPL
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https://www.nasdaq.com/articles/duckduckgo-says-market-share-constrained-by-rival-googles-huge-wallet
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nan
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nan
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WASHINGTON, Sept 21 (Reuters) - The CEO of internet search engine company DuckDuckGo testified on Thursday that his company struggled to grow its market share because Google was paying key companies billions of dollars to keep its search engine as the default on computers or mobile devices.
THE TAKE: DuckDuckGo CEO Gabriel Weinberg, who was testifying at a trial in Washington to determine if Alphabet's GOOGL.O Google broke US antitrust law, was meant to support the U.S. government's argument that Google's big pockets were used to illegally hold back its smaller rivals.
KEY QUOTE:
Weinberg testified that he had pressed particular companies - he did not name them - to use DuckDuckGo as the default and found some interest but ultimately no success because of Google's contracts with the companies.
"We generally saw a lot of interest," he said. "We ultimately decided, this was after three years of trying this, that this was a quixotic exercise because of the contracts."
CONTEXT:
*The government has argued that Google, which has 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 in search on their devices in order to stay on top.
*The clout in search then makes Google a heavy hitter in the lucrative advertising market, boosting its profits.
*DuckDuckGo has around 2.5% of the online search engine market because it has not been able to win a default position on devices made by big companies.
(Reporting by Diane Bartz; Editing by Kirsten Donovan)
((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, which has 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 in search on their devices in order to stay on top. THE TAKE: DuckDuckGo CEO Gabriel Weinberg, who was testifying at a trial in Washington to determine if Alphabet's GOOGL.O Google broke US antitrust law, was meant to support the U.S. government's argument that Google's big pockets were used to illegally hold back its smaller rivals. *The clout in search then makes Google a heavy hitter in the lucrative advertising market, boosting its profits.
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*The government has argued that Google, which has 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 in search on their devices in order to stay on top. WASHINGTON, Sept 21 (Reuters) - The CEO of internet search engine company DuckDuckGo testified on Thursday that his company struggled to grow its market share because Google was paying key companies billions of dollars to keep its search engine as the default on computers or mobile devices. *DuckDuckGo has around 2.5% of the online search engine market because it has not been able to win a default position on devices made by big companies.
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*The government has argued that Google, which has 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 in search on their devices in order to stay on top. WASHINGTON, Sept 21 (Reuters) - The CEO of internet search engine company DuckDuckGo testified on Thursday that his company struggled to grow its market share because Google was paying key companies billions of dollars to keep its search engine as the default on computers or mobile devices. Weinberg testified that he had pressed particular companies - he did not name them - to use DuckDuckGo as the default and found some interest but ultimately no success because of Google's contracts with the companies.
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*The government has argued that Google, which has 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 in search on their devices in order to stay on top. WASHINGTON, Sept 21 (Reuters) - The CEO of internet search engine company DuckDuckGo testified on Thursday that his company struggled to grow its market share because Google was paying key companies billions of dollars to keep its search engine as the default on computers or mobile devices. THE TAKE: DuckDuckGo CEO Gabriel Weinberg, who was testifying at a trial in Washington to determine if Alphabet's GOOGL.O Google broke US antitrust law, was meant to support the U.S. government's argument that Google's big pockets were used to illegally hold back its smaller rivals.
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13523.0
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2023-09-21 00:00:00 UTC
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Microsoft announces unified AI assistant, new Surface devices
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AAPL
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https://www.nasdaq.com/articles/microsoft-announces-unified-ai-assistant-new-surface-devices
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nan
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nan
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By Yuvraj Malik
Sept 21 (Reuters) - Microsoft MSFT.O on Thursday announced a "unified" artificial intelligence (AI) for its Windows 11 platform and four new Surface devices, upping the appeal of its products spruced with the latest technology.
The new AI tool, called Copilot, will work across the company's web and productivity applications Bing, Edge browser, and Microsoft 365 software suite.
The updated AI software will roll out with the latest changes to Windows 11 on Sept. 26. It will be available in Microsoft 365 Copilot on Nov. 1, when the highly anticipated enterprise AI tool will be generally available for purchase.
Microsoft released 365 Copilot in preview earlier this year and said in July that the features would cost its customers $30 per user every month at list prices on top of their existing subscriptions.
The company also said its Bing search will get OpenAI's DALL-E 3, an image-generating AI.
Thursday’s news follows months of Copilot announcements. Redmond, Washington-headquartered Microsoft is stacking its growth on generative AI - computer programs capable of generating text, images, sounds, and other data - and has incorporated the technology across a large section of its products and services.
Microsoft's aggressive AI push is likely to put Big Tech peers Alphabet GOOGL.O and Apple AAPL.O on the watch as customers lap up the new services powered by GenAI.
Microsoft on Thursday announced three laptops - Surface Laptop Go 3, Surface Laptop Studio 2 and Surface Go 4 For Business - and Surface Hub 3, the newer version of its interactive whiteboard.
The launches come days after Microsoft's longtime product chief, Panos Panay, stepped down and the company elevated Yusuf Mehdi, the head of consumer marketing, to take over the Surface and Windows businesses with the external PC makers and retail partners.
(Reporting by Yuvraj Malik in Bengaluru and Jeffrey Dastin in San Francisco; Editing by Maju Samuel)
((yuvraj.malik@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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Microsoft's aggressive AI push is likely to put Big Tech peers Alphabet GOOGL.O and Apple AAPL.O on the watch as customers lap up the new services powered by GenAI. By Yuvraj Malik Sept 21 (Reuters) - Microsoft MSFT.O on Thursday announced a "unified" artificial intelligence (AI) for its Windows 11 platform and four new Surface devices, upping the appeal of its products spruced with the latest technology. The launches come days after Microsoft's longtime product chief, Panos Panay, stepped down and the company elevated Yusuf Mehdi, the head of consumer marketing, to take over the Surface and Windows businesses with the external PC makers and retail partners.
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Microsoft's aggressive AI push is likely to put Big Tech peers Alphabet GOOGL.O and Apple AAPL.O on the watch as customers lap up the new services powered by GenAI. By Yuvraj Malik Sept 21 (Reuters) - Microsoft MSFT.O on Thursday announced a "unified" artificial intelligence (AI) for its Windows 11 platform and four new Surface devices, upping the appeal of its products spruced with the latest technology. The new AI tool, called Copilot, will work across the company's web and productivity applications Bing, Edge browser, and Microsoft 365 software suite.
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Microsoft's aggressive AI push is likely to put Big Tech peers Alphabet GOOGL.O and Apple AAPL.O on the watch as customers lap up the new services powered by GenAI. By Yuvraj Malik Sept 21 (Reuters) - Microsoft MSFT.O on Thursday announced a "unified" artificial intelligence (AI) for its Windows 11 platform and four new Surface devices, upping the appeal of its products spruced with the latest technology. The new AI tool, called Copilot, will work across the company's web and productivity applications Bing, Edge browser, and Microsoft 365 software suite.
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Microsoft's aggressive AI push is likely to put Big Tech peers Alphabet GOOGL.O and Apple AAPL.O on the watch as customers lap up the new services powered by GenAI. By Yuvraj Malik Sept 21 (Reuters) - Microsoft MSFT.O on Thursday announced a "unified" artificial intelligence (AI) for its Windows 11 platform and four new Surface devices, upping the appeal of its products spruced with the latest technology. The new AI tool, called Copilot, will work across the company's web and productivity applications Bing, Edge browser, and Microsoft 365 software suite.
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13524.0
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2023-09-21 00:00:00 UTC
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Invesco NASDAQ 100 ETF Experiences Big Inflow
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AAPL
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https://www.nasdaq.com/articles/invesco-nasdaq-100-etf-experiences-big-inflow-4
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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 NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $201.0 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 94,210,000 to 95,550,000). Among the largest underlying components of QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average:
Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Preferred Stock Investing
EYPT market cap history
DCPH market cap history
The views and 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 QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. 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 QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20. Click here to find out which 9 other ETFs had notable inflows » Also see: Preferred Stock Investing EYPT market cap history DCPH market cap history The views and 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 QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $201.0 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 94,210,000 to 95,550,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20.
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Among the largest underlying components of QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $201.0 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 94,210,000 to 95,550,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20.
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13525.0
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2023-09-21 00:00:00 UTC
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US STOCKS-Futures drop as yields rise after Fed signals higher-for-longer rates
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-drop-as-yields-rise-after-fed-signals-higher-for-longer-rates
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nan
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nan
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By Ankika Biswas and Shristi Achar A
Sept 21 (Reuters) - U.S. stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped after the Federal Reserve signaled that another rate hike was in the offing this year.
Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs.
The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street.
The Fed's updated quarterly projections showed chances of the key rate being lifted one more time in 2023 to a peak range of 5.50%-5.75% and significantly tighter rates through 2024 than previously expected.
Some investors, however, doubt the central bank will stick to its guns, even though bets against the Fed's hawkishness have mostly backfired since policymakers embarked on a monetary policy tightening campaign in March 2022.
"While the dot plots suggest upside risks to interest rates, we retain our expectations that the hike cycle is likely done and for the Fed not to raise rates again," Mark Haefele Chief Investment Officer, UBS Global Wealth Management, said in a note.
"A variety of factors could weigh on the economy in the fourth quarter and push the Fed to remain on hold due to below-trend growth and lower core inflation."
Traders' bets on the benchmark rate remaining unchanged in November and December stood at 71% and 54%, respectively, according to CME's FedWatch tool.
Investors will also keep an eye on economic data including the weekly jobless claims and existing home sales data due later in the day for clues on the interest rates trajectory and the state of the economy.
The CBOE volatility index .VIX, also known as Wall Street's "fear gauge" hit its highest level in over three weeks, reflecting rising investor anxiety.
Meanwhile, weak performance of recent listings after their debut highs has dampened hopes of a likely revival in the initial public offering market amid high interest rates and broader market declines.
Marketing automation firm Klaviyo's KVYO.N shares fell 3.2% to $31.7 in premarket trading, after closing well below their intra-day debut high on Wednesday at $32.76.
Arm Holdings ARM.O also fell 3.0% to $51.3 premarket, nearing its IPO price of $51 per share while Instacart CART.O lost 1.4%.
At 7:16 a.m. ET, Dow e-minis 1YMcv1 were down 188 points, or 0.54%, S&P 500 e-minis EScv1 were down 34.75 points, or 0.78%, and Nasdaq 100 e-minis NQcv1 were down 160.75 points, or 1.06%.
FedEx FDX.N added 4.7% after surprising investors with a big quarterly profit beat.
Broadcom AVGO.O fell 7.2% on report Alphabet-owned Google's executives discussed dropping the company as a supplier of artificial intelligence chips as early as 2027.
Marvell Technology MRVL.O rose 5.3% as the report said Google has been working to replace Broadcom with Marvell as the supplier for networking chips used in its data centers.
Warner Bros Discovery WBD.O and Paramount Global PARA.O rose 0.3% and 0.9%, respectively, on a report that writers and producers were to end the Writers Guild of America (WGA) strike.
Inflation https://tmsnrt.rs/3ETme0l
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by Arun Koyyur and 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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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street. "A variety of factors could weigh on the economy in the fourth quarter and push the Fed to remain on hold due to below-trend growth and lower core inflation."
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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. By Ankika Biswas and Shristi Achar A Sept 21 (Reuters) - U.S. stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped after the Federal Reserve signaled that another rate hike was in the offing this year. Meanwhile, weak performance of recent listings after their debut highs has dampened hopes of a likely revival in the initial public offering market amid high interest rates and broader market declines.
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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. By Ankika Biswas and Shristi Achar A Sept 21 (Reuters) - U.S. stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped after the Federal Reserve signaled that another rate hike was in the offing this year. "While the dot plots suggest upside risks to interest rates, we retain our expectations that the hike cycle is likely done and for the Fed not to raise rates again," Mark Haefele Chief Investment Officer, UBS Global Wealth Management, said in a note.
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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. By Ankika Biswas and Shristi Achar A Sept 21 (Reuters) - U.S. stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped after the Federal Reserve signaled that another rate hike was in the offing this year. The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street.
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13526.0
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2023-09-21 00:00:00 UTC
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Buy These Chinese Tech Stocks as Risk to Reward Becomes Favorable
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AAPL
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https://www.nasdaq.com/articles/buy-these-chinese-tech-stocks-as-risk-to-reward-becomes-favorable
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nan
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nan
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Despite mounting tensions between the U.S. and China several Chinese tech stocks are attractive at the moment.
Present Biden’s announcement of corporate limitations on investments in China last month has caused Chinese tech stocks to fall with the U.S. countering China’s regulations against American companies such as Apple AAPL.
With that being said, the risk to reward is becoming favorable for a few Chinese e-commerce stocks and other internet-related companies with now looking like an opportune time to buy.
E-Commerce Opportunity
Commanding much of the domestic e-commerce market share and even the global market share due to China’s large population makes Alibaba’s BABA stock worthy of consideration after its recent skid.
Giving up its year-to-date gains, Alibaba’s stock is now down -3% in 2023 and -8% over the last month. However, earnings estimates have continued to trend higher and are noticeably up over the last quarter quieting fears surrounding China’s slowing GDP growth and landing Alibaba's stock a Zacks Rank #1 (Strong Buy).
Alibaba’s annual earnings are now forecasted to jump 15% in its current fiscal 2024 and rise another 7% in FY25 to $9.80 a share with BABA starting to make the case for being undervalued at just 9.3X forward earnings.
Image Source: Zacks Investment Research
Still somewhat of a hidden gem in the Chinese e-commerce space, Vipshop Holdings stock (VIPS) also sports a Zacks Rank #1 (Strong Buy). Vipshop’s niche as an online discount retailer for various branded consumer goods appears to be paying off.
Expansive bottom-line growth is anticipated with Vipshop’s earnings projected to soar 39% in its FY23 and jump another 11% in FY24 to $2.38 per share. More importantly, earnings estimates are nicely up over the last 60 days making Vipshop’s 6.7X forward earnings multiple very attractive as well. Plus, VIPS shares are still up a modest +6% for the year with the -8% decline in September starting to look excessive.
Image Source: Zacks Investment Research
Opportunity in Online Travel
While there may be back-and-forth concerns about China's regulations for big tech companies like Alibaba and Apple, Chinese online travel service company MakeMyTrip Limited MMYT may be able to stay clear of geopolitical scrutiny.
Even better is that travel demand should remain higher with China reopening its borders earlier in the year and ending its zero-Covid 19 policy. To that point, MakeMyTrip’s stock covets a Zacks Rank #1 (Strong Buy) as earnings estimate revisions have continued to skyrocket in the last 60 days for both its current FY24 and FY25.
MakeMyTrip’s stock has soared +30% this year and its -3% month-to-date dip is starting to look like a healthy correction. This is especially the case with FY25 earnings expected to come back to reality at $1.48 a share following spiked demand and an exceptional EPS forecast of $7.12 per share in MakeMyTrip’s current fiscal year.
Image Source: Zacks Investment Research
Takeaway
There is opportunity brewing in these Chinese tech stocks considering their earnings potential which is being reconfirmed by rising EPS estimates. Overall, after the broader selloff among Chinese securities, better entry points are being created for Alibaba, Vipshop Holdings, and MakeMyTrip Limited’s stock.
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
MakeMyTrip Limited (MMYT) : Free Stock Analysis Report
Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Present Biden’s announcement of corporate limitations on investments in China last month has caused Chinese tech stocks to fall with the U.S. countering China’s regulations against American companies such as Apple AAPL. Click to get this free report MakeMyTrip Limited (MMYT) : Free Stock Analysis Report Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. However, earnings estimates have continued to trend higher and are noticeably up over the last quarter quieting fears surrounding China’s slowing GDP growth and landing Alibaba's stock a Zacks Rank #1 (Strong Buy).
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Click to get this free report MakeMyTrip Limited (MMYT) : Free Stock Analysis Report Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Present Biden’s announcement of corporate limitations on investments in China last month has caused Chinese tech stocks to fall with the U.S. countering China’s regulations against American companies such as Apple AAPL. Image Source: Zacks Investment Research Still somewhat of a hidden gem in the Chinese e-commerce space, Vipshop Holdings stock (VIPS) also sports a Zacks Rank #1 (Strong Buy).
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Click to get this free report MakeMyTrip Limited (MMYT) : Free Stock Analysis Report Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Present Biden’s announcement of corporate limitations on investments in China last month has caused Chinese tech stocks to fall with the U.S. countering China’s regulations against American companies such as Apple AAPL. Image Source: Zacks Investment Research Still somewhat of a hidden gem in the Chinese e-commerce space, Vipshop Holdings stock (VIPS) also sports a Zacks Rank #1 (Strong Buy).
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Present Biden’s announcement of corporate limitations on investments in China last month has caused Chinese tech stocks to fall with the U.S. countering China’s regulations against American companies such as Apple AAPL. Click to get this free report MakeMyTrip Limited (MMYT) : Free Stock Analysis Report Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alibaba’s annual earnings are now forecasted to jump 15% in its current fiscal 2024 and rise another 7% in FY25 to $9.80 a share with BABA starting to make the case for being undervalued at just 9.3X forward earnings.
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13527.0
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2023-09-21 00:00:00 UTC
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AI Stocks to Watch: 3 Names for Your Short List
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AAPL
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https://www.nasdaq.com/articles/ai-stocks-to-watch%3A-3-names-for-your-short-list
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence has been the story of 2023. Some will call AI a bubble, and there’s no doubt that some AI stocks are more than a little frothy. But this is a multi-year trend that is still in its early stages. That’s why, even if you haven’t bought into the sector, it’s important to have a list of AI stocks to watch.
There are different ways to invest in artificial intelligence. You can play it (relatively) safe by owning one of the large-cap “big tech” stocks. That won’t take away all the volatility, but you’ll be investing in companies that aren’t going away. You can also invest in companies that provide the infrastructure that companies will need to provide AI products and services for their customers.
Yet another option is to invest in one of the up-and-coming AI stocks. As the label suggests, these stocks aren’t on the level of the big tech stocks, but they have a strong story to back them up. Many of these companies focus on a specific niche that analysts forecast will have significant upside.
Investors can also choose to invest in one of several exchange-traded funds (ETFs) that focus on AI. This article focuses on AI stocks within these categories.
Palantir (PLTR)
Source: T. Schneider / Shutterstock.com
Palantir (NYSE:PLTR) is a stock that mirrors the hype in the AI sector. In August 2023, Wedbush analyst Dan Ives said Palantir is the “Messi of AI,” referencing the international soccer star Lionel Messi. Ives also set a price target of $25 for PLTR stock.
At the time, that was “only” a 25% increase from the company’s stock price. Today, it marks a gain of almost 80%. That should make investors wonder why the stock dropped.
Many investors who were long in PLTR stock used the summer surge as an opportunity to take some profits or exit their position entirely. To be fair, there are some concerns about the company’s current valuation. Revenue continues to grow, but analysts are concerned that it may not be growing fast enough to justify a forward price-to-earnings (P/E) ratio of over 216x.
Perhaps a more valid concern centers around the company’s ability to monetize AI. Palantir’s chief executive officer (CEO) Alec Karp didn’t do the company any favors by acknowledging that the company’s AI strategy (re: monetization) is not fully in place.
That being said, Palantir has posted three consecutive profitable quarters, which many analysts doubted. The company has had a history of overcoming investor objections. While there may be some short-term turbulence, the long-term case for owning PLTR stock is still strong.
Qualcomm (QCOM)
Source: Katherine Welles / Shutterstock.com
Nvidia (NASDAQ:NVDA) will continue to be one of the foundational stocks for investors looking for exposure to AI. However, if you are looking for other AI stocks to buy as a picks-and-shovel opportunity, Qualcomm (NASDAQ:QCOM) deserves a closer look.
The primary reason is that Qualcomm recently signed a new chip supply arrangement with Apple (NASDAQ:AAPL). The deal stipulates that Qualcomm will provide its Snapdragon 5G Modem-RF systems for Apple iPhones between 2024 and 2026. Apple is looking to design its own modem. It still may do that in time. But for now, Qualcomm is the beneficiary, a fact that investors can use to their advantage.
QCOM stock popped about 4% on the news but is still down over the last 12 months and is posting just a slight 1% gain in 2023. That allows investors to focus on its attractive valuation of just 17x forward earnings.
And the company’s dividend shouldn’t be overlooked. Qualcomm has increased its dividend by an average of 5.7% for the past three years. Furthermore, the company has increased its dividend for 21 consecutive years and has a $3.20 annual payout per share.
Artificial Intelligence & Technology ETF (AIQ)
Source: shutterstock.com/cono0430
For many investors, AI is an ideal reason to invest in an exchange-traded fund (ETF). These funds can give investors a broad base of exposure while smoothing out the volatility of owning individual stocks. And the Artificial Intelligence & Technology ETF (NASDAQ:AIQ) is an appealing choice among AI stocks to watch.
The fund’s approach is to find the most innovative companies in the AI sector regardless of the company’s sector or country of origin. The expense ratio of 0.68% is on the high side, but it’s appropriate with the potential growth of this sector. Case in point: AIQ stock is up 36% in the last 12 months.
Not surprisingly, Nvidia is one of the fund’s top holdings. Looking at the stocks in this article, the AIQ fund counts Qualcomm as one of its holdings. As of this writing, Palantir was not held by the fund.
On the date of publication, Chris Markoch had a LONG position in PLTR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
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The post AI Stocks to Watch: 3 Names for Your Short List 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 primary reason is that Qualcomm recently signed a new chip supply arrangement with Apple (NASDAQ:AAPL). Qualcomm (QCOM) Source: Katherine Welles / Shutterstock.com Nvidia (NASDAQ:NVDA) will continue to be one of the foundational stocks for investors looking for exposure to AI. These funds can give investors a broad base of exposure while smoothing out the volatility of owning individual stocks.
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The primary reason is that Qualcomm recently signed a new chip supply arrangement with Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Artificial intelligence has been the story of 2023. Artificial Intelligence & Technology ETF (AIQ) Source: shutterstock.com/cono0430 For many investors, AI is an ideal reason to invest in an exchange-traded fund (ETF).
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The primary reason is that Qualcomm recently signed a new chip supply arrangement with Apple (NASDAQ:AAPL). Palantir (PLTR) Source: T. Schneider / Shutterstock.com Palantir (NYSE:PLTR) is a stock that mirrors the hype in the AI sector. Qualcomm (QCOM) Source: Katherine Welles / Shutterstock.com Nvidia (NASDAQ:NVDA) will continue to be one of the foundational stocks for investors looking for exposure to AI.
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The primary reason is that Qualcomm recently signed a new chip supply arrangement with Apple (NASDAQ:AAPL). That being said, Palantir has posted three consecutive profitable quarters, which many analysts doubted. QCOM stock popped about 4% on the news but is still down over the last 12 months and is posting just a slight 1% gain in 2023.
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13528.0
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2023-09-21 00:00:00 UTC
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3 Reasons this Tech Giant is Going Back to Highs
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AAPL
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https://www.nasdaq.com/articles/3-reasons-this-tech-giant-is-going-back-to-highs
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nan
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nan
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After tagging a fresh all-time high in the middle of July, shares of tech titan Microsoft Corp (NASDAQ: MSFT) took a well-earned breather and cooled much of the way through August. Few investors would have held this against the tech giant. After a 70% run that saw the company eclipse its previous all-time high set during the boom times of Covid, it was well entitled to retreat a bit.
Though perhaps not at first obvious, a drop like that, 15% to be exact, can often be a good thing when taken in the context of the bigger picture. Any long-term rally in a stock, no matter its market cap, is better served with regular pullbacks. These are opportunities to shake loose the weak hands and allow shares to consolidate. Without a break, a stock to get overheated pretty quickly. This often leads to a vicious and uncontrolled selloff once the levee breaks.
Not so with our friends from the state of Washington. The 15% dip in MSFT stock was just what the doctor ordered, and after putting in a very definitive low during the final weeks of August, the stock has been trending upwards once again. It's barely a 10% move from reaching July's high, and there are three main signs that point to them doing this in the coming weeks.
Bullish Signals
First up is the company's dividend, which Microsoft increased by 10% yesterday. Boosting a quarterly dividend is one of the most bullish signals a business can give to the market and speaks to management's confidence in both the near and long-term outlook. The effects of a dividend cut can be disastrous to a stock's price. So a company only raises its dividend when it is supremely confident of being able to back it up.
That's looking like the case here at Microsoft, which has long offered one of the most dependable dividends of all the tech giants out there. Its dividend yield of 0.92% compares very favorably to that of Apple Inc’s (NASDAQ: AAPL), whose dividend yield is 0.54%. For further context, Meta Inc (NASDAQ: META) doesn't even offer a dividend.
Strong Tailwinds
Beyond the signals from leadership, investors getting involved in Microsoft know there's a super strong tailwind blowing behind its shares - artificial intelligence (AI). Having been a catch-all buzzword for much of the time since bursting on the scene earlier this year, analysts are finally starting to sort the real industry players from the pretenders. Microsoft has been flagged since the early days as one of those that actually stand to do really well from it over the long term.
It was only earlier this month that the team at Needham named Microsoft as one of their top picks when it came to identifying long-term beneficiaries, with both Alphabet Inc (NASDAQ: GOOGL) and Amazon.com Inc (NASDAQ: AMZN) also up there with them.
In the domain of large language models, it has become increasingly evident that the tech giants, in particular, are currently regarded as the foremost contenders. And in addition to Needham including Microsoft in their list, the team at Wedbush did the same.
The prevailing consensus suggests that the winners in the ongoing AI race will be those who can harness the power of these substantial language models. Microsoft is starting to look exceptionally well-positioned to do just that.
Juicy Price Targets
So, with management flashing bullish signals to the market and analysts lining up to name Microsoft as a top AI stock, what could possibly be the cherry on the pie? Try this on: a $400 price target from Goldman Sachs. The team there reiterated their Buy rating on Microsoft shares last week, with a price target that points to further upside in the region of 25% from where shares were trading on Wednesday.
Were the stock to hit that in the coming weeks, it would have gone well beyond July's peak along the way and be trading at fresh record highs. With decent momentum starting to build in the broader market once again, there's every reason to think Microsoft will continue ticking higher from here.
Investors should look for a series of higher lows and higher highs to form in the coming sessions, as this will all but confirm that the uptrend is still in place and the journey towards fresh highs is well underway.
The views and 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 dividend yield of 0.92% compares very favorably to that of Apple Inc’s (NASDAQ: AAPL), whose dividend yield is 0.54%. After tagging a fresh all-time high in the middle of July, shares of tech titan Microsoft Corp (NASDAQ: MSFT) took a well-earned breather and cooled much of the way through August. Having been a catch-all buzzword for much of the time since bursting on the scene earlier this year, analysts are finally starting to sort the real industry players from the pretenders.
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Its dividend yield of 0.92% compares very favorably to that of Apple Inc’s (NASDAQ: AAPL), whose dividend yield is 0.54%. After tagging a fresh all-time high in the middle of July, shares of tech titan Microsoft Corp (NASDAQ: MSFT) took a well-earned breather and cooled much of the way through August. Juicy Price Targets So, with management flashing bullish signals to the market and analysts lining up to name Microsoft as a top AI stock, what could possibly be the cherry on the pie?
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Its dividend yield of 0.92% compares very favorably to that of Apple Inc’s (NASDAQ: AAPL), whose dividend yield is 0.54%. After tagging a fresh all-time high in the middle of July, shares of tech titan Microsoft Corp (NASDAQ: MSFT) took a well-earned breather and cooled much of the way through August. Juicy Price Targets So, with management flashing bullish signals to the market and analysts lining up to name Microsoft as a top AI stock, what could possibly be the cherry on the pie?
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Its dividend yield of 0.92% compares very favorably to that of Apple Inc’s (NASDAQ: AAPL), whose dividend yield is 0.54%. Boosting a quarterly dividend is one of the most bullish signals a business can give to the market and speaks to management's confidence in both the near and long-term outlook. That's looking like the case here at Microsoft, which has long offered one of the most dependable dividends of all the tech giants out there.
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13529.0
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2023-09-21 00:00:00 UTC
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Apple's Chinese supplier Luxshare's production of some iPhone 15s doubled in a year
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AAPL
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https://www.nasdaq.com/articles/apples-chinese-supplier-luxshares-production-of-some-iphone-15s-doubled-in-a-year
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nan
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BEIJING, Sept 21 (Reuters) - Apple Inc's AAPL.O Chinese supplier Luxshare Precision Industry 002475.SZ is producing three models of iPhone 15 series this year, and the business has doubled in a year, Luxshare's chairwoman said on Thursday.
The manufacturer is also making production preparations for Apple Vision Pro, a wearable headset device that will be available early next year, chairwoman Wang Laichun told state-backed newspaper The Paper.
Luxshare has increased the production types and numbers of Apple's iPhone products in recent years, Wang added.
"Luxshare is continuing to expand its production capacity in China to meet Apple's needs," Wang said, adding the company built a new plant in Kunshan last year to support the development and mass production of iPhone.
"The fact that Luxshare Precision can have this scale this year is inseparable from Apple's support," Wang told the Paper.
Founded in 2004, Luxshare became an Apple supplier in 2011 and has steadily moved up the hardware giant's value chain, from making connector cables for the iPhone and Macbook to manufacturing Airpods.
Apple's largest assembler of iPhones in China is Foxconn.
(Reporting by Ella Cao in Beijing and Meg Shen in Hong Kong. Editing by Jane Merriman)
((Ella.Cao@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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BEIJING, Sept 21 (Reuters) - Apple Inc's AAPL.O Chinese supplier Luxshare Precision Industry 002475.SZ is producing three models of iPhone 15 series this year, and the business has doubled in a year, Luxshare's chairwoman said on Thursday. The manufacturer is also making production preparations for Apple Vision Pro, a wearable headset device that will be available early next year, chairwoman Wang Laichun told state-backed newspaper The Paper. "The fact that Luxshare Precision can have this scale this year is inseparable from Apple's support," Wang told the Paper.
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BEIJING, Sept 21 (Reuters) - Apple Inc's AAPL.O Chinese supplier Luxshare Precision Industry 002475.SZ is producing three models of iPhone 15 series this year, and the business has doubled in a year, Luxshare's chairwoman said on Thursday. Luxshare has increased the production types and numbers of Apple's iPhone products in recent years, Wang added. "The fact that Luxshare Precision can have this scale this year is inseparable from Apple's support," Wang told the Paper.
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BEIJING, Sept 21 (Reuters) - Apple Inc's AAPL.O Chinese supplier Luxshare Precision Industry 002475.SZ is producing three models of iPhone 15 series this year, and the business has doubled in a year, Luxshare's chairwoman said on Thursday. Luxshare has increased the production types and numbers of Apple's iPhone products in recent years, Wang added. "Luxshare is continuing to expand its production capacity in China to meet Apple's needs," Wang said, adding the company built a new plant in Kunshan last year to support the development and mass production of iPhone.
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BEIJING, Sept 21 (Reuters) - Apple Inc's AAPL.O Chinese supplier Luxshare Precision Industry 002475.SZ is producing three models of iPhone 15 series this year, and the business has doubled in a year, Luxshare's chairwoman said on Thursday. The manufacturer is also making production preparations for Apple Vision Pro, a wearable headset device that will be available early next year, chairwoman Wang Laichun told state-backed newspaper The Paper. Luxshare has increased the production types and numbers of Apple's iPhone products in recent years, Wang added.
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13530.0
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2023-09-21 00:00:00 UTC
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Should You Invest in the Invesco Dorsey Wright Technology Momentum ETF (PTF)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-invesco-dorsey-wright-technology-momentum-etf-ptf
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Invesco Dorsey Wright Technology Momentum ETF (PTF), a passively managed exchange traded fund launched on 10/12/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $310.54 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. PTF seeks to match the performance of the DWA Technology Technical Leaders Index before fees and expenses.
The Dorsey Wright??Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.08%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.17% of total assets, followed by Super Micro Computer Inc (SMCI) and Applovin Corp (APP).
The top 10 holdings account for about 43.35% of total assets under management.
Performance and Risk
Year-to-date, the Invesco Dorsey Wright Technology Momentum ETF return is roughly 17.45% so far, and is up about 16.34% over the last 12 months (as of 09/21/2023). PTF has traded between $33.82 and $51.92 in this past 52-week period.
The ETF has a beta of 1.21 and standard deviation of 35.27% for the trailing three-year period, making it a high risk choice in the space. With about 35 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Dorsey Wright Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PTF is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $48.99 billion in assets, Vanguard Information Technology ETF has $50.78 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want 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
Invesco Dorsey Wright Technology Momentum ETF (PTF): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
AppLovin Corporation (APP) : Free Stock Analysis Report
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.17% of total assets, followed by Super Micro Computer Inc (SMCI) and Applovin Corp (APP). Click to get this free report Invesco Dorsey Wright Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports AppLovin Corporation (APP) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $310.54 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report Invesco Dorsey Wright Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports AppLovin Corporation (APP) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.17% of total assets, followed by Super Micro Computer Inc (SMCI) and Applovin Corp (APP). If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Invesco Dorsey Wright Technology Momentum ETF (PTF), a passively managed exchange traded fund launched on 10/12/2006.
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Click to get this free report Invesco Dorsey Wright Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports AppLovin Corporation (APP) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.17% of total assets, followed by Super Micro Computer Inc (SMCI) and Applovin Corp (APP). Alternatives Invesco Dorsey Wright Technology Momentum ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.17% of total assets, followed by Super Micro Computer Inc (SMCI) and Applovin Corp (APP). Click to get this free report Invesco Dorsey Wright Technology Momentum ETF (PTF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports AppLovin Corporation (APP) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Invesco Dorsey Wright Technology Momentum ETF (PTF), a passively managed exchange traded fund launched on 10/12/2006.
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13531.0
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2023-09-21 00:00:00 UTC
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US STOCKS-Futures drop as Treasury yields rise after Fed's hawkish pause
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-drop-as-treasury-yields-rise-after-feds-hawkish-pause
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.25%, S&P 0.40%, Nasdaq 0.59%
Sept 21 (Reuters) - U.S. stock index futures declined on Thursday as growth stocks took a hit from a jump in Treasury yields after the Federal Reserve held interest rates steady while hinting at another hike this year.
Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.5% and 1.5% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs.
The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street.
The Fed's updated quarterly projections showed chances of the key rate being lifted one more time in 2023 to a peak range of 5.50%-5.75% and significantly tighter rates through 2024 than previously expected.
However, some investors doubt the central bank will stick to its guns, even though bets against the Fed's hawkishness has mostly backfired since policymakers embarked on a monetary policy tightening campaign since March 2022.
"While the dot plots suggest upside risks to interest rates, we retain our expectations that the hike cycle is likely done and for the Fed not to raise rates again," said Mark Haefele Chief Investment Officer, UBS Global Wealth Management.
"A variety of factors could weigh on the economy in the fourth quarter and push the Fed to remain on hold due to below-trend growth and lower core inflation."
Traders' bets on the benchmark rate remaining unchanged in November and December stood at 71% and 53%, respectively, according to CME's FedWatch tool.
Investors will also keep an eye on economic data including the weekly jobless claims and existing home sales data in August for clues on the interest rates trajectory and the state of the economy.
Meanwhile, weak performance of recent listings after their debut highs have added to doubts over hopes of a revival in the initial public offering market as high interest rates and broader market declines may continue to weigh.
Marketing automation firm Klaviyo's KVYO.N shares closed at $32.76, well below their first-day high on Wednesday. While Arm Holdings ARM.O fell 3.4% to $51.12 premarket, nearing its IPO price of $51 per share and Instacart CART.O lost 1.5% on Thursday.
At 5:23 a.m. ET, Dow e-minis 1YMcv1 were down 88 points, or 0.25%, S&P 500 e-minis EScv1 were down 18 points, or 0.4%, and Nasdaq 100 e-minis NQcv1 were down 88.75 points, or 0.59%.
FedEx FDX.N jumped 5% after surprising investors with a big quarterly profit beat.
Broadcom AVGO.O fell 5.5% on report Alphabet-owned Google's executives discussed dropping the company as a supplier of artificial intelligence chips as early as 2027.
Meanwhile, Marvell Technology MRVL.O rose 3.4% as the report said Google has been working to replace Broadcom with Marvell as the supplier for networking chips used in its data centers.
(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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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.5% and 1.5% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street. However, some investors doubt the central bank will stick to its guns, even though bets against the Fed's hawkishness has mostly backfired since policymakers embarked on a monetary policy tightening campaign since March 2022.
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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.5% and 1.5% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. Futures down: Dow 0.25%, S&P 0.40%, Nasdaq 0.59% Sept 21 (Reuters) - U.S. stock index futures declined on Thursday as growth stocks took a hit from a jump in Treasury yields after the Federal Reserve held interest rates steady while hinting at another hike this year. Meanwhile, weak performance of recent listings after their debut highs have added to doubts over hopes of a revival in the initial public offering market as high interest rates and broader market declines may continue to weigh.
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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.5% and 1.5% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. Futures down: Dow 0.25%, S&P 0.40%, Nasdaq 0.59% Sept 21 (Reuters) - U.S. stock index futures declined on Thursday as growth stocks took a hit from a jump in Treasury yields after the Federal Reserve held interest rates steady while hinting at another hike this year. "While the dot plots suggest upside risks to interest rates, we retain our expectations that the hike cycle is likely done and for the Fed not to raise rates again," said Mark Haefele Chief Investment Officer, UBS Global Wealth Management.
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Rate-sensitive stocks including Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O, and Nvidia NVDA.O fell between 0.5% and 1.5% in premarket trading as the two-year and 10-year Treasury yields US2YT=RR, US10YT=RR scaled multi-year highs. Futures down: Dow 0.25%, S&P 0.40%, Nasdaq 0.59% Sept 21 (Reuters) - U.S. stock index futures declined on Thursday as growth stocks took a hit from a jump in Treasury yields after the Federal Reserve held interest rates steady while hinting at another hike this year. The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street.
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13532.0
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2023-09-21 00:00:00 UTC
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2 FAANG Stocks That Are Still No-Brainer Buys (and One to Avoid!)
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AAPL
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https://www.nasdaq.com/articles/2-faang-stocks-that-are-still-no-brainer-buys-and-one-to-avoid
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are good reasons why FAANG stocks continue to generate investor interest. The companies that comprise this popular group of stocks are industry leaders who have proved to be winning investments.
The so-called Magnificent 7 stocks might grab more headlines these days, despite there being some overlap between them, but which FAANG stocks to buy (or avoid!) remains a hot topic. As they should. The companies possess significant advantages over the competition. Their competitive moats remain substantial. The stocks may rise and fall, but their businesses still hold enduring qualities.
That doesn’t mean you should randomly buy these stocks. For all their strengths, there are weaknesses, too. As we move through September, two FAANG stocks stand out as stellar buys at the moment, and one is a stock that just might disappoint investors.
Amazon (AMZN)
Source: Shutterstock
Amazon enjoyed a massive run-up in value during the pandemic because it was one of the privileged few businesses deemed essential. Yet Wall Street questioned its slowing growth rates, which cut its stock in half in 2022.
That was a great opportunity for investors. Amazon is still where consumers go to buy a product online. It has a 47.9% share of the e-commerce market. Analysts seemingly ignored Amazon’s real future growth driver: Amazon Web Services (AWS).
AWS is the world’s No. 1 cloud services provider with a 32% share, according to Canalys data. It also recently introduced a suite of artificial intelligence tools called Bedrock. Cloud revenue rose 12% in the second quarter to $22.1 billion with operating profits of $5.4 billion. AWS has always been Amazon’s true profit center, accounting for 70% of total operating income.
Amazon stock is up 72% from the lows hit last year, though still 17% cheaper than its all-time highs. At 44 times earnings estimates, shares don’t seem discounted, and they’re not. But they’ve rarely gone on sale. With commanding positions in e-commerce and the cloud, the premium can be justified and there’s plenty of room left for future growth.
Meta Platforms (META)
Source: Ascannio / Shutterstock.com
It might not go by Facebook anymore, but Meta Platforms are still a force to reckon with. Its user base is unequaled with a combined 3.9 billion monthly active users spread across a trio of popular apps: Facebook, Instagram, and WhatsApp. It also recently launched Threads, a purported Twitter-killer app (the jury is still out on that).
Considering there are an estimated 4.9 billion social media users worldwide, or 60% of the global population, Meta has a massive influence on what people see and hear. It’s also the place where business wants to be seen. Advertisers know to reach as broad of an audience as possible they need to be on Meta’s social media services.
Although it and Google no longer account for the majority of global ad dollars spent online, they still hold a near-50 share of the market. Meta is also investing in some of the most important tech trends, including the metaverse (hence its name) and in AI.
Shares have more than tripled from their recent lows, but Meta Platforms only trades for 18 times next year’s earnings estimates. And Wall Street forecasts it will expand profits at a compounded 30% annually for the next five years. There’s still a lot more gas in this social media giant’s tank.
Netflix (NFLX)
Source: xalien / Shutterstock
Netflix is still a streaming star but fights regularly to retain the crown of having the most subscribers with Disney (NYSE:DIS). With more than 238 million paying subscribers globally, Netflix is on top again. Yet it’s also the most canceled service among viewers.
A survey by Vorhaus Advisors found Netflix was the most frequently mentioned service consumers canceled in the past three months. Some 2,000 adults were questioned by the market research firm and Netflix was mentioned by 37%. Hulu was the second most at 24%, followed by Amazon Prime at 20%.
It’s probably not surprising since Netflix is the biggest service, but it comes as it tries to reinvigorate subscriber growth. It may be more difficult than it seems.
Half of the survey respondents canceled to save money. That’s key because Netflix raised prices in the U.S. and other major markets in the first half of 2022. It’s also cracking down on password sharing.
Netflix stock also trades at 25 times estimates and 41 times free cash flow. Although Wall Street estimates the streamer will grow earnings at 24% annually for the next five years, that’s almost half the rate (44%) they grew over the past five years.
The streaming service isn’t a bad company, but its stock is the one FAANG stock to avoid.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post 2 FAANG Stocks That Are Still No-Brainer Buys (and One to Avoid!) 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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Considering there are an estimated 4.9 billion social media users worldwide, or 60% of the global population, Meta has a massive influence on what people see and hear. 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 2 FAANG Stocks That Are Still No-Brainer Buys (and One to Avoid!)
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips There are good reasons why FAANG stocks continue to generate investor interest. Considering there are an estimated 4.9 billion social media users worldwide, or 60% of the global population, Meta has a massive influence on what people see and hear. Shares have more than tripled from their recent lows, but Meta Platforms only trades for 18 times next year’s earnings estimates.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips There are good reasons why FAANG stocks continue to generate investor interest. As we move through September, two FAANG stocks stand out as stellar buys at the moment, and one is a stock that just might disappoint investors. The streaming service isn’t a bad company, but its stock is the one FAANG stock to avoid.
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It has a 47.9% share of the e-commerce market. Analysts seemingly ignored Amazon’s real future growth driver: Amazon Web Services (AWS). Rich Duprey has written about stocks and investing for the past 20 years.
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13533.0
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2023-09-21 00:00:00 UTC
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3 Tech Stocks Making Headlines: Opportunity or Obstacle?
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-making-headlines%3A-opportunity-or-obstacle
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Buy the rumor, sell the news is an old saw among investors. But is it accurate? As investors are seeing in 2023, good news can be bad news and vice versa. That’s true of tech stocks as it is to the broader economy.
In fact, tech stocks can be more affected by positive or negative headlines. These companies have rich valuations. When news breaks that may imply that they won’t hit their earnings numbers, short sellers are more than happy to drive the stock lower. The reverse is true as well. Positive news can stoke bullish fires.
If you’re a long-term investor, you can afford to ignore the day-to-day news surrounding a stock you own. If your reason for buying a stock hasn’t changed, corrections provide buying opportunities and bullish runs can be an opportunity to take profits.
But if you’re a trader, it’s important to distinguish between what is news and what is noise. You don’t want to be on the wrong side of that trade. Let’s look at three tech stocks that have been making news in the last month or so and see if the news is an opportunity or an obstacle.
Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) stock has made a strong recovery after falling 26% in 2022. The stock is up 37.5% in 2023. But the stock is down about 3% in the last three months and the stock is now stuck in a range.
One news item weighing on investors is concern that the company’s iPhone sales will not meet expectations, both in China and in the United States. And the launch of the company’s iPhone 15 was seemingly met with a less-than-enthusiastic response.
Or did it? Apple has already moved back the delivery date for the iPhone on the strength of the pre-orders. Goldman Sachs (NYSE:GS) says that demand for the iPhone outpaces supply and raised its price target by 20% to $218. And other analysts believe that the price target may be too low.
In any event, the story of Apple is about more than the iPhone and includes over 1 million subscription-based customers. You may have concerns about the valuation of AAPL stock. But it still seems like this is a time to buy the dip.
Amazon (AMZN)
Source: Daniel Fung / Shutterstock
Amazon (NASDAQ:AMZN) announced it was hiring approximately 250,000 workers for the holiday season. The company also announced it was raising the pay for contracted delivery drivers. Both of these would suggest that the company expects e-commerce demand to increase for the rest of the year.
However, AMZN stock dropped about 1.6% on the news and that continued a decline of over 3% since September 13. The reason may be that the cost of adding workers and increasing pay for others is likely to be a hit to the company’s bottom line regardless of any revenue gains they may get.
That’s not what investors need to hear when it comes to a stock that is already richly valued at over 61x forward earnings. Investors should wait until Amazon reports earnings in October before making a decision on AMZN stock.
PayPal (PYPL)
On August 14, PayPal (NASDAQ:PYPL) announced a change of leadership. Alex Chriss will take over the reins as chief executive officer (CEO) starting on September 27. The decision was expected after the planned departure of CEO Dan Schulman.
Change can make investors nervous, especially when Schulman has been the CEO for nine years. However, investors seem mildly enthused as PYPL stock is up about 4% in the last month.
The question for investors is what this means to the long-term fortunes of PLPL stock? The stock is down 34% in the last 12 months. In fact, the company’s stock is trading at levels it hasn’t seen since 2017. At that time, PayPal was generating $13 billion in revenue. Last year it brought in over $27 billion. And after a rough 2022, earnings are back near 2021 levels.
That suggests that PayPal is undervalued. It also explains that the perception of competition in the online payer space may not express the reality that’s going on in the space.
That being said, investors shouldn’t be looking at the change of leadership to give PYPL stock an immediate boost. But with the stock trading at just 16x forward earnings and the company projecting 17% earnings growth in the next 12 months, this may be a time to buy the news. Just be prepared to hold for longer than you may expect.
On the date of publication, Chris Markoch had a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.
More From InvestorPlace
ChatGPT IPO Could Shock the World, Make This Move Before the Announcement
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The post 3 Tech Stocks Making Headlines: Opportunity or Obstacle? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has made a strong recovery after falling 26% in 2022. You may have concerns about the valuation of AAPL stock. On the date of publication, Chris Markoch had a LONG position in AAPL.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has made a strong recovery after falling 26% in 2022. You may have concerns about the valuation of AAPL stock. On the date of publication, Chris Markoch had a LONG position in AAPL.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has made a strong recovery after falling 26% in 2022. You may have concerns about the valuation of AAPL stock. On the date of publication, Chris Markoch had a LONG position in AAPL.
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Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) stock has made a strong recovery after falling 26% in 2022. You may have concerns about the valuation of AAPL stock. On the date of publication, Chris Markoch had a LONG position in AAPL.
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13534.0
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2023-09-21 00:00:00 UTC
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Pushing Chips in on Best Tech ETFs
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AAPL
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https://www.nasdaq.com/articles/pushing-chips-in-on-best-tech-etfs
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nan
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nan
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C
onfirming strength in the technology sector, the tech-heavy Nasdaq-100 Index (NDX) and the Technology Select Sector Index are up 39.5% and 36.9%, respectively, year-to-date. In both cases, those margins are better than 2-to-1 over the S&P 500 and that’s with the S&P 500 allocating over 27% of its weight to the tech sector.
Those performances are testament to benefits of owning diverse tech ETFs, which include stocks such as Apple (AAPL) and Microsoft (MSFT). On the other hand, experienced investors that tech is comprised of a variety of industry groups and performance across those segments isn’t linear. That is to say some tech industries will outperform or lag the broader sector. In terms of 2023 tech industry standouts, semiconductors fit the bill.
The PHLX Semiconductor Sector Index, which is home to the 30 biggest U.S.-listed chip equities, is up nearly 38% year-to-date thanks to a big assist from the artificial intelligence (AI) phenomenon.
There’s no denying that AI – a recent development on the tech investing scene – is propelling chip ETFs as three of the five best-performing tech ETFs this year are semiconductor funds. Good news: 2023 isn’t a one-off showing for chip stocks and the related ETFs. This asset class has been a stellar long-term performer, indicating some of the following semiconductor ETFs could be attractive to patient tactical investors.
VanEck Semiconductor ETF (SMH)
Nearly 12 years old and home to $9.5 billion in assets under management, the VanEck Semiconductor ETF (SMH) is one of the oldest and largest funds in this category. More importantly, it’s up 41.55% year-to-date, but that’s not a flash-in-the-pan performance. Rather, SMH has been a stalwart over the long haul.
“Over a 10-year period, this share class outperformed the category’s average return by 10.3 percentage points annualized. It also outperformed the category index, the Morningstar US Technology Index, by an annualized 4.6 percentage points over the same period,” according to Morningstar research. “It is notable that this share class returned 36.9%, an impressive 19.4-percentage-point lead over its average peer, placing it in the top 10% of its category.”
SMH is home to 26 stocks, signaling a somewhat concentrated lineup. The two primary drivers of the ETF’s performance are Nvidia (NVDA) and Taiwan Semiconductor (TSM) as those two stocks combine for nearly a third of the fund’s roster.
Invesco Dynamic Semiconductors ETF (PSI)
While the Invesco Dynamic Semiconductors ETF (PSI) has been around for more than 18 years, it’s somewhat overlooked in the chip ETF conversation. That shouldn’t be the case because owing to a unique index methodology, PSI is a potentially attractive alternative to the standard funds in this category.
PSI follows the Dynamic Semiconductor Intellidex Index, which evaluates companies “based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value,” according to Invesco.
Data indicate that methodology has helped PSI build impressive long-term returns.
“Over the past five years, shares have returned an average of 20.4% per year, putting it in the 9th percentile of the category. For the last three years, the fund has returned an average of 22.6% a year, landing it in the 4th percentile. And for the past 12 months, the fund has been in the 9th percentile with a 35.5% gain,” adds Morningstar.
First Trust Nasdaq Semiconductor ETF (FTXL)
The First Trust Nasdaq Semiconductor ETF (FTXL) is another example of a chip ETF employing a unique strategy and one that’s rewarding investors as highlighted by a 26% year-to-date gain. Quietly large with $1.1 billion in assets under management, FTXL turned seven years old yesterday and tracks the Nasdaq US Smart Semiconductor™ Index.
Rather than weighting stocks by market value, which in chip ETFs can lead to concentration risk, FTXL’s index evaluates stocks based on trailing 12-month return on assets, trailing 12-month gross income and momentum as measured by price appreciation over the trailing 3-, 6-, 9-, and 12-month periods.
Currently home to 32 stocks, FTXL’s lineup has the flexibility to be as small as 30 components and as large as 50%. To somewhat reduce concentration risk, individual names are capped at weights of 8% upon inclusion in the underlying index.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those performances are testament to benefits of owning diverse tech ETFs, which include stocks such as Apple (AAPL) and Microsoft (MSFT). The PHLX Semiconductor Sector Index, which is home to the 30 biggest U.S.-listed chip equities, is up nearly 38% year-to-date thanks to a big assist from the artificial intelligence (AI) phenomenon. “It is notable that this share class returned 36.9%, an impressive 19.4-percentage-point lead over its average peer, placing it in the top 10% of its category.” SMH is home to 26 stocks, signaling a somewhat concentrated lineup.
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Those performances are testament to benefits of owning diverse tech ETFs, which include stocks such as Apple (AAPL) and Microsoft (MSFT). VanEck Semiconductor ETF (SMH) Nearly 12 years old and home to $9.5 billion in assets under management, the VanEck Semiconductor ETF (SMH) is one of the oldest and largest funds in this category. Invesco Dynamic Semiconductors ETF (PSI) While the Invesco Dynamic Semiconductors ETF (PSI) has been around for more than 18 years, it’s somewhat overlooked in the chip ETF conversation.
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Those performances are testament to benefits of owning diverse tech ETFs, which include stocks such as Apple (AAPL) and Microsoft (MSFT). VanEck Semiconductor ETF (SMH) Nearly 12 years old and home to $9.5 billion in assets under management, the VanEck Semiconductor ETF (SMH) is one of the oldest and largest funds in this category. Invesco Dynamic Semiconductors ETF (PSI) While the Invesco Dynamic Semiconductors ETF (PSI) has been around for more than 18 years, it’s somewhat overlooked in the chip ETF conversation.
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Those performances are testament to benefits of owning diverse tech ETFs, which include stocks such as Apple (AAPL) and Microsoft (MSFT). There’s no denying that AI – a recent development on the tech investing scene – is propelling chip ETFs as three of the five best-performing tech ETFs this year are semiconductor funds. VanEck Semiconductor ETF (SMH) Nearly 12 years old and home to $9.5 billion in assets under management, the VanEck Semiconductor ETF (SMH) is one of the oldest and largest funds in this category.
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13535.0
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2023-09-21 00:00:00 UTC
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Stock Market News for Sep 21, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-21-2023
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nan
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nan
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U.S. stocks finished lower on Wednesday after the Federal Reserve kept interest rates unchanged as widely expected but hinted at another hike in November and indicated that the fight against inflation was far from over. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.2% or 76.85 points to finish at 34,440.88 points.
The S&P 500 fell 0.9% or 41.75 points, to end at 4,402.20 points. Consumer discretionary, technology, communication services and materials stocks were the worst performers.
The Consumer Discretionary Select Sector SPDR (XLY) and the Technology Select Sector SPDR (XLK) declined 1% and 1.6%, respectively. The Communication Services Select Sector SPDR (XLC) fell 1.4%, while the Materials Select Sector SPDR (XLB) lost 1.1%. Seven of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slipped 1.5% or 209.06 points to finish at 13,469.13 points.
The fear-gauge CBOE Volatility Index (VIX) was up 7.30% to 15.14. A total of 9.73 billion shares were traded on Wednesday, lower than the last 20-session average of 10.07 billion. Decliners outnumbered advancers on the NYSE by a 1.46-to-1 ratio. On the Nasdaq, a 1.90-to-1 ratio favored declining issues.
Interest Rates Intact, Investors Worry on Fed’s Outlook
The Federal Reserve kept its policy interest rates unchanged, as widely expected, at the end of its two-day FOMC meeting on Wednesday. However, concerns over an economic slowdown grew as the Fed said that its fight against inflation was far from over and indicated at least one more rate interest hike this year.
The Fed said that the majority of the officials believe that at least another quarter percent point hike is required this year, which is likely to come in November before the central bank ends its current monetary tightening campaign.
The Fed also said that it plans to start cutting rates from next year. However, it said that it will keep rates at a higher level for 2024 than it had signaled earlier in June as it cut its forecast for rate cuts to two from four.
The benchmark interest rate will be hovering above the 5% mark by the end of next year. The Fed’s benchmark rate now stands in the range of 5.25%-5.5% after today’s decision.
The Fed was expected to maintain its hawkish stance and investors had been worrying on that over the past few sessions as some stronger-than-expect economic data in recent times coupled with surging oil prices, which hit a 10-month high, have raised concern that inflationary pressures will prove to be stubborn.
Fed Chair Jerome Powell also hinted that the U.S. economy will likely slow to a growth rate of 1.5% in 2024 after a projected 2.1% growth this year. However, it projected the economy to speed up again after that and inflation to cool to 2.5% by the end of 2024 from 3.3% this year, based on the central bank’s preferred Personal consumption expenditure (PCE) gauge.
Following this the 2-year Treasury yield jumped to its highest level since 2006. Also, the 10-year Treasury yield hit its highest level since November 2007. Tech and consumer discretionary stocks too a major beating.
Shares of Apple Inc. (AAPL) declined 2%, while Meta Platforms, Inc. (META) fell 1.8%. Also, shares of Royal Caribbean Cruises Ltd. (RCL) dropped 2.2%. Royal Caribbean Cruises carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
No major economic data was released on Wednesday.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple Inc. (AAPL) declined 2%, while Meta Platforms, Inc. (META) fell 1.8%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks finished lower on Wednesday after the Federal Reserve kept interest rates unchanged as widely expected but hinted at another hike in November and indicated that the fight against inflation was far from over.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) declined 2%, while Meta Platforms, Inc. (META) fell 1.8%. U.S. stocks finished lower on Wednesday after the Federal Reserve kept interest rates unchanged as widely expected but hinted at another hike in November and indicated that the fight against inflation was far from over.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Apple Inc. (AAPL) declined 2%, while Meta Platforms, Inc. (META) fell 1.8%. U.S. stocks finished lower on Wednesday after the Federal Reserve kept interest rates unchanged as widely expected but hinted at another hike in November and indicated that the fight against inflation was far from over.
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Shares of Apple Inc. (AAPL) declined 2%, while Meta Platforms, Inc. (META) fell 1.8%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Seven of the 11 sectors of the benchmark index ended in negative territory.
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13536.0
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2023-09-21 00:00:00 UTC
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The Zacks Analyst Blog Highlights Apple, Bank of America, Cisco Systems, Fidelity National Information Services and HP
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AAPL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-bank-of-america-cisco-systems-fidelity-national
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nan
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nan
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For Immediate Release
Chicago, IL – September 21, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Bank of America Corp. BAC, Cisco Systems, Inc. CSCO, Fidelity National Information Services, Inc. FIS and HP Inc. HPQ.
Here are highlights from Wednesday’s Analyst Blog:
Top Analyst Reports for Apple, Bank of America, Cisco and Others
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Bank of America Corp. and Cisco Systems, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Apple shares have performed in-line with the Zacks Tech sector this year (+36.8% vs. +37.2%), but have handily outperformed the broader market (+36.8% vs. +17%). The company expects iPhone and Services' year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter.
The upcoming iPhone 15, which Apple is likely to announce on Sep 12, is a key catalyst. Although the iPhone 15 is not expected to feature any major improvements from iPhone 14, the iPhone 15 Pro and Pro Max are expected to feature an A17 Bionic chip, improved battery life and a USB-C charging port.
Apple is also benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade is helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
(You can read the full research report on Apple here >>>)
Shares of Bank of America have gained +1.8% over the past six months against the Zacks Banks - Major Regional industry's gain of +5.6%. Higher interest rates and decent loan demand will likely keep aiding the company's net interest income (NII) growth. The opening of financial centers and improving digital capabilities is expected to bolster the top line.
However, the tough economic backdrop is expected to keep weighing on investment banking (IB) business. This, along with the volatile nature of the capital markets, might hurt non-interest income. Moreover, inflationary pressure will likely result in mounting expenses.
(You can read the full research report on Bank of America here >>>)
Shares of Cisco have outperformed the Zacks Computer - Networking industry over the year-to-date period (+19.9% vs. +18.4%). The company is riding on the growing demand for its security, artificial intelligence and cloud products. Its security portfolio is benefiting from the launch of new data loss prevention, firewall and zero trust capabilities.
Zero Trust portfolio is riding on strong demand for its Duo offering. Optimized application experience is benefiting from strong demand for ThousandEyes. Its investments across security business, focusing on cloud-based and AI-driven offerings, is expected to drive growth.
Expanding growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power over Ethernet bodes well for Cisco. Acquisitions including Lightspin Technologies, Smartlook and Armorblox is expected to benefit top-line growth.
(You can read the full research report on Cisco here >>>)
Other noteworthy reports we are featuring today include Fidelity National Information Services, Inc. and HP Inc.
Why Haven't You Looked at Zacks' Top Stocks?
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Fidelity National Information Services, Inc. (FIS) : 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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Stocks recently featured in the blog include: Apple Inc. AAPL, Bank of America Corp. BAC, Cisco Systems, Inc. CSCO, Fidelity National Information Services, Inc. FIS and HP Inc. HPQ. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Other noteworthy reports we are featuring today include Fidelity National Information Services, Inc. and HP Inc. Why Haven't You Looked at Zacks' Top Stocks?
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Stocks recently featured in the blog include: Apple Inc. AAPL, Bank of America Corp. BAC, Cisco Systems, Inc. CSCO, Fidelity National Information Services, Inc. FIS and HP Inc. HPQ. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Bank of America Corp. and Cisco Systems, Inc.
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Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Bank of America Corp. BAC, Cisco Systems, Inc. CSCO, Fidelity National Information Services, Inc. FIS and HP Inc. HPQ. Here are highlights from Wednesday’s Analyst Blog: Top Analyst Reports for Apple, Bank of America, Cisco and Others The Zacks Research Daily presents the best research output of our analyst team.
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Stocks recently featured in the blog include: Apple Inc. AAPL, Bank of America Corp. BAC, Cisco Systems, Inc. CSCO, Fidelity National Information Services, Inc. FIS and HP Inc. HPQ. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Bank of America Corp. and Cisco Systems, Inc.
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13537.0
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2023-09-21 00:00:00 UTC
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GLOBAL MARKETS-Dollar reigns as Europe's central banks spring some surprises
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AAPL
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https://www.nasdaq.com/articles/global-markets-dollar-reigns-as-europes-central-banks-spring-some-surprises
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nan
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nan
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By Marc Jones
LONDON, Sept 21 (Reuters) - World stocks fell for a fifth straight session, the dollar hit its strongest since March and sterling and the Swiss franc tumbled on Thursday, as the latest crop of central bank interest rate moves continued to produce surprises.
The mood had already been "risk off" after the U.S. Federal Reserve had signalled that it probably had at least one more hike left in the relentless rate rise cycle it began early last year.
Dealers were then caught off guard by a lurch in the franc CHF=EURCHF= in Europe as Swiss National Bank unexpectedly held its rates steady, a move then repeated in Britain and sterling markets as the Bank of England followed suit.
While Sweden and Norway had both stuck to the script by hiking their rates as expected, the latter surprised too by signalling it could go again in December. It all made another jumbo hike in Turkey look like a model of predictability.
Wall Street looked set for another drop when it reopens .Nand Saxo Bank analyst John Hardy said Europe's central bank moves showed there was now more uncertainty about both when and where interest rates max out.
"Different countries are in different gears so it is real data driven responses we are seeing now, especially for the UK," Hardy said following the BoE's decision, which had been its first pause after 14 consecutive hikes.
"It punctures the balloon on terminal rates and also creates more second guessing on the quality of the (economic) landings".
Sterling, which has been on the slide since July, dropped through $1.23 GBP=D3 to as low as $1.2223. /FRX
UK inflation figures this week meant Goldman Sachs and other banks had ditched their previous calls for one more rate increase and investors had cut the chance of a pause to roughly 50%, up from just 20% before the data.
Not everyone did, and Tom Hopkins, a portfolio manager at BRI Wealth Management said it was "too early to rule out any further rate hikes this year."
For the bond markets that meant the search for the elusive peak in rates goes on.
Mirroring a rise in U.S. Treasury yields, Germany's 10-year government bond yield DE10YT=RR touched a fresh six-month high of 2.73% and Britain's 10-year gilt yield GB10YT=RR rose to 4.29% after falling on Wednesday to its lowest since July. GVD/EUR
FED REACTION
Wall Street's restart is set to be driven by another likely fall in the rate-sensitive mega stocks such as Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Nvidia NVDA.O, most of which have been having a difficult month.
Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slumped 1.6% in what was its biggest move since early August. Japan's Nikkei .N225 fared only slightly better with a 1.4% loss.
With a crucial Bank of Japan meeting still to come this week, Japan's 10-year government bond yield rose to its highest in a decade.
Though the rise signals an expectation that the BOJ could finally move away from its easy money "yield curve control" policy, it was also tracking U.S. 10-year Treasury yields US10YT=RR, which had risen to a 16-year high of 4.43% in the wake of the Fed.
Ben Luk, senior multi-asset strategist at State Street Global Markets said the overall tone of the Fed's meeting on Wednesday, while not overly hawkish, included two surprises.
Forecasts for 2024 were slightly higher than generally expected and its comments implied that U.S. growth would hold up even if rates stay higher for quite a while.
The median forecast for the federal funds rate is 5.1% by year-end, up from 4.6% estimated in June.
The dollar index =USD, which measures it against a basket of currencies, rose as high as 105.59 on Thursday, its strongest since March 9, pushing the yen close to its weakest since November.
Europe's stock market drop and the expectations of Wall Street doing so too meant MSCI's benchmark world stocks index .MIWD00000PUS was firmly on course for a fifth day in the red, which will be its longest losing streak since March.
Commodity bulls were backing off too. Oil prices, which have been on a tear since Saudi Arabia and Russia agreed to crimp their production recently, posted their largest fall in a month.
Brent crude LCOc1 fell as much 1.3% before settling at $93 per barrel and U.S. crude CLc1 dropped as far as $88.37 before clawing back to just above $89 . Gold XAU= was also slightly lower at $1,918.96 an ounce. O/RGOL/
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
The race to raise rates https://tmsnrt.rs/3PlyLyC
(Additional reporting by Xie Yu in Hong Kong Editing by Shri Navaratnam and Tomasz Janowski)
((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street's restart is set to be driven by another likely fall in the rate-sensitive mega stocks such as Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Nvidia NVDA.O, most of which have been having a difficult month. By Marc Jones LONDON, Sept 21 (Reuters) - World stocks fell for a fifth straight session, the dollar hit its strongest since March and sterling and the Swiss franc tumbled on Thursday, as the latest crop of central bank interest rate moves continued to produce surprises. /FRX UK inflation figures this week meant Goldman Sachs and other banks had ditched their previous calls for one more rate increase and investors had cut the chance of a pause to roughly 50%, up from just 20% before the data.
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Wall Street's restart is set to be driven by another likely fall in the rate-sensitive mega stocks such as Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Nvidia NVDA.O, most of which have been having a difficult month. With a crucial Bank of Japan meeting still to come this week, Japan's 10-year government bond yield rose to its highest in a decade. Europe's stock market drop and the expectations of Wall Street doing so too meant MSCI's benchmark world stocks index .MIWD00000PUS was firmly on course for a fifth day in the red, which will be its longest losing streak since March.
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Wall Street's restart is set to be driven by another likely fall in the rate-sensitive mega stocks such as Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Nvidia NVDA.O, most of which have been having a difficult month. By Marc Jones LONDON, Sept 21 (Reuters) - World stocks fell for a fifth straight session, the dollar hit its strongest since March and sterling and the Swiss franc tumbled on Thursday, as the latest crop of central bank interest rate moves continued to produce surprises. Wall Street looked set for another drop when it reopens .Nand Saxo Bank analyst John Hardy said Europe's central bank moves showed there was now more uncertainty about both when and where interest rates max out.
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Wall Street's restart is set to be driven by another likely fall in the rate-sensitive mega stocks such as Apple AAPL.O, Meta Platforms META.O, Alphabet GOOGL.O and Nvidia NVDA.O, most of which have been having a difficult month. By Marc Jones LONDON, Sept 21 (Reuters) - World stocks fell for a fifth straight session, the dollar hit its strongest since March and sterling and the Swiss franc tumbled on Thursday, as the latest crop of central bank interest rate moves continued to produce surprises. The mood had already been "risk off" after the U.S. Federal Reserve had signalled that it probably had at least one more hike left in the relentless rate rise cycle it began early last year.
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13538.0
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2023-09-21 00:00:00 UTC
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3 Bearish Option Trade Ideas For This Thursday
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AAPL
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https://www.nasdaq.com/articles/3-bearish-option-trade-ideas-for-this-thursday
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nan
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nan
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If the bearish action in the stock market has got you down, maybe it’s time to start looking at option trades rather than boring old buy and hold. Today, we’re going to look at how to find bearish options trade ideas using the Bear Put Spread Screener.
A bear put spread is a vertical spread that aims to profit from a stock declining in price. It has a bearish directional bias as hinted in the name. Unlike the bear call spread, it suffers from time decay so traders need to be correct on the direction of the underlying and also the timing.
A bear put spread is created through buying an out-of-the-money put and selling a further out-of-the-money put.
The maximum profit is equal to the distance between the strikes, less the premium paid. The loss is limited to the premium paid.
Let’s take a look at Barchart’s Bear Put Spread Screener for today:
Some interesting trades here with impressive Max Profit Percentage. Let’s take a look at the first item in the table – a bear put spread on General Electric (GE).
GE Bear Put Spread Example
Using the December 15 expiry, this trade involves buying the $120 put and selling the $105 put.
The price for the trade is $5.92 which means the trader would pay $592 to enter the trade. This is also the maximum loss. The maximum gain be calculated by taking the width between the strikes and subtracting the premium paid:
15 – 5.92 x 100 = $908
The breakeven price for the trade is equal to the long put strike, less the premium. In this case, that gives us a breakeven price of 114.08.
Let’s look at the second example using Apple (AAPL)
Apple Bear Put Spread Example
The AAPL example above is also using the December 15 expiry and involves buying the $185 strike put and selling the $165 strike put.
The cost of the trade is $860 which is also the maximum loss with the maximum possible gain being $1,140. The maximum gain would occur if AAPL stock fell below $165 on the expiration date.
The breakeven price is 176.40.
Let’s look at another example, this time on Disney (DIS)
Disney Bear Put Spread Example
The DIS example from the screener is using the December 15 expiry and involves buying the $85 strike put and selling the $80 strike put.
The cost of the trade is $241 which is also the maximum loss with the maximum possible gain being $259. The maximum gain would occur if DIS stock fell below $80 on the expiration date.
The Barchart Technical Opinion rating is a 100% Sell with a Strongest short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
Mitigating Risk
Thankfully, bear put spreads are risk defined trades, so they have some build in risk management. The maximum loss is always limited to the premium paid, so we always know the worst case scenario.
For each trade consider setting a stop loss of 30% of the max loss.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Stocks Slump as Bond Yields Climb on the Hawkish Fed Pause
3 Oil Price Risks to Know Before You Buy Energy Stocks
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Down 17%, Should Investors Buy the September Dip in This FAANG Stock?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let’s look at the second example using Apple (AAPL) Apple Bear Put Spread Example The AAPL example above is also using the December 15 expiry and involves buying the $185 strike put and selling the $165 strike put. The maximum gain would occur if AAPL stock fell below $165 on the expiration date. If the bearish action in the stock market has got you down, maybe it’s time to start looking at option trades rather than boring old buy and hold.
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Let’s look at the second example using Apple (AAPL) Apple Bear Put Spread Example The AAPL example above is also using the December 15 expiry and involves buying the $185 strike put and selling the $165 strike put. The maximum gain would occur if AAPL stock fell below $165 on the expiration date. GE Bear Put Spread Example Using the December 15 expiry, this trade involves buying the $120 put and selling the $105 put.
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Let’s look at the second example using Apple (AAPL) Apple Bear Put Spread Example The AAPL example above is also using the December 15 expiry and involves buying the $185 strike put and selling the $165 strike put. The maximum gain would occur if AAPL stock fell below $165 on the expiration date. GE Bear Put Spread Example Using the December 15 expiry, this trade involves buying the $120 put and selling the $105 put.
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Let’s look at the second example using Apple (AAPL) Apple Bear Put Spread Example The AAPL example above is also using the December 15 expiry and involves buying the $185 strike put and selling the $165 strike put. The maximum gain would occur if AAPL stock fell below $165 on the expiration date. Today, we’re going to look at how to find bearish options trade ideas using the Bear Put Spread Screener.
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13539.0
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2023-09-21 00:00:00 UTC
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Should You Invest in the iShares U.S. Technology ETF (IYW)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-technology-etf-iyw-9
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nan
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nan
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If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on 05/15/2000.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $10.93 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IYW seeks to match the performance of the Dow Jones U.S. Technology Index before fees and expenses.
The Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 83.40% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.93% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL).
The top 10 holdings account for about 63.25% of total assets under management.
Performance and Risk
So far this year, IYW has added about 43.16%, and was up about 34.82% in the last one year (as of 09/21/2023). During this past 52-week period, the fund has traded between $70.72 and $113.67.
The ETF has a beta of 1.14 and standard deviation of 26.90% for the trailing three-year period, making it a medium risk choice in the space. With about 141 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IYW is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $48.99 billion in assets, Vanguard Information Technology ETF has $50.78 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.93% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.93% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.93% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 17.93% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc Class A (GOOGL). Click to get this free report iShares U.S. Technology ETF (IYW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on 05/15/2000.
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13540.0
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2023-09-20 00:00:00 UTC
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US STOCKS-S&P, Dow rise as yields slip ahead of Fed rate verdict
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-dow-rise-as-yields-slip-ahead-of-fed-rate-verdict
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nan
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nan
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By Ankika Biswas and Shristi Achar A
Sept 20 (Reuters) - The S&P 500 and the Dow gained on Wednesday as Treasury yields pulled back ahead of a likely pause in the Federal Reserve's policy tightening campaign, though concerns over rates staying higher for longer kept investor sentiment in check.
The U.S. central bank is expected to maintain its key rate in the range of 5.25%-5.50% as it concludes its meeting at 2 p.m. ET, with investors focused on Fed economic projections and Chair Jerome Powell's comments for clues on the outlook for rates and inflation.
Recent economic data has signaled an easing in core inflation, fuelling bets interest rates could have peaked, but a surge in oil prices has clouded the outlook for headline inflation, providing the Fed room to keep rates higher for longer.
Reinforcing the likelihood of a Fed pause, U.S. Treasury yields retreated from their 2007 highs hit in the previous session.
However, megacap growth stocks including Alphabet GOOGL.O, Microsoft MSFT.O and Apple AAPL.O lost between 0.7% and 1.6%, weighing on the communication services .SPLRCL and information technology .SPLRCT sectors. The tech-heavy Nasdaq .IXIC also gave up its early gains.
"Concerns remain that the Fed is clearly holding policy at what would be considered to be a restrictive level," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
"Everybody is watching for any kind of evidence that would suggest that the traction from tight monetary policy is inflicting damage on the economy."
Financial markets have priced in a 99% chance the Fed will pause rates on Wednesday and a near 71% likelihood the central bank will keep them unchanged in November, according to CME's FedWatch tool.
In another sign of new market entrants failing to hold on to their strong gains on debut, InstacartCART.O lost 5.5% while Arm Holdings ARM.O was down 4.4%.
Investors are now looking forward to marketing automation company Klaviyo's KVYO.N debut on the New York Stock Exchange, with the stock last indicated to open between $36 and $38.
The Boston-based company had secured a valuation of $9.2 billion in its initial public offering after pricing the shares above their indicated range.
At 11:47 a.m. ET, the Dow Jones Industrial Average .DJI was up 190.38 points, or 0.55%, at 34,708.11, the S&P 500 .SPX was up 7.87 points, or 0.18%, at 4,451.82, and the Nasdaq Composite .IXIC was down 24.00 points, or 0.18%, at 13,654.18.
Pinterest PINS.N added 4.3% as Citigroup upgraded the image-sharing platform to "buy" from "neutral" and as the firm announced a share buyback of up to $1 billion.
CotyCOTY.N added 5.1% after the CoverGirl parent raised its annual like-for-like sales forecast.
Advancing issues outnumbered decliners by a 3.58-to-1 ratio on the NYSE and a 1.59-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and four new lows, while the Nasdaq recorded 33 new highs and 140 new lows.
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and 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, megacap growth stocks including Alphabet GOOGL.O, Microsoft MSFT.O and Apple AAPL.O lost between 0.7% and 1.6%, weighing on the communication services .SPLRCL and information technology .SPLRCT sectors. By Ankika Biswas and Shristi Achar A Sept 20 (Reuters) - The S&P 500 and the Dow gained on Wednesday as Treasury yields pulled back ahead of a likely pause in the Federal Reserve's policy tightening campaign, though concerns over rates staying higher for longer kept investor sentiment in check. "Concerns remain that the Fed is clearly holding policy at what would be considered to be a restrictive level," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
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However, megacap growth stocks including Alphabet GOOGL.O, Microsoft MSFT.O and Apple AAPL.O lost between 0.7% and 1.6%, weighing on the communication services .SPLRCL and information technology .SPLRCT sectors. By Ankika Biswas and Shristi Achar A Sept 20 (Reuters) - The S&P 500 and the Dow gained on Wednesday as Treasury yields pulled back ahead of a likely pause in the Federal Reserve's policy tightening campaign, though concerns over rates staying higher for longer kept investor sentiment in check. Reinforcing the likelihood of a Fed pause, U.S. Treasury yields retreated from their 2007 highs hit in the previous session.
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However, megacap growth stocks including Alphabet GOOGL.O, Microsoft MSFT.O and Apple AAPL.O lost between 0.7% and 1.6%, weighing on the communication services .SPLRCL and information technology .SPLRCT sectors. By Ankika Biswas and Shristi Achar A Sept 20 (Reuters) - The S&P 500 and the Dow gained on Wednesday as Treasury yields pulled back ahead of a likely pause in the Federal Reserve's policy tightening campaign, though concerns over rates staying higher for longer kept investor sentiment in check. Recent economic data has signaled an easing in core inflation, fuelling bets interest rates could have peaked, but a surge in oil prices has clouded the outlook for headline inflation, providing the Fed room to keep rates higher for longer.
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However, megacap growth stocks including Alphabet GOOGL.O, Microsoft MSFT.O and Apple AAPL.O lost between 0.7% and 1.6%, weighing on the communication services .SPLRCL and information technology .SPLRCT sectors. Reinforcing the likelihood of a Fed pause, U.S. Treasury yields retreated from their 2007 highs hit in the previous session. In another sign of new market entrants failing to hold on to their strong gains on debut, InstacartCART.O lost 5.5% while Arm Holdings ARM.O was down 4.4%.
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13541.0
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2023-09-20 00:00:00 UTC
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Will Apple Lose its Crown of Having the Largest Market Cap?
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AAPL
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https://www.nasdaq.com/articles/will-apple-lose-its-crown-of-having-the-largest-market-cap
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nan
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nan
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Apple (AAPL) currently has the largest market cap of any company in the world, with Microsoft (MSFT) a close second. Microsoft's shares have outperformed Apple shares recently as investors see better growth prospects and far less China risk in Microsoft than Apple. Microsoft gets less than 2% of its revenue from China, compared to about 20% for Apple. Also, Microsoft’s position in markets, including artificial intelligence (AI) and cloud computing, makes the stock more attractive to some investors than Apple.
Apple’s market cap currently stands near $2.8 trillion, down from a peak of nearly $3.1 trillion but still above Microsoft’s $2.4 trillion. While the price of Apple’s shares have declined this month, shares of Microsoft have held steady, narrowing the gap between the two companies to about $200 billion. Microsoft’s market value was last larger than Apple’s in November 2021.
Some analysts believe Microsoft can overtake Apple as the world’s highest-valued company. Huntington Private Bank said, “Microsoft has more of what the market wants right now, and given where we stand on the pair’s growth prospects, we wouldn’t be surprised to see it overtake Apple. We have more faith in Microsoft’s margins, given the cloud and AI are growth areas that can stand the test of time over a decade. We don’t know if the iPhone can do the same.”
Analyst ratings currently favor Microsoft over Apple. Microsoft’s recommendation consensus, a proxy for its ratio of buy, hold, and sell ratings, stands well above Apple’s. Almost 90% of Microsoft analysts recommend buying the stock, compared to only 65% for Apple. Microsoft is expected to see double-digit growth in revenue and net earnings per share in fiscal 2024 and in the three years after due to the strength of its cloud business and its backing of OpenAI, the fast-growing startup behind ChatGPT.
According to Bloomberg data, Apple is expected to post positive revenue growth in fiscal 2024 and continue growing in the subsequent two years. However, the growth rate isn’t expected to be nearly as robust as that of Microsoft. Needham & Co recently wrote that with AI becoming the hottest investment theme, Apple could fall to fourth place among U.S. stocks behind Microsoft, Alphabet (GOOGL), and Amazon.com (AMZN). Also, Bernstein said Apple is “looking like the old IBM,” and Rosenblatt Securities said Apple’s crown as the highest-valued company could be threatened by Nvidia (NVDA), which has been the biggest beneficiary of the AI boom so far, and which is currently less than half of Apple’s size.
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$100 Oil? Should You Buy Oil Stocks Before They Break Out?
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) currently has the largest market cap of any company in the world, with Microsoft (MSFT) a close second. Also, Microsoft’s position in markets, including artificial intelligence (AI) and cloud computing, makes the stock more attractive to some investors than Apple. Microsoft is expected to see double-digit growth in revenue and net earnings per share in fiscal 2024 and in the three years after due to the strength of its cloud business and its backing of OpenAI, the fast-growing startup behind ChatGPT.
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Apple (AAPL) currently has the largest market cap of any company in the world, with Microsoft (MSFT) a close second. Microsoft's shares have outperformed Apple shares recently as investors see better growth prospects and far less China risk in Microsoft than Apple. Almost 90% of Microsoft analysts recommend buying the stock, compared to only 65% for Apple.
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Apple (AAPL) currently has the largest market cap of any company in the world, with Microsoft (MSFT) a close second. Microsoft's shares have outperformed Apple shares recently as investors see better growth prospects and far less China risk in Microsoft than Apple. Also, Bernstein said Apple is “looking like the old IBM,” and Rosenblatt Securities said Apple’s crown as the highest-valued company could be threatened by Nvidia (NVDA), which has been the biggest beneficiary of the AI boom so far, and which is currently less than half of Apple’s size.
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Apple (AAPL) currently has the largest market cap of any company in the world, with Microsoft (MSFT) a close second. Microsoft's shares have outperformed Apple shares recently as investors see better growth prospects and far less China risk in Microsoft than Apple. Some analysts believe Microsoft can overtake Apple as the world’s highest-valued company.
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13542.0
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2023-09-20 00:00:00 UTC
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3 AI Chip Stocks That Should Be on Every Investor’s Radar This Fall
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AAPL
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https://www.nasdaq.com/articles/3-ai-chip-stocks-that-should-be-on-every-investors-radar-this-fall
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Nvidia’s (NASDAQ:NVDA) dominance in 2023 on the emergence of its AI chips has investors seeking the next AI chip stock that can provide similar returns. Pretty much every tech firm and every chipmaker is addressing the opportunity in some form or another. This has led to the rise of AI stocks to buy.
In reality, there are but a few firms in the chip space to consider. Nvidia has done so incredibly well that there’s no reasonable argument against it. I won’t discuss it here simply because it’s too obvious at this point.
Instead, the other big AI chip firms are discussed here because they are massive opportunities as Nvidia cools very, very slightly. So here are other AI stocks to buy.
AMD (AMD)
Source: Pamela Marciano / Shutterstock.com
AMD (NASDAQ:AMD) isn’t that far behind Nvidia when it comes to AI chips. The stock has received a lot of press as the 1st runner-up this year in the AI race. It should receive a lot more, especially later in the fourth quarter.
AMD plans to debut its new AI chips, the MI300 series, later this year. The firm is already receiving strong enterprise interest in regard to the chips. That’s a strong signal that Nvidia’s chips, despite being heralded for their supremacy, are not the only chips that end users want. The truth is, they’re expected to challenge Nvidia’s chips when released.
AMD has a clear opportunity to challenge Nvidia for AI chip market share. It also has an opportunity to modify those chips for the Chinese market. Other firms have modified their chips for sale to China which faces performance limits on chips imported into the nation. AMD has not yet modified its chips and thus could open up additional revenue streams should it choose to do so.
Intel (INTC)
Source: Shutterstock
Intel (NASDAQ:INTC) is always in the conversation when it comes to chip stocks with potential. The firm has not had the greatest track record of late but its AI chips make it worth following, especially this fall.
In fact, Intel is already on record stating that its Gaudi 2 chip will beat Nvidia’s H100 GPU this fall. Intel’s Gaudi 2 chip went head-to-head against the H100 GPUs in a series of 8 tests. Nvidia’s chips were the fastest at all 8 tasks. However, it could soon outperform Nvidia’s H100 in some applications. The Gaudi 2 chips have emerged as the only viable alternative at this point which makes the stock highly intriguing moving into the fall
Beyond that, Intel is also planning to release its next-generation Gaudi 3 chip sometime in 2024. It’s clear that Intel has a chance to make inroads into enterprise AI that can meaningfully propel the firm forward and raise share prices.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is, in general, a very promising stock at the moment. It offers a substantial upside in its target price and a healthy dividend as well. The combination of both implies that investors could realize strong returns should they place their capital in its shares now.
Qualcomm is very well known as a major supplier of chips to Apple (NASDAQ:AAPL). It is well-established within that vertical. Perhaps unsurprisingly then, Qualcomm is planning to apply its knowledge of phone chips to AI. The firm intends to build Snapdragon chips that process AI tasks directly on smartphones. That would mean that smartphones would then not be reliant upon data center AI and cloud processing for AI applications. This makes it one of those AI stocks to buy.
Qualcomm could then sell those chips to Apple which would be a major victory. Apple has long sought to distance itself from Qualcomm and bring chip production in-house. However, the efforts have not panned out. Qualcomm would score a massive victory if it could achieve that goal and hold Apple hostage as an AI-chip supplier for its iPhones.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post 3 AI Chip Stocks That Should Be on Every Investor’s Radar This Fall 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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Qualcomm is very well known as a major supplier of chips to Apple (NASDAQ:AAPL). It’s clear that Intel has a chance to make inroads into enterprise AI that can meaningfully propel the firm forward and raise share prices. Qualcomm would score a massive victory if it could achieve that goal and hold Apple hostage as an AI-chip supplier for its iPhones.
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Qualcomm is very well known as a major supplier of chips to Apple (NASDAQ:AAPL). AMD has a clear opportunity to challenge Nvidia for AI chip market share. Intel (INTC) Source: Shutterstock Intel (NASDAQ:INTC) is always in the conversation when it comes to chip stocks with potential.
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Qualcomm is very well known as a major supplier of chips to Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nvidia’s (NASDAQ:NVDA) dominance in 2023 on the emergence of its AI chips has investors seeking the next AI chip stock that can provide similar returns. Instead, the other big AI chip firms are discussed here because they are massive opportunities as Nvidia cools very, very slightly.
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Qualcomm is very well known as a major supplier of chips to Apple (NASDAQ:AAPL). The firm is already receiving strong enterprise interest in regard to the chips. AMD has a clear opportunity to challenge Nvidia for AI chip market share.
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13543.0
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2023-09-20 00:00:00 UTC
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Top Analyst Reports for Apple, Bank of America, Cisco & Others
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AAPL
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https://www.nasdaq.com/articles/top-analyst-reports-for-apple-bank-of-america-cisco-others
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nan
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nan
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Wednesday, September 20, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Bank of America Corporation (BAC) and Cisco Systems, Inc. (CSCO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have performed in-line with the Zacks Tech sector this year (+36.8% vs. +37.2%), but have handily outperformed the broader market (+36.8% vs. +17%). The company expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter.
The upcoming iPhone 15, which Apple is likely to announce on Sep 12, is a key catalyst. Although the iPhone 15 is not expected to feature any major improvements from iPhone 14, the iPhone 15 Pro and Pro Max are expected to feature an A17 Bionic chip, improved battery life and a USB-C charging port.
Apple is also benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade is helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
(You can read the full research report on Apple here >>>)
Shares of Bank of America have gained +1.8% over the past six months against the Zacks Banks - Major Regional industry’s gain of +5.6%. Higher interest rates and decent loan demand will likely keep aiding the company’s net interest income (NII) growth. The opening of financial centers and improving digital capabilities is expected to bolster the top line.
However, the tough economic backdrop is expected to keep weighing on investment banking (IB) business. This, along with the volatile nature of the capital markets, might hurt non-interest income. Moreover, inflationary pressure will likely result in mounting expenses.
(You can read the full research report on Bank of America here >>>)
Shares of Cisco have outperformed the Zacks Computer - Networking industry over the year-to-date period (+19.9% vs. +18.4%). The company is riding on the growing demand for its security, artificial intelligence and cloud products. Its security portfolio is benefiting from the launch of new data loss prevention, firewall and zero trust capabilities.
Zero Trust portfolio is riding on strong demand for its Duo offering. Optimized application experience is benefiting from strong demand for ThousandEyes. Its investments across security business, focusing on cloud-based and AI-driven offerings, is expected to drive growth.
Expanding growth opportunities for low-power-consuming technologies, including IoT, Silicon One and Power over Ethernet bodes well for Cisco. Acquisitions including Lightspin Technologies, Smartlook and Armorblox is expected to benefit top-line growth.
(You can read the full research report on Cisco here >>>)
Other noteworthy reports we are featuring today include Illinois Tool Works Inc. (ITW), Fidelity National Information Services, Inc. (FIS) and HP Inc. (HPQ).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes
Cisco (CSCO) Benefits From Strong Security Products Adoption
Featured Reports
Automotive OEM Aids Illinois Tool (ITW), Construction Ails
Per the Zacks analyst, solid underlying demand and improving supply chains bode well for the Automotive OEM unit. However, weak U.S. residential construction is worrisome for the Construction unit.
Fidelity (FIS) Strategic Acquisitions Aid, Rising Costs Hurt
Per the Zacks analyst, multiple buyouts and technological investments are helping Fidelity National enhance its capabilities. However, increasing expenses remain a concern.
HP (HPQ) Hurt by Declining Demand, High Inventory Levels
Per the Zacks analyst, HP is hurt by declining demand for its consumer and commercial PCs. Also, high inventory levels at channel partners are leading to order delays.
Dividends, Buyback Aid J.B. Hunt (JBHT), Interest Expense High
The Zacks analyst is encouraged by the shareholder-friendly measures adopted by J.B. Hunt. However, higher net interest expense is likely to mar J.B. Hunt's bottom line.
APA Corporation (APA) to Gain from Suriname Portfolio
The Zacks analyst believes that APA's significant drilling success in Suriname points to significant cash flow potential but is worried about the oil explorer's high debt burden.
Zillow Group (ZG) Rides on Solid Engagement in Rental Platforms
Per the Zacks analyst, increasing sign-ups for multi-family properties, greater single-family listings and enhancement in Zillow's Rentals marketplace will likely boost Zillow Group's margins.
Beam's (BEAM) Pipeline Promising, Markets Competitive
Zacks Analyst is encouraged by Beam's pipeline progress of its gene-editing candidates - BEAM-101 and BEAM-201. However, this market faces stiff competition from other gene-editing therapy developers.
New Upgrades
Robust Installation Business Aids TopBuild (BLD) Performance
Per the Zacks analyst, TopBuild is benefiting from favorable mix of installation business and strategic acquisitions. Also, focus on operational efficiencies and cost control initiatives bode well.
MDC Rides on Solid New Order Growth & Build-To-Order Model
Per the Zacks analyst, high demand for new homes, given low supply of existing homes, aids MDC. Also, its Build-to-Order approach and land buyout strategies add to the growth.
G-III Apparel (GIII) to Benefit From Strong Product Demand
Per the Zacks analyst, the impressive performance of G-III Apparel's apparel business, fueled by strong demand across outerwear and dress categories, will continue to lend momentum to it.
New Downgrades
BioPharma Softness, Inflationary Costs Ail Bio-Rad (BIO)
The Zacks analyst is worried about Bio-Rad's Life Science segment affected by the weaker demand from BioPharma and continued soft sales in emerging biotech companies. Higher costs irk gross margin.
Poor Domestic Travel to Hit Hawaiian Electric's (HE) Results
Per the Zacks analyst, domestic travel is expected to weaken in late 2023, which may lead to lower domestic visitor arrival in Hawaii. This may hurt Hawaiian Electric's results.
Lower COVID Sales Hurt Thermo Fisher (TMO), Forex Woes Ail
Per Zacks analyst, Thermo Fisher is witnessing a continuous decline in COVID testing-related demand and is likely to continue at much lower levels in 2023. Foreign exchange woes remain a concern.
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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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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes Cisco (CSCO) Benefits From Strong Security Products Adoption Featured Reports Automotive OEM Aids Illinois Tool (ITW), Construction Ails Per the Zacks analyst, solid underlying demand and improving supply chains bode well for the Automotive OEM unit. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Bank of America Corporation (BAC) and Cisco Systems, Inc. (CSCO). Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Bank of America Corporation (BAC) and Cisco Systems, Inc. (CSCO). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes Cisco (CSCO) Benefits From Strong Security Products Adoption Featured Reports Automotive OEM Aids Illinois Tool (ITW), Construction Ails Per the Zacks analyst, solid underlying demand and improving supply chains bode well for the Automotive OEM unit. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes Cisco (CSCO) Benefits From Strong Security Products Adoption Featured Reports Automotive OEM Aids Illinois Tool (ITW), Construction Ails Per the Zacks analyst, solid underlying demand and improving supply chains bode well for the Automotive OEM unit. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Bank of America Corporation (BAC) and Cisco Systems, Inc. (CSCO).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) Higher Rates Aid Bank of America (BAC) Amid Fee Income Woes Cisco (CSCO) Benefits From Strong Security Products Adoption Featured Reports Automotive OEM Aids Illinois Tool (ITW), Construction Ails Per the Zacks analyst, solid underlying demand and improving supply chains bode well for the Automotive OEM unit. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Bank of America Corporation (BAC) and Cisco Systems, Inc. (CSCO). Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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13544.0
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2023-09-20 00:00:00 UTC
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3 Semiconductor Stocks That Should Be on Every Investor’s Radar This Fall
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AAPL
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https://www.nasdaq.com/articles/3-semiconductor-stocks-that-should-be-on-every-investors-radar-this-fall
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial Intelligence (AI) is transforming the way we live and it is going to become a significant part of our lives just like the Internet has. AI is growing at a rapid pace and has become a part of several industries today. With the increasing use and adoption of AI, there is going to be a rise in the demand for semiconductor stocks; but like every other industry, not all companies can make the most of this opportunity and stand the test of time.
While Nvidia (NASDAQ:NVDA) is already a leader and controls a large part of the market, there are other companies worth looking out for. These companies already have the innovation and tech and all they need to do is ramp up the manufacturing activities. Investing in these top semiconductor stocks will help make big gains in the long term.
Top semiconductor stocks: Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
Advanced Micro Devices (NASDAQ:AMD) is one of the biggest competitors of Nvidia and it is investing heavily into AI. The company sees it as the largest growth opportunity right now. It introduced MI300x which will start deliveries in 2024 and is set to give tough competition to Nvidia.
This could help the company gain market share since users who aren’t ready to wait for weeks to get Nvidia chips will now choose AMD. Trading at $102 today, the stock looks undervalued to me. Despite performing well, the stock hasn’t been able to hit new highs. Although it is up 59% year-to-date (YTD), it has a long way to go.
A leading supplier of graphics processing units and video game consoles, AMD already has a long history in the industry and it has been able to deliver significantly in the last few years. The use of AI and rising demand for chips could take the stock higher very soon. In the second quarter, the company saw an 18% year-over-year (YOY) drop in revenue, but this could be a one-time thing. It still remains one of the best semiconductor stocks to own right now.
Once it begins deliveries of MI300 accelerators, we could see an improvement in numbers. The company has the experience and the leadership to at least manage to grab a part of the market that is currently dominated by Nvidia. It will not be possible for Nvidia to meet the entire demand for AI chips and this is when AMD will gain. It has a huge market opportunity and the industry is hot right now. Buy the stock before it soars. It is the best alternative to Nvidia and could soar just like it did.
Qualcomm (QCOM)
Source: Michael Vi / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is popular for the innovations in the field of wireless communication. Amidst the AI race, Qualcomm wasn’t much in the news but its financial report brought the company to the forefront. In the recent quarter, the company reported a revenue of $8.5 billion and the EPS came in at $1.60. The company is partnering with Jaguar Land Rover for the introduction of 5G services.
Known as one of the best in the industry, Qualcomm has a technology that offers high speed and low latency for a connected experience at all times.
One big reason the stock is a buy is its 5G supply agreement with Apple (NASDAQ:AAPL). The company will be using the Qualcomm Snapdragon 5G system through 2026 for iPhones and this will boost Qualcomm’s revenues. The company’s current technology licensing to 5G networks like Apple remains unchanged until 2025. It already has agreements with some of the biggest players in the industry and despite a drop in global semiconductor sales, Qualcomm is in a good position to continue enjoying steady revenue.
While Qualcomm didn’t have the best year, this news will make the coming years better for the company and it could boost the stock value. QCOM stock is exchanging hands for $112 and has taken a beating this year. They are down 10% in the year but this deal has come as a sigh of relief.
Do not expect the stock to jump to new highs, but it will certainly be moving upwards in the coming weeks. That said, the company also pays dividends and announced a quarterly dividend of $0.80 and has an impressive dividend yield of 2.83%, much better than that offered by many dividend stocks in the industry.
Taiwan Semiconductor Manufacturing (TSM)
Source: ToyW / Shutterstock
One of the most important semiconductor companies, TSMC (NYSE:TSM) works with some of the biggest names in the industry. It remains isolated from China’s invasion to a certain extent because it has factories in the U.S. The company supplies chips to Nvidia and Apple, which shows the potential of these chips.
It is also starting production of the 3nm chip which will attract new customers very soon. One big reason to bet on this stock is that it is the supplier of the biggest companies in the world. If it is impacted by China’s moves, it could disrupt the supply chain of several other companies and the entire market could see the impact.
The company reported a 10% drop in revenue in the recent quarter and a 12% drop in profits. However, its July revenue was up 14% as compared to June which is a good sign. The market is improving and this could have a direct impact on TSMC’s business. Its chips are used across multiple industries and as the economy improves, we will see an improvement in its numbers too.
The stock is exchanging hands for $88 right now and is up 19% YTD. A recent drop in semiconductor chips has been noticed, but it is temporary. TSM stock looks cheap at the current level and could soar upwards as China-U.S. tensions ease. If you are a buy-and-hold investor, this is a stock to add to your portfolio.
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 3 Semiconductor Stocks That Should Be on Every Investor’s Radar This Fall 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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One big reason the stock is a buy is its 5G supply agreement with Apple (NASDAQ:AAPL). With the increasing use and adoption of AI, there is going to be a rise in the demand for semiconductor stocks; but like every other industry, not all companies can make the most of this opportunity and stand the test of time. A leading supplier of graphics processing units and video game consoles, AMD already has a long history in the industry and it has been able to deliver significantly in the last few years.
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One big reason the stock is a buy is its 5G supply agreement with Apple (NASDAQ:AAPL). Investing in these top semiconductor stocks will help make big gains in the long term. Top semiconductor stocks: Advanced Micro Devices (AMD) Source: Pamela Marciano / Shutterstock.com Advanced Micro Devices (NASDAQ:AMD) is one of the biggest competitors of Nvidia and it is investing heavily into AI.
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One big reason the stock is a buy is its 5G supply agreement with Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Artificial Intelligence (AI) is transforming the way we live and it is going to become a significant part of our lives just like the Internet has. With the increasing use and adoption of AI, there is going to be a rise in the demand for semiconductor stocks; but like every other industry, not all companies can make the most of this opportunity and stand the test of time.
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One big reason the stock is a buy is its 5G supply agreement with Apple (NASDAQ:AAPL). It will not be possible for Nvidia to meet the entire demand for AI chips and this is when AMD will gain. While Qualcomm didn’t have the best year, this news will make the coming years better for the company and it could boost the stock value.
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13545.0
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2023-09-20 00:00:00 UTC
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Down 17%, Should Investors Buy the September Dip in This FAANG Stock?
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AAPL
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https://www.nasdaq.com/articles/down-17-should-investors-buy-the-september-dip-in-this-faang-stock
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nan
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nan
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FAANG is an acronym for mega-cap tech companies such as Meta Platforms (META) (previously called Facebook), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL), formerly known as Google. Each of these stocks has gained significant ground on the back of an artificial intelligence (AI)-fueled rally year-to-date.
Here is how the FAANG stocks stand so far in 2023:
META is up 153%
AMZN has surged 63%
GOOGL has gained 53%
AAPL has advanced 37%
NFLX is up 33%
The Nasdaq 100 Index ($IUXX) is up 38% year-to-date - which means not all of these FAANG giants are outperforming the wider market. In fact, NFLX - the laggard of the group - is now down more than 17% from its mid-July closing high of $477.59, setting up a potential dip-buying opportunity.
www.barchart.com
Netflix Adds Subscribers Amid Stiff Competition
Valued at a market cap of $175.57 billion, Netflix is the largest streaming platform globally. Despite its massive size, Netflix increased sales from roughly $20 billion in 2019 to $31.6 billion in 2022. But top-line growth has tailed off in the last 18 months amid rising competition. With 238.3 million subscribers, Netflix is battling against saturation in some markets, and sales grew by just 3% year over year in the June quarter to $3.6 billion.
Faced with a sluggish macro environment and lower consumer spending, Netflix has focused on reducing costs and increasing customer choice - a strategy that has helped to drive its share price higher in 2023. For example, Netflix introduced an ad-supported subscription tier to expand its customer base and retain existing users. Subscribers can pay just $6.99 per month for the ad-supported plan - much lower than the Premium Plan, which costs $19.99 per month.
At a recent Bank of America (BAC) conference, Netflix emphasized it aims to scale the reach of its new service tier and increase ad spending on the platform, which would negatively impact profit margins, driving share prices lower. But the ad tier might be quite beneficial for Netflix in the long run, while unlocking another revenue stream for the streaming heavyweight. The company emphasized after accounting for ad revenue, the tier generates $15.49 per month on a per-user basis, which is similar to its standard tier.
Its crackdown on password sharing also enabled Netflix to increase subscribers by 5.9 million in Q2, significantly higher than forecasts of 1.7 million. In fact, the subscriber count was up 8% compared to the prior-year period, the fastest growth for the company since Q4 of 2021.
Analysts Expect More Upside for NFLX
There's no shortage of negative sentiment around the ongoing strikes in Hollywood, which have already delayed content production schedules for Netflix and other streaming peers. However, analysts expect revenue growth to accelerate in the second half of 2023. On average, sales are forecast to increase by 6.7% to $33.7 billion in 2023 and by 13.5% to $38.3 billion in 2024.
At the same time, adjusted earnings are projected to expand from $9.95 per share in 2022 to $11.88 per share in 2023 and $15.43 by 2024. So, priced at 4.5x 2024 sales and 25x forward earnings, NFLX is somewhat expensive compared to the S&P 500 Index ($SPX) - but it is also forecast to grow at a faster pace. Netflix has beaten analysts' earnings estimates in three of the last four quarters while improving its forecasts, resulting in analyst upgrades.
Out of the 35 analysts covering Netflix stock, 20 have a “strong buy” recommendation, 13 recommend “hold,” and two recommend “strong sell.” Based on analysts' average price target of $439.97, Wall Street expects upside of about 12% in the next 12 months.
www.barchart.com
Netflix continues to invest billions of dollars in creating region-specific content, enabling the company to gain traction in emerging markets such as India. The cord-cutting phenomenon also remains a massive tailwind for Netflix at the global level, providing it with enough room to grow sales and improve cash flows consistently.
At current levels, this FAANG stock looks like a solid growth name to buy on the dip.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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FAANG is an acronym for mega-cap tech companies such as Meta Platforms (META) (previously called Facebook), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL), formerly known as Google. Here is how the FAANG stocks stand so far in 2023: META is up 153% AMZN has surged 63% GOOGL has gained 53% AAPL has advanced 37% NFLX is up 33% The Nasdaq 100 Index ($IUXX) is up 38% year-to-date - which means not all of these FAANG giants are outperforming the wider market. Faced with a sluggish macro environment and lower consumer spending, Netflix has focused on reducing costs and increasing customer choice - a strategy that has helped to drive its share price higher in 2023.
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FAANG is an acronym for mega-cap tech companies such as Meta Platforms (META) (previously called Facebook), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL), formerly known as Google. Here is how the FAANG stocks stand so far in 2023: META is up 153% AMZN has surged 63% GOOGL has gained 53% AAPL has advanced 37% NFLX is up 33% The Nasdaq 100 Index ($IUXX) is up 38% year-to-date - which means not all of these FAANG giants are outperforming the wider market. At a recent Bank of America (BAC) conference, Netflix emphasized it aims to scale the reach of its new service tier and increase ad spending on the platform, which would negatively impact profit margins, driving share prices lower.
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FAANG is an acronym for mega-cap tech companies such as Meta Platforms (META) (previously called Facebook), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL), formerly known as Google. Here is how the FAANG stocks stand so far in 2023: META is up 153% AMZN has surged 63% GOOGL has gained 53% AAPL has advanced 37% NFLX is up 33% The Nasdaq 100 Index ($IUXX) is up 38% year-to-date - which means not all of these FAANG giants are outperforming the wider market. www.barchart.com Netflix Adds Subscribers Amid Stiff Competition Valued at a market cap of $175.57 billion, Netflix is the largest streaming platform globally.
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Here is how the FAANG stocks stand so far in 2023: META is up 153% AMZN has surged 63% GOOGL has gained 53% AAPL has advanced 37% NFLX is up 33% The Nasdaq 100 Index ($IUXX) is up 38% year-to-date - which means not all of these FAANG giants are outperforming the wider market. FAANG is an acronym for mega-cap tech companies such as Meta Platforms (META) (previously called Facebook), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL), formerly known as Google. Despite its massive size, Netflix increased sales from roughly $20 billion in 2019 to $31.6 billion in 2022.
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13546.0
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2023-09-20 00:00:00 UTC
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7 S&P 500 Stocks That Should Be on Every Investor’s Radar This Fall
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AAPL
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https://www.nasdaq.com/articles/7-sp-500-stocks-that-should-be-on-every-investors-radar-this-fall
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Where are stocks headed as we approach the fourth and final quarter of the year? Hard to say. There’s a lot weighing on markets right now. From an economic slowdown in China to a possible government shutdown in Washington, D.C., to persistently high inflation and the growing proliferation of artificial intelligence (AI) products. Stocks have largely been treading water since the start of August. But that could soon change. Any signs that inflation is continuing to fall and the U.S. Federal Reserve’s interest rate hikes are coming to an end could lead to a major rally in the market. The fourth quarter of the year is traditionally the best for markets, especially as the year tends to close with what’s known as the “Santa Claus Rally.”
Of course, there are no guarantees. Things could take a negative turn should the economic picture get gloomy in coming weeks. But regardless of what the future holds, there are some stocks that investors should keep an eye on. Here are seven of the best S&P 500 stocks that should be on every investor’s radar this fall.
Alphabet (GOOG/GOOGL)
Source: IgorGolovniov / Shutterstock.com
First on the list of the best S&P 500 stocks to buy now is Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of Google. It’s gaining ground in AI, and quickly. The company just announced the release of a new generative AI software product called “Gemini” that is aimed at competing against OpenAI’s ChatGPT and GPT-4 chatbot models. According to Alphabet, Gemini is a large language software model that can summarize text and generate original content based on user voice and text prompts.
Gemini can also write and read back emails to users, compose song lyrics, and write journalism articles. The new software is widely expected to help engineers write code and generate original images for graphic designers and others. Early reviews claim that Gemini is as good or better than GPT-4, the most advanced AI model available from OpenAI. Perhaps most important, Alphabet is starting to monetize its AI products. Its AI tools will be available to enterprise customers for a monthly fee of $30 per user.
Alphabet’s stock is up 54% this year, but could have more room to run on its AI advancements.
Restaurant Brands International (QSR)
Source: Savvapanf Photo / Shutterstock.com
Restaurant Brands International (NYSE:QSR), the parent company of Burger King and Popeyes, just announced a new stock buyback program that will see it repurchase $1 billion of its common shares over the next two years. The new buyback plan follows the expiration of Restaurant Brands earlier stock buyback program for the same amount. The stock buyback announcement comes after the company, which also owns Firehouse Subs and the Tim Hortons coffee chain, reported strong second-quarter financial results.
In August, Restaurant Brands announced that its overall Q2 sales increased 10% from a year earlier. The company reported EPS of 85 cents versus 77 cents that was expected on Wall Street. Revenue totaled $1.78 billion, which was also ahead of the $1.75 billion forecast by analysts. Burger King, which the company has rebranded, saw particularly strong same-store sales in Q2, growing 10.2%, nearly double forecasts of 5.3% growth. QSR stock has gained 14% over the last 12 months.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
What a difference a few days can make. A little over a week ago, it seemed liked Apple (NASDAQ:AAPL) couldn’t catch a break, what with China banning its iPhones and France raising concerns about radiation emitted from the smartphones. So how did it make the list of best S&P 500 stocks? Well, it appears that pre-orders of the company’s brand new iPhone 15 are better-than-expected and early reviews of the device are overwhelmingly positive. Reviewers claim the iPhone 15 is lighter, faster, and doesn’t cost any more than earlier versions of the phone. It’s being called a win for consumers.
The positive news is helping to lift AAPL stock and coming as a relief to shareholders who watched the price slide 10% over the summer on rising concerns about sales of the company’s devices that also include the iPad and Apple Watch. Those worries now seem overblown, especially with tensions in China subsiding. Looking ahead, Apple’s new augmented reality headset slated for release in early 2024 should provide a catalyst for the company’s stock, as should the continued growth of services such as Apple Pay.
AAPL stock is up 43% so far in 2023.
Lululemon (LULU)
Source: lentamart / Shutterstock
You might be surprised to find a clothing store on the list of best S&P 500 stocks to buy now, but not all retailers are in the dumps these days. Take Lululemon (NASDAQ:LULU), which recently reported that its fiscal Q2 profit rose 18% from a year earlier due largely to increased sales in China. The company, which specializes in athletic apparel for women and men, said that its fiscal Q2 revenue in China rose 61% year-over-year (YOY), despite a rapid deceleration in that country’s economy. Lululemon currently has 107 stores in China. It plans to open 35 more stores internationally over the next year, with most of the new locations based in Asia.
For fiscal Q2, Lululemon announced EPS of $2.68 versus $2.54 expected on Wall Street. Revenue in the quarter totaled $2.21 billion compared to a consensus forecast of $2.17 billion. The company’s revenue rose 18% YOY in the quarter. The strong Q2 results led the company to revise up its full-year guidance. It now expects sales of between $9.51 billion and $9.57 billion, compared to a previous range of $9.44 billion and $9.51 billion. Profits for the current fiscal year are expected to be between $12.02 and $12.17 per share.
LULU stock is up nearly 20% this year.
Tesla (TSLA)
Source: Arina P Habich / Shutterstock.com
From solar panels to supercomputers, Tesla (NASDAQ:TSLA) is developing a lot more than just electric vehicles (EV). Right now, the company’s plan to build a supercomputer called “Dojo” is getting a lot of attention. Investment bank Morgan Stanley (NYSE:MS) recently said that Dojo could be a huge catalyst for Tesla moving forward, potentially boosting the company’s market valuation by as much as $500 billion. That report got a lot of attention and led TSLA stock to rise 15% over the last month alone. Year-to-date (YTD) the stock is up 146%.
The Dojo supercomputer will reportedly be used to train AI models for self-driving cars. Tesla CEO Elon Musk has said that the company plans to spend more than $1 billion on Dojo’s development in coming years. Morgan Stanley sees a big opportunity ahead, claiming that Dojo can open up new addressable markets for Tesla that go beyond selling EVs. Citing the potential impact of Dojo, the firm raised its recommendation on TSLA stock to “buy” from “neutral”. It raised its price target on Tesla’s shares by 60% to $400, the highest on Wall Street. That’s why it’s on this list of current best S&P 500 stocks to consider adding to your portfolio.
Arm Holdings (ARM)
Source: Ascannio / Shutterstock.com
If there’s a microchip and semiconductor company to keep an eye on this fall, it’s Arm Holdings (NASDAQ:ARM). After a successful initial public offering (IPO) that saw the British chip designer achieve a $54 billion valuation and its share price gain 25% on its first day of trading, news comes that the stock is now in decline. ARM stock has fallen each day since its market debut, dropping 20% from an intraday peak of $69 a share.
Some of the drop in ARM stock can be attributed to profit taking immediately after the IPO. However, there are also concerns about the company’s exposure to China, where it gets about a quarter of its annual revenue, and the current valuation of the stock. Following its market debut, Arm’s price-earnings (P/E) ratio was at 110, which is extremely high and above that of rival Nvidia’s (NASDAQ:NVDA) valuation, which sits at 105 times earnings. Should ARM stock fall further and the valuation come down, it might make for a good buying opportunity.
Intuit (INTU)
Source: T. Schneider / Shutterstock.com
If the only two certainties in life are death and taxes, then Intuit (NASDAQ:INTU) is in the right business. The company behind TurboTax and other accounting software applications that help people manage financial matters has been outpacing the market lately, fueled by strong earnings. INTU stock is up 35% in 2023, bringing its five years increase to 140%. However, the share price is currently about 25% below its all-time high even as the 40-year old company remains in growth mode.
Most recently, Intuit has gotten on the AI train, announcing a generative AI assistant for its financial, tax, and accounting software. The new “Intuit Assist” is being rolled out across the company’s suite of software products, including TurboTax, Credit Karma, QuickBooks, and Mailchimp. The AI assistant will help users with everything from tracking the items they need to complete their taxes, to locating outstanding invoices, and highlighting unusual spending patterns. The AI product could be a catalyst that further boosts INTU stock.
On the date of publication, Joel Baglole held long positions in GOOGL, AAPL and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The views and 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 What a difference a few days can make. A little over a week ago, it seemed liked Apple (NASDAQ:AAPL) couldn’t catch a break, what with China banning its iPhones and France raising concerns about radiation emitted from the smartphones. The positive news is helping to lift AAPL stock and coming as a relief to shareholders who watched the price slide 10% over the summer on rising concerns about sales of the company’s devices that also include the iPad and Apple Watch.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com What a difference a few days can make. A little over a week ago, it seemed liked Apple (NASDAQ:AAPL) couldn’t catch a break, what with China banning its iPhones and France raising concerns about radiation emitted from the smartphones. The positive news is helping to lift AAPL stock and coming as a relief to shareholders who watched the price slide 10% over the summer on rising concerns about sales of the company’s devices that also include the iPad and Apple Watch.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com What a difference a few days can make. A little over a week ago, it seemed liked Apple (NASDAQ:AAPL) couldn’t catch a break, what with China banning its iPhones and France raising concerns about radiation emitted from the smartphones. The positive news is helping to lift AAPL stock and coming as a relief to shareholders who watched the price slide 10% over the summer on rising concerns about sales of the company’s devices that also include the iPad and Apple Watch.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com What a difference a few days can make. A little over a week ago, it seemed liked Apple (NASDAQ:AAPL) couldn’t catch a break, what with China banning its iPhones and France raising concerns about radiation emitted from the smartphones. The positive news is helping to lift AAPL stock and coming as a relief to shareholders who watched the price slide 10% over the summer on rising concerns about sales of the company’s devices that also include the iPad and Apple Watch.
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13547.0
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2023-09-20 00:00:00 UTC
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Wall Street closes lower after Fed holds rates steady, warns of higher for longer
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AAPL
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https://www.nasdaq.com/articles/wall-street-closes-lower-after-fed-holds-rates-steady-warns-of-higher-for-longer
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nan
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nan
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By Stephen Culp
Sept 20 (Reuters) - U.S. stocks slumped on Wednesday after the U.S. Federal Reserve held key interest rates unchanged as widely expected, and revised economic projections higher with warnings that the battle against inflation was far from over.
All three major U.S. stock indexes retreated in the wake of announcement, with interest rate sensitive megacap stocks Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O pulling the Nasdaq down most.
The Fed's announcement was accompanied by its Summary Economic Projections (SEP) and dot plot, which sees an additional 25 basis point rate hike this year, peaking in the 5.50%-5.75% range.
The SEP projections also called for 50 basis points of rate cuts next year.
"It’s your standard Fed day volatility," said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. "Yet it wasn’t really a curve-ball event, because markets took things in stride."
"This day has had a bull's eye on it all month and now we can move past it," Detrick added.
The updated projections see the Fed funds target rate edging down to 5.1% by the end of next year, and to 3.9% by the end of 2025.
Since the Fed began tightening in March, core inflation has cooled. But its slow descent toward the central bank's 2% target has been slow and uneven.
The SEP forecasts inflation to drop to 3.3% by year-end, and to approach the central bank's average annual 2% target.
At the subsequent press conference, Fed Chairman Jerome Powell tempered rosier economic projections with a warning that inflation has a long way to go before reaching that target.
"The Fed didn’t really rock the boat," Detrick said. "They acknowledged the strength in the economy, which also lowered the number of cuts that were expected next year, implying higher for longer is likely the path they will continue to take."
The Dow Jones Industrial Average .DJI fell 76.85 points, or 0.22%, to 34,440.88, the S&P 500 .SPX lost 41.75 points, or 0.94%, to 4,402.2 and the Nasdaq Composite .IXIC dropped 209.06 points, or 1.53%, to 13,469.13.
Among the 11 major sectors of the S&P 500, interest rate sensitive communication services .SPLRCL and technology .SPLRCT suffered the largest percentage losses.
Marketing automation company Klaviyo KVYO.N advanced 9.2% in its debut on the New York Stock Exchange, the third recent initial public offering in recent days, following Arm Holdings ARM.O and Maplebear Inc CART.O.
"It shows confidence is coming back to even have the large IPOS," Detrick said. "It's a sign that things are getting closer to normal which is something that is necessary at this stage of the business cycle."
Maplebear lost 10.7%, while fellow recent debut Arm Holdings was down 4.1%.
Pinterest PINS.N added 3.1% after the image-sharing firm announced a share buyback of up to $1 billion.
Coty COTY.N gained 4.4% after the CoverGirl parent hiked its annual core sales forecast.
Declining issues outnumbered advancing ones on the NYSE by a 1.46-to-1 ratio; on Nasdaq, a 1.90-to-1 ratio favored decliners.
The S&P 500 posted 14 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 39 new highs and 246 new lows.
Volume on U.S. exchanges was 9.73 billion shares, compared with the 10.07 billion average for the full session over the last 20 trading days.
(Reporting by Stephen Culp; Editing by David Gregorio)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All three major U.S. stock indexes retreated in the wake of announcement, with interest rate sensitive megacap stocks Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O pulling the Nasdaq down most. By Stephen Culp Sept 20 (Reuters) - U.S. stocks slumped on Wednesday after the U.S. Federal Reserve held key interest rates unchanged as widely expected, and revised economic projections higher with warnings that the battle against inflation was far from over. The Fed's announcement was accompanied by its Summary Economic Projections (SEP) and dot plot, which sees an additional 25 basis point rate hike this year, peaking in the 5.50%-5.75% range.
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All three major U.S. stock indexes retreated in the wake of announcement, with interest rate sensitive megacap stocks Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O pulling the Nasdaq down most. The Fed's announcement was accompanied by its Summary Economic Projections (SEP) and dot plot, which sees an additional 25 basis point rate hike this year, peaking in the 5.50%-5.75% range. The SEP forecasts inflation to drop to 3.3% by year-end, and to approach the central bank's average annual 2% target.
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All three major U.S. stock indexes retreated in the wake of announcement, with interest rate sensitive megacap stocks Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O pulling the Nasdaq down most. By Stephen Culp Sept 20 (Reuters) - U.S. stocks slumped on Wednesday after the U.S. Federal Reserve held key interest rates unchanged as widely expected, and revised economic projections higher with warnings that the battle against inflation was far from over. The Fed's announcement was accompanied by its Summary Economic Projections (SEP) and dot plot, which sees an additional 25 basis point rate hike this year, peaking in the 5.50%-5.75% range.
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All three major U.S. stock indexes retreated in the wake of announcement, with interest rate sensitive megacap stocks Microsoft Corp MSFT.O, Apple Inc AAPL.O and Nvidia Corp NVDA.O pulling the Nasdaq down most. The SEP projections also called for 50 basis points of rate cuts next year. The SEP forecasts inflation to drop to 3.3% by year-end, and to approach the central bank's average annual 2% target.
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13548.0
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2023-09-20 00:00:00 UTC
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1 Top Semiconductor Stock That's Too Cheap to Ignore
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AAPL
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https://www.nasdaq.com/articles/1-top-semiconductor-stock-thats-too-cheap-to-ignore
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nan
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nan
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2022 and 2023 haven't been great years for most of the semiconductor industry. PC and smartphone sales fell off a cliff after elevated pandemic-era consumer purchasing, and later in 2023, this was compounded by a drop in demand for some data center servers -- excluding those powered by Nvidia (NASDAQ: NVDA), of course.
Semiconductor demand appears to be bottoming, though, and the industry could be heating up as 2024 draws near. Amkor Technology (NASDAQ: AMKR) is a top outsourced semiconductor assembly and test (OSAT) company, trading for a meager valuation of less than 10 times trailing-12-month earnings. Is it too cheap to ignore?
Amkor indicates a new bull market
OSATs are an important part of the semiconductor supply chain. Once a fab (a facility that makes chips) is finished making silicon wafers, those wafers need to be chopped up into chips and packaged into a computing or electronics system. That's where Amkor and its OSAT peers, like Hon Hai Precision Industry (OTC: HNHPF) (better known as Foxconn, which handles a lot of Apple's (NASDAQ: AAPL) devices), ASE Technology, and Jabil Industry (NYSE: JBL) come in.
Amkor reports its revenue in four segments: Communications (smartphones and tablets, 41% of revenue last quarter), automotive and industrial (23% of revenue), computing (primarily data centers, but also PCs and laptops, 20% of revenue), and consumer electronics (16% of revenue). Through the first half of 2023, sales decreased 6% from the same period in 2022 to $2.9 billion, especially driven by the big downturn in smartphone and PC sales.
However, in the second quarter, Amkor said some of these markets, communications in particular, were showing signs of firming up. Communications and computing revenue increased 7% and 5%, respectively, year over year, although it was the consumer segment that continued to drag down business overall with a 27% decline from 2022.
In a further sign that things are looking up, management said it expects third-quarter sales to reapproach all-time highs and come in at $1.775 billion at the midpoint of guidance, up about 22% over the prior quarter. Earnings per share (EPS) are also expected to rally in a grandiose fashion, with the guidance range implying as much as a doubling in EPS from the second quarter to the third quarter.
With this kind of quick rebound in the works, perhaps Amkor stock is a screaming value right now as advanced packaging for smartphones, PCs, and data center servers (including AI servers) heats up.
Why the cheap valuation?
However, there's an important point to bear in mind. Historically, Amkor tends to trade for lower valuations. As an OSAT, it's highly reliant on semiconductor designers and manufacturers, as well as the final computing device and automaker customers that need its assembly services. That makes Amkor cyclical, and it tends to have very thin profit margins, too -- a norm for the OSAT subindustry.
Data by YCharts.
That said, advanced packaging techniques aren't getting any easier but should be in increasing demand for the foreseeable future -- much as was the case last decade when smartphones and other mobile computing technology were advancing rapidly. Amkor could have a lot to gain as vehicles transition to electric drivetrains and adopt more autonomous driving features (it's the top automotive OSAT), and as data centers rapidly adopt new AI services.
Additionally, the company has been making steady progress on its balance sheet, reporting for the first time more cash and short-term investment ($1.2 billion) than total debt ($1.13 billion) at the end of July 2023.
The stock recently sold off on news that the 915 Investments holding company of the Kim family (the founders of Amkor, and by far its largest shareholders via various investment holding entities) was selling 10 million shares at $24 apiece. Investors are never happy with that kind of insider selling. It's worth noting the Kim family will remain Amkor's largest investor, so future selling could continue to cause downward pressure on the stock.
After the most recent dip in stock price, Amkor now trades for less than 10 times Wall Street analysts' expectations for 2024 EPS. The company is spending cash from its operations to expand some of its facilities, including a new one that will open later this year in Vietnam, so the resulting valuation based on next year's expected free cash flow (FCF) is a less-cheap-looking 23 times FCF.
Nevertheless, Amkor could be too cheap to ignore right now as the semiconductor market comes out of a particularly tough 2022 and 2023. Personally, I favor the semiconductor manufacturing equipment companies right now, which count Amkor and many others as a customer. Keep this manufacturing leader on your watchlist.
10 stocks we like better than Amkor Technology
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amkor Technology 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
Nicholas Rossolillo and his clients have positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's where Amkor and its OSAT peers, like Hon Hai Precision Industry (OTC: HNHPF) (better known as Foxconn, which handles a lot of Apple's (NASDAQ: AAPL) devices), ASE Technology, and Jabil Industry (NYSE: JBL) come in. PC and smartphone sales fell off a cliff after elevated pandemic-era consumer purchasing, and later in 2023, this was compounded by a drop in demand for some data center servers -- excluding those powered by Nvidia (NASDAQ: NVDA), of course. Amkor Technology (NASDAQ: AMKR) is a top outsourced semiconductor assembly and test (OSAT) company, trading for a meager valuation of less than 10 times trailing-12-month earnings.
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That's where Amkor and its OSAT peers, like Hon Hai Precision Industry (OTC: HNHPF) (better known as Foxconn, which handles a lot of Apple's (NASDAQ: AAPL) devices), ASE Technology, and Jabil Industry (NYSE: JBL) come in. Amkor reports its revenue in four segments: Communications (smartphones and tablets, 41% of revenue last quarter), automotive and industrial (23% of revenue), computing (primarily data centers, but also PCs and laptops, 20% of revenue), and consumer electronics (16% of revenue). With this kind of quick rebound in the works, perhaps Amkor stock is a screaming value right now as advanced packaging for smartphones, PCs, and data center servers (including AI servers) heats up.
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That's where Amkor and its OSAT peers, like Hon Hai Precision Industry (OTC: HNHPF) (better known as Foxconn, which handles a lot of Apple's (NASDAQ: AAPL) devices), ASE Technology, and Jabil Industry (NYSE: JBL) come in. Amkor Technology (NASDAQ: AMKR) is a top outsourced semiconductor assembly and test (OSAT) company, trading for a meager valuation of less than 10 times trailing-12-month earnings. Amkor reports its revenue in four segments: Communications (smartphones and tablets, 41% of revenue last quarter), automotive and industrial (23% of revenue), computing (primarily data centers, but also PCs and laptops, 20% of revenue), and consumer electronics (16% of revenue).
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That's where Amkor and its OSAT peers, like Hon Hai Precision Industry (OTC: HNHPF) (better known as Foxconn, which handles a lot of Apple's (NASDAQ: AAPL) devices), ASE Technology, and Jabil Industry (NYSE: JBL) come in. 2022 and 2023 haven't been great years for most of the semiconductor industry. With this kind of quick rebound in the works, perhaps Amkor stock is a screaming value right now as advanced packaging for smartphones, PCs, and data center servers (including AI servers) heats up.
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13549.0
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2023-09-20 00:00:00 UTC
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Apple France workers call strike ahead of iPhone 15 launch
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AAPL
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https://www.nasdaq.com/articles/apple-france-workers-call-strike-ahead-of-iphone-15-launch
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nan
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nan
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PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions.
"Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday.
(Reporting by Geert De Clercq, Editing by Louise Heavens)
((geert.declercq@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) ((geert.declercq@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) ((geert.declercq@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) ((geert.declercq@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) ((geert.declercq@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13550.0
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2023-09-20 00:00:00 UTC
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My Top FAANG Stock to Buy for the Second Half of 2023 (and Beyond)
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AAPL
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https://www.nasdaq.com/articles/my-top-faang-stock-to-buy-for-the-second-half-of-2023-and-beyond-3
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nan
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nan
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Most of the companies on the venerable FAANG list are well-known masters of artificial intelligence (AI). Meta Platforms (NASDAQ: META) builds lots of AI-powered smarts into its Facebook, Instagram, and WhatsApp platforms. Amazon.com (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) sell cloud-based AI tools and services to other companies. Apple (NASDAQ: AAPL) may not promote its AI use as heavily as its FAANG colleagues, but you know there's a lot of machine-learning tech involved in every Cupertino gadget.
They are great companies in their own right, and I would gladly recommend any of them when the stock price is right. However, most of them are soaring on a marketwide AI frenzy. So I'll just wait for them to cool down before making any share-buying moves. Meanwhile, I've got my eye on the lower-priced but just as exciting Netflix (NASDAQ: NFLX) stock instead.
The media-streaming veteran is changing before our eyes, leaning on new ideas such as ad-supported subscription plans and password-sharing mitigation tactics. Netflix also faces economic challenges while wrestling with two concurrent Hollywood strikes. So I get why Mr. Market is keeping a lid on Netflix's stock price right now, and I'm not ashamed to take full advantage of the red-tag discount.
Let me tell you why Netflix is easily the best FAANG stock to buy right now. In short, the ongoing strategy shift is an overnight success that was years in the making.
From high growth and skimpy profits...
Once upon a time, Netflix was a classic growth stock. The company was barely profitable in terms of after-tax earnings, and the production of original Netflix content burned through billions of dollars of negative free cash flows.
But those temporary losses didn't matter. Netflix's long-term business plan and accounting practices pointed to soaring cash flows in the future based on the massive global-user base it was building in the 2010s. Sometimes you have to spend money now in order to make much more money later.
Pedal to the metal, the company built an award-winning and subscriber-gaining growth machine. The revenue growth averaged out at 30% across that decade. By the end of 2009, 11.9 million people subscribed to the red DVD-mailers service. Ten years later, DVD membership had shrunk to 2.1 million names, but the streaming service reached 167 million households around the world.
During this period of extreme growth, Netflix critics complained about skimpy bottom-line earnings and an unclear payoff for the massive cash investments in original content.
...to rich profits and skimpy growth
Having achieved an enormous business scale and facing a difficult economic environment, Netflix has shifted into profit-taking mode. Year-over-year membership growth was just 8% in the second quarter of 2023, with 238 million streaming subscribers, and the ancient DVD service is no more.
But Netflix reported $4.2 billion of bottom-line earnings over the last four quarters along with $4.3 billion in free cash flows. The management style has abandoned the old subscriber-growth-at-any-cost to focus on profitable revenue growth instead.
In other words, Netflix is doing exactly what its critics were asking for in the 2010s. Now, the bears worry about slowing subscriber growth instead. You can't please some people, right?
The stock price, up by 33% in 2023, is at the very bottom of the AI-driven FAANG heap. Shares are changing hands at reasonable valuations such as 5.4 times trailing sales or 25 times forward-earnings projections. Never mind that Netflix was a data-powered AI beast long before ChatGPT made it cool. This is a powerful growth stock trading at modest stock prices even without an AI-fueled booster.
Just as every good Netflix series deserves a binge, this stock deserves a buy. The company is cashing in on the investments it made in the 2010s. Don't miss the next season of Netflix's shareholder saga; it promises to be a blockbuster.
10 stocks we like better than Netflix
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 Netflix 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
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. Anders Bylund has positions in Alphabet, Amazon.com, and Netflix. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) may not promote its AI use as heavily as its FAANG colleagues, but you know there's a lot of machine-learning tech involved in every Cupertino gadget. The company was barely profitable in terms of after-tax earnings, and the production of original Netflix content burned through billions of dollars of negative free cash flows. During this period of extreme growth, Netflix critics complained about skimpy bottom-line earnings and an unclear payoff for the massive cash investments in original content.
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Apple (NASDAQ: AAPL) may not promote its AI use as heavily as its FAANG colleagues, but you know there's a lot of machine-learning tech involved in every Cupertino gadget. Meta Platforms (NASDAQ: META) builds lots of AI-powered smarts into its Facebook, Instagram, and WhatsApp platforms. See the 10 stocks *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.
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Apple (NASDAQ: AAPL) may not promote its AI use as heavily as its FAANG colleagues, but you know there's a lot of machine-learning tech involved in every Cupertino gadget. From high growth and skimpy profits... Once upon a time, Netflix was a classic growth stock. 10 stocks we like better than Netflix When our analyst team has a stock tip, it can pay to listen.
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Apple (NASDAQ: AAPL) may not promote its AI use as heavily as its FAANG colleagues, but you know there's a lot of machine-learning tech involved in every Cupertino gadget. From high growth and skimpy profits... Once upon a time, Netflix was a classic growth stock. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Netflix wasn't one of them!
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13551.0
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2023-09-20 00:00:00 UTC
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Apple France workers call strike ahead of iPhone 15 launch
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AAPL
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https://www.nasdaq.com/articles/apple-france-workers-call-strike-ahead-of-iphone-15-launch-0
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nan
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nan
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Adds detail, quote in paragraphs 3-7
PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions.
"Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, on Wednesday.
The unions also called for workers to demonstrate on Friday morning at the Paris Opera Garnier, which is next to one of Apple's flagship stores in Paris.
CGT Apple Retail union member Karine Chouchane told French daily Liberation that Apple France workers may mobilise in three quarters of Apple's stores in France.
Apple France could not immediately be reached for comment.
Last week, Apple was rocked by a French government decision to suspend sales of iPhone 12 handsets after tests which it said found breaches of radiation exposure limits.
On Friday, Apple pledged to update software on iPhone 12s in France to settle the dispute over radiation levels, but concerns in other European countries signalled it may have to take similar action elsewhere.
(Reporting by Geert De Clercq, Editing by Louise Heavens)
((geert.declercq@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail, quote in paragraphs 3-7 PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. Last week, Apple was rocked by a French government decision to suspend sales of iPhone 12 handsets after tests which it said found breaches of radiation exposure limits. On Friday, Apple pledged to update software on iPhone 12s in France to settle the dispute over radiation levels, but concerns in other European countries signalled it may have to take similar action elsewhere.
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Adds detail, quote in paragraphs 3-7 PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, on Wednesday. CGT Apple Retail union member Karine Chouchane told French daily Liberation that Apple France workers may mobilise in three quarters of Apple's stores in France.
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Adds detail, quote in paragraphs 3-7 PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, on Wednesday. CGT Apple Retail union member Karine Chouchane told French daily Liberation that Apple France workers may mobilise in three quarters of Apple's stores in France.
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Adds detail, quote in paragraphs 3-7 PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, on Wednesday. The unions also called for workers to demonstrate on Friday morning at the Paris Opera Garnier, which is next to one of Apple's flagship stores in Paris.
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13552.0
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2023-09-20 00:00:00 UTC
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Tech Stocks Have Done This Only 3 Times in 21 Years. Here's What Happened Next
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AAPL
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https://www.nasdaq.com/articles/tech-stocks-have-done-this-only-3-times-in-21-years.-heres-what-happened-next
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nan
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nan
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The Nasdaq 100 index is up an incredible 41.6% through Sept. 1 and has been a huge long-term winner. You can own a stake in it via the Invesco QQQ Trust (NASDAQ: QQQ). In this video, Motley Fool contributor Jason Hall explains what happened the last two times it was up so much so fast, and explains what investors should be focusing on now.
*Stock prices used were from the morning of Sept. 19, 2023. The video was published on Sept. 19, 2023.
10 stocks we like better than Invesco Qqq Trust, Series 1
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Invesco Qqq Trust, Series 1 wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 18, 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. Jason Hall has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy. Jason Hall 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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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Invesco Qqq Trust, Series 1 wasn't one of them! John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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You can own a stake in it via the Invesco QQQ Trust (NASDAQ: QQQ). In this video, Motley Fool contributor Jason Hall explains what happened the last two times it was up so much so fast, and explains what investors should be focusing on now. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Invesco Qqq Trust, Series 1 wasn't one of them!
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In this video, Motley Fool contributor Jason Hall explains what happened the last two times it was up so much so fast, and explains what investors should be focusing on now. 10 stocks we like better than Invesco Qqq Trust, Series 1 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors.
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In this video, Motley Fool contributor Jason Hall explains what happened the last two times it was up so much so fast, and explains what investors should be focusing on now. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 18, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors.
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13553.0
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2023-09-20 00:00:00 UTC
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Investor’s Gold Rush: 7 Must-Have Blue-Chip Stocks for September
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AAPL
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https://www.nasdaq.com/articles/investors-gold-rush%3A-7-must-have-blue-chip-stocks-for-september
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the investment sphere, where markets shift like dunes in the desert, identifying the right stocks for your portfolio can be as challenging as prospecting for gold. However, certain fabled blue-chip stocks stand the test of time.
As we step into the second half of September, it’s time for investors to embark on their modern-day gold rush. The article lists seven must-have blue-chip stocks that are gleaming with potential.
Overall, the article explores the strengths and strategies of these blue-chip stocks, offering a glimpse into the treasure trove of opportunities they present.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon’s (NASDAQ:AMZN) focus on lowering its cost to serve in its stores’ fulfillment network has paid off.
The shift to regionalization, with separate regions serving smaller geographic areas, has reduced the number of touches for delivered packages by 20% and cut transportation miles by 19%. This reduces costs and improves delivery speed, a factor highly valued by customers.
Also, Amazon’s relentless pursuit of faster delivery times has resonated with customers. In the top 60 largest US metro areas, over half of Prime members’ orders arrive on the same day or the next day. Faster delivery not only boosts customer satisfaction but also increases purchase frequency.
Lowering the cost to serve has allowed Amazon to add more selections at lower price points, particularly in everyday essentials.
Amazon keeps expanding its product offering, with more than 300 million items available for US Prime free shipping, including tens of millions for same-day delivery.
Notably, Amazon Web Services dominates cloud infrastructure. Its strong customer focus, cost optimization assistance, and innovation in custom AI chips (Trainium and Inferentia) have solidified AWS’s position as a reliable partner for businesses looking to harness the power of the cloud.
Finally, Amazon is democratizing access to generative AI, making it more accessible and cost-effective for businesses. With services like Amazon Bedrock, AWS simplifies large language model customization and application development, opening up possibilities across various industries, and making this one of the must-own blue-chip stocks.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple’s (NASDAQ:AAPL) success in emerging markets like India, Indonesia, Mexico, and others signifies its ability to tap into new customer bases, making it one of the blue-chip stocks to buy for growth.
Financially, the Services segment’s consistent growth, reaching an all-time high of $21.2 billion. It highlights the increasing importance of recurring revenue streams like Apple Music, AppleCare, and Apple TV+. This steady revenue source strengthens Apple’s position for long-term financial stability.
Apple maintains remarkably high levels of customer satisfaction, with the iPhone, Mac, iPad, and Apple Watch consistently receiving high ratings. This loyalty translates into a growing active installed base.
Lastly, Apple’s continued investment in research and development is exemplified by Apple Vision Pro and advancements in the Mac and iPad, demonstrating its commitment to innovation and keeping it at the forefront of technology for years.
With over 2 billion active devices, Apple’s ecosystem remains robust, supporting its future expansion and keeping customers engaged with its services.
ASML (ASML)
Source: Ralf Liebhold / Shutterstock
ASML (NASDAQ:ASML) reported approximately €38 billion backlog, indicating robust product demand. The company makes deep ultraviolet and extreme ultraviolet lithography systems. Its focus on high-NA (numerical aperture) EUV systems, such as the NXE:3800E, contributes to higher average selling prices and gross margins.
Notably, the semiconductor industry is driven by secular trends like electrification, AI, and increasing lithography intensity on future technology nodes. ASML’s products are integral to semiconductor manufacturing, making the company well-positioned to capitalize on these trends.
ASML is experiencing strong demand from Chinese semiconductor manufacturers, investing in mid-critical to mature semiconductor nodes to support domestic mega-trends like electrification and IoT.
China’s strategic investments fuel demand for ASML’s products, making it a sustainable market.
Overall, ASML’s technological leadership in lithography equipment, including EUV technology, positions it as a critical partner for semiconductor manufacturers. Especially those looking to advance their chip manufacturing capabilities, making ASML one of the best-positioned blue-chip stocks to buy.
Alibaba (BABA)
Source: Kevin Chen Photography / Shutterstock.com
Alibaba (NYSE:BABA) focused on putting users first, resulting in consistent growth in its Taobao app’s daily active users, which rose by 7% in July.
This user-centric approach enhances Alibaba’s long-term market position.
The company onboarded numerous new merchants, significantly contributing to Alibaba’s value-for-money battle. Merchant confidence increased, increasing merchant spending and making Taobao and Tmall their preferred long-term business platforms.
Strategically, Alibaba invested in AI, improving merchant tools and enhancing the shopping experience for users. This technological innovation strategy will yield long-term benefits as AI applications evolve.
Alibaba’s focus on user growth and technology investments did not hamper its financial performance. The company reported a 9.1% YoY increase in adjusted EBITDA, indicating its ability to balance investments and profitability.
Finally, Alibaba diversified its business, achieving revenue growth in various segments, including international retail, local services, Taobao, cloud computing, digital media entertainment, and more.
This diversification reduces reliance on any single revenue stream and supports long-term stability.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
Nvidia (NASDAQ:NVDA) experienced record-breaking data center revenue, up 171% YoY. Increased demand from cloud service providers and large consumer internet companies for Nvidia’s HGX platform primarily fueled this growth.
The HGX platform plays a critical role in generative AI and LLMs, meeting the needs of major companies like AWS, Google Cloud, Meta, Microsoft Azure, and Oracle Cloud.
Further, Nvidia’s US data center growth was robust, where customers heavily invested in AI and accelerated computing.
The company also maintained a consistent Chinese market share, accounting for 20% to 25% of data center revenue. The global expansion positions Nvidia to benefit from the growing demand for accelerated computing.
Nvidia has partnered with key industry players to speed up AI adoption. These collaborations expand Nvidia’s reach with AI solutions. They also make it easier for enterprises to develop and deploy AI models and applications.
Also, introducing AI copilots and assistants opens up new multi-billion-dollar market opportunities in various professional fields.
Palantir (PLTR)
Source: Iljanaresvara Studio / Shutterstock.com
Palantir (NYSE:PLTR) recognized the potential of AI, especially LLMs, and strategically integrated them into its product offerings, including Foundry and AIP (AI Platform).
This forward-thinking approach allowed them to leverage the AI revolution effectively. The US market, in particular, demonstrated an appetite for AI applications, including LLMs, for transforming businesses and institutions. Palantir’s products, such as Foundry and AIP, catered to this demand, positioning the company for significant growth.
Notably, Palantir maintained a presence in the government sector, particularly in the US. Despite potential contract timing uncertainties, the company secured substantial government contracts, such as with the US Special Operations Command.
Palantir’s product suite, including AIP Builder, AIP Terminal, AIP Logic, and AIP Automate, empowered users to harness the power of AI effectively. Introducing AIP Assist, a tool-aware AI assistant, further enhanced user productivity.
Overall, Palantir’s focus on delivering results and impact for its partners while innovating in AI has led to consecutive quarters of GAAP profitability.
Palantir expanded its reach beyond the US, securing partnerships and contracts in countries like Japan, Korea, Canada, and the Middle East. Therefore, this diversification broadened its customer base and market presence.
SoFi (SOFI)
Source: rafapress / Shutterstock.com
SoFi (NASDAQ:SOFI) has experienced significant growth in its member base, adding 584K new members in Q2 2023.
This growth brings the total number of members to 6.2 million, representing a 44% YoY increase. A larger member base provides more opportunities for cross-selling and monetization.
Launching new products, like SoFi Travel, and offering IPOs to retail investors diversify its portfolio and enhance brand awareness.
The company has made strides in monetizing its services and improving profitability. Financial Services net revenue more than tripled YoY to $98 million. SoFi expects all three business segments to post positive contribution profits by Q4.
Moreover, SoFi’s strong balance sheet, characterized by $12.7 billion in deposits and a lower cost of capital following the acquisition of SoFi Bank, ensures financial stability and flexibility.
Efforts to enhance operational efficiency, reduce customer acquisition costs, and expand product offerings, like SoFi Travel and retail IPO access, contribute to the company’s success.
As of this writing, Yiannis Zourmpanos held a long position in ASML, BABA, and PLTR. 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 Investor’s Gold Rush: 7 Must-Have Blue-Chip Stocks for September 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’s (NASDAQ:AAPL) success in emerging markets like India, Indonesia, Mexico, and others signifies its ability to tap into new customer bases, making it one of the blue-chip stocks to buy for growth. With services like Amazon Bedrock, AWS simplifies large language model customization and application development, opening up possibilities across various industries, and making this one of the must-own blue-chip stocks. Finally, Alibaba diversified its business, achieving revenue growth in various segments, including international retail, local services, Taobao, cloud computing, digital media entertainment, and more.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) success in emerging markets like India, Indonesia, Mexico, and others signifies its ability to tap into new customer bases, making it one of the blue-chip stocks to buy for growth. Nvidia (NVDA) Source: Poetra.RH / Shutterstock.com Nvidia (NASDAQ:NVDA) experienced record-breaking data center revenue, up 171% YoY. Palantir (PLTR) Source: Iljanaresvara Studio / Shutterstock.com Palantir (NYSE:PLTR) recognized the potential of AI, especially LLMs, and strategically integrated them into its product offerings, including Foundry and AIP (AI Platform).
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) success in emerging markets like India, Indonesia, Mexico, and others signifies its ability to tap into new customer bases, making it one of the blue-chip stocks to buy for growth. Its strong customer focus, cost optimization assistance, and innovation in custom AI chips (Trainium and Inferentia) have solidified AWS’s position as a reliable partner for businesses looking to harness the power of the cloud. Palantir (PLTR) Source: Iljanaresvara Studio / Shutterstock.com Palantir (NYSE:PLTR) recognized the potential of AI, especially LLMs, and strategically integrated them into its product offerings, including Foundry and AIP (AI Platform).
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple’s (NASDAQ:AAPL) success in emerging markets like India, Indonesia, Mexico, and others signifies its ability to tap into new customer bases, making it one of the blue-chip stocks to buy for growth. However, certain fabled blue-chip stocks stand the test of time. Palantir (PLTR) Source: Iljanaresvara Studio / Shutterstock.com Palantir (NYSE:PLTR) recognized the potential of AI, especially LLMs, and strategically integrated them into its product offerings, including Foundry and AIP (AI Platform).
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13554.0
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2023-09-20 00:00:00 UTC
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Taiwan August export orders shrink for 12th month; growth seen returning in Q4
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AAPL
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https://www.nasdaq.com/articles/taiwan-august-export-orders-shrink-for-12th-month-growth-seen-returning-in-q4
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nan
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nan
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August export orders -15.7% y/y vs -10.5% poll forecast
Export orders from China -2.0% y/y vs -4.2% in July
Ministry sees September orders between -14.7% and -17.9% y/y
Q4 orders show positive growth: ministry
TAIPEI, Sept 20 (Reuters) - Taiwan's export orders contracted for the 12th straight month in August and missed expectations, as demand remains subdued due to factors such as high interest rates and weak demand from China, though growth may resume from the fourth quarter.
Export orders last month fell 15.7% from a year ago to $46.04 billion, the Ministry of Economic Affairs said on Wednesday. Export orders for goods from the island, home to tech giants such as TSMC 2330.TW, are an indicator of global technology demand.
The rate of decline worsened from the 12.0% drop in July, and trailed the 10.5% fall predicted in a Reuters poll.
The ministry has repeatedly warned that demand for Taiwan's exports may continue to be stifled in the foreseeable future by high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine.
The ministry said it expected export orders in September to fall by between 14.7% and 17.9% from a year earlier.
But the tide appears to be turning, the director of the ministry's statistics agency said.
"Export orders in Q4 show positive growth based on what we're seeing now," said Huang Yu-ling, referring to the second half of the year when demand picks up for the traditional end-of-year shopping season in Western markets.
Weak demand for Taiwan's technology products amid global economic uncertainty has prompted the government to forecast that the export-dependent economy will grow at its slowest pace in eight years in 2023.
Local firms such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies.
Orders in August for telecommunications products fell 14.6% and electronic products fell 17.3% from a year earlier, the ministry said.
Orders from China were 2.0% lower, narrowing from a 4.2% dip in the prior month.
Orders from the United States fell 14.5%, versus a 18.6% drop in July.
Orders from Europe fell 33.6% versus July's 32.0% drop.
Orders from Japan declined 16.7%.
(Reporting by Liang-sa Loh and Faith Hung; Editing by Kim Coghill)
((faith.hung@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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Local firms such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. The ministry has repeatedly warned that demand for Taiwan's exports may continue to be stifled in the foreseeable future by high inflation and rising interest rates, along with the global repercussions of the war between Russia and Ukraine. "Export orders in Q4 show positive growth based on what we're seeing now," said Huang Yu-ling, referring to the second half of the year when demand picks up for the traditional end-of-year shopping season in Western markets.
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Local firms such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. August export orders -15.7% y/y vs -10.5% poll forecast Export orders from China -2.0% y/y vs -4.2% in July Ministry sees September orders between -14.7% and -17.9% y/y Q4 orders show positive growth: ministry TAIPEI, Sept 20 (Reuters) - Taiwan's export orders contracted for the 12th straight month in August and missed expectations, as demand remains subdued due to factors such as high interest rates and weak demand from China, though growth may resume from the fourth quarter. Weak demand for Taiwan's technology products amid global economic uncertainty has prompted the government to forecast that the export-dependent economy will grow at its slowest pace in eight years in 2023.
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Local firms such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. August export orders -15.7% y/y vs -10.5% poll forecast Export orders from China -2.0% y/y vs -4.2% in July Ministry sees September orders between -14.7% and -17.9% y/y Q4 orders show positive growth: ministry TAIPEI, Sept 20 (Reuters) - Taiwan's export orders contracted for the 12th straight month in August and missed expectations, as demand remains subdued due to factors such as high interest rates and weak demand from China, though growth may resume from the fourth quarter. Export orders last month fell 15.7% from a year ago to $46.04 billion, the Ministry of Economic Affairs said on Wednesday.
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Local firms such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW, TSM.N are major suppliers to Apple Inc AAPL.O, Nvidia NVDA.O and other global tech companies. August export orders -15.7% y/y vs -10.5% poll forecast Export orders from China -2.0% y/y vs -4.2% in July Ministry sees September orders between -14.7% and -17.9% y/y Q4 orders show positive growth: ministry TAIPEI, Sept 20 (Reuters) - Taiwan's export orders contracted for the 12th straight month in August and missed expectations, as demand remains subdued due to factors such as high interest rates and weak demand from China, though growth may resume from the fourth quarter. The rate of decline worsened from the 12.0% drop in July, and trailed the 10.5% fall predicted in a Reuters poll.
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13555.0
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2023-09-20 00:00:00 UTC
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The 5 Best Growth Stocks You've Never Heard Of
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AAPL
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https://www.nasdaq.com/articles/the-5-best-growth-stocks-youve-never-heard-of
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nan
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nan
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There are growth stocks of all sizes on the market, but they don't all get the attention of the media. In this video, Travis Hoium covers five growth stocks that you may not have heard of, but should at least put on your watchlist.
*Stock prices used were end-of-day prices of Sept. 15, 2023. The video was published on Sept. 18, 2023.
10 stocks we like better than On Holding
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 On Holding 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
Travis Hoium has positions in Apple, Intel, Matterport, On Holding, and Portillo's. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, Matterport, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and Mobileye Global and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy. 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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In this video, Travis Hoium covers five growth stocks that you may not have heard of, but should at least put on your watchlist. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Chipotle Mexican Grill, Matterport, Nvidia, and Taiwan Semiconductor Manufacturing.
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In this video, Travis Hoium covers five growth stocks that you may not have heard of, but should at least put on your watchlist. See the 10 stocks *Stock Advisor returns as of September 18, 2023 Travis Hoium has positions in Apple, Intel, Matterport, On Holding, and Portillo's. The Motley Fool recommends Intel and Mobileye Global and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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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 18, 2023 Travis Hoium has positions in Apple, Intel, Matterport, On Holding, and Portillo's. The Motley Fool recommends Intel and Mobileye Global and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel.
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In this video, Travis Hoium covers five growth stocks that you may not have heard of, but should at least put on your watchlist. * They just revealed what they believe are the ten best stocks for investors to buy right now... and On Holding wasn't one of them! See the 10 stocks *Stock Advisor returns as of September 18, 2023 Travis Hoium has positions in Apple, Intel, Matterport, On Holding, and Portillo's.
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13556.0
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2023-09-20 00:00:00 UTC
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Apple Stock: Extending Lead Times Sign of Strong Demand for iPhone 15, Says Goldman Sachs
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-extending-lead-times-sign-of-strong-demand-for-iphone-15-says-goldman-sachs
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nan
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nan
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The launch of Apple’s (AAPL) iPhone 15 hasn’t generated too much excitement, with other concerns – reports of China banning government workers from using iPhones, competition from Huawei – appearing to weigh on investors’ minds. However, tracking the iPhone 15 fulfillment times on the tech giant’s website offers reason to be upbeat, says Goldman Sachs analyst Michael Ng.
It shows that the lead times for all models are “extending further,” with the most significant uptick in lead time displayed by the iPhone 15 base model. “We view the extending lead times for the iPhone 15 base models as incrementally positive (relative to the extended lead times observed in the Pro Max last week on 9/15) given that supply constraints should be less of an issue for the base model,” Ng commented.
Compared to last Friday (9/15) and the past weekend, both the iPhone 15 and iPhone 15 Plus are witnessing significant increases in lead times. Delivery lead times for the iPhone 15 have grown to more than 2 weeks (vs. launch day fulfillment at the end of day on Friday), and iPhone 15 Plus’ lead times have increased too, although to a lesser extent.
Even better, given all the China worries, the region has seen the most notable rise in lead times (compared to last Friday when pre-orders kicked off), having increased to about 3 weeks from first being available on launch day. It’s been a similar story for the iPhone 15 Plus. While lead times were one week following launch day if ordered this past Friday, these have now extended to around 3 weeks.
The early indications of demand are a pleasing development, says Ng, even if not too much should be made of it just yet. “Although we recognize that there are caveats to extrapolating delivery lead times to consumer demand,” Ng summed up, “we’re encouraged by what appears to be strong demand for all iPhone 15 models, particularly against the backdrop of heightened competition from Huawei.”
All told, Ng reiterated a Buy rating on the shares to go alongside a $216 price target. There’s potential upside of 21% from current levels. (To watch Ng’s track record, click here)
Elsewhere on the Street, the stock garners an additional 21 Buys and 8 Holds, all coalescing to a Moderate Buy consensus rating. The analysts see shares climbing 16% higher in the months ahead, considering the average target stands at $207.89. (See Apple stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and 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 launch of Apple’s (AAPL) iPhone 15 hasn’t generated too much excitement, with other concerns – reports of China banning government workers from using iPhones, competition from Huawei – appearing to weigh on investors’ minds. However, tracking the iPhone 15 fulfillment times on the tech giant’s website offers reason to be upbeat, says Goldman Sachs analyst Michael Ng. Even better, given all the China worries, the region has seen the most notable rise in lead times (compared to last Friday when pre-orders kicked off), having increased to about 3 weeks from first being available on launch day.
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The launch of Apple’s (AAPL) iPhone 15 hasn’t generated too much excitement, with other concerns – reports of China banning government workers from using iPhones, competition from Huawei – appearing to weigh on investors’ minds. “We view the extending lead times for the iPhone 15 base models as incrementally positive (relative to the extended lead times observed in the Pro Max last week on 9/15) given that supply constraints should be less of an issue for the base model,” Ng commented. Delivery lead times for the iPhone 15 have grown to more than 2 weeks (vs. launch day fulfillment at the end of day on Friday), and iPhone 15 Plus’ lead times have increased too, although to a lesser extent.
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The launch of Apple’s (AAPL) iPhone 15 hasn’t generated too much excitement, with other concerns – reports of China banning government workers from using iPhones, competition from Huawei – appearing to weigh on investors’ minds. “We view the extending lead times for the iPhone 15 base models as incrementally positive (relative to the extended lead times observed in the Pro Max last week on 9/15) given that supply constraints should be less of an issue for the base model,” Ng commented. Delivery lead times for the iPhone 15 have grown to more than 2 weeks (vs. launch day fulfillment at the end of day on Friday), and iPhone 15 Plus’ lead times have increased too, although to a lesser extent.
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The launch of Apple’s (AAPL) iPhone 15 hasn’t generated too much excitement, with other concerns – reports of China banning government workers from using iPhones, competition from Huawei – appearing to weigh on investors’ minds. Delivery lead times for the iPhone 15 have grown to more than 2 weeks (vs. launch day fulfillment at the end of day on Friday), and iPhone 15 Plus’ lead times have increased too, although to a lesser extent. While lead times were one week following launch day if ordered this past Friday, these have now extended to around 3 weeks.
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13557.0
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2023-09-20 00:00:00 UTC
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Dow Movers: INTC, CAT
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-intc-cat-1
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nan
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nan
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In early trading on Wednesday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.2%. Year to date, Caterpillar registers a 19.3% gain.
And the worst performing Dow component thus far on the day is Intel, trading down 1.1%. Intel is showing a gain of 36.0% looking at the year to date performance.
Two other components making moves today are Apple, trading down 0.5%, and International Business Machines, trading up 1.7% on the day.
VIDEO: Dow Movers: INTC, CAT
The views and 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 Wednesday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.2%. And the worst performing Dow component thus far on the day is Intel, trading down 1.1%. Intel is showing a gain of 36.0% looking at the year to date performance.
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In early trading on Wednesday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.2%. Year to date, Caterpillar registers a 19.3% gain. And the worst performing Dow component thus far on the day is Intel, trading down 1.1%.
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In early trading on Wednesday, shares of Caterpillar topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.2%. And the worst performing Dow component thus far on the day is Intel, trading down 1.1%. Two other components making moves today are Apple, trading down 0.5%, and International Business Machines, trading up 1.7% on the day.
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And the worst performing Dow component thus far on the day is Intel, trading down 1.1%. Intel is showing a gain of 36.0% looking at the year to date performance. VIDEO: Dow Movers: INTC, CAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13558.0
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2023-09-20 00:00:00 UTC
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Apple Stock: Bull vs. Bear
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-bull-vs.-bear-3
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nan
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nan
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As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. The company has achieved record highs and has become one of the most dominant figures in tech.
However, 2023 hasn't been easy. Apple's quarterly revenue has repeatedly slipped as macroeconomic headwinds have caught up with its product sales.
Apple is making headway in high-growth markets like artificial intelligence (AI) and virtual/augmented reality (VR/AR), but it will take time to see a solid return on its investments. So before you load up on Apple shares, it's wise to consider the positives and potential negatives of its business.
Here's the bear case versus the bull case for Apple stock.
Bull: Introducing AI features across its product lineup
Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro. The showcase gave more clues to the company's AI strategy, gradually sprinkling the technology across its lineup. While tech giants like Amazon and Microsoft have rushed to share their ventures into AI, Apple has taken a quieter approach.
Rather than speak directly about AI, the iPhone company is using its research on the technology to improve user experience with its products. Siri is now 25% more accurate, while Apple Watch users will soon be able to use finger gestures to control aspects of the device.
The AI-enabled updates shared at this month's event build on ones introduced earlier this year. In June, Apple announced an overhaul of the iPhone's autocorrect feature, which uses a language model similar to OpenAI's ChatGPT to learn texting styles. Meanwhile, the AirPods Pro will automatically turn off noise canceling when the wearer engages in conversation.
Apple's use of AI aligns with comments from CEO Tim Cook. In an interview with Reuters in August, the executive talked about the company's research and development spending increasing by $3 billion in the third quarter of 2023, hitting close to $23 billion. Cook said an increase in generative AI research primarily drove the jump.
Apple holds leading market shares in multiple product categories thanks to immense brand loyalty from consumers. Its stature in tech could see it bolster public adoption of AI, boosting sales as it attracts new customers. Other companies like Amazon are focused on the business sector, but Apple could cash in on consumer use of AI.
Bear: Repeated revenue declines
Apple shares have tumbled 10% since Aug. 1. Stockholders have grown weary after the company posted its Q3 2023 results. The period represented the third consecutive quarter of revenue declines, falling 1% year over year. Marketwide challenges have caused reductions in consumer spending on tech, with three of Apple's four product segments experiencing slips in revenue.
However, macroeconomic headwinds won't last forever, and the good news is Apple is continuing to outperform the competition. According to Counterpoint Research, smartphone shipments fell by 24% in Q2 2023. As a result, market leaders like Samsung and Motorola suffered sales declines of 37% and 17%. However, the same period saw Apple's iPhone sales fall 6%, enabling it to increase its market share from 52% to 55%.
Apple performed similarly amid PC market challenges. Data from IDC shows PC shipments dipped 13% in Q2 2023. Dell, Lenovo, and Acer reported shipment declines between 18% and 22%. Meanwhile, Apple's MacBook shipments actually increased by about 10% in the quarter.
Apple isn't out of the woods with economic challenges and could continue to see revenue declines for the rest of the year. Therefore, an investment in its stock should be held for the long term. The company could profit significantly in the coming years from easing inflation and its expanding position in AI. The recent dip in its share price makes Apple an attractive investment. However, prospective investors will need to be patient if a potential recession hits and hold for five to ten years minimum as the company recovers.
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*Stock Advisor returns as of September 11, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, 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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As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. In June, Apple announced an overhaul of the iPhone's autocorrect feature, which uses a language model similar to OpenAI's ChatGPT to learn texting styles. *Stock Advisor returns as of September 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
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As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. Apple's quarterly revenue has repeatedly slipped as macroeconomic headwinds have caught up with its product sales. Bull: Introducing AI features across its product lineup Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro.
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As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. Bull: Introducing AI features across its product lineup Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro. Other companies like Amazon are focused on the business sector, but Apple could cash in on consumer use of AI.
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As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. Bull: Introducing AI features across its product lineup Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro. The period represented the third consecutive quarter of revenue declines, falling 1% year over year.
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13559.0
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2023-09-20 00:00:00 UTC
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1 Warren Buffett Stock to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-stock-to-buy-and-hold-forever-0
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nan
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nan
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Warren Buffett, the legendary CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), is widely regarded as one of the greatest investors of all time. He follows the principles of value investing, which centers on unearthing undervalued companies that can generate consistent profits over the long term.
Buffett's No. 1 rule of investing is to never lose money, and he does so by building a diversified portfolio of businesses, stocks, bonds, and cash that can withstand any market downturn. So if you're looking for a stock you can buy and hold forever, you may want to consider investing in Berkshire Hathaway. Read on to find out more about this top value stock.
Image Source: Getty Images.
Berkshire Hathaway: A fortress of value
Berkshire Hathaway is not just a stock, but a conglomerate of businesses that operate in various sectors, such as insurance, energy, transportation, manufacturing, retail, and technology. Some of the best-known subsidiaries include Geico, BNSF Railway, Dairy Queen, Duracell, and Fruit of the Loom. These businesses generate steady cash flows that Buffett can use to invest in other companies or buy back shares. Berkshire Hathaway also owns a massive portfolio of stocks that includes some of the largest and most successful companies in the world, such as Apple, Bank of America (NYSE: BAC), and American Express. Many of these stocks even pay dividends that add to Berkshire Hathaway's earnings.
In addition, Berkshire Hathaway has a boatload of cash and U.S. Treasury bills that give it ample liquidity and flexibility to take advantage of any opportunities that arise in the market. Buffett is known for making big bets when others are fearful, such as during the 2008 financial crisis, when he invested billions in beaten-down blue chips such as Bank of America and Goldman Sachs. Berkshire Hathaway's substantial cash reserves also act as a buffer against any potential losses or liabilities that may arise from its operations, its investments, or a downturn in the broader economy.
A track record of excellence
Berkshire Hathaway's performance over the decades has been nothing short of impressive. The company's market value per share has grown at an annualized rate of 19.8% since 1965, compared with 9.9% for the S&P 500 index (when including dividends). However, investors should always remember that past performance is rarely a predictor of future returns when it comes to stocks. That being said, Berkshire Hathaway's past success flows from Buffett's long-term vision and discipline as an investor, which bodes well for the company's future.
The key reason is that Buffett doesn't chase short-term trends or fads, but instead focuses on finding companies that have durable competitive advantages, strong management teams, and attractive valuations. He also doesn't sell his stocks unless there's a fundamental change in their business prospects or he finds a better opportunity elsewhere. He treats his stocks as if he owns the entire business, not just a piece of paper. This approach allows him to benefit from the power of compounding and avoid unnecessary taxes. Perhaps most importantly, Buffett has also created a culture of excellence and integrity at Berkshire Hathaway, which ought to keep the company on the right track in the years ahead.
Key takeaway
Berkshire Hathaway has a proven track record of delivering superior returns to the broader market over the long term. Moreover, the company has a strong balance sheet and a mountain of cash that enable it to weather any storm and capitalize on any opportunity. Berkshire Hathaway is also well positioned to succeed following Buffett's eventual succession as CEO, thanks to its superb leadership team and core values. In all, this Warren Buffett stock screens as a worthwhile buy-and-hold for almost any type of portfolio.
10 stocks we like better than Berkshire Hathaway
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*Stock Advisor returns as of September 18, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. George Budwell has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Goldman Sachs 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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Berkshire Hathaway also owns a massive portfolio of stocks that includes some of the largest and most successful companies in the world, such as Apple, Bank of America (NYSE: BAC), and American Express. Berkshire Hathaway's substantial cash reserves also act as a buffer against any potential losses or liabilities that may arise from its operations, its investments, or a downturn in the broader economy. The key reason is that Buffett doesn't chase short-term trends or fads, but instead focuses on finding companies that have durable competitive advantages, strong management teams, and attractive valuations.
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That being said, Berkshire Hathaway's past success flows from Buffett's long-term vision and discipline as an investor, which bodes well for the company's future. See the 10 stocks *Stock Advisor returns as of September 18, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Goldman Sachs Group.
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Berkshire Hathaway: A fortress of value Berkshire Hathaway is not just a stock, but a conglomerate of businesses that operate in various sectors, such as insurance, energy, transportation, manufacturing, retail, and technology. Berkshire Hathaway also owns a massive portfolio of stocks that includes some of the largest and most successful companies in the world, such as Apple, Bank of America (NYSE: BAC), and American Express. 10 stocks we like better than Berkshire Hathaway When our analyst team has a stock tip, it can pay to listen.
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Buffett's No. These businesses generate steady cash flows that Buffett can use to invest in other companies or buy back shares. Berkshire Hathaway also owns a massive portfolio of stocks that includes some of the largest and most successful companies in the world, such as Apple, Bank of America (NYSE: BAC), and American Express.
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13560.0
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2023-09-20 00:00:00 UTC
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2 Hot Stocks to Buy and Hold Until You Retire
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AAPL
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https://www.nasdaq.com/articles/2-hot-stocks-to-buy-and-hold-until-you-retire-10
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nan
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nan
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Finding a few great companies to hold onto for many years can seem overwhelming, but the good news is that there are plenty to choose from. I tend to gravitate toward the tech sector for investment ideas, and even in this sometimes tumultuous sector there are standout companies that have already proved their mettle.
Two that could be great stocks to hold until you retire are Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Both of these tech giants have established businesses and impressive market share, and both are continuing to release products and services that are likely to be in demand for years to come. Let's take a closer look at each one.
Image source: Getty Images.
1. Apple
For years, naysayers have said the company lacks innovation and that its best days are behind it. And yet the company continues to slowly and steadily release iterations to its products and services that keep customers coming back year after year.
Consider the company's latest iPhone updates. Apple released its iPhone 15 lineup this month with the usual upgrades: better internal processors, improved cameras, and some software changes. Apple is typically the tortoise (and not the hare) when it comes to product changes, yet its approach continually pays off.
Demand for Apple's iPhones is so strong in the U.S. that the company's smartphone market share has expanded from 40% in mid-2018 to 55% right now, according to Counterpoint Research.
The company has had similar success with its Apple Watch, the best-selling smartwatch worldwide, with 26% market share. Meanwhile, its closest competitor, Samsung, has just 9% of the market.
Products aside, Apple's methodical approach to growth has also worked well for its services segment. In 2019, Apple's annual services revenue was $46.2 billion. Now, just four years later, Apple has reached $62.8 billion in services revenue in the first nine months of 2023.
Apple has also consistently defied market expectations. While the S&P 500 has gained 54% over the past five years, Apple's stock is up a much more impressive 228%. Of course, there's no guarantee that Apple's stock will continue to outpace the market's gains -- but if you listened to people who were saying Apple can't keep growing, then you would have missed out on Apple's gains over the past few years.
Apple is doing what it's always done: release great products that people continually want to buy, and then slowly improve those products. That formula has proven very successful for the company in years past, and I think it'll continue to serve the company well for years to come.
2. Microsoft
Microsoft, another tech behemoth, also deserves a spot on this list -- not only because it's grown into a key cloud computing player over the past few years, but also because of the company's recent investments in artificial intelligence.
Microsoft's cloud computing infrastructure Azure has grown into the second-largest cloud computing service (after Amazon's AWS) over the past years. Azure holds an impressive 26% share of the market, compared to 30% for Amazon, and easily outpaces its next-biggest competitor, Alphabet's Google, which has just 9%.
Azure has become an increasingly important service for Microsoft because the long-term opportunity is so big. According to Fortune Business Insights, the global cloud computing market is worth about $678 billion this year, and will reach an estimated $2.4 trillion by 2030. This cloud expansion will come from more companies needing robust cloud infrastructure and services as they focus on building their own AI services.
This is where Microsoft's growth in the coming years will likely come from. The tech giant has already invested an estimated $13 billion into ChatGPT creator OpenAI, giving it a reported 49% stake in the company. This results in Microsoft getting access to OpenAI technologies and a portion of its profits until Microsoft can recoup its investment.
Microsoft is already integrating ChatGPT in many of its services, including its Edge browser, Microsoft 365 apps, and Azure cloud services. And Microsoft will continue to benefit as more companies also shift their focus to AI. Companies are ramping up their need for high-powered servers to deliver AI processing capabilities, and many of them will likely turn to Microsoft's Azure to help them get the job done.
Microsoft proved several years ago that it could enter a new market -- cloud computing -- and quickly shift its focus to become a leading player. I think the company is doing the same thing in the AI space right now, positioning itself with its early AI investments to benefit from this market over the coming years.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of 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. Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two that could be great stocks to hold until you retire are Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Both of these tech giants have established businesses and impressive market share, and both are continuing to release products and services that are likely to be in demand for years to come. Companies are ramping up their need for high-powered servers to deliver AI processing capabilities, and many of them will likely turn to Microsoft's Azure to help them get the job done.
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Two that could be great stocks to hold until you retire are Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Both of these tech giants have established businesses and impressive market share, and both are continuing to release products and services that are likely to be in demand for years to come. Apple is doing what it's always done: release great products that people continually want to buy, and then slowly improve those products.
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Two that could be great stocks to hold until you retire are Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). And yet the company continues to slowly and steadily release iterations to its products and services that keep customers coming back year after year. Of course, there's no guarantee that Apple's stock will continue to outpace the market's gains -- but if you listened to people who were saying Apple can't keep growing, then you would have missed out on Apple's gains over the past few years.
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Two that could be great stocks to hold until you retire are Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Apple is doing what it's always done: release great products that people continually want to buy, and then slowly improve those products. That formula has proven very successful for the company in years past, and I think it'll continue to serve the company well for years to come.
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13561.0
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2023-09-20 00:00:00 UTC
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88% of Warren Buffett's $352 Billion Portfolio Is Invested in Just 4 Sectors
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AAPL
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https://www.nasdaq.com/articles/88-of-warren-buffetts-%24352-billion-portfolio-is-invested-in-just-4-sectors
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nan
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nan
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For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street with outsize gains. He's overseen a nearly 20% annualized return in his company's Class A shares (BRK.A) since taking the reins in 1965, which is roughly double the total return of the benchmark S&P 500 (on an annualized basis), including dividends, over the same period.
What's particularly intriguing about the Oracle of Omaha's formula for success is that it doesn't involve any fancy software or tools that aren't available to everyday investors. Rather, Buffett chooses to put his money to work in brand-name companies with strong management teams, and he frequently leans on time as an ally.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what investors might not realize about Buffett is that he also strongly favors portfolio concentration. When he and his investment lieutenants, Ted Weschler and Todd Combs, find a stock or sector they believe will outperform over the long run, they aren't shy about putting a significant percentage of Berkshire's invested assets to work within a narrow focus.
As of the closing bell on Sept. 15, approximately 88% ($311.6 billion) of Berkshire Hathaway's $352 billion portfolio was invested in stocks housed in just four sectors of the market.
Information technology: 47.28% of invested assets ($166.6 billion)
Believe it or not, technology is the sector the Oracle of Omaha has piled nearly half of Berkshire Hathaway's invested assets into. But this figure does come with a bit of asterisk. Although Berkshire owns six tech stocks totaling $166.6 billion in market value, Apple (NASDAQ: AAPL) comprises a little over $160 billion of invested assets.
During Berkshire Hathaway's annual shareholder meeting in May 2023, Buffett referred to Apple as "a better business than any we own." It's an incredibly strong statement considering that Berkshire also owns leading railroad BNSF and highly successful insurer GEICO.
Warren Buffett's justification for having north of $160 billion invested in Apple has to do with its innovation, and of course, its capital return program.
The Oracle of Omaha is fully aware of the loyalty consumers have to Apple's physical products and subscription services. Apple's iPhone has accounted for around half of U.S. smartphone market share since introducing a 5G-capable version in late 2020. The company is also delivering steady growth from its subscription services segment.
Furthermore, Apple has repurchased around $600 billion worth of its common stock since kicking off its buyback program in 2013. Buffett has always favored companies that increase Berkshire's ownership stake through regular share repurchases.
Financials: 20.91% of invested assets ($73.7 billion)
The second-largest sector in Berkshire Hathaway's $352 billion portfolio is financials. Financial stocks are where the Oracle of Omaha feels most comfortable putting his company's cash to work, as evidenced by the $73.7 billion currently invested across 14 securities (12 stocks and two exchange-traded funds).
The reason Buffett loves financials has to do with his long-standing belief to never bet against America. Even though he understands that economic downturns and stock market corrections are inevitable, Buffett is keenly aware that recessions and stock market downturns are both short lived. He's angled Berkshire Hathaway's portfolio to take advantage of the natural expansion of the U.S. economy over the long run by owning an assortment of high-quality, cyclical financial stocks.
Among Berkshire's bevy of financial stocks, three big players stand out: bank stock Bank of America (NYSE: BAC), credit services provider American Express (NYSE: AXP), and credit ratings agency Moody's (NYSE: MCO). Collectively, these three companies account for $63 billion of the $73.7 billion invested in financial stocks.
They're also businesses with well-defined competitive advantages and/or catalysts:
Bank of America is the most interest-sensitive of the big banks. With the Federal Reserve undertaking its most aggressive rate hiking cycle in four decades, no money-center bank has reaped the rewards of added net interest income more than BofA.
American Express gets to play both sides of the transaction aisle. It charges merchants to process transactions while also acting as a lender to consumers. To boot, it's done a phenomenal job of attracting high-earning cardholders.
Moody's saw its credit-rating division thrive during the low-interest rate environment, and can now lean on its analytics division to help businesses navigate an uncertain environment and remain compliant with local and national laws.
Consumer staples: 10.36% of invested assets ($36.5 billion)
The third sector of prominence in Buffett's $352 billion portfolio is consumer staples.
Buffett is a big fan of businesses that generate recurring or highly predictable revenue by selling essential products. No matter how well or poorly the U.S. economy performs, consumers still need to eat, drink, purchase household cleaning supplies, and so on. This is why Berkshire Hathaway has $36.5 billion invested across six consumer staples stocks.
Yet among these six consumer staples holdings, two are considerably larger than the rest: beverage giant Coca-Cola (NYSE: KO) and consumer-packaged foods company Kraft Heinz (NASDAQ: KHC). Collectively, Coca-Cola and Kraft Heinz account for $34.1 billion of the $36.5 billion invested in this sector.
Coca-Cola is Buffett's longest-tenured holding (since 1988). While it doesn't offer the same growth rate it once did, Coke still has needle-moving catalysts and competitive advantages in its corner. For instance, it has virtually unsurpassed geographic diversity. Coke operates in all but three countries worldwide (Cuba, North Korea, and Russia), which allows it to generate predictable cash flow in developed countries, while ramping up its organic growth potential in developing/emerging markets.
Meanwhile, Kraft Heinz is a bit of an eyesore for the Oracle of Omaha. In hindsight, Buffett admits to overvaluing the company's long list of brands. While Kraft Heinz is providing Berkshire Hathaway with roughly $521 million in annual dividend income, its balance sheet is bogged down by significant long-term debt and goodwill. With minimal financial flexibility, reigniting volume-based growth in Kraft Heinz's brands could prove challenging.
Image source: Getty Images.
Energy: 9.9% of invested assets ($34.8 billion)
The fourth and final sector that Buffett and his investing lieutenants have absolutely piled into is energy. Despite not accounting for more than 9% of invested assets at any point between the start of 2001 and end of 2021, energy has represented more than 9% of Berkshire's portfolio over the past six quarters.
What's noteworthy about Berkshire's energy investments is that only two companies comprise the $34.8 billion of invested assets: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). Note, this doesn't include the $10 billion in Occidental Petroleum preferred stock yielding 8% annually that Berkshire also holds.
Both Chevron and Occidental Petroleum are integrated energy companies. They generate revenue by drilling for oil and natural gas, but are also hedged, to some extent, via transmission pipelines (Chevron), refineries (Chevron), and/or chemical plants (Chevron and Occidental). But there are two pretty big differences between these two companies.
To start with, Occidental generates a disproportionately large percentage of its revenue from drilling, compared to its downstream segments. On the other hand, Chevron's revenue channels are far more balanced. This means Occidental's operating cash flow is far more sensitive to spot-price movements in crude oil than Chevron.
There's also a pretty big difference between Chevron's and Occidental's balance sheets. Whereas Chevron has an exceptionally low net debt ratio of 7% for an integrated oil and gas operator, Occidental Petroleum is still trying to dig its way out of a sizable debt hole caused by its acquisition of Anadarko Petroleum in 2019. In other words, Chevron has superior financial flexibility when compared to Occidental.
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 11, 2023
Bank of America and American Express are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Moody's. The Motley Fool recommends Chevron, 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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Although Berkshire owns six tech stocks totaling $166.6 billion in market value, Apple (NASDAQ: AAPL) comprises a little over $160 billion of invested assets. He's angled Berkshire Hathaway's portfolio to take advantage of the natural expansion of the U.S. economy over the long run by owning an assortment of high-quality, cyclical financial stocks. Yet among these six consumer staples holdings, two are considerably larger than the rest: beverage giant Coca-Cola (NYSE: KO) and consumer-packaged foods company Kraft Heinz (NASDAQ: KHC).
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Although Berkshire owns six tech stocks totaling $166.6 billion in market value, Apple (NASDAQ: AAPL) comprises a little over $160 billion of invested assets. For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street with outsize gains. Among Berkshire's bevy of financial stocks, three big players stand out: bank stock Bank of America (NYSE: BAC), credit services provider American Express (NYSE: AXP), and credit ratings agency Moody's (NYSE: MCO).
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Although Berkshire owns six tech stocks totaling $166.6 billion in market value, Apple (NASDAQ: AAPL) comprises a little over $160 billion of invested assets. Among Berkshire's bevy of financial stocks, three big players stand out: bank stock Bank of America (NYSE: BAC), credit services provider American Express (NYSE: AXP), and credit ratings agency Moody's (NYSE: MCO). What's noteworthy about Berkshire's energy investments is that only two companies comprise the $34.8 billion of invested assets: Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY).
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Although Berkshire owns six tech stocks totaling $166.6 billion in market value, Apple (NASDAQ: AAPL) comprises a little over $160 billion of invested assets. Financials: 20.91% of invested assets ($73.7 billion) The second-largest sector in Berkshire Hathaway's $352 billion portfolio is financials. This is why Berkshire Hathaway has $36.5 billion invested across six consumer staples stocks.
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13562.0
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2023-09-20 00:00:00 UTC
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53% of Warren Buffett's $353 Billion Portfolio Is Invested in Just 1 Stock Market Sector
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AAPL
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https://www.nasdaq.com/articles/53-of-warren-buffetts-%24353-billion-portfolio-is-invested-in-just-1-stock-market-sector
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nan
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nan
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In 1996, Warren Buffett shared his thoughts on portfolio diversification at Berkshire Hathaway's annual meeting. He said: "Diversification is a protection against ignorance," and it makes very little sense for anyone who knows what they're doing.
Readers should not misinterpret that sentiment. Buffett is saying diversification for the sake of diversification is pointless. Rather than arbitrarily spreading capital across different companies and sectors, investors should buy into quality businesses within their circle of competence, and then patiently hold those stocks for as long as their investment thesis remains intact.
Berkshire practices that philosophy and, as a result, its stock portfolio leans very heavily toward one specific market sector (and one specific stock). Here are the details.
Image source: Getty Images.
Berkshire Hathaway is betting big on the technology sector
Berkshire's stock portfolio was worth $353.4 billion at the end of June, an impressive figure given its cost basis of $115.7 billion. That colossal sum was spread across 48 stocks in eight different market sectors, but 53% was allocated to a single sector: information technology.
Berkshire's complete sector allocation is detailed below:
Information technology: 53.02%
Finance: 21.63%
Consumer staples: 10.95%
Energy: 9.35%
Communications: 2.43%
Healthcare: 1.06%
Consumer discretionary: 1.02%
Materials: 0.33%
That Berkshire is so exposed to the technology sector may shock some investors. Warren Buffett has generally avoided technology stocks because they exist beyond his circle of competence, meaning he does not understand the space well enough to make informed decisions. But the most stunning detail is that Berkshire finished the June quarter with $177.6 billion (50% of its portfolio) invested in one specific technology stock: Apple.
That represents a stunning reversal from something Buffett said in 2012. When asked for his opinion on Apple and Google parent Alphabet, Buffett said: "I would not be surprised to see them be worth a lot more money 10 years from now, but I would not buy either one of them." So, the general consensus is that another Berkshire investment manager (i.e., Ted Weschler or Todd Combs) actually bought Apple, though Buffett has undoubtedly familiarized himself with the business since then.
For the sake of accuracy, Berkshire also had small positions in five other technology stocks when the June quarter ended: video game publisher Activision Blizzard, computing company HP, fintech StoneCo, data specialist Snowflake, and digital banking platform Nu Holdings.
What can investors learn from Berkshire's asset allocation
Berkshire Hathaway made its first investment in Apple in the first quarter of 2016, a meager $1 billion position that represented less than 1% of its portfolio. At the time, I doubt Buffett or his fellow investment managers had any idea it would one day become Berkshire's largest position.
So what happened? Apple stock returned a total of 675% between Q1 2016 and Q2 2023, and Berkshire periodically added to its position along the way, buying shares most recently in Q1 2023. That combination took Apple from less than 1% of its portfolio in Q1 2016 to 50% in Q2 2023, while pushing its technology sector exposure from 10% to 53% over the same period.
AAPL Total Return Level data by YCharts. Note: Chart shows Apple total returns between Q1 2016 and Q2 2023.
Buffett once said, "All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies." Clearly, he still sees Apple as a good company. In fact, Buffett recently said it was a better company than any of the others Berkshire owns. That explains why Berkshire has never sold a single share of Apple stock despite the fact that it accounts for a tremendous portion of its portfolio.
There are two lessons here: Investors should (1) target long-term returns and (2) let their winners run, within reason. Legendary fund manager Peter Lynch said it perfectly: "Selling your winners and holding your losers is like cutting the flowers and watering the weeds." Buffett actually referenced that quote in his 1988 letter to Berkshire shareholders. He also said: "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."
As a caveat, I am not suggesting that readers rebalance their portfolios by putting 50% of their money in any single stock. Buffett may feel comfortable with that type of asset allocation, but he is also one of the most accomplished investors in history. Diversity is a good thing for most people, and Buffett agrees, provided it is done correctly. For instance, he has frequently recommended an S&P 500 index fund, which is essentially a diversified basket of American businesses.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet, Apple, Berkshire Hathaway, HP, Snowflake, and StoneCo. 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. Rather than arbitrarily spreading capital across different companies and sectors, investors should buy into quality businesses within their circle of competence, and then patiently hold those stocks for as long as their investment thesis remains intact. So, the general consensus is that another Berkshire investment manager (i.e., Ted Weschler or Todd Combs) actually bought Apple, though Buffett has undoubtedly familiarized himself with the business since then.
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AAPL Total Return Level data by YCharts. But the most stunning detail is that Berkshire finished the June quarter with $177.6 billion (50% of its portfolio) invested in one specific technology stock: Apple. For the sake of accuracy, Berkshire also had small positions in five other technology stocks when the June quarter ended: video game publisher Activision Blizzard, computing company HP, fintech StoneCo, data specialist Snowflake, and digital banking platform Nu Holdings.
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AAPL Total Return Level data by YCharts. Berkshire Hathaway is betting big on the technology sector Berkshire's stock portfolio was worth $353.4 billion at the end of June, an impressive figure given its cost basis of $115.7 billion. But the most stunning detail is that Berkshire finished the June quarter with $177.6 billion (50% of its portfolio) invested in one specific technology stock: Apple.
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AAPL Total Return Level data by YCharts. But the most stunning detail is that Berkshire finished the June quarter with $177.6 billion (50% of its portfolio) invested in one specific technology stock: Apple. What can investors learn from Berkshire's asset allocation Berkshire Hathaway made its first investment in Apple in the first quarter of 2016, a meager $1 billion position that represented less than 1% of its portfolio.
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2023-09-20 00:00:00 UTC
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Should You Invest in the Vanguard Information Technology ETF (VGT)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-information-technology-etf-vgt-8
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nan
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nan
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Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund launched on 01/26/2004.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $51.54 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.
The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.72%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 21.78% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
Performance and Risk
The ETF has added about 34.23% so far this year and is up roughly 28.34% in the last one year (as of 09/20/2023). In that past 52-week period, it has traded between $300.84 and $459.58.
The ETF has a beta of 1.15 and standard deviation of 25.57% for the trailing three-year period, making it a medium risk choice in the space. With about 325 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $11.10 billion in assets, Technology Select Sector SPDR ETF has $48.97 billion. IYW has an expense ratio of 0.40% and XLK charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard Information Technology ETF (VGT): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): 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 21.78% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $51.54 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 21.78% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund launched on 01/26/2004.
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Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 21.78% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 21.78% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Vanguard Information Technology ETF (VGT) is a passively managed exchange traded fund launched on 01/26/2004.
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13564.0
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2023-09-20 00:00:00 UTC
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Should Schwab U.S. Large-Cap Growth ETF (SCHG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-growth-etf-schg-be-on-your-investing-radar-3
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nan
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nan
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Launched on 12/11/2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $19.53 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.45%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 43.30% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 54.97% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF has gained about 35.93% so far this year and is up about 24.63% in the last one year (as of 09/20/2023). In the past 52-week period, it has traded between $54.19 and $78.02.
The ETF has a beta of 1.09 and standard deviation of 23.98% for the trailing three-year period, making it a medium risk choice in the space. With about 245 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SCHG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $92.29 billion in assets, Invesco QQQ has $204.80 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want 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
Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $19.53 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Performance and Risk SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 12/11/2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/11/2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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13565.0
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2023-09-20 00:00:00 UTC
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Should Schwab U.S. Large-Cap Growth ETF (SCHG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-growth-etf-schg-be-on-your-investing-radar-2
|
nan
|
nan
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Launched on 12/11/2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $19.53 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.45%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 43.30% of the portfolio. Healthcare and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 54.97% of total assets under management.
Performance and Risk
SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is float-adjusted market-capitalization weighted and includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index.
The ETF has gained about 35.93% so far this year and is up about 24.63% in the last one year (as of 09/20/2023). In the past 52-week period, it has traded between $54.19 and $78.02.
The ETF has a beta of 1.09 and standard deviation of 23.98% for the trailing three-year period, making it a medium risk choice in the space. With about 245 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SCHG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $92.29 billion in assets, Invesco QQQ has $204.80 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want 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
Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $19.53 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Performance and Risk SCHG seeks to match the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index before fees and expenses.
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Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Launched on 12/11/2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/11/2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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13566.0
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2023-09-19 00:00:00 UTC
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3 Tech Stocks for Dividend Growth Investors
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AAPL
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https://www.nasdaq.com/articles/3-tech-stocks-for-dividend-growth-investors
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tech stocks have not always been a good source of dividend stocks. In the past, income investors typically avoided the tech sector. But this has begun to change in the past decade.
The technology sector contains many reliable dividend growth stocks. This article will discuss three blue-chip tech stocks with more than 10 years of dividend increases and high dividend-growth potential.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple (NASDAQ:AAPL) is a tech giant and the largest publicly traded company in the world. Apple stock has a market capitalization of $2.94 trillion. The company has a diverse lineup of popular products such as the iPhone, iPad, Mac and Apple Watch. The company also has a large services business such as iTunes and the App Store.
On Aug. 3, Apple reported Q3 2023 results for the period ending July 1. (Apple’s fiscal year ends the last Saturday in September.) For the quarter, Apple generated revenue of $81.8 billion, a -1.4% decline compared to Q3 2022. Product sales were down 5.7%, driven by a 19.8% decline in iPad sales. The iPhone segment (48% of total sales) was down -2.4%.
Service sales increased 8.2% to $21.2 billion and made up 25.9% of all sales in the quarter. Net income equaled $19.88 billion, or $1.26 per share, compared to $19.44 billion, or $1.20 per share, in Q2 2022. Notably, earnings per share increased 5% while company-wide profits increased 2.3%, due to a lower share count.
Going forward, Apple’s earnings growth will be driven by several factors. One of these is the ongoing cycle of iPhone releases, which creates lumpy results. In the long run, Apple should be able to grow its iPhone sales, albeit in an irregular fashion.
In addition, Apple’s Services unit, which consists of iTunes, Apple Music, the App Store, iCloud, Apple Pay, etc., has recorded a significant revenue growth rate in recent years. Services revenues grow at a fast rate and produce high-margin, recurring revenues.
Apple has raised its dividend for 11 years, every year since it initiated its dividend in 2012. The 2023 expected dividend payout ratio is 16%, indicating a highly secure dividend with lots of room for continued dividend increases. Apple stock currently yields 0.6%.
Oracle (ORCL)
Source: Jer123 / Shutterstock.com
Oracle (NYSE:ORCL) is an information technology company that provides software, hardware and services. Its offerings include applications, platforms, and infrastructure technologies (cloud software), hardware products such as servers, hardware-related software products (e.g., operating systems), and services such as consultation and education.
Oracle reported its most recent quarterly results, for its fiscal 2024 first quarter, in early September. Quarterly revenue of $12.5 billion rose 8% year-over-year in constant currency. Growth was driven by cloud services and license support revenues, which increased 12% from the same quarter last year. Adjusted earnings per share increased 14% year-over-year.
Oracle is not operating a cloud business as large as its peers Amazon (NASDAQ:AMZN) or Microsoft (NASDAQ:MSFT), but it still is generating attractive growth in the markets it addresses. Infrastructure-as-a-Service, as well as Platform-as-a-Service, are markets that are growing at a fast pace, and should allow Oracle to maintain an attractive cloud computing growth rate going forward. Oracle Fusion ERP and Oracle’s Autonomous Database are touted by management as future growth drivers due to compelling pricing and top-tier technology.
At a payout ratio of less than 30%, the dividend is very manageable, and there is still a lot of room for further dividend increases. Due to the low payout ratio and the fact that the company was not impacted to a large degree during the last financial crisis, Oracle’s dividend is rated very safe. The company has increased its dividend for 13 consecutive years. Shares yield 1.5%.
Qualcomm (QCOM)
Source: Michael Vi / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is a semiconductor manufacturer. The chip maker receives royalty payments for its patents used in devices that are on 3G, 4G, and 5G networks. Qualcomm has a current market capitalization of $132 billion and has annual sales of about $38 billion.
On Aug. 2, Qualcomm announced results for the third quarter of fiscal year 2023 for the period ending June 25. For the quarter, revenue fell nearly 23% to $8.44 billion and missed estimates by $70 million. Adjusted earnings per share of $1.87 compared unfavorably to $2.96 in the previous year but was 6 cents more than expected.
For the quarter, revenues for Qualcomm CDMA Technologies, or QCT, declined 24% to $7.17 billion. Automotive grew 13% to $434 million, while Handsets decreased 25% to $5.26 billion and Internet of Things was down 24% to $1.49 billion. Qualcomm Technology Licensing, or QTL, fell 19% to $1.23 billion. Qualcomm repurchased 4 million shares at an average price of $100 during the period.
Guidance for the fourth quarter was set at a range of $1.80 to $2, compared to consensus estimates of $1.94. Qualcomm is projected to earn $8.30 per share in fiscal 2023.
The company has grown earnings per share at a rate of 6.6% per year over the last decade. An agreement with Apple and Huawei, a lower share count, and leadership in 5G should allow the company to grow in the coming years. We also believe that demand for 3G, 4G and 5G headsets will increase following a recovery from the Covid-19 pandemic.
On April 12, Qualcomm increased its quarterly dividend 6.7% to 80 cents, marking the company’s 21st consecutive year of dividend growth. With a 2023 expected dividend payout ratio of 40%, the dividend appears secure with room for growth. QCOM shares currently yield 2.8%.
On the date of publication, Bob Ciura held a LONG position in AAPL stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
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The post 3 Tech Stocks for Dividend Growth Investors appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a tech giant and the largest publicly traded company in the world. On the date of publication, Bob Ciura held a LONG position in AAPL stock. Infrastructure-as-a-Service, as well as Platform-as-a-Service, are markets that are growing at a fast pace, and should allow Oracle to maintain an attractive cloud computing growth rate going forward.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a tech giant and the largest publicly traded company in the world. On the date of publication, Bob Ciura held a LONG position in AAPL stock. The 2023 expected dividend payout ratio is 16%, indicating a highly secure dividend with lots of room for continued dividend increases.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a tech giant and the largest publicly traded company in the world. On the date of publication, Bob Ciura held a LONG position in AAPL stock. In addition, Apple’s Services unit, which consists of iTunes, Apple Music, the App Store, iCloud, Apple Pay, etc., has recorded a significant revenue growth rate in recent years.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple (NASDAQ:AAPL) is a tech giant and the largest publicly traded company in the world. On the date of publication, Bob Ciura held a LONG position in AAPL stock. For the quarter, Apple generated revenue of $81.8 billion, a -1.4% decline compared to Q3 2022.
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13567.0
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2023-09-19 00:00:00 UTC
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Evercore ISI Group Maintains Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/evercore-isi-group-maintains-apple-aapl-outperform-recommendation-0
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nan
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Fintel reports that on September 19, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 14.29% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 14.29% from its latest reported closing price of 179.10.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6414 funds or institutions reporting positions in Apple. This is an increase of 48 owner(s) or 0.75% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. Total shares owned by institutions increased in the last three months by 0.42% to 9,941,796K shares.
The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on September 19, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 19, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 19, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 19, 2023, Evercore ISI Group maintained coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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13568.0
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2023-09-19 00:00:00 UTC
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Best ETFs of Last Week
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AAPL
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https://www.nasdaq.com/articles/best-etfs-of-last-week-2
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nan
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Wall Street delivered mixed-to-downbeat performances last week due to rising rates. The S&P 500 (down 0.2%), the Nasdaq (down 0.4%) and the Russell 2000 (down 0.2%) slumped last week while the Dow Jones (up 0.1%) added slight gains.
Worries over longer-than-expected higher interest rates have been playing foul on the stock market in recent weeks. The series of upbeat economic data as well as the latest warning from the Fed officials revived speculation that the Fed could lift interest rates again, if not in September.
A Recap of Corporate News
Among key corporate events, at its annual California launch event, Apple AAPL revealed a suite of devices. The event took an unexpected turn in terms of pricing, with Apple maintaining its price range for most products, the notable exception being iPhone Max (read: Apple ETFs in Focus Post iPhone 15 Launch).
British chipmaker Arm Holdings Plc made a strong debut on Nasdaq under the symbol (ARM) on Thursday. The stock soared as much as 21% on the first day, pushing the market cap to more than $65 billion. The company raised $4.87 billion in its initial public offering (read: Can Blockbuster Arm IPO Boost Semiconductor ETFs?).
A Recap of New Economic Data
The annual inflation rate in the United States accelerated for a second straight month to 3.7% in August from 3.2% in July, above market forecasts of 3.6%. Oil prices have been on the rise in the previous two months, which has been held responsible for the high price inflation. Core inflation rate however, which excludes food and energy, slowed for the fifth month to 4.3%, in line with market expectations (read: 5 Sector ETFs to Fight Sticky Inflation).
Sales at U.S. retailers increased 0.6% in August from July, way more than analysts’ estimate of a meager rise of 0.1%. Retail sales grew last month at a slightly faster pace than July’s revised reading of a gain of 0.5% and marked the fifth successive monthly increase in sales at retail outlets. Last month, retail sales increased 2.5% year over year.
In an attempt to tame rising consumer prices, the European Central Bank (ECB) has opted to increase interest rates to an unprecedented level. However, the euro's value declined on Sep 14, 2023 after the central bank hinted at the conclusion of its policy tightening due to economic slowdown (read: Time to Tap Eurozone ETFs as Rate-Hike Cycle Nearing End?).
Against this backdrop, below we highlight a few winning ETFs of last week.
ETFs in Focus
Roundhill Cannabis ETF (WEED) – Up 13.6%
The Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector. The fund charges 40 bps in fees.
Sprott Junior Uranium Miners ETF (URNJ) – Up 13.1%
The underlying Nasdaq Sprott Junior Uranium Miners Index track the performance of companies that derive at least 50% of their revenue and assets from mining, exploration, development, and production of uranium; earning uranium royalties; and supplying uranium. The fund charges 80 bps in fees.
Subversive Decarbonization ETF (DKRB) – Up 9.2%
The Subversive Decarbonization ETF primarily invests in equity securities of companies that are decarbonizing the energy sector. The fund charges 75 bps in fees.
Innovator Hedged TSLA Strategy ETF (TSLH) – Up 7.4%
The Innovator Hedged TSLA Strategy ETF seeks to track the upside performance of Tesla. Inc, to a cap, with a maximum quarterly loss of 10%, over the outcome period. The fund charges 79 bps in fees.
Defiance Pure Electric Vehicle ETF EVXX – Up 6.4%
The Defiance Pure Electric Vehicle ETF seeks to provide investment results, before fees and expenses, that track the performance of a basket of common shares, which are equally-weighted on a quarterly basis, of the five largest electric vehicle manufacturers included in the Solactive Pure US Electric Vehicle Index. The fund charges 68 bps in fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Roundhill Cannabis ETF (WEED): ETF Research Reports
Innovator Hedged TSLA Strategy ETF (TSLH): ETF Research Reports
Subversive Decarbonization ETF (DKRB): ETF Research Reports
Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports
Defiance Pure Electric Vehicle ETF (EVXX): 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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A Recap of Corporate News Among key corporate events, at its annual California launch event, Apple AAPL revealed a suite of devices. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports Innovator Hedged TSLA Strategy ETF (TSLH): ETF Research Reports Subversive Decarbonization ETF (DKRB): ETF Research Reports Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports To read this article on Zacks.com click here. A Recap of New Economic Data The annual inflation rate in the United States accelerated for a second straight month to 3.7% in August from 3.2% in July, above market forecasts of 3.6%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports Innovator Hedged TSLA Strategy ETF (TSLH): ETF Research Reports Subversive Decarbonization ETF (DKRB): ETF Research Reports Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports To read this article on Zacks.com click here. A Recap of Corporate News Among key corporate events, at its annual California launch event, Apple AAPL revealed a suite of devices. Sprott Junior Uranium Miners ETF (URNJ) – Up 13.1% The underlying Nasdaq Sprott Junior Uranium Miners Index track the performance of companies that derive at least 50% of their revenue and assets from mining, exploration, development, and production of uranium; earning uranium royalties; and supplying uranium.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports Innovator Hedged TSLA Strategy ETF (TSLH): ETF Research Reports Subversive Decarbonization ETF (DKRB): ETF Research Reports Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports To read this article on Zacks.com click here. A Recap of Corporate News Among key corporate events, at its annual California launch event, Apple AAPL revealed a suite of devices. ETFs in Focus Roundhill Cannabis ETF (WEED) – Up 13.6% The Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Roundhill Cannabis ETF (WEED): ETF Research Reports Innovator Hedged TSLA Strategy ETF (TSLH): ETF Research Reports Subversive Decarbonization ETF (DKRB): ETF Research Reports Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports Defiance Pure Electric Vehicle ETF (EVXX): ETF Research Reports To read this article on Zacks.com click here. A Recap of Corporate News Among key corporate events, at its annual California launch event, Apple AAPL revealed a suite of devices. The stock soared as much as 21% on the first day, pushing the market cap to more than $65 billion.
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13569.0
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2023-09-19 00:00:00 UTC
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US has no evidence Huawei can make advanced smartphones in large volumes
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AAPL
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https://www.nasdaq.com/articles/us-has-no-evidence-huawei-can-make-advanced-smartphones-in-large-volumes
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By David Shepardson
WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday.
Huawei recently started selling its Mate 60 Pro phone containing a chip that analysts believe was made with a technology breakthrough by Chinese chip foundry Semiconductor Manufacturing International Corp (SMIC) 0981.HK.
"We don't have any evidence that they can manufacture seven-nanometer (chips) at scale," Raimondo said at a U.S. House hearing, referencing an advanced chip.
From 2019, the U.S. cut Huawei's access to certain chipmaking tools, calling Huawei a security risk, which the company denies. The U.S. government has said Huawei poses “unacceptable” national security risks because of the threat of spying on U.S. telecommunications networks.
The Commerce Department said this month it is working to obtain more information "on the character and composition" of the chip that may violate trade restrictions since they said it must have been made with U.S. technology.
Raimondo told the House Science Committee hearing she was upset by the advanced Huawei smartphone report.
Some Republicans think the Commerce Department should end all technology exports to Huawei and SMIC.
The chairs of the House Foreign Affairs, Energy and Commerce, Armed Services, and select China committees last week urged the Commerce Department to stop granting licenses to Huawei and SMIC, and said it called for additional U.S. pressure "and more effective export controls on our adversaries."
Raimondo declined to comment after the hearing on whether she was considering ending all licenses for Huawei.
Republican Representative Darrell Issa said at the hearing Raimondo was in China when the new Huawei phone was announced.
"You were bushwhacked to say the least by the launch of a 5G phone," Issa said.
White House National Security Adviser Jake Sullivan said this month the U.S. government is trying to get more information about the Huawei chip.
Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning."
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Josie Kao)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." By David Shepardson WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday. The Commerce Department said this month it is working to obtain more information "on the character and composition" of the chip that may violate trade restrictions since they said it must have been made with U.S. technology.
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Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." By David Shepardson WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday. Raimondo told the House Science Committee hearing she was upset by the advanced Huawei smartphone report.
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Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." By David Shepardson WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday. Huawei recently started selling its Mate 60 Pro phone containing a chip that analysts believe was made with a technology breakthrough by Chinese chip foundry Semiconductor Manufacturing International Corp (SMIC) 0981.HK.
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Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." Raimondo told the House Science Committee hearing she was upset by the advanced Huawei smartphone report. Some Republicans think the Commerce Department should end all technology exports to Huawei and SMIC.
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13570.0
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2023-09-19 00:00:00 UTC
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After Hours Most Active for Sep 19, 2023 : FTCH, FNF, AMZN, NIO, PYPL, AAPL, KVUE, BAC, VICI, CTSH, PANW, TLT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-19-2023-%3A-ftch-fnf-amzn-nio-pypl-aapl-kvue-bac-vici-ctsh
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The NASDAQ 100 After Hours Indicator is down -.86 to 15,190.37. The total After hours volume is currently 55,483,627 shares traded.
The following are the most active stocks for the after hours session:
Farfetch Limited (FTCH) is -0.01 at $2.20, with 3,958,568 shares traded. FTCH's current last sale is 41.9% of the target price of $5.25.
Fidelity National Financial, Inc. (FNF) is -0.03 at $43.03, with 1,983,439 shares traded. As reported by Zacks, the current mean recommendation for FNF is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.13 at $137.50, with 1,880,718 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
NIO Inc. (NIO) is +0.06 at $8.61, with 1,871,948 shares traded. NIO's current last sale is 67.53% of the target price of $12.75.
PayPal Holdings, Inc. (PYPL) is unchanged at $62.19, with 1,540,233 shares traded. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Apple Inc. (AAPL) is +0.01 at $179.08, with 1,512,880 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".
Kenvue Inc. (KVUE) is -0.01 at $21.05, with 1,510,830 shares traded. As reported by Zacks, the current mean recommendation for KVUE is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $28.65, with 1,492,292 shares traded. BAC's current last sale is 81.86% of the target price of $35.
VICI Properties Inc. (VICI) is unchanged at $30.99, with 1,455,654 shares traded. As reported by Zacks, the current mean recommendation for VICI is in the "buy range".
Cognizant Technology Solutions Corporation (CTSH) is unchanged at $70.09, with 1,316,426 shares traded. CTSH's current last sale is 100.13% of the target price of $70.
Palo Alto Networks, Inc. (PANW) is unchanged at $236.17, with 958,916 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $0.48. As reported by Zacks, the current mean recommendation for PANW is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is +0.02 at $92.82, with 923,276 shares traded. This represents a 1.06% increase from its 52 Week Low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.01 at $179.08, with 1,512,880 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024.
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Apple Inc. (AAPL) is +0.01 at $179.08, with 1,512,880 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 FNF is in the "buy range".
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Apple Inc. (AAPL) is +0.01 at $179.08, with 1,512,880 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024.
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Apple Inc. (AAPL) is +0.01 at $179.08, with 1,512,880 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -.86 to 15,190.37.
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13571.0
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2023-09-19 00:00:00 UTC
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Barclays Reiterates Apple (AAPL) Equal-Weight Recommendation
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AAPL
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https://www.nasdaq.com/articles/barclays-reiterates-apple-aapl-equal-weight-recommendation
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nan
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nan
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Fintel reports that on September 19, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 14.29% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 14.29% from its latest reported closing price of 179.10.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6414 funds or institutions reporting positions in Apple. This is an increase of 48 owner(s) or 0.75% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. Total shares owned by institutions increased in the last three months by 0.42% to 9,941,796K shares.
The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on September 19, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 19, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 19, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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Fintel reports that on September 19, 2023, Barclays reiterated coverage of Apple (NASDAQ:AAPL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 9.97%. The put/call ratio of AAPL is 0.91, indicating a bullish outlook.
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13572.0
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2023-09-19 00:00:00 UTC
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Forget China. India ETFs Are Hot Now
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AAPL
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https://www.nasdaq.com/articles/forget-china.-india-etfs-are-hot-now
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nan
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nan
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India ETFs have garnered significant interest from investors lately, as the country is emerging as a clear beneficiary of China's economic crisis.
Following pandemic-driven supply chain disruptions, many American companies are seeking to reduce their dependence on China. India boasts a large and highly skilled labor force, and the government is eager to attract more foreign investment.
China’s geopolitical tensions with the US and its Western allies have also encouraged large multinationals to explore alternatives to China.
The world’s most valuable company, AAPL, is reportedly planning to increase its manufacturing presence in India to account for approximately 20% of its global iPhone production over the next two years. Nvidia NVDA recently announced partnerships with Indian conglomerates Tata Group and Reliance Industries in the field of artificial intelligence.
India recently successfully hosted the G-20 summit, showcasing the Indian government's efforts to assume a leading role in global affairs as the West aims to counterbalance China's rising influence.
According to the IMF's World Economic Outlook, India remains the world's fastest-growing major economy, with a projected growth rate of 6.1% for this year and 6.3% in 2024. Goldman Sachs predicts that India is poised to become the world’s second-largest economy by 2075; currently, it holds the position of the world’s fifth-largest economy.
However, the world’s most populous country lags behind China by decades in terms of infrastructure development, although the government has been making efforts to increase investments in this area. Substantial work also remains to be done in deregulation and tax reform to establish itself as a prominent manufacturing hub.
To learn more about the iShares MSCI India ETF INDA, WisdomTree India Earnings Fund EPI, iShares MSCI India Small-Cap ETF SMIN and India Internet & Ecommerce ETF INQQ, please watch the short video above.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
WisdomTree India Earnings ETF (EPI): ETF Research Reports
iShares MSCI India ETF (INDA): ETF Research Reports
iShares MSCI India Small-Cap ETF (SMIN): ETF Research Reports
India Internet & Ecommerce ETF (INQQ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The world’s most valuable company, AAPL, is reportedly planning to increase its manufacturing presence in India to account for approximately 20% of its global iPhone production over the next two years. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report WisdomTree India Earnings ETF (EPI): ETF Research Reports iShares MSCI India ETF (INDA): ETF Research Reports iShares MSCI India Small-Cap ETF (SMIN): ETF Research Reports India Internet & Ecommerce ETF (INQQ): ETF Research Reports To read this article on Zacks.com click here. India recently successfully hosted the G-20 summit, showcasing the Indian government's efforts to assume a leading role in global affairs as the West aims to counterbalance China's rising influence.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report WisdomTree India Earnings ETF (EPI): ETF Research Reports iShares MSCI India ETF (INDA): ETF Research Reports iShares MSCI India Small-Cap ETF (SMIN): ETF Research Reports India Internet & Ecommerce ETF (INQQ): ETF Research Reports To read this article on Zacks.com click here. The world’s most valuable company, AAPL, is reportedly planning to increase its manufacturing presence in India to account for approximately 20% of its global iPhone production over the next two years. According to the IMF's World Economic Outlook, India remains the world's fastest-growing major economy, with a projected growth rate of 6.1% for this year and 6.3% in 2024.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report WisdomTree India Earnings ETF (EPI): ETF Research Reports iShares MSCI India ETF (INDA): ETF Research Reports iShares MSCI India Small-Cap ETF (SMIN): ETF Research Reports India Internet & Ecommerce ETF (INQQ): ETF Research Reports To read this article on Zacks.com click here. The world’s most valuable company, AAPL, is reportedly planning to increase its manufacturing presence in India to account for approximately 20% of its global iPhone production over the next two years. India recently successfully hosted the G-20 summit, showcasing the Indian government's efforts to assume a leading role in global affairs as the West aims to counterbalance China's rising influence.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report WisdomTree India Earnings ETF (EPI): ETF Research Reports iShares MSCI India ETF (INDA): ETF Research Reports iShares MSCI India Small-Cap ETF (SMIN): ETF Research Reports India Internet & Ecommerce ETF (INQQ): ETF Research Reports To read this article on Zacks.com click here. The world’s most valuable company, AAPL, is reportedly planning to increase its manufacturing presence in India to account for approximately 20% of its global iPhone production over the next two years. Following pandemic-driven supply chain disruptions, many American companies are seeking to reduce their dependence on China.
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2023-09-19 00:00:00 UTC
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7 Artificial Intelligence Stocks Owned by Warren Buffett's $803 Billion Investment Company
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AAPL
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https://www.nasdaq.com/articles/7-artificial-intelligence-stocks-owned-by-warren-buffetts-%24803-billion-investment-company
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nan
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nan
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Warren Buffett is arguably the most successful investment manager in history. Since 1965, he has steered his conglomerate, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), to average annual returns of 19.8% per year, twice the average annual return of the benchmark S&P 500 index. Over the course of 58 years, that kind of outperformance gets compounded each year and has made Buffett (and every other long-term Berkshire stockholder) very rich.
Today, Berkshire Hathaway owns a portfolio of 56 publicly listed stocks and securities worth $352 billion, as well as dozens of wholly owned companies under the conglomerate's umbrella. Overall, it's valued at a whopping $803 billion.
Buffett's success can be attributed in part to his long-term approach to investing, and his focus on companies generating steady growth and consistent profits. He certainly wouldn't describe himself as a technology expert, let alone an expert on emerging technologies like artificial intelligence (AI).
Yet, many of the high-quality companies in Buffett's portfolio know they have to stay abreast of the wave of new technologies or risk being left behind. Therefore, they have begun using AI in a variety of ways -- and some of them might surprise you.
Here are seven AI stocks Buffett and Berkshire are currently holding.
Image source: The Motley Fool.
1. Apple
Apple (NASDAQ: AAPL) is the world's largest public company with a valuation of $2.8 trillion, and since it operates in the tech sector, a foray into AI was practically inevitable. In fact, Apple has been developing AI for years. It's behind the autocorrect function on all of its devices, and it also curates content for users inside applications like Apple Music. Its voice assistant, Siri, is also a product of AI.
Apple now develops its own computer chips to power its products, and the freshly launched iPhone 15 features the company's newest A17 Pro CPU processor. It's the only smartphone in the world with a chip manufactured using the 3nm process node, and it accelerates predictive processes on the device when using the keyboard, the camera, and Siri, to name just a few actions. In other words, Apple has created the world's most powerful AI chip for mobile devices.
Berkshire Hathaway's stake in Apple has grown to account for 45.5% of the value of its $352 billion portfolio, and while AI isn't the reason Buffett likes it so much, he is sure to benefit significantly as the company ramps up its efforts in the space.
2. American Express
Credit card providers are natural targets for fraudsters, and American Express (NYSE: AXP) has been using AI to fight them for years. In fact, in 2020, after a decade of development, the company believed it had produced the world's largest and most advanced machine learning system in the financial services industry.
Today, its AmEx Digital Labs division experiments with consumer-facing services powered by generative AI. Earlier this year, the company acquired virtual travel assistant Mezi, an AI chatbot platform designed to help people book vacations. Its technology has since been repurposed to power several features at American Express, like its virtual assistant, AskAmex.
American Express is a Buffett favorite; its stock makes up 7% of Berkshire's portfolio, which means it's the third-largest holding.
3. Snowflake
The cloud computing industry continues to grow rapidly, much to the benefit of service providers like Snowflake (NYSE: SNOW). The cloud is where many companies store their valuable data, and since AI has to be trained on mountains of data, it's also where developers are building and deploying the technology.
Snowflake has spent years helping businesses aggregate their data in its data cloud to improve visibility. Now, Snowflake is preparing its customers for a world powered by AI. The company recently opened a private beta test of its new Document AI tool, which will allow businesses to query unstructured data like text in a legal contract or an invoice, for example. This will rapidly accelerate analytics for professionals outside of the programming field.
Plus, Snowflake has acquired several small AI companies to bolster its portfolio of services. Neeva is one of them; it designed a search tool that businesses can use to engage with their data using natural language instead of programming language. That means more non-technical employees can benefit from the insights Snowflake delivers.
Snowflake stock only accounts for 0.3% of Berkshire's $352 billion portfolio, but it's on the front lines of the AI trend.
4. Amazon
Most people know Amazon (NASDAQ: AMZN) for its e-commerce platform, but it's also home to the world's largest cloud computing platform, Amazon Web Services (AWS). The company is using AWS to build a presence in three key areas of AI:
First, Amazon is developing its own data center chips to rival Nvidia's, though that's easier said than done.
Second, it offers a portfolio of large language models to businesses as a service. Those models are incredibly expensive to develop, so ready-made solutions give businesses a head start in developing AI applications.
Finally, Amazon offers generative AI tools like CodeWhisperer, which is effectively a finished AI product that developers can use to speed up software development.
Berkshire Hathaway has held a stake in Amazon since 2019, but Buffett has often expressed regret for failing to recognize its potential sooner. Nonetheless, the investing legend is now positioned to benefit from the company's AI prowess.
5. Bank of America
That's right, even boring old banks are using AI. Bank of America (NYSE: BAC) is applying the technology in a number of ways, from transforming customer experiences to reducing costs.
The bank launched an AI-powered virtual assistant called Erica in 2018, and its CEO Brian Moynihan says Erica has since spent 10 million hours conversing with customers. In that time, it has logged a whopping 1.5 billion interactions that might have otherwise necessitated a phone call with a customer service representative or a visit to a branch. Not only is Erica a convenience for customers, it also saves Bank of America money on support staff.
Bank of America is Berkshire's second-largest stock holding, making up 8.5% of its portfolio. The firm opened its position in the bank in 2007, and it has continued to buy more shares, even as recently as this year.
6. General Motors
The automotive industry is rapidly changing. Legacy manufacturers like General Motors (NYSE: GM) need to keep up with new, high-tech players like Tesla, which is working on all sorts of AI projects, from self-driving vehicle software to humanoid robots.
In August, GM expanded its partnership with Alphabet to help the car maker embed AI across its business. The two have worked together in the past on GM's in-car virtual assistant, which is powered by Google's conversational AI technology.
GM is also the owner of Cruise, an autonomous vehicle start-up that now operates driverless ride-hailing services in seven major U.S. cities. That bet could prove critical over the long term as GM navigates an increasingly competitive landscape dominated by technology.
But it appears Berkshire's confidence in GM is at a low point because the firm has sold more than half of its stake in it this year alone. The automaker now represents just 0.2% of the investment fund's portfolio.
7. Coca-Cola
If you're anything like me, you've probably never considered tasting AI. But the world's largest beverage company just used the technology to design a new drink. That's right, Coca-Cola (NYSE: KO) wanted to know what its namesake soda might taste like in the year 3000, so it asked an AI for its answer to that question.
The drink is called Coca-Cola Y3000 Zero Sugar, and it was formulated by feeding data into an AI model, which included how soda fans imagine the future through emotions, colors, and flavors. But that's just the tip of the AI-iceberg for Coca-Cola. In June, the company appointed a global head of generative AI, which signals how important it believes the technology will become for it.
Marketing and advertising will be one of Coca-Cola's big AI focus points. The company launched a campaign called Masterpiece earlier this year, featuring a 2-minute video created using a mix of real actors and AI.
Coca-Cola's AI experiment is just beginning, and Buffett might soon be glad he owns $23.1 billion worth of its stock, representing 6.6% of Berkshire's portfolio.
Find out why Apple is one of the 10 best stocks to buy now
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They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of September 11, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Nvidia, Snowflake, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2024 $47.50 calls on Coca-Cola and long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is the world's largest public company with a valuation of $2.8 trillion, and since it operates in the tech sector, a foray into AI was practically inevitable. Berkshire Hathaway's stake in Apple has grown to account for 45.5% of the value of its $352 billion portfolio, and while AI isn't the reason Buffett likes it so much, he is sure to benefit significantly as the company ramps up its efforts in the space. The company recently opened a private beta test of its new Document AI tool, which will allow businesses to query unstructured data like text in a legal contract or an invoice, for example.
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Apple Apple (NASDAQ: AAPL) is the world's largest public company with a valuation of $2.8 trillion, and since it operates in the tech sector, a foray into AI was practically inevitable. Since 1965, he has steered his conglomerate, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), to average annual returns of 19.8% per year, twice the average annual return of the benchmark S&P 500 index. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bank of America, Berkshire Hathaway, Nvidia, Snowflake, and Tesla.
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Apple Apple (NASDAQ: AAPL) is the world's largest public company with a valuation of $2.8 trillion, and since it operates in the tech sector, a foray into AI was practically inevitable. Berkshire Hathaway's stake in Apple has grown to account for 45.5% of the value of its $352 billion portfolio, and while AI isn't the reason Buffett likes it so much, he is sure to benefit significantly as the company ramps up its efforts in the space. Finally, Amazon offers generative AI tools like CodeWhisperer, which is effectively a finished AI product that developers can use to speed up software development.
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Apple Apple (NASDAQ: AAPL) is the world's largest public company with a valuation of $2.8 trillion, and since it operates in the tech sector, a foray into AI was practically inevitable. In fact, Apple has been developing AI for years. But the world's largest beverage company just used the technology to design a new drink.
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13574.0
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2023-09-19 00:00:00 UTC
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Apple's (AAPL) Prospects Shine on iPhone 15 Pro Max Demand
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AAPL
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https://www.nasdaq.com/articles/apples-aapl-prospects-shine-on-iphone-15-pro-max-demand
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nan
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nan
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Apple AAPL shares climbed 1.69% to close at $177.97 on Sep 18, following reports that the delivery times for the recently announced iPhone 15 Pro Max have now been extended to November in the United States, indicating strong demand.
Per a Bloomberg article, the promised delivery date for the iPhone 15 Pro Max model has now been delayed from Sep 22 to mid-November. Apple launched four new iPhone models — iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max — at its product launch event on Sep 12.
Apple has launched the iPhone 15 and iPhone 15 Plus in five new colors, including pink, yellow, green, blue and black. iPhone 15 Pro and iPhone 15 Pro Max are available in four colors, black titanium, white titanium, blue titanium and natural titanium.
Shipment times for blue and black iPhone Pro Max models have now been delayed to as late as Oct 16, while white and natural devices are not expected before Nov 13. The extended shipment times reflect strong demand for the high-end model, which starts at $1,199.
Apple’s prospects are heavily dependent on the iPhone, which accounted for 48.5% of sales in third-quarter fiscal 2023. The company has witnessed sliding iPhone sales in the past nine-month period, with the figure declining 3.7% over the same year-ago period. Hence, strong demand for the high-end device bodes well for the company’s top-line growth.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
For fourth-quarter fiscal 2023, Apple expects iPhone and Services’ year-over-year performance to accelerate from the June quarter.
Apple is benefiting from increasing customer engagement in the services segment. It currently has more than one billion paid subscribers across its Services portfolio. The expanding content portfolio of Apple TV+ and Apple Arcade is helping drive subscriber growth.
However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
The Zacks Consensus Estimate for fourth-quarter fiscal 2023 revenues is pegged at $88.87 billion, indicating a 1.42% decline year over year. The consensus mark for earnings has increased by a couple of cents over the past 30 days to $1.39 per share.
Zacks Rank & Stocks to Consider
Apple currently has a Zacks Rank #3 (Hold).
Shares have outperformed the Zacks Computer & Technology sector year to date. Apple shares have returned 37% while the broader sector has risen 36.9%.
Dell Technologies DELL, NVIDIA NVDA and Splunk SPLK are some better-ranked stocks in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVDA, DELL and SPLK shares have returned 200.8%, 71.9% and 38.6% year to date, respectively.
The long-term earnings growth rate for Dell Technologies, NVIDIA and Splunk is currently pegged at 12%, 13.5% and 24.71%, respectively.
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
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Splunk Inc. (SPLK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL shares climbed 1.69% to close at $177.97 on Sep 18, following reports that the delivery times for the recently announced iPhone 15 Pro Max have now been extended to November in the United States, indicating strong demand. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Splunk Inc. (SPLK) : Free Stock Analysis Report To read this article on Zacks.com click here. Shipment times for blue and black iPhone Pro Max models have now been delayed to as late as Oct 16, while white and natural devices are not expected before Nov 13.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Splunk Inc. (SPLK) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL shares climbed 1.69% to close at $177.97 on Sep 18, following reports that the delivery times for the recently announced iPhone 15 Pro Max have now been extended to November in the United States, indicating strong demand. Apple launched four new iPhone models — iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max — at its product launch event on Sep 12.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Splunk Inc. (SPLK) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL shares climbed 1.69% to close at $177.97 on Sep 18, following reports that the delivery times for the recently announced iPhone 15 Pro Max have now been extended to November in the United States, indicating strong demand. Apple launched four new iPhone models — iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max — at its product launch event on Sep 12.
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Apple AAPL shares climbed 1.69% to close at $177.97 on Sep 18, following reports that the delivery times for the recently announced iPhone 15 Pro Max have now been extended to November in the United States, indicating strong demand. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Splunk Inc. (SPLK) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple launched four new iPhone models — iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max — at its product launch event on Sep 12.
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13575.0
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2023-09-19 00:00:00 UTC
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GameStop: Boom or Bust?
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AAPL
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https://www.nasdaq.com/articles/gamestop%3A-boom-or-bust
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nan
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nan
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Back in mid-2020, GameStop (GME) was sitting at all-time lows, forced lower with massive short positions by perennial juggernaut hedge funds. With over 140% of shares short, it was a prime candidate for the mother of all short squeezes. As word on social media sites spread like wildfire, the short squeeze started, ultimately leading to a gamma squeeze, pushing GameStop’s share price up nearly 19,000% in a little over 9 months. Since then, there has been an 84% pullback off the highs, prompting many to speculate a value play at current levels, and they may not be wrong.
Certainly, bottom fishers will look at the current price of around $17 and salivate at the $120 highs from just a few years ago. Recently, several analysts have praised GameStop for paying down a significant amount of its debt, placing them on a much sounder financial footing. Currently their Debt/Equity ratio is at 50%, placing it in the lower 1/3 of reporting companies. To put it in contrast, the tech bellwether, Apple (AAPL) has a Debt/Equity ratio of 181%. They are also sitting on $1.19 billion in cash which gives them a tremendous amount of financial flexibility.
Unfortunately, that’s where the good data stops. Going into 2019, they regularly posted positive earnings, albeit small. Since 2020 however, it’s been all downhill. Profit margin: -1.72%, Return on equity: -7.64%, return on assets: -3.38%, EPS (ttm): -0.32, and no dividend. Any investor must question how long a company can continue to lose money before finally throwing in the towel.
More importantly, step back and look at the business model of GameStop. Their business revenue of $5.9 billion breaks down into 3 main groups: hardware & accessories (53%), software (30.7%) and collectibles (16.3%).
Where would you look to buy the latest version of the Xbox, or PlayStation? The answer is probably an online retailer which gives you the best prices. These typically happen with large chains which can negotiate better pricing by buying in bulk. The big dogs that come to mind would be Amazon (AMZN), Best Buy (BBY) and Walmart (WMT). While you may still be a true gamer and decide to go to GameStop for your console and accessories, where are you going to buy your games? Currently 30% of GameStop’s revenue comes from game sales. Yet there are fewer and fewer actual games being physically sold. It’s cheaper for game makers to just stream the game or let you download it. No need for a physical CD or DVD. This will continue to be a thorn in the side for GameStop and I expect it to get worse going forward. The final revenue generator may become one of their best performers: Collectibles. With over 4,400 physical stores around the world, GameStop has a great network of centers to not only sell collectables, but also connect the global collector community with physical in center events. There is big money in this niche market and GameStop has an edge here.
When I look at game stop, I see an eerily similar story to what we saw happen with Blockbuster. Blockbuster was an oasis for movie lovers and families to go and rent a stack of movies to shape their nights and weekends. As Netflix grew, it slowly chipped away at the traditional movie rental market. Ultimately, most of us realized it was just easier to stream everything. At its peak, there were over 9,000 Blockbuster locations around the world. Today, only one remains open in Bend, Oregon.
This Friday, the movie “Dumb Money” will be released in theatres across the US. It follows the dramatic GameStop short squeeze story of 2020 and will most likely create a renewed interest in GameStop stock. This may create a short-lived rally in share price, creating another shorting opportunity for those who see the writing on the wall.
If I were left with only one dollar, I would unequivocally refrain from investing it in GameStop shares. It is the latest victim of our insatiable desire to adopt faster & more efficient technologies. Unless we see GameStop reinvent themselves, the downward trajectory in its share price is destined to continue. The beauty of trading and investing is that some of you will agree with this article, others may say I’m off my rocker. As Master Yoda once stated: “Many of the truths that we cling to depend on our point of view.”.
Happy Trading!
More Stock Market News from Barchart
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On the date of publication, Merlin Rothfeld 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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To put it in contrast, the tech bellwether, Apple (AAPL) has a Debt/Equity ratio of 181%. Back in mid-2020, GameStop (GME) was sitting at all-time lows, forced lower with massive short positions by perennial juggernaut hedge funds. Recently, several analysts have praised GameStop for paying down a significant amount of its debt, placing them on a much sounder financial footing.
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To put it in contrast, the tech bellwether, Apple (AAPL) has a Debt/Equity ratio of 181%. It follows the dramatic GameStop short squeeze story of 2020 and will most likely create a renewed interest in GameStop stock. This may create a short-lived rally in share price, creating another shorting opportunity for those who see the writing on the wall.
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To put it in contrast, the tech bellwether, Apple (AAPL) has a Debt/Equity ratio of 181%. As word on social media sites spread like wildfire, the short squeeze started, ultimately leading to a gamma squeeze, pushing GameStop’s share price up nearly 19,000% in a little over 9 months. It follows the dramatic GameStop short squeeze story of 2020 and will most likely create a renewed interest in GameStop stock.
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To put it in contrast, the tech bellwether, Apple (AAPL) has a Debt/Equity ratio of 181%. Currently their Debt/Equity ratio is at 50%, placing it in the lower 1/3 of reporting companies. There is big money in this niche market and GameStop has an edge here.
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13576.0
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2023-09-19 00:00:00 UTC
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S&P Futures Plunge Ahead of FOMC Meeting, Oil’s Climb Raises Inflation Concerns
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AAPL
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https://www.nasdaq.com/articles/sp-futures-plunge-ahead-of-fomc-meeting-oils-climb-raises-inflation-concerns
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nan
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nan
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December S&P 500 futures (ESZ23) are trending down -0.51% this morning as market participants geared up for a big week for central banks, with the spotlight on the Federal Reserve’s interest rate decision on Wednesday.
In Monday’s trading session, Wall Street’s major averages closed just above the flatline. Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Also, Alteryx Inc (AYX) climbed more than +4% after Morgan Stanley upgraded the stock to Overweight from Equal Weight. On the bearish side, Tesla Inc (TSLA) fell over -3% and was among the top percentage losers on the tech-heavy Nasdaq 100 after Goldman Sachs slightly lowered its 2023 and 2024 earnings estimates for the electric vehicle giant. In addition, Arm Holdings (ARM) plunged more than -4% after Bernstein initiated coverage of the stock with an Underperform rating.
The Federal Reserve kicks off its two-day meeting later in the day, with investors widely expecting the U.S. central bank to keep rates on hold Wednesday. Also, investors’ focus will be on Fed Chair Jerome Powell’s post-decision press conference and the Fed’s quarterly dot plot in its Summary of Economic Projections.
“Ongoing questions about Fed policy - how high and for how long? - almost ensure near-term stock activity will remain choppy, although longer-term investors who take their cue from earnings should have an opportunity to benefit,” said Robert Teeter, managing director of Silvercrest Asset Management.
Meanwhile, oil soared to a 10-month high, continuing a robust rally that could reignite inflation, as OPEC+ supply cuts tightened the market, and Saudi Arabia’s energy minister showed no inclination to alter the current course.
Today, all eyes are focused on the U.S. Building Permits preliminary data in a couple of hours. Economists, on average, forecast that August Building Permits will stand at 1.440M, compared to the previous value of 1.443M.
Also, investors are likely to focus on U.S. Housing Starts data, which was at 1.452M in July. Economists foresee the August figure to be 1.440M.
In the bond markets, United States 10-year rates are at 4.325%, up +0.16%.
The Euro Stoxx 50 futures are up +0.26% this morning as investors exercised caution and refrained from making big bets ahead of interest rate decisions by major central banks this week. Automobile and energy stocks gained ground on Tuesday, while industrial and tech stocks underperformed. Eurostat said on Tuesday that consumer inflation in the Eurozone for August was slightly below the initial estimate, although it still remained more than twice the European Central Bank’s target. Meanwhile, the Bank of England is set to meet on Thursday, and it is expected to implement its 15th consecutive interest rate hike, bringing benchmark borrowing costs to 5.5%. Also, European Central Bank Governing Council member Francois Villeroy de Galhau stated that the ECB would keep interest rates at 4% for as long as necessary to tame inflation, indicating that he is not inclined toward future rate hikes at this stage. In corporate news, Kingfisher Plc (KGF.LN) plunged over -6% after the European home improvement retailer slashed its annual profit guidance.
Eurozone’s CPI, Eurozone’s Core CPI, and Eurozone’s Current Account data were released today.
Eurozone August CPI has been reported at +0.5% m/m and +5.2% y/y, weaker than expectations of +0.6% m/m and +5.3% y/y.
Eurozone August Core CPI stood at +0.3% m/m and +5.3% y/y, in line with expectations.
Eurozone July Current Account came in at 20.9B, weaker than expectations of 30.2B.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.03%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.87%.
China’s Shanghai Composite today closed slightly lower as some investors maintained their cautious stance regarding the world’s second-largest economy despite recent data indicating some signs of stabilization. China’s central bank and forex regulator convened a meeting with foreign financial institutions and companies on Monday, including JPMorgan and HSBC, as part of Beijing’s efforts to attract overseas investment and support its economic recovery. People’s Bank of China Governor Pan Gongsheng said China would improve its policies and create a market-oriented and international-level business climate. Meanwhile, tourism, new energy, and computer stocks underperformed on Monday. On the positive side, Country Garden received bondholder approval on the last of a batch of eight local notes for which it had requested repayment extensions, while Sunac China Holdings gained approval from creditors for its debt restructuring plan.
“August activity data released last week showed some marginal improvement... However, we see very limited signs that the economy has truly bottomed out. All eyes are on the property sector after so many easing measures were rolled out in the past month,” said Ting Lu, chief China economist at Nomura.
Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan. Chip-making equipment maker Tokyo Electron plunged over -5% and was the top percentage loser on the Nikkei. Also, chip-testing equipment maker Advantest slid about -4%, while chip maker Renesas Electronics fell more than -4%. Meanwhile, the Bank of Japan will announce its policy decision on Friday following a two-day policy meeting. Investors are anticipating remarks from BOJ Governor Kazuo Ueda, who stated in an interview earlier this month that the central bank might gather sufficient data by year-end to assess whether conditions were suitable for raising short-term interest rates. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +5.82% to 16.92.
“Investors were cautious ahead of big events - the central meetings in the U.S. and Japan,” said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.
Pre-Market U.S. Stock Movers
Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
Dell Technologies Inc (DELL) rose about +1% in pre-market trading after Daiwa upgraded the stock to Outperform from Neutral.
Avinger Inc (AVGR) soared over +11% in pre-market trading after the pharma device manufacturer entered into an agreement as a sales agent to offer shares initially up to an aggregate offering price of $7M at-the-market public offering.
Kinnate Biopharma Inc (KNTE) plunged more than -8% in pre-market trading following the company’s announcement of a 70% reduction in its workforce as part of a realignment of its drug development initiatives. Also, Piper Sandler downgraded the stock to Neutral from Overweight.
Globus Medical (GMED) gained over +1% in pre-market trading after Stifel upgraded the stock to Buy from Hold.
Planet Fitness Inc (PLNT) dropped more than -4% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - September 19th
AutoZone (AZO), Endava (DAVA), Apogee (APOG), Steelcase (SCS).
More Stock Market News from Barchart
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Meanwhile, oil soared to a 10-month high, continuing a robust rally that could reignite inflation, as OPEC+ supply cuts tightened the market, and Saudi Arabia’s energy minister showed no inclination to alter the current course. China’s central bank and forex regulator convened a meeting with foreign financial institutions and companies on Monday, including JPMorgan and HSBC, as part of Beijing’s efforts to attract overseas investment and support its economic recovery.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. The Euro Stoxx 50 futures are up +0.26% this morning as investors exercised caution and refrained from making big bets ahead of interest rate decisions by major central banks this week. Pre-Market U.S. Stock Movers Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan. Pre-Market U.S. Stock Movers Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Also, European Central Bank Governing Council member Francois Villeroy de Galhau stated that the ECB would keep interest rates at 4% for as long as necessary to tame inflation, indicating that he is not inclined toward future rate hikes at this stage. Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan.
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13577.0
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2023-09-19 00:00:00 UTC
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Company News for Sep 19, 2023
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AAPL
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https://www.nasdaq.com/articles/company-news-for-sep-19-2023
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nan
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nan
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Shares of The Clorox Company (CLX) declined 2.4% after the company said that a cybersecurity attack was identified last month which could weigh on its fiscal first-quarter results.
Apple Inc.’s (AAPL) shares jumped 1.7% after the company released its major iOS 1.7 update.
Shares of Ford Motor Company (F) fell 2.1% as more than 13,000 United Auto Workers continued their strike for the fourth day.
General Motors Company’s (GM) shares declined 1.8% after the United Auto Workers continued their strike.
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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 Inc.’s (AAPL) shares jumped 1.7% after the company released its major iOS 1.7 update. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Ford Motor Company (F) fell 2.1% as more than 13,000 United Auto Workers continued their strike for the fourth day.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc.’s (AAPL) shares jumped 1.7% after the company released its major iOS 1.7 update. Shares of The Clorox Company (CLX) declined 2.4% after the company said that a cybersecurity attack was identified last month which could weigh on its fiscal first-quarter results.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc.’s (AAPL) shares jumped 1.7% after the company released its major iOS 1.7 update. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys.
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Apple Inc.’s (AAPL) shares jumped 1.7% after the company released its major iOS 1.7 update. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report To read this article on Zacks.com click here. General Motors Company’s (GM) shares declined 1.8% after the United Auto Workers continued their strike.
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13578.0
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2023-09-19 00:00:00 UTC
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2 Leading Tech Stocks to Buy in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/2-leading-tech-stocks-to-buy-in-2023-and-beyond-5
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nan
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nan
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Many of the world's most successful investors have realized the value of tech stocks. The ever-expanding industry and its innovative nature allow companies to benefit from consistent long-term gains. So it's not surprising that Warren Buffett's holdings company, Berkshire Hathaway, has dedicated over 45% of its portfolio to Apple (NASDAQ: AAPL). Since Berkshire first invested in 2016, Apple shares have soared 565%.
Booming markets like artificial intelligence (AI) and cloud computing have made Wall Street particularly bullish about tech stocks this year. Consequently, now is an excellent time to invest in the industry and profit from its long-term growth.
Here are two leading tech stocks to buy in 2023 and beyond.
1. Amazon
Amazon (NASDAQ: AMZN) is an attractive option right now as it recovers from last year's economic downturn. The company is on a growth path, as evidenced by a correction in its retail business. In the second quarter of 2023, Amazon's North America segment hit over $3 billion in operating income after reporting losses of $627 million in the year-ago period. The improvement comes after several restructuring moves by the company, including shuttering unprofitable platforms, closing dozens of warehouses, and laying off thousands of employees.
The e-commerce market is projected to expand at a compound annual growth rate of 11% through 2027 and hit $5.5 trillion. Meanwhile, Amazon is dominating the sector in multiple countries. As consumers increasingly turn to their computers and smartphones to shop, the company is well-positioned to profit substantially over the long term.
Moreover, the tech giant is home to the world's largest cloud platform in Amazon Web Services (AWS), strengthening its position in AI. Amazon has unveiled several new AI tools on the platform this year as it competes against cloud giants like Microsoft and Alphabet. However, with companies like Netflix, Sony, and Meta Platforms already on its list of high-profile AWS clientele, Amazon could have an edge over the competition.
Amazon's stock has soared 828% over the last decade. While past growth isn't always indicative of what's to come, solid positions in online retail and the AI-boosted cloud market are promising for its long-term prospects. Amazon has become a behemoth in the tech world, and its stock is a no-brainer this year.
2. Apple
Shares in Apple have tumbled 11% since the company reported its Q3 2023 earnings at the beginning of August. Revenue fell for the third consecutive quarter, slipping 1% year over year. Declines in multiple product segments, such as iPhone, Mac, and iPad, dragged down the company's earnings as macroeconomic headwinds and reductions in consumer spending caught up with the business.
However, the company remains a leader in consumer tech and is making promising inroads in AI. Economic challenges won't last forever, and it has the market dominance to come back strong over the long term. While companies like Microsoft and Amazon have focused their AI efforts on the business sector, Apple has its sights set on consumers.
The company is gradually introducing AI features across its lineup, which could make it a leading growth driver in the public's adoption of AI tools. In 2023, the iPhone received AI-driven updates. For instance, there's a revamp to autocorrect, which now uses a language model similar to the one that runs OpenAI's ChatGPT. Meanwhile, Siri is now 25% more accurate. Devices like AirPods and Apple Watch are similarly helping users improve various tasks using AI.
According to Bloomberg, the company has also created its own version of ChatGPT that engineers call Apple GPT. There's no word yet on when or if the program will be released. However, it could give competing services a run for their money if integrated into Apple's ecosystem alongside other Apple-exclusive services like Messages and FaceTime.
Apple's solid growth history and ventures into booming markets have made its recent stock dip an exciting investment opportunity. The company's share price is at one of its lowest points over the last three months, making it a screaming buy in 2023.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So it's not surprising that Warren Buffett's holdings company, Berkshire Hathaway, has dedicated over 45% of its portfolio to Apple (NASDAQ: AAPL). Booming markets like artificial intelligence (AI) and cloud computing have made Wall Street particularly bullish about tech stocks this year. Declines in multiple product segments, such as iPhone, Mac, and iPad, dragged down the company's earnings as macroeconomic headwinds and reductions in consumer spending caught up with the business.
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So it's not surprising that Warren Buffett's holdings company, Berkshire Hathaway, has dedicated over 45% of its portfolio to Apple (NASDAQ: AAPL). Amazon has unveiled several new AI tools on the platform this year as it competes against cloud giants like Microsoft and Alphabet. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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So it's not surprising that Warren Buffett's holdings company, Berkshire Hathaway, has dedicated over 45% of its portfolio to Apple (NASDAQ: AAPL). Booming markets like artificial intelligence (AI) and cloud computing have made Wall Street particularly bullish about tech stocks this year. While companies like Microsoft and Amazon have focused their AI efforts on the business sector, Apple has its sights set on consumers.
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So it's not surprising that Warren Buffett's holdings company, Berkshire Hathaway, has dedicated over 45% of its portfolio to Apple (NASDAQ: AAPL). Here are two leading tech stocks to buy in 2023 and beyond. Moreover, the tech giant is home to the world's largest cloud platform in Amazon Web Services (AWS), strengthening its position in AI.
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13579.0
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2023-09-19 00:00:00 UTC
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S&P Futures Tick Higher Ahead of FOMC Meeting, Oil’s Climb Raises Inflation Concerns
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AAPL
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https://www.nasdaq.com/articles/sp-futures-tick-higher-ahead-of-fomc-meeting-oils-climb-raises-inflation-concerns
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nan
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nan
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December S&P 500 futures (ESZ23) are trending up +0.12% this morning as market participants geared up for a big week for central banks, with the spotlight on the Federal Reserve’s interest rate decision on Wednesday.
In Monday’s trading session, Wall Street’s major averages closed just above the flatline. Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Also, Alteryx Inc (AYX) climbed more than +4% after Morgan Stanley upgraded the stock to Overweight from Equal Weight. On the bearish side, Tesla Inc (TSLA) fell over -3% and was among the top percentage losers on the tech-heavy Nasdaq 100 after Goldman Sachs slightly lowered its 2023 and 2024 earnings estimates for the electric vehicle giant. In addition, Arm Holdings (ARM) plunged more than -4% after Bernstein initiated coverage of the stock with an Underperform rating.
The Federal Reserve kicks off its two-day meeting later in the day, with investors widely expecting the U.S. central bank to keep rates on hold Wednesday. Also, investors’ focus will be on Fed Chair Jerome Powell’s post-decision press conference and the Fed’s quarterly dot plot in its Summary of Economic Projections.
“Ongoing questions about Fed policy - how high and for how long? - almost ensure near-term stock activity will remain choppy, although longer-term investors who take their cue from earnings should have an opportunity to benefit,” said Robert Teeter, managing director of Silvercrest Asset Management.
Meanwhile, oil soared to a 10-month high, continuing a robust rally that could reignite inflation, as OPEC+ supply cuts tightened the market, and Saudi Arabia’s energy minister showed no inclination to alter the current course.
Today, all eyes are focused on the U.S. Building Permits preliminary data in a couple of hours. Economists, on average, forecast that August Building Permits will stand at 1.440M, compared to the previous value of 1.443M.
Also, investors are likely to focus on U.S. Housing Starts data, which was at 1.452M in July. Economists foresee the August figure to be 1.440M.
In the bond markets, United States 10-year rates are at 4.325%, up +0.16%.
The Euro Stoxx 50 futures are up +0.26% this morning as investors exercised caution and refrained from making big bets ahead of interest rate decisions by major central banks this week. Automobile and energy stocks gained ground on Tuesday, while industrial and tech stocks underperformed. Eurostat said on Tuesday that consumer inflation in the Eurozone for August was slightly below the initial estimate, although it still remained more than twice the European Central Bank’s target. Meanwhile, the Bank of England is set to meet on Thursday, and it is expected to implement its 15th consecutive interest rate hike, bringing benchmark borrowing costs to 5.5%. Also, European Central Bank Governing Council member Francois Villeroy de Galhau stated that the ECB would keep interest rates at 4% for as long as necessary to tame inflation, indicating that he is not inclined toward future rate hikes at this stage. In corporate news, Kingfisher Plc (KGF.LN) plunged over -6% after the European home improvement retailer slashed its annual profit guidance.
Eurozone’s CPI, Eurozone’s Core CPI, and Eurozone’s Current Account data were released today.
Eurozone August CPI has been reported at +0.5% m/m and +5.2% y/y, weaker than expectations of +0.6% m/m and +5.3% y/y.
Eurozone August Core CPI stood at +0.3% m/m and +5.3% y/y, in line with expectations.
Eurozone July Current Account came in at 20.9B, weaker than expectations of 30.2B.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.03%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.87%.
China’s Shanghai Composite today closed slightly lower as some investors maintained their cautious stance regarding the world’s second-largest economy despite recent data indicating some signs of stabilization. China’s central bank and forex regulator convened a meeting with foreign financial institutions and companies on Monday, including JPMorgan and HSBC, as part of Beijing’s efforts to attract overseas investment and support its economic recovery. People’s Bank of China Governor Pan Gongsheng said China would improve its policies and create a market-oriented and international-level business climate. Meanwhile, tourism, new energy, and computer stocks underperformed on Monday. On the positive side, Country Garden received bondholder approval on the last of a batch of eight local notes for which it had requested repayment extensions, while Sunac China Holdings gained approval from creditors for its debt restructuring plan.
“August activity data released last week showed some marginal improvement... However, we see very limited signs that the economy has truly bottomed out. All eyes are on the property sector after so many easing measures were rolled out in the past month,” said Ting Lu, chief China economist at Nomura.
Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan. Chip-making equipment maker Tokyo Electron plunged over -5% and was the top percentage loser on the Nikkei. Also, chip-testing equipment maker Advantest slid about -4%, while chip maker Renesas Electronics fell more than -4%. Meanwhile, the Bank of Japan will announce its policy decision on Friday following a two-day policy meeting. Investors are anticipating remarks from BOJ Governor Kazuo Ueda, who stated in an interview earlier this month that the central bank might gather sufficient data by year-end to assess whether conditions were suitable for raising short-term interest rates. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +5.82% to 16.92.
“Investors were cautious ahead of big events - the central meetings in the U.S. and Japan,” said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.
Pre-Market U.S. Stock Movers
Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
Dell Technologies Inc (DELL) rose about +1% in pre-market trading after Daiwa upgraded the stock to Outperform from Neutral.
Avinger Inc (AVGR) soared over +11% in pre-market trading after the pharma device manufacturer entered into an agreement as a sales agent to offer shares initially up to an aggregate offering price of $7M at-the-market public offering.
Kinnate Biopharma Inc (KNTE) plunged more than -8% in pre-market trading following the company’s announcement of a 70% reduction in its workforce as part of a realignment of its drug development initiatives. Also, Piper Sandler downgraded the stock to Neutral from Overweight.
Globus Medical (GMED) gained over +1% in pre-market trading after Stifel upgraded the stock to Buy from Hold.
Planet Fitness Inc (PLNT) dropped more than -4% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - September 19th
AutoZone (AZO), Endava (DAVA), Apogee (APOG), Steelcase (SCS).
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Meanwhile, oil soared to a 10-month high, continuing a robust rally that could reignite inflation, as OPEC+ supply cuts tightened the market, and Saudi Arabia’s energy minister showed no inclination to alter the current course. China’s central bank and forex regulator convened a meeting with foreign financial institutions and companies on Monday, including JPMorgan and HSBC, as part of Beijing’s efforts to attract overseas investment and support its economic recovery.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. The Euro Stoxx 50 futures are up +0.26% this morning as investors exercised caution and refrained from making big bets ahead of interest rate decisions by major central banks this week. Pre-Market U.S. Stock Movers Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan. Pre-Market U.S. Stock Movers Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Also, European Central Bank Governing Council member Francois Villeroy de Galhau stated that the ECB would keep interest rates at 4% for as long as necessary to tame inflation, indicating that he is not inclined toward future rate hikes at this stage. Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan.
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13580.0
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2023-09-19 00:00:00 UTC
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EXCLUSIVE-Amazon devices unit morale wanes amid cuts, weak development pipeline- sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-amazon-devices-unit-morale-wanes-amid-cuts-weak-development-pipeline-sources
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nan
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nan
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By Greg Bensinger
SAN FRANCISCO, Sept 19 (Reuters) - Some workers within Amazon’s AMZN.O once-storied hardware division – responsible for popular devices like the Kindle reader and Echo voice-assistant – say morale within the division has suffered amid staff cutbacks and a pipeline of devices in development that they fear are unlikely to prove hits.
The division, known as Lab126, was a focus for Amazon’s founder Jeff Bezos, who portrayed it as an engine for future projects, but more recently it has been buffeted by mass layoffs and key executive departures, including leader Dave Limp, a 13-year veteran who has announced plans to step down later this year.
Reuters interviewed more than 15 current and former employees, who spoke on the condition of anonymity due to their employment terms, who described a hodgepodge of new devices in development, many of them aimed at encouraging customers to use the once ground-breaking Alexa voice service that now faces a stiff challenge in the age of generative AI and ChatGPT.
The company – the world’s biggest online retailer - is holding a devices and services launch event on September 20 where it is expected to feature refreshed versions of some existing products like the Fire tablet, Fire TV stick and Kindle Scribe e-reader, among other announcements. Reuters was unable to determine Amazon’s full plans for the announcement.
The news agency was able to identify five different new devices under development. These include a carbon monoxide detector and a household energy consumption monitor - both with Alexa built into them – as well as a home projector to make any surface a screen. Some of the sources mentioned other projects, the full details of which could not be confirmed.
Amazon hopes consumers will install Alexa-enabled devices in more rooms of their homes and become accustomed to using the system throughout the day, the sources said.
The company has also worked on an Alexa-enabled digital measuring device (for instance, for mapping out the dimensions of one’s home) and a virus-testing device initially intended to detect Covid, the people said.
Amazon is secretive about its internal projects at Lab126, which has long been crucial to its drive to position itself as a tech innovator. Not all of them will be produced commercially, sometimes due to financial or market concerns, the sources said, while some have already been reworked or canceled altogether.
Though relatively small within Amazon’s sprawling empire, the device unit has been symbolically important as a gadget testing ground and Alexa’s public face through voice-assistant devices. Amazon has said its devices and services business is not profitable, without providing figures.
A spokesperson for Amazon declined to comment on products in development.
“To suggest that a few anecdotes paint a picture of reality for an organization as large and diverse as Devices and Services is inaccurate,” spokeswoman Kinley Pearsall said in written response to questions about morale and devices at Lab126. The “business has been a staple of innovation for over a decade and has created a series of products that are meaningful parts of people’s everyday lives.”
The sources said the lab’s years of losses and shifting strategies have contributed to lowered morale. Many pointed to the Astro home monitoring robot launched in 2021 that, at $1,600, remains niche and was criticized for giving some consumers the creeps.
That followed a series of poorly selling devices, such as a voice-assistant-powered clock, the Fire smartphone and a camera that doubles as a personal stylist, the sources said.
Amazon, the people said, is trying to address flagging interest in its Alexa voice assistant nearly a decade after it was launched and as it faces competition from AI chatbots from Alphabet’s GOOGL.O Google and a host of startups, including Microsoft-backed MSFT.O OpenAI. ChatGPT and other similar tools have dazzled consumers and investors since late last year with their ability to construct longform and coherent text answers to complex prompts, a format that is difficult to translate to a voice assistant.
Amazon said it is developing a generative AI of its own to bolster Alexa but hasn’t revealed much beyond an August assertion that “every one of our teams is working on building generative AI applications.”
Typically accessed through devices such as Amazon televisions and Echo speakers, Alexa provides spoken answers to questions and can be used for purchases from Amazon’s online store. The company has also worked to make Alexa a home automation hub to allow light bulbs and appliances to be voice controlled.
But Amazon has failed to find a consistent means for profiting from Alexa.
“Amazon’s ability to infiltrate consumers’ lives is limited because they don’t have control of the smartphone,” said Avi Greengart, president of analysis firm Techsponential. “Voice-first is not a great shopping experience,” he said.
EXODUS
Limp, who has overseen device strategy including Ring video doorbells, plans to exit before year's end. Amazon is set to name as successor Microsoft's Panos Panay who oversaw development of the Surface, according to Bloomberg. Microsoft declined to comment and Amazon did not respond to a request for comment.
Limp follows longtime executives Lab126 president Gregg Zehr and Alexa senior vice president Tom Taylor who both retired late last year. Ken Washington, who oversaw Astro, left after less than two years to join Medtronic in May.
CEO Andy Jassy has been reducing Amazon’s headcount after roughly doubling it during the pandemic in response to surging online sales. The retrenchment also affected Amazon’s retail unit, cloud computing, grocery and advertising divisions.
Alexa employees were included in rounds of layoffs beginning last year resulting in 27,000 job cuts across Amazon. Despite broadly popularizing voice assistants, Alexa, with 71.6 million users in 2022, trailed Google and Apple’s AAPL.O Siri, which had 81.5 million and 77.6 million, respectively, according to analysis firm Insider Intelligence.
For years, Amazon has said it can sell devices for close to production cost and see a profit through services offered on them. That’s worked well with its Kindle group, as consumers who own an e-reader purchase e-books for years, with Amazon taking a cut of each sale.
Alexa is another matter. Most efforts to make money from it have centered on easing purchasing from Amazon.com. But a dozen people who have worked on Alexa say they haven’t seen strong evidence customers are buying things they wouldn’t otherwise.
The challenge is users like Bruno Borges, 40, of Vancouver, Canada, who said he found he used his Echo only for its timer, music and weather updates.
“I would never shop on it because I cannot compare things like on the website, so I wonder if I‘m getting the best deal,” he said. He recently stowed his three-year-old device in a drawer and has no plans to continue using it.
Employees say leadership has in recent years shifted towards a drive to produce devices for cheaper to potentially make money on the sale of hardware itself.
That focus on price has caused delays for an advanced projector Amazon is developing to cast images around a room, turning regular surfaces into screens, according to five people familiar with the matter.
With the projector, a user could beam recipes on the wall above their stove or make Zoom calls that track them as they move. Amazon bought a startup called Lightform to help propel the project but has been bent on lowering the projector’s cost, previously offered by Lightform starting at $700, by hundreds of dollars before it could be sold.
(Reporting by Greg Bensinger; editing by Ken Li and Claudia Parsons)
((greg.bensinger@thomsonreuters.com; Reuters Messaging: @gregbensinger))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite broadly popularizing voice assistants, Alexa, with 71.6 million users in 2022, trailed Google and Apple’s AAPL.O Siri, which had 81.5 million and 77.6 million, respectively, according to analysis firm Insider Intelligence. The division, known as Lab126, was a focus for Amazon’s founder Jeff Bezos, who portrayed it as an engine for future projects, but more recently it has been buffeted by mass layoffs and key executive departures, including leader Dave Limp, a 13-year veteran who has announced plans to step down later this year. Reuters interviewed more than 15 current and former employees, who spoke on the condition of anonymity due to their employment terms, who described a hodgepodge of new devices in development, many of them aimed at encouraging customers to use the once ground-breaking Alexa voice service that now faces a stiff challenge in the age of generative AI and ChatGPT.
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Despite broadly popularizing voice assistants, Alexa, with 71.6 million users in 2022, trailed Google and Apple’s AAPL.O Siri, which had 81.5 million and 77.6 million, respectively, according to analysis firm Insider Intelligence. By Greg Bensinger SAN FRANCISCO, Sept 19 (Reuters) - Some workers within Amazon’s AMZN.O once-storied hardware division – responsible for popular devices like the Kindle reader and Echo voice-assistant – say morale within the division has suffered amid staff cutbacks and a pipeline of devices in development that they fear are unlikely to prove hits. Employees say leadership has in recent years shifted towards a drive to produce devices for cheaper to potentially make money on the sale of hardware itself.
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Despite broadly popularizing voice assistants, Alexa, with 71.6 million users in 2022, trailed Google and Apple’s AAPL.O Siri, which had 81.5 million and 77.6 million, respectively, according to analysis firm Insider Intelligence. By Greg Bensinger SAN FRANCISCO, Sept 19 (Reuters) - Some workers within Amazon’s AMZN.O once-storied hardware division – responsible for popular devices like the Kindle reader and Echo voice-assistant – say morale within the division has suffered amid staff cutbacks and a pipeline of devices in development that they fear are unlikely to prove hits. Though relatively small within Amazon’s sprawling empire, the device unit has been symbolically important as a gadget testing ground and Alexa’s public face through voice-assistant devices.
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Despite broadly popularizing voice assistants, Alexa, with 71.6 million users in 2022, trailed Google and Apple’s AAPL.O Siri, which had 81.5 million and 77.6 million, respectively, according to analysis firm Insider Intelligence. The division, known as Lab126, was a focus for Amazon’s founder Jeff Bezos, who portrayed it as an engine for future projects, but more recently it has been buffeted by mass layoffs and key executive departures, including leader Dave Limp, a 13-year veteran who has announced plans to step down later this year. These include a carbon monoxide detector and a household energy consumption monitor - both with Alexa built into them – as well as a home projector to make any surface a screen.
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13581.0
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2023-09-19 00:00:00 UTC
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2 Stocks Warren Buffett Is Significantly Overweight In
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AAPL
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https://www.nasdaq.com/articles/2-stocks-warren-buffett-is-significantly-overweight-in
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nan
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nan
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When famous investors share the wisdom they've gained from years of success, those of us on Main Street often sit up and take notice. And when these investors put their money where their mouths are, it's noteworthy -- especially with the Oracle of Omaha himself, Warren Buffett.
Buffett is hardly capricious about his stock purchases. Once a company finds its way into the Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio, it will likely remain there for an extended time. Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX).
Apple is Berkshire Hathaway's core holding
Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. It's also fair to say that this year has been challenging for the company.
It's a challenging year for any company with heavy exposure to consumer electronics spending. A combination of rising interest rates pressuring consumer discretionary spending and a natural correction after the lockdown boom in consumer electronics puts Apple and others under pressure.
As such, it's no surprise to see the company report a year-over-year decline in Mac and iPad sales amid a 1.4% decline in overall sales to $81.8 billion. However, two things about the report highlighted the long-term attraction of the stock.
First, its core product is the iPhone. On a constant currency basis, the device's sales were up year over year in the quarter, a pretty good result under the circumstances and indicative of the strength of its competitive position.
Second, Apple's higher-margin services segment grew sales by 8.2% year over year to $21.2 billion, representing almost 26% of total sales, up from 23.6% last year. And the company has more than 1 billion paid subscribers across its services, up 150 million over the previous year.
As such, it's doing an excellent job of competing in the smartphone market and growing its service sales, and if the trend continues, then it will emerge from the consumer spending funk in a much stronger position than before it.
That will keep Warren Buffett happy.
Chevron greases the wheels of Buffett's passive income
Scott Levine (Chevron): While Berkshire Hathaway has reduced its position in Chevron recently, it continues to hold a sizable spot in Buffett's portfolio. Valued at about $25 billion, Berkshire Hathaway's position in Chevron makes it the fifth-largest holding in the portfolio.
The energy stalwart has an ample upstream business that was strengthened with the recent acquisition of PDC Energy, a transaction expected to yield $1 billion in annual free cash flow. It has a strong onshore presence in the Permian Basin, as well as numerous deepwater assets in the Gulf of Mexico, Western Africa, Australia, and the Eastern Mediterranean.
And the company's strong pipeline business and downstream operations give it a powerful presence throughout the value chain.
With Chevron's fundamentals, it's clear why Buffett chooses it to power the Berkshire Hathaway portfolio. For one, he values a company's ability to generate profits from shareholder equity, so its strong three-year average return on equity of 10.7% is attractive to him.
The company's conservative approach to leverage also appeals to Buffett. Chevron's debt-to-equity ratio of 0.13 stands out in comparison to its leading peers: ExxonMobil, Shell, and TotalEnergies.
XOM debt-to-equity ratio data by YCharts.
And Chevron's commitment to rewarding shareholders -- it has raised its dividend for 36 consecutive years -- is yet another draw for Buffett. The stock has a forward-yielding dividend of 3.9%, and management has said it's dedicated to keep growing the payout as long as the price of Brent crude remains above $50 per barrel.
Would you benefit from buying these Buffett stocks?
Both Apple and Chevron are alluring investments. Some might buy Apple simply because it's the largest position in the Berkshire Hathaway portfolio. But the company's commanding position in the smartphone market, its fervent customer loyalty, and considerable financial strengths are enough reasons to buy the stock.
Chevron, meanwhile, is a leading energy stock with strong financials and a commitment to returning capital to shareholders.
Find out why Apple is one of the 10 best stocks to buy now
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Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Chevron. 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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Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). As such, it's doing an excellent job of competing in the smartphone market and growing its service sales, and if the trend continues, then it will emerge from the consumer spending funk in a much stronger position than before it. It has a strong onshore presence in the Permian Basin, as well as numerous deepwater assets in the Gulf of Mexico, Western Africa, Australia, and the Eastern Mediterranean.
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Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). Apple is Berkshire Hathaway's core holding Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. Chevron greases the wheels of Buffett's passive income Scott Levine (Chevron): While Berkshire Hathaway has reduced its position in Chevron recently, it continues to hold a sizable spot in Buffett's portfolio.
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Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). Apple is Berkshire Hathaway's core holding Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. Second, Apple's higher-margin services segment grew sales by 8.2% year over year to $21.2 billion, representing almost 26% of total sales, up from 23.6% last year.
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Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). Apple is Berkshire Hathaway's core holding Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. Second, Apple's higher-margin services segment grew sales by 8.2% year over year to $21.2 billion, representing almost 26% of total sales, up from 23.6% last year.
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13582.0
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2023-09-19 00:00:00 UTC
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Arizona governor says state in talks with TSMC on advanced packaging
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AAPL
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https://www.nasdaq.com/articles/arizona-governor-says-state-in-talks-with-tsmc-on-advanced-packaging
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nan
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By Sarah Wu
TAIPEI, Sept 19 (Reuters) - Arizona is in talks with Taiwanese chipmaker TSMC 2330.TW on advanced packaging, Governor Katie Hobbs said on Tuesday, as the U.S. state seeks to attract more investment and address challenges that TSMC's massive project has encountered there.
TSMC is investing $40 billion to build two chip fabrication facilities, or fabs, in Arizona, supporting Washington's plans to boost U.S. chipmaking capacity.
"Part of our efforts at building the semiconductor ecosystem is focusing on advanced packaging, so we have several things in the works around that right now," Hobbs said on the sidelines of a U.S.-Taiwan supply chain forum in Taipei.
TSMC, which has not announced plans for advanced packaging facilities in the United States, did not immediately respond to a request for comment.
Crucial for artificial intelligence (AI) chips, advanced packaging techniques can stitch multiple chips together into a single device, lowering the cost of more powerful computing.
Facing a surge in AI-related demand, TSMC has been unable to fulfil demand for advanced packaging services and has been rapidly expanding capacity, including a nearly T$90 billion ($2.81 billion) investment in a new facility in Taiwan.
In July, TSMC said its first Arizona fab would be delayed until 2025 because of a shortage of specialist workers and it was sending technicians from Taiwan to train local staff. Production had been due to start next year.
Hobbs said she did not expect further delays.
"The project is going well in Arizona. I'm very impressed by the speed with which it's been built and we are working through bugs and expect it to continue on schedule," she said.
Her delegation's meetings with TSMC executives on Monday focused on their "continued partnership" and how to address any issues that arise, Hobbs said.
"We're continuing to make sure that we have the skilled workforce that's needed, both on the advanced manufacturing side but also the construction side so that we can continue these investments."
Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, counts Apple AAPL.O and Nvidia NVDA.O among its major clients.
Taiwan President Tsai Ing-wen, meeting Hobbs at the presidential office later on Tuesday, praised TSMC's Arizona plant as a symbol of cooperation.
"These joint efforts also will help us create more secure and resilient supply chains," Tsai said.
($1 = 32.0120 Taiwan dollars)
(Reporting by Sarah Wu; Writing by Ben Blanchard; Editing by Muralikumar Anantharaman, Edmund Klamann and Christian Schmollinger)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, counts Apple AAPL.O and Nvidia NVDA.O among its major clients. TSMC is investing $40 billion to build two chip fabrication facilities, or fabs, in Arizona, supporting Washington's plans to boost U.S. chipmaking capacity. "Part of our efforts at building the semiconductor ecosystem is focusing on advanced packaging, so we have several things in the works around that right now," Hobbs said on the sidelines of a U.S.-Taiwan supply chain forum in Taipei.
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Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, counts Apple AAPL.O and Nvidia NVDA.O among its major clients. By Sarah Wu TAIPEI, Sept 19 (Reuters) - Arizona is in talks with Taiwanese chipmaker TSMC 2330.TW on advanced packaging, Governor Katie Hobbs said on Tuesday, as the U.S. state seeks to attract more investment and address challenges that TSMC's massive project has encountered there. TSMC is investing $40 billion to build two chip fabrication facilities, or fabs, in Arizona, supporting Washington's plans to boost U.S. chipmaking capacity.
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Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, counts Apple AAPL.O and Nvidia NVDA.O among its major clients. By Sarah Wu TAIPEI, Sept 19 (Reuters) - Arizona is in talks with Taiwanese chipmaker TSMC 2330.TW on advanced packaging, Governor Katie Hobbs said on Tuesday, as the U.S. state seeks to attract more investment and address challenges that TSMC's massive project has encountered there. TSMC is investing $40 billion to build two chip fabrication facilities, or fabs, in Arizona, supporting Washington's plans to boost U.S. chipmaking capacity.
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Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, counts Apple AAPL.O and Nvidia NVDA.O among its major clients. By Sarah Wu TAIPEI, Sept 19 (Reuters) - Arizona is in talks with Taiwanese chipmaker TSMC 2330.TW on advanced packaging, Governor Katie Hobbs said on Tuesday, as the U.S. state seeks to attract more investment and address challenges that TSMC's massive project has encountered there. TSMC is investing $40 billion to build two chip fabrication facilities, or fabs, in Arizona, supporting Washington's plans to boost U.S. chipmaking capacity.
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13583.0
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2023-09-19 00:00:00 UTC
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Virtual Riches: 3 Stocks Leading the VR Revolution
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AAPL
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https://www.nasdaq.com/articles/virtual-riches%3A-3-stocks-leading-the-vr-revolution
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nan
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nan
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In the past few years, an ever-growing virtual reality craze has been shaking up the tech and entertainment scene. This digital universe, where users can interact, work, and play in immersive environments, has rapidly transformed from science fiction into a tangible reality.
Investors who are seeking exposure to this technology and sector to capitalize on this transformative wave should closely examine three pioneering companies that have established their unique foothold in the industry: Meta Platforms (NASDAQ: META), Unity Software (NYSE: U), and Roblox (NYSE: RBLX).
These three companies offer a diverse and unique approach to virtual reality, providing investors with intriguing opportunities. So, let's take a closer look at each company and their approach to virtual reality.
Meta Platforms (NASDAQ: META)
Meta, formerly known as Facebook, underwent a name change in 2021 to better align with its evolving business focus on the metaverse. This transition reflects Meta's commitment to seamless social interaction within its vast application universe, which includes Instagram and WhatsApp.
Meta operates the Reality Labs segment, specializing in virtual and augmented-reality products. Meta reported a substantial operating loss of $7.73 billion in its Reality Labs segment for the six months ending on June 30. This segment encompasses all of Meta's virtual reality and augmented reality hardware, software, and content.
Despite the loss, Meta anticipates increased operating losses in the Reality Labs segment due to ongoing investments in AR/VR product development and ecosystem expansion. Meta is preparing to launch its upcoming VR headset, the Quest 3, set for release in Q4.
Unity Software (NYSE: U)
Unity is a game development platform that allows users to create and build interactive 2-D and 3-D environments for gaming and other applications. Unity was one of the first developers to fully support the iPhone operating system, making it a go-to choice for game developers. Over the years, Unity has expanded its offerings to include desktop, mobile, tablets, consoles, 3-D, web-based, and virtual reality platforms.
Unity has become a go-to platform for virtual reality gaming software developers. This prominence was further underscored by Apple's recent collaboration with the game development software company. Apple (NASDAQ: AAPL) announced its partnership with Unity as part of launching its highly-anticipated Apple Vision Pro headset, causing a momentary halt in Unity's trading and triggering the company's most significant stock surge since its IPO in 2020.
This strategic partnership underscores Unity Software's pivotal role in shaping the future of virtual reality experiences.
Roblox (NYSE: RBLX)
Roblox is an American video game developer headquartered in San Mateo, California. The company's flagship creation, Roblox, was officially launched in 2006. Roblox is an online platform renowned for enabling users to create and play games developed by fellow users. It has gained immense popularity, particularly among younger audiences, and has evolved into a global gaming sensation.
In July, Meta announced that Roblox, with its 66 million daily users, will be accessible in virtual reality on Quest 2, Quest Pro, and the upcoming Quest 3. This move opens up a treasure trove of over 15 million active experiences for the Quest community to explore, as highlighted by Roblox. Notably, this virtual reality version will support cross-play, enabling players on Quest headsets to connect with friends on Xbox, PC, or mobile devices.
Roblox emphasizes that most of its experiences transition smoothly to VR without requiring significant modifications, marking a user-friendly approach to virtual reality integration. Developers can easily publish their existing experiences for VR within the Roblox ecosystem, minimizing additional coding efforts thanks to Roblox's universal design, which ensures consistent experiences across platforms.
The views and 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) announced its partnership with Unity as part of launching its highly-anticipated Apple Vision Pro headset, causing a momentary halt in Unity's trading and triggering the company's most significant stock surge since its IPO in 2020. This digital universe, where users can interact, work, and play in immersive environments, has rapidly transformed from science fiction into a tangible reality. Notably, this virtual reality version will support cross-play, enabling players on Quest headsets to connect with friends on Xbox, PC, or mobile devices.
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Apple (NASDAQ: AAPL) announced its partnership with Unity as part of launching its highly-anticipated Apple Vision Pro headset, causing a momentary halt in Unity's trading and triggering the company's most significant stock surge since its IPO in 2020. Investors who are seeking exposure to this technology and sector to capitalize on this transformative wave should closely examine three pioneering companies that have established their unique foothold in the industry: Meta Platforms (NASDAQ: META), Unity Software (NYSE: U), and Roblox (NYSE: RBLX). Unity Software (NYSE: U) Unity is a game development platform that allows users to create and build interactive 2-D and 3-D environments for gaming and other applications.
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Apple (NASDAQ: AAPL) announced its partnership with Unity as part of launching its highly-anticipated Apple Vision Pro headset, causing a momentary halt in Unity's trading and triggering the company's most significant stock surge since its IPO in 2020. Investors who are seeking exposure to this technology and sector to capitalize on this transformative wave should closely examine three pioneering companies that have established their unique foothold in the industry: Meta Platforms (NASDAQ: META), Unity Software (NYSE: U), and Roblox (NYSE: RBLX). Unity has become a go-to platform for virtual reality gaming software developers.
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Apple (NASDAQ: AAPL) announced its partnership with Unity as part of launching its highly-anticipated Apple Vision Pro headset, causing a momentary halt in Unity's trading and triggering the company's most significant stock surge since its IPO in 2020. Investors who are seeking exposure to this technology and sector to capitalize on this transformative wave should closely examine three pioneering companies that have established their unique foothold in the industry: Meta Platforms (NASDAQ: META), Unity Software (NYSE: U), and Roblox (NYSE: RBLX). Unity Software (NYSE: U) Unity is a game development platform that allows users to create and build interactive 2-D and 3-D environments for gaming and other applications.
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13584.0
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2023-09-19 00:00:00 UTC
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S&P Futures Tick Lower Ahead of FOMC Meeting, Oil’s Climb Raises Inflation Concerns
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AAPL
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https://www.nasdaq.com/articles/sp-futures-tick-lower-ahead-of-fomc-meeting-oils-climb-raises-inflation-concerns
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nan
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nan
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December S&P 500 futures (ESZ23) are trending down -0.05% this morning as market participants geared up for a big week for central banks, with the spotlight on the Federal Reserve’s interest rate decision on Wednesday.
In Monday’s trading session, Wall Street’s major averages closed just above the flatline. Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Also, Alteryx Inc (AYX) climbed more than +4% after Morgan Stanley upgraded the stock to Overweight from Equal Weight. On the bearish side, Tesla Inc (TSLA) fell over -3% and was among the top percentage losers on the tech-heavy Nasdaq 100 after Goldman Sachs slightly lowered its 2023 and 2024 earnings estimates for the electric vehicle giant. In addition, Arm Holdings (ARM) plunged more than -4% after Bernstein initiated coverage of the stock with an Underperform rating.
The Federal Reserve kicks off its two-day meeting later in the day, with investors widely expecting the U.S. central bank to keep rates on hold Wednesday. Also, investors’ focus will be on Fed Chair Jerome Powell’s post-decision press conference and the Fed’s quarterly dot plot in its Summary of Economic Projections.
“Ongoing questions about Fed policy - how high and for how long? - almost ensure near-term stock activity will remain choppy, although longer-term investors who take their cue from earnings should have an opportunity to benefit,” said Robert Teeter, managing director of Silvercrest Asset Management.
Meanwhile, oil soared to a 10-month high, continuing a robust rally that could reignite inflation, as OPEC+ supply cuts tightened the market, and Saudi Arabia’s energy minister showed no inclination to alter the current course.
Today, all eyes are focused on the U.S. Building Permits preliminary data in a couple of hours. Economists, on average, forecast that August Building Permits will stand at 1.440M, compared to the previous value of 1.443M.
Also, investors are likely to focus on U.S. Housing Starts data, which was at 1.452M in July. Economists foresee the August figure to be 1.440M.
In the bond markets, United States 10-year rates are at 4.325%, up +0.16%.
The Euro Stoxx 50 futures are up +0.26% this morning as investors exercised caution and refrained from making big bets ahead of interest rate decisions by major central banks this week. Automobile and energy stocks gained ground on Tuesday, while industrial and tech stocks underperformed. Eurostat said on Tuesday that consumer inflation in the Eurozone for August was slightly below the initial estimate, although it still remained more than twice the European Central Bank’s target. Meanwhile, the Bank of England is set to meet on Thursday, and it is expected to implement its 15th consecutive interest rate hike, bringing benchmark borrowing costs to 5.5%. Also, European Central Bank Governing Council member Francois Villeroy de Galhau stated that the ECB would keep interest rates at 4% for as long as necessary to tame inflation, indicating that he is not inclined toward future rate hikes at this stage. In corporate news, Kingfisher Plc (KGF.LN) plunged over -6% after the European home improvement retailer slashed its annual profit guidance.
Eurozone’s CPI, Eurozone’s Core CPI, and Eurozone’s Current Account data were released today.
Eurozone August CPI has been reported at +0.5% m/m and +5.2% y/y, weaker than expectations of +0.6% m/m and +5.3% y/y.
Eurozone August Core CPI stood at +0.3% m/m and +5.3% y/y, in line with expectations.
Eurozone July Current Account came in at 20.9B, weaker than expectations of 30.2B.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.03%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.87%.
China’s Shanghai Composite today closed slightly lower as some investors maintained their cautious stance regarding the world’s second-largest economy despite recent data indicating some signs of stabilization. China’s central bank and forex regulator convened a meeting with foreign financial institutions and companies on Monday, including JPMorgan and HSBC, as part of Beijing’s efforts to attract overseas investment and support its economic recovery. People’s Bank of China Governor Pan Gongsheng said China would improve its policies and create a market-oriented and international-level business climate. Meanwhile, tourism, new energy, and computer stocks underperformed on Monday. On the positive side, Country Garden received bondholder approval on the last of a batch of eight local notes for which it had requested repayment extensions, while Sunac China Holdings gained approval from creditors for its debt restructuring plan.
“August activity data released last week showed some marginal improvement... However, we see very limited signs that the economy has truly bottomed out. All eyes are on the property sector after so many easing measures were rolled out in the past month,” said Ting Lu, chief China economist at Nomura.
Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan. Chip-making equipment maker Tokyo Electron plunged over -5% and was the top percentage loser on the Nikkei. Also, chip-testing equipment maker Advantest slid about -4%, while chip maker Renesas Electronics fell more than -4%. Meanwhile, the Bank of Japan will announce its policy decision on Friday following a two-day policy meeting. Investors are anticipating remarks from BOJ Governor Kazuo Ueda, who stated in an interview earlier this month that the central bank might gather sufficient data by year-end to assess whether conditions were suitable for raising short-term interest rates. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +5.82% to 16.92.
“Investors were cautious ahead of big events - the central meetings in the U.S. and Japan,” said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.
Pre-Market U.S. Stock Movers
Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
Dell Technologies Inc (DELL) rose about +1% in pre-market trading after Daiwa upgraded the stock to Outperform from Neutral.
Avinger Inc (AVGR) soared over +11% in pre-market trading after the pharma device manufacturer entered into an agreement as a sales agent to offer shares initially up to an aggregate offering price of $7M at-the-market public offering.
Kinnate Biopharma Inc (KNTE) plunged more than -8% in pre-market trading following the company’s announcement of a 70% reduction in its workforce as part of a realignment of its drug development initiatives. Also, Piper Sandler downgraded the stock to Neutral from Overweight.
Globus Medical (GMED) gained over +1% in pre-market trading after Stifel upgraded the stock to Buy from Hold.
Planet Fitness Inc (PLNT) dropped more than -4% in pre-market trading after JPMorgan downgraded the stock to Neutral from Overweight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - September 19th
AutoZone (AZO), Endava (DAVA), Apogee (APOG), Steelcase (SCS).
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Meanwhile, oil soared to a 10-month high, continuing a robust rally that could reignite inflation, as OPEC+ supply cuts tightened the market, and Saudi Arabia’s energy minister showed no inclination to alter the current course. China’s central bank and forex regulator convened a meeting with foreign financial institutions and companies on Monday, including JPMorgan and HSBC, as part of Beijing’s efforts to attract overseas investment and support its economic recovery.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. The Euro Stoxx 50 futures are up +0.26% this morning as investors exercised caution and refrained from making big bets ahead of interest rate decisions by major central banks this week. Pre-Market U.S. Stock Movers Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan. Pre-Market U.S. Stock Movers Nio Inc (NIO) slid over -4% in pre-market trading after announcing a proposed offering of $500M in aggregate principal amount of convertible senior notes due 2029 and $500M in aggregate principal amount of convertible senior notes due 2030.
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Apple Inc (AAPL) rose over +1% on optimism regarding robust pre-orders for the company’s latest iPhone 15. Also, European Central Bank Governing Council member Francois Villeroy de Galhau stated that the ECB would keep interest rates at 4% for as long as necessary to tame inflation, indicating that he is not inclined toward future rate hikes at this stage. Japan’s Nikkei 225 Stock Index closed lower today, with chip-related stocks leading the decline, as investors exercised caution in anticipation of central bank meetings in both the United States and Japan.
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13585.0
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2023-09-18 00:00:00 UTC
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2 Stocks That Are Cash Flow Machines to Buy Now
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AAPL
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https://www.nasdaq.com/articles/2-stocks-that-are-cash-flow-machines-to-buy-now
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nan
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nan
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While a profit metric like net income shouldn't be ignored, it's ultimately an accounting figure. Free cash flow, which is the amount of cash a business generates from operations after subtracting capital expenditures, is what fuels growth investments, dividend payments, share buybacks, and debt reduction. You can't spend net income.
Investing in companies that are solid cash flow producers is often a good idea, assuming the price is reasonable. Two cash flow machines that trade at pessimistic valuations are AT&T (NYSE: T) and IBM (NYSE: IBM). Both stocks look like bargains.
AT&T
With Apple's iPhone 15 family officially announced, the major wireless carriers are using promotions to attract new customers and retain existing customers. AT&T, for example, is offering as much as $1,000 off the iPhone 15 Pro with an eligible trade-in for customers on its Unlimited plans.
While this promotional activity appears aggressive, AT&T CFO Pascal Desroches noted during a recent conference that promotional activity is largely unchanged across the industry. "I would characterize the environment as really healthy. The competitive dynamics is very, very healthy, very rational," Desroches said.
During the same conference, Desroches reiterated AT&T's guidance calling for at least $16 billion of free cash flow this year, even as subscriber gains have slowed. Free cash flow could move higher in 2024 and beyond as AT&T pulls back a bit on capital spending. The company has been investing heavily in its 5G and fiber networks, pushing capital spending up. This year is expected to mark the peak of that spending.
AT&T is valued at about $109 billion. Based on the free cash guidance, the stock's price-to-free-cash-flow ratio is around 6.8. That's an extremely pessimistic valuation. AT&T stock certainly doesn't deserve to trade at a premium: Growth will be slow at best, debt levels are still elevated, and competitive pressures could ramp up if economic conditions deteriorate. But the pessimism seems overdone.
AT&T stock trades lower than it did during the dot-com bubble, the financial crisis, and the pandemic. For patient investors, this cash flow machine looks like a bargain.
IBM
While IBM is a complex company that spans hardware, software, and services, the tech giant ultimately offers customers solutions that aim to boost productivity and cut costs. In a tough and uncertain economy, that pitch should resonate with customers.
IBM's cloud strategy is centered around hybrid cloud computing. While some companies will go all-in on the public cloud, that's not realistic for major enterprises with sprawling IT infrastructures. IBM's hybrid cloud platform, powered by Red Hat software, provides a path for customers to modernize their infrastructure and take advantage of cloud computing while minimizing disruption and keeping an eye on costs. On top of software, IBM's consulting arm provides guidance and help in navigating the move to a hybrid cloud architecture.
Like nearly every enterprise-focused technology company, IBM is seeing demand slow for certain types of products and services. In the second quarter, the company noted that projects from customers that are more discretionary in nature were increasingly being delayed. However, demand for large transformation projects with the potential to deliver meaningful cost savings remains strong. Even during an economic downturn, IBM can produce solid results by helping its customers boost efficiency.
IBM has stuck with its full-year guidance all year. On top of 3% to 5% revenue growth adjusted for currency, the company sees free cash flow coming in around $10.5 billion. That's up more than $1 billion from 2022. With a market capitalization of about $133 billion, the stock trades for roughly 12.6 times free cash flow.
While IBM isn't the fastest-growing tech company, it's well-positioned to deliver solid results and free cash flow across a wide range of economic conditions.
10 stocks we like better than AT&T
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They just revealed what they believe are the ten best stocks for investors to buy right now... and AT&T wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Timothy Green has positions in AT&T and International Business Machines. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends International Business Machines. 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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AT&T stock certainly doesn't deserve to trade at a premium: Growth will be slow at best, debt levels are still elevated, and competitive pressures could ramp up if economic conditions deteriorate. While IBM is a complex company that spans hardware, software, and services, the tech giant ultimately offers customers solutions that aim to boost productivity and cut costs. While IBM isn't the fastest-growing tech company, it's well-positioned to deliver solid results and free cash flow across a wide range of economic conditions.
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Two cash flow machines that trade at pessimistic valuations are AT&T (NYSE: T) and IBM (NYSE: IBM). While IBM isn't the fastest-growing tech company, it's well-positioned to deliver solid results and free cash flow across a wide range of economic conditions. The Motley Fool recommends International Business Machines.
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Two cash flow machines that trade at pessimistic valuations are AT&T (NYSE: T) and IBM (NYSE: IBM). With a market capitalization of about $133 billion, the stock trades for roughly 12.6 times free cash flow. While IBM isn't the fastest-growing tech company, it's well-positioned to deliver solid results and free cash flow across a wide range of economic conditions.
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During the same conference, Desroches reiterated AT&T's guidance calling for at least $16 billion of free cash flow this year, even as subscriber gains have slowed. While IBM is a complex company that spans hardware, software, and services, the tech giant ultimately offers customers solutions that aim to boost productivity and cut costs. With a market capitalization of about $133 billion, the stock trades for roughly 12.6 times free cash flow.
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13586.0
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2023-09-18 00:00:00 UTC
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The 1 and Only Stock Warren Buffett Loves Even More Than Apple
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AAPL
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https://www.nasdaq.com/articles/the-1-and-only-stock-warren-buffett-loves-even-more-than-apple
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nan
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nan
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If there's one thing Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett does better than just about any other professional money manager, it's make money. Since taking the reins in 1965, the "Oracle of Omaha" (as he's been dubbed by Wall Street) has overseen a greater than 4,500,000% return for his company's Class A shares (BRK.A), as of Sept. 14, 2023.
Generating close to a 20% annualized return over the span of nearly six decades is going to get you noticed. Professional money managers and everyday investors alike eagerly await Berkshire Hathaway's quarterly 13F filing to get a glimpse at what one of the brightest minds on Wall Street has been buying and selling.
Based on Berkshire's 13Fs, as well as the Oracle of Omaha's commentary during his company's latest annual shareholder meeting, it would appear that no stock is loved more than tech giant Apple (NASDAQ: AAPL). But dig a bit deeper and you'll find one, and only one, stock that's even more near and dear to the Oracle of Omaha's investor-driven heart.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Apple checks all the right boxes for Warren Buffett
In mid-August, when Berkshire Hathaway filed its 13F, which provided a snapshot of the company's holdings as of June 30, 2023, Apple stood out as the clear top investment. As of the closing bell on Sept. 14, Apple accounted for 45.4% of Berkshire Hathaway's $354 billion investment portfolio. For context, Bank of America is the second-largest holding by market value at 8.5% of Berkshire's invested assets.
If you're looking for a single reason why Warren Buffett is seemingly infatuated with Apple, you won't find one. Rather, you'll find four reasons why Apple is considered "a better business than any we own," according to Buffett.
To start with, Apple is one of the world's most-valuable and recognized brands. It has a loyal customer base that regularly flocks to its stores or goes online to purchase its new products. Buffett loves businesses whose brand is so wholesome/valuable that sales are practically generated on their own.
Secondly, Buffett and his investing team are big fans of Apple's innovation. While Buffett has previously joked that he doesn't understand how Apple's iPhone works, he does have a good grasp of consumer behaviors. Apple's ongoing updates and upgrades to its flagship smartphone, as well as other physical devices, represent ways the company is bringing new customers into the fold and keeping existing clients loyal to the brand.
Warren Buffett also has complete faith in Apple's management team. While physical product innovation has continued under CEO Tim Cook, what's most important is that Apple is evolving into a platforms business. Continuing to shift more of its sales to subscription services should eventually provide a lift to Apple's operating margin, as well as smooth out the revenue vacillations often associated with major iPhone replacement cycles.
Lastly, Warren Buffett loves a hearty capital-return program. In addition to having one of the largest nominal-dollar dividend payouts on the planet ($15 billion) among public companies, Apple has repurchased in the neighborhood of $600 billion worth of its common stock since the start of 2013. These buybacks are increasing Berkshire's stake in Apple without Buffett or his team having to lift a finger.
Image source: Getty Images.
The one and only stock Warren Buffett loves even more than Apple
But for all the praise the Oracle of Omaha bestows on Apple, there's another stock that's even more treasured.
A quick look at Berkshire Hathaway's second-quarter 13F clearly shows that none of the company's holdings even come close to challenging Apple, based on market value. However, if you go beyond the company's 13F and dig into its quarterly operating results, you'll find another stock that Warren Buffett and executive vice chairman Charlie Munger simply can't stop buying. The name of that company is... (cue the trumpets) Berkshire Hathaway.
Prior to July 17, 2018, Warren Buffett and Charlie Munger were only permitted to repurchase their own company's stock if the price-to-book value of Berkshire's shares fell to or below 120% (i.e., no more than 20% above book value). For well over a half-decade leading up to this key date, Berkshire's stock never dipped below this mark, leading to zero buybacks.
But on July 17, 2018, Berkshire Hathaway's board passed new measures that would allow Buffett and Munger more liberty to repurchase their company's stock. As long as Berkshire has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet, and Berkshire's dynamic duo believes their company's shares are intrinsically cheap, buybacks can continue without a cap/ceiling.
Since the green flag began waving on this new buyback program, Buffett and Munger have been mashing the buy button with regularity. Buffett and Munger have bought back their own company's stock for 20 consecutive quarters, with the aggregate of these repurchases totaling in excess of $71 billion. That's nearly twice as much capital as has been devoted to buying shares of Apple since the start of 2016.
Since Berkshire Hathaway doesn't pay a dividend, this mammoth buyback program represents a way to reward the company's long-term investors. For example, retiring shares is incrementally increasing the ownership stakes of existing shareholders.
Additionally, Berkshire Hathaway's share repurchase program is having a positive impact on the company's earnings per share (EPS). Businesses with steady or growing net income (like Berkshire Hathaway) should see their EPS rise as the outstanding share count declines.
But most of all, buying back more than $71 billion worth of his company's stock is Buffett's way of demonstrating faith in the company he, Munger, and the rest of his investment team have built. Even though the Oracle of Omaha is viewed as a vital piece of the puzzle to Berkshire Hathaway's success, the investment ethos that's been fostered will be around long after the Oracle of Omaha is gone.
There's no question that Berkshire Hathaway is the one and only stock Warren Buffett loves even more than Apple.
10 stocks we like better than Berkshire Hathaway
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 11, 2023
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Based on Berkshire's 13Fs, as well as the Oracle of Omaha's commentary during his company's latest annual shareholder meeting, it would appear that no stock is loved more than tech giant Apple (NASDAQ: AAPL). Professional money managers and everyday investors alike eagerly await Berkshire Hathaway's quarterly 13F filing to get a glimpse at what one of the brightest minds on Wall Street has been buying and selling. Apple's ongoing updates and upgrades to its flagship smartphone, as well as other physical devices, represent ways the company is bringing new customers into the fold and keeping existing clients loyal to the brand.
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Based on Berkshire's 13Fs, as well as the Oracle of Omaha's commentary during his company's latest annual shareholder meeting, it would appear that no stock is loved more than tech giant Apple (NASDAQ: AAPL). If there's one thing Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett does better than just about any other professional money manager, it's make money. Since Berkshire Hathaway doesn't pay a dividend, this mammoth buyback program represents a way to reward the company's long-term investors.
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Based on Berkshire's 13Fs, as well as the Oracle of Omaha's commentary during his company's latest annual shareholder meeting, it would appear that no stock is loved more than tech giant Apple (NASDAQ: AAPL). Apple checks all the right boxes for Warren Buffett In mid-August, when Berkshire Hathaway filed its 13F, which provided a snapshot of the company's holdings as of June 30, 2023, Apple stood out as the clear top investment. The one and only stock Warren Buffett loves even more than Apple But for all the praise the Oracle of Omaha bestows on Apple, there's another stock that's even more treasured.
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Based on Berkshire's 13Fs, as well as the Oracle of Omaha's commentary during his company's latest annual shareholder meeting, it would appear that no stock is loved more than tech giant Apple (NASDAQ: AAPL). Berkshire Hathaway CEO Warren Buffett. Additionally, Berkshire Hathaway's share repurchase program is having a positive impact on the company's earnings per share (EPS).
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13587.0
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2023-09-18 00:00:00 UTC
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US STOCKS-Wall Street edges higher as investors eye Fed pause
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-edges-higher-as-investors-eye-fed-pause
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nan
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nan
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By Stephen Culp
NEW YORK, Sept 18 (Reuters) - Wall Street notched tentative gains on Monday as market participants looked ahead to the U.S. Federal Reserve's expected decision to leave key interest rates unchanged on Wednesday.
All three major U.S. stock indexes were up modestly in a choppy session, with few catalysts and little conviction heading into the Fed's two-day monetary policy meeting.
The central bank has vowed to remain agile with respect to economic data, which has shown signs that core inflation remains on its meandering descent back toward the Fed's annual 2% target, and suggests the U.S. economy remains on firm footing.
Against this backdrop, growing jitters that a stalemate on Capitol Hill could result in a potential government shutdown had market participants on edge.
Treasury Secretary Janet Yellen on Monday said that while she sees no risk of an economic downtown, she warned that a government shutdown would be "Creating ... a situation that could cause a loss of momentum is something we don't need as a risk at this point."
The week's main event is the Fed's policy meeting, which is expected culminate in a rate hike pause, leaving the Fed funds target rate unchanged for the second time since March 2022, when the central bank fired its opening salvo in its battle against inflation.
The Federal Open Markets Committee (FOMC) is also due to release its quarterly Summary of Economic Projections, which will include the "dot plot," or a glimpse into participating members' expectations regarding the future path of interest rates.
Financial markets have currently baked in a 99% certainty that the Fed will hold the key rate at 5.25%-5.00% on Wednesday. Beyond that, the trajectory is less certain, with a 69% likelihood of the FOMC holding firm in November, according to CME's FedWatch tool.
The Dow Jones Industrial Average .DJI rose 42.38 points, or 0.12%, to 34,660.62, the S&P 500 .SPX gained 7.39 points, or 0.17%, to 4,457.71 and the Nasdaq Composite .IXIC added 21.87 points, or 0.16%, to 13,730.20.
Technology shares .SPLRCT, led by Apple Inc AAPL.O, were the biggest gainers among the 11 major sectors of the S&P 500, while consumer discretionary stocks .SPLRCD suffered the biggest percentage drop, with Tesla Inc TSLA.O and Microsoft Corp MSFT.O weighing heaviest.
VF Corp VFC.N slumped 4.7% after Piper Sandler downgraded the apparel company's shares to "neutral" from "overweight."
British chipmaker Arm Holdings ARM.Oslid 7.2% after Bernstein initiated coverage with an "underperform" rating just days after its stellar debut.
Paypal Holdings dipped 1.6% after MoffettNathanson cut its rating to "market perform" from "outperform."
Declining issues outnumbered advancing ones on the NYSE by a 1.02-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored decliners.
The S&P 500 posted 5 new 52-week highs and 11 new lows; the Nasdaq Composite recorded 34 new highs and 205 new lows.
(Reporting by Stephen Culp; Additional reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by Aurora Ellis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Technology shares .SPLRCT, led by Apple Inc AAPL.O, were the biggest gainers among the 11 major sectors of the S&P 500, while consumer discretionary stocks .SPLRCD suffered the biggest percentage drop, with Tesla Inc TSLA.O and Microsoft Corp MSFT.O weighing heaviest. By Stephen Culp NEW YORK, Sept 18 (Reuters) - Wall Street notched tentative gains on Monday as market participants looked ahead to the U.S. Federal Reserve's expected decision to leave key interest rates unchanged on Wednesday. All three major U.S. stock indexes were up modestly in a choppy session, with few catalysts and little conviction heading into the Fed's two-day monetary policy meeting.
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Technology shares .SPLRCT, led by Apple Inc AAPL.O, were the biggest gainers among the 11 major sectors of the S&P 500, while consumer discretionary stocks .SPLRCD suffered the biggest percentage drop, with Tesla Inc TSLA.O and Microsoft Corp MSFT.O weighing heaviest. By Stephen Culp NEW YORK, Sept 18 (Reuters) - Wall Street notched tentative gains on Monday as market participants looked ahead to the U.S. Federal Reserve's expected decision to leave key interest rates unchanged on Wednesday. Against this backdrop, growing jitters that a stalemate on Capitol Hill could result in a potential government shutdown had market participants on edge.
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Technology shares .SPLRCT, led by Apple Inc AAPL.O, were the biggest gainers among the 11 major sectors of the S&P 500, while consumer discretionary stocks .SPLRCD suffered the biggest percentage drop, with Tesla Inc TSLA.O and Microsoft Corp MSFT.O weighing heaviest. By Stephen Culp NEW YORK, Sept 18 (Reuters) - Wall Street notched tentative gains on Monday as market participants looked ahead to the U.S. Federal Reserve's expected decision to leave key interest rates unchanged on Wednesday. The week's main event is the Fed's policy meeting, which is expected culminate in a rate hike pause, leaving the Fed funds target rate unchanged for the second time since March 2022, when the central bank fired its opening salvo in its battle against inflation.
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Technology shares .SPLRCT, led by Apple Inc AAPL.O, were the biggest gainers among the 11 major sectors of the S&P 500, while consumer discretionary stocks .SPLRCD suffered the biggest percentage drop, with Tesla Inc TSLA.O and Microsoft Corp MSFT.O weighing heaviest. By Stephen Culp NEW YORK, Sept 18 (Reuters) - Wall Street notched tentative gains on Monday as market participants looked ahead to the U.S. Federal Reserve's expected decision to leave key interest rates unchanged on Wednesday. The week's main event is the Fed's policy meeting, which is expected culminate in a rate hike pause, leaving the Fed funds target rate unchanged for the second time since March 2022, when the central bank fired its opening salvo in its battle against inflation.
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13588.0
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2023-09-18 00:00:00 UTC
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Stock Investors Remain Cautious Ahead of FOMC Meeting
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AAPL
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https://www.nasdaq.com/articles/stock-investors-remain-cautious-ahead-of-fomc-meeting
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Monday closed +0.07%, the Dow Jones Industrials Index ($DOWI) (DIA) closed +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed +0.15%.
Stocks on Monday stabilized after last Friday’s sell-off. Bullish factors Monday centered on a -3 bp decline in the 10-year T-note yield. Meanwhile, tech stocks saw support from a +1.7% rally in Apple and strength in chip stocks.
However, bearish factors that kept gains in check included the UAW strike, the possibility of a U.S. government shutdown on September 30, and a weak U.S. homebuilder report.
Monday’s NAHB U.S. housing market index fell by -5 points to a 5-month low of 45, much weaker than expectations for a -1 point drop to 49. The reduced confidence expressed by U.S. homebuilders suggests that home building activity may weaken in the coming months.
Stocks were undercut Monday by caution ahead of the 2-day FOMC meeting on Tuesday and Wednesday. The markets are fully expecting the FOMC this week to leave its funds rate target unchanged at 5.25/5.50%. However, the FOMC is expected to maintain a hawkish tone and remain open to one last rate hike since inflation and the economy have not yet slowed enough.
Looking ahead for the FOMC, the markets are discounting a 31% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting on November 1, and a 14% chance for that 25 bp rate hike at the following meeting on December 13. The markets are then expecting the FOMC to begin cutting rates in 2024 in response to an expected slowdown in the U.S. economy.
Overseas stock markets Monday closed mixed. The Euro Stoxx 50 fell -1.14%. China’s Shanghai Composite Index closed +0.26%. Japan was closed today for a national holiday.
Today’s stock movers…
Apple (AAPL) on Monday rallied by +1.69% on optimism about strong pre-orders for the company’s latest iPhone 15.
Micron (MU) rallied by +0.89% on an upgrade to buy from hold by Deutsche Bank on the basis that DRAM chip prices are rising faster than expected. The news supported other semiconductor stocks including Lam Research (LRCX) with a +2.01% gain, and gains of at least +1% in ON Semiconductor (ON), Applied Materials (AMAT), and NXP Semiconductors (NXPI).
Notable dlosers in the Nasdaq 100 Monday included Moderna (MRNA), Tesla (TSLA), AstraZeneca (AZN), and Paypal. PayPal Holdings (PYPL) fell -1.98% on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition.
L3Harris Technologies (LHX) rose +1.10% on an upgrade to overweight from equal-weight by Wells Fargo due to an improved risk-reward.
Alteryx (AYX) rose +4.49% on an upgrade to overweight from equal-weight by Morgan Stanley on the view of an attractive valuation versus its growth and profit potential.
NetApp (NTAP) fell -2.28% on a downgrade by William Blair to market-perform from outperform.
Clorox (CLX) fell -2.68% after the company said there was “unauthorized activity” on some of its IT systems in August that would negatively impact its fiscal Q1 results due to order processing delays.
Across the markets…
December 10-year T-notes (ZNZ23) Monday closed +2 ticks, and the 10-year T-note yield fell -3.2 bp to 4.301%. T-note prices Monday gained support from the weak NAHB report. By contrast, T-note prices were pressured early by the rise in oil prices to an 11-month high, which put upward pressure on inflation expectations. The 10-year breakeven inflation expectations rate Monday rose by +1.3 bp to 2.362%.
T-note prices were also under pressure from a rise in global bond yields. The 10-year German bund yield rose by +3.3 bp to 2.708%, and the 10-year UK gilt yield rose by +3.4 bp to 3.391%.
More Stock Market News from Barchart
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Analysts Hike Home Depot's Earnings Estimates, Making HD Stock a Bargain
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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Today’s stock movers… Apple (AAPL) on Monday rallied by +1.69% on optimism about strong pre-orders for the company’s latest iPhone 15. PayPal Holdings (PYPL) fell -1.98% on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition. Alteryx (AYX) rose +4.49% on an upgrade to overweight from equal-weight by Morgan Stanley on the view of an attractive valuation versus its growth and profit potential.
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Today’s stock movers… Apple (AAPL) on Monday rallied by +1.69% on optimism about strong pre-orders for the company’s latest iPhone 15. PayPal Holdings (PYPL) fell -1.98% on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition. Across the markets… December 10-year T-notes (ZNZ23) Monday closed +2 ticks, and the 10-year T-note yield fell -3.2 bp to 4.301%.
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Today’s stock movers… Apple (AAPL) on Monday rallied by +1.69% on optimism about strong pre-orders for the company’s latest iPhone 15. What you need to know… The S&P 500 Index ($SPX) (SPY) Monday closed +0.07%, the Dow Jones Industrials Index ($DOWI) (DIA) closed +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed +0.15%. Looking ahead for the FOMC, the markets are discounting a 31% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting on November 1, and a 14% chance for that 25 bp rate hike at the following meeting on December 13.
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Today’s stock movers… Apple (AAPL) on Monday rallied by +1.69% on optimism about strong pre-orders for the company’s latest iPhone 15. Meanwhile, tech stocks saw support from a +1.7% rally in Apple and strength in chip stocks. Overseas stock markets Monday closed mixed.
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13589.0
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2023-09-18 00:00:00 UTC
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Wedbush Reiterates Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/wedbush-reiterates-apple-aapl-outperform-recommendation-5
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nan
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nan
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Fintel reports that on September 18, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 16.96% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 16.96% from its latest reported closing price of 175.01.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6413 funds or institutions reporting positions in Apple. This is an increase of 24 owner(s) or 0.38% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.77%. Total shares owned by institutions increased in the last three months by 0.28% to 9,941,947K shares.
The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on September 18, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.77%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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Fintel reports that on September 18, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.77%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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Fintel reports that on September 18, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.77%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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Fintel reports that on September 18, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.14%, an increase of 8.77%. The put/call ratio of AAPL is 0.85, indicating a bullish outlook.
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13590.0
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2023-09-18 00:00:00 UTC
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After Hours Most Active for Sep 18, 2023 : CRH, QQQ, CSCO, TLT, PRVA, RITM, CHPT, AAPL, T, MMM, TD, CSX
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-18-2023-%3A-crh-qqq-csco-tlt-prva-ritm-chpt-aapl-t-mmm-td
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nan
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The NASDAQ 100 After Hours Indicator is up 3.56 to 15,228.93. The total After hours volume is currently 58,230,431 shares traded.
The following are the most active stocks for the after hours session:
CRH PLC (CRH) is unchanged at $53.51, with 3,807,128 shares traded. As reported by Zacks, the current mean recommendation for CRH is in the "strong buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.35 at $371.01, with 1,763,329 shares traded. This represents a 45.92% increase from its 52 Week Low.
Cisco Systems, Inc. (CSCO) is +0.09 at $56.20, with 1,675,249 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024. The consensus EPS forecast is $0.86. CSCO's current last sale is 96.9% of the target price of $58.
iShares 20+ Year Treasury Bond ETF (TLT) is +0.1 at $93.59, with 1,639,535 shares traded. This represents a 1.89% increase from its 52 Week Low.
Privia Health Group, Inc. (PRVA) is unchanged at $23.59, with 1,601,105 shares traded. As reported in the last short interest update the days to cover for PRVA is 9.466503; this calculation is based on the average trading volume of the stock.
Rithm Capital Corp. (RITM) is unchanged at $10.03, with 1,544,964 shares traded. As reported by Zacks, the current mean recommendation for RITM is in the "buy range".
ChargePoint Holdings, Inc. (CHPT) is +0.03 at $5.40, with 1,387,579 shares traded. As reported by Zacks, the current mean recommendation for CHPT is in the "buy range".
Apple Inc. (AAPL) is -0.11 at $177.86, with 1,273,262 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".
AT&T Inc. (T) is -0.01 at $15.08, with 1,197,957 shares traded. T's current last sale is 75.4% of the target price of $20.
3M Company (MMM) is unchanged at $101.04, with 1,171,479 shares traded. MMM's current last sale is 89.42% of the target price of $113.
Toronto Dominion Bank (The) (TD) is unchanged at $62.15, with 1,115,633 shares traded. As reported by Zacks, the current mean recommendation for TD is in the "buy range".
CSX Corporation (CSX) is unchanged at $31.10, with 1,101,281 shares traded. As reported by Zacks, the current mean recommendation for CSX is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.11 at $177.86, with 1,273,262 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024.
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Apple Inc. (AAPL) is -0.11 at $177.86, with 1,273,262 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 58,230,431 shares traded.
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Apple Inc. (AAPL) is -0.11 at $177.86, with 1,273,262 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024.
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Apple Inc. (AAPL) is -0.11 at $177.86, with 1,273,262 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024.
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13591.0
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2023-09-18 00:00:00 UTC
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Notable Monday Option Activity: MED, MRNA, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-med-mrna-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 Medifast Inc (Symbol: MED), where a total of 4,422 contracts have traded so far, representing approximately 442,200 underlying shares. That amounts to about 285% of MED's average daily trading volume over the past month of 155,185 shares. Especially high volume was seen for the $80 strike put option expiring December 15, 2023, with 2,006 contracts trading so far today, representing approximately 200,600 underlying shares of MED. Below is a chart showing MED's trailing twelve month trading history, with the $80 strike highlighted in orange:
Moderna Inc (Symbol: MRNA) saw options trading volume of 74,683 contracts, representing approximately 7.5 million underlying shares or approximately 185.3% of MRNA's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $105 strike put option expiring September 22, 2023, with 5,016 contracts trading so far today, representing approximately 501,600 underlying shares of MRNA. Below is a chart showing MRNA's trailing twelve month trading history, with the $105 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 112.2 million underlying shares, working out to a sizeable 175.1% of AAPL's average daily trading volume over the past month, of 64.1 million shares. Particularly high volume was seen for the $180 strike call option expiring September 22, 2023, with 133,154 contracts trading so far today, representing approximately 13.3 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for MED options, MRNA options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Dividend Stocks
CTCT Historical Stock Prices
STZ Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $180 strike call option expiring September 22, 2023, with 133,154 contracts trading so far today, representing approximately 13.3 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $105 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 112.2 million underlying shares, working out to a sizeable 175.1% of AAPL's average daily trading volume over the past month, of 64.1 million shares.
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Below is a chart showing MRNA's trailing twelve month trading history, with the $105 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. Particularly high volume was seen for the $180 strike call option expiring September 22, 2023, with 133,154 contracts trading so far today, representing approximately 13.3 million underlying shares of AAPL. That number of contracts represents approximately 112.2 million underlying shares, working out to a sizeable 175.1% of AAPL's average daily trading volume over the past month, of 64.1 million shares.
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Particularly high volume was seen for the $180 strike call option expiring September 22, 2023, with 133,154 contracts trading so far today, representing approximately 13.3 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $105 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 112.2 million underlying shares, working out to a sizeable 175.1% of AAPL's average daily trading volume over the past month, of 64.1 million shares.
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Particularly high volume was seen for the $180 strike call option expiring September 22, 2023, with 133,154 contracts trading so far today, representing approximately 13.3 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $105 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 1.1 million contracts thus far today. That number of contracts represents approximately 112.2 million underlying shares, working out to a sizeable 175.1% of AAPL's average daily trading volume over the past month, of 64.1 million shares.
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13592.0
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2023-09-18 00:00:00 UTC
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Stock Market News for Sep 18, 2023
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AAPL
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https://www.nasdaq.com/articles/stock-market-news-for-sep-18-2023
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nan
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nan
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U.S. stocks ended sharply lower on Friday as investors worried about a rise in inflation ahead of the Federal Reserve’s meeting next week. Also, mixed economic data and the auto workers strike dampened investors’ spirits. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.8% or 288.87 points to finish at 34,618.24 points.
The S&P 500 lost 1.2% or 54.78 points, to end at 4,450.32 points. Technology, consumer discretionary, materials and energy stocks were the worst performers.
The Technology Select Sector SPDR (XLK) slid 1.9%. The Consumer Discretionary Select Sector SPDR (XLY) fell 1.7%. The Materials Select Sector SPDR (XLB) and the Energy Select Sector SPDR (XLE) declined 1.1% and 1.5%, respectively. All 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slipped 1.6% or 217.72 points to close at 13,708.33 points.
The fear-gauge CBOE Volatility Index (VIX) was up 7.57% to 13.79.
Investors Worry Ahead of Fed Meeting
Investors have been worrying about inflationary pressures and the auto workers strike ahead of the Fed’s FOMC that begins on Sep 19. Inflation has declined sharply over the past year but still remains elevated and a lot higher than the Fed’s 2% target.
The economy has been holding strong, which has made the Fed’s fight against sky-high inflation difficult. This has been worrying investors although optimism is still high that the Federal Reserve is likely to keep its interest rates unchanged in its September meeting.
On Friday, the worries continued to build pressure on stocks as Treasury yields rose again. The 10-year Treasury yield rose 3.2 basis points to 4.321% on Friday.
This saw tech stocks taking a beating once again. Shares of Adobe Inc. (ADBE) fell 4.2%, despite the company posting an earnings and revenue beat. Adobe reported third-quarter fiscal 2023 non-GAAP earnings of $4.09 per share, beating the Zacks Consensus Estimate by 3.02%. Adobe carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) declined 0.4% and 2.5%.
Investors’ confidence has also been taking a hit owing to the auto workers’ strike. Several economists feel that the strike could drive up car prices, which could further add to the existing inflationary pressures.
Economic Data
Economic data released on Friday showed that U.S. industrial production rose 0.4% in August, surpassing expectations of a rise of 0.2%.
Separately, the New York Federal Reserve released data from its Empire State manufacturing survey, revealing that the business conditions index rose to 1.9 for the current month. Beating expectations of the economists who were expecting a negative reading on manufacturing activity within the state.
Weekly Roundup
The Dow ended the week 0.1% higher. However, both the S&P 500 and the Nasdaq ended the week in losses. The S&P 500 finished 0.2% lower for the week, while the Nasdaq was down 0.4% for the week.
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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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Also, shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) declined 0.4% and 2.5%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended sharply lower on Friday as investors worried about a rise in inflation ahead of the Federal Reserve’s meeting next week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) declined 0.4% and 2.5%. U.S. stocks ended sharply lower on Friday as investors worried about a rise in inflation ahead of the Federal Reserve’s meeting next week.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. Also, shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) declined 0.4% and 2.5%. U.S. stocks ended sharply lower on Friday as investors worried about a rise in inflation ahead of the Federal Reserve’s meeting next week.
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Also, shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT) declined 0.4% and 2.5%. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks ended sharply lower on Friday as investors worried about a rise in inflation ahead of the Federal Reserve’s meeting next week.
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13593.0
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2023-09-18 00:00:00 UTC
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Keep on Buying Apple Stock as Initial iPhone 15 Pre-Orders Look Strong, Says Top Analyst
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AAPL
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https://www.nasdaq.com/articles/keep-on-buying-apple-stock-as-initial-iphone-15-pre-orders-look-strong-says-top-analyst
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nan
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nan
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Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. The evidence can be seen in the muted recent share price performance. Since the start of the month, the stock is down by ~7.5%, with the new model’s launch failing to ignite a rally while concerns around a Chinese ban of government employees using iPhones have lingered.
That said, checking in with the initial pre-orders data, Wedbush analyst Dan Ives says it is coming in much better than he – or the Street - initially expected. iPhone 15 pre-orders kicked off last Friday, and so far, based on Ives’ analysis, are up roughly 10%-12% vs. the iPhone 14.
“The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe,” says the 5-star analyst. “This is a clear positive for Apple with ASPs set to be a major tailwind for Cupertino in this iPhone 15 cycle with our expectation of an ASP in the ~$925 range and up roughly $100 over the last 12-15 months given heavy Pro mix model shifts.”
The iPhone 15 is set to make its Apple Store/retail debut on Friday (Sep 22), with Ives believing this cycle’s “clear standout” will be the iPhone 15 Max. According to Ives, pre-orders in India are showing a 25% year-over-year increase, and promisingly, in the face plenty of China-related noise, are looking strong in that region too. Despite growing Street skepticism, Ives remains confident market share gains “will remain steady” in China during this cycle.
Based on Asia supply checks, Ives sees around 85 million iPhone 15 units “out of the gates” with even 90 million within reach, boosted by “eye-popping” carrier promotions already taking place, which heading into the holiday season, should be a “major catalyst for upgrades.”
That said, there’s no need for an upgrade on Ives’ part right now. He sticks with an Outperform (i.e., Buy) rating and Street-high $240 price target. There’s potential upside of 37% from current levels. (To watch Ives’ track record, click here)
Most analysts agree with Ives’ stance but not all are on board. All told, the stock claims a Moderate Buy consensus rating, based on 22 Buys vs. 8 Holds. Going by the $207.39 average target, a year from now, the stock will be changing hands for an 18% premium. (See Apple stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and 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) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. Since the start of the month, the stock is down by ~7.5%, with the new model’s launch failing to ignite a rally while concerns around a Chinese ban of government employees using iPhones have lingered. According to Ives, pre-orders in India are showing a 25% year-over-year increase, and promisingly, in the face plenty of China-related noise, are looking strong in that region too.
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Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. iPhone 15 pre-orders kicked off last Friday, and so far, based on Ives’ analysis, are up roughly 10%-12% vs. the iPhone 14. “The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe,” says the 5-star analyst.
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Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. “This is a clear positive for Apple with ASPs set to be a major tailwind for Cupertino in this iPhone 15 cycle with our expectation of an ASP in the ~$925 range and up roughly $100 over the last 12-15 months given heavy Pro mix model shifts.” The iPhone 15 is set to make its Apple Store/retail debut on Friday (Sep 22), with Ives believing this cycle’s “clear standout” will be the iPhone 15 Max. Based on Asia supply checks, Ives sees around 85 million iPhone 15 units “out of the gates” with even 90 million within reach, boosted by “eye-popping” carrier promotions already taking place, which heading into the holiday season, should be a “major catalyst for upgrades.” That said, there’s no need for an upgrade on Ives’ part right now.
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Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. iPhone 15 pre-orders kicked off last Friday, and so far, based on Ives’ analysis, are up roughly 10%-12% vs. the iPhone 14. “The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe,” says the 5-star analyst.
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13594.0
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2023-09-18 00:00:00 UTC
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US STOCKS-Wall St subdued as chipmakers, growth stocks drag; Fed rate meet in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-subdued-as-chipmakers-growth-stocks-drag-fed-rate-meet-in-focus
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nan
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nan
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By Ankika Biswas and Shristi Achar A
Sept 18 (Reuters) - Wall Street's main indexes were subdued in choppy trading on Monday as some megacap and chip stocks declined in the run-up to the Federal Reserve's interest rate decision later this week.
Treasury yields edged higher on uncertainty around the U.S. interest-rate trajectory through the year-end, pressuring some major growth names including Nvidia NVDA.O and Tesla TSLA.O, down 3.1% and 3.8%, respectively. Apple AAPL.O bucked the broader trend to rise 1.1%.
UK-based chip designer Arm HoldingsARM.O, which had a stellar debut on Thursday, dropped 6.1% after Bernstein started covering the stock with an "underperform" rating.
A slump in chipmakers on concerns over weak demand and a slide in megacap growth stocks had driven the S&P 500 .SPX, the Nasdaq .IXIC and the Dow .DJI to their worst single-day fall on Friday since Aug. 24, with the indexes losing between 0.8% and 1.5%.
A recent inflow of hotter-than-expected economic data has eased concerns about a potential recession, without raising fears of a September rate hike, though an uptick in crude prices threatens to keep inflation elevated, with oil prices firming on Monday. O/R
Stronger crude prices, however, made the energy sector .SPNY a bright spot among major S&P 500 segments, up 0.5%.
"Oil prices have entered into the narrative now and the Fed will consider this," said Peter Andersen, founder of Andersen Capital Management.
"There will be a pause in September as indicated by the futures market. It is very important that we watch the upcoming CPI numbers and the employment numbers because they could have a strong impact on the way the Fed will wrap up the year."
Traders largely expect the Fed to keep rates unchanged at 5.25% to 5.5% during its meeting on Wednesday, while their odds for another pause in November stand at 69%, according to the CME FedWatch Tool.
Goldman Sachs, much like other big investors such as J.P. Morgan Asset Management and Janus Henderson Investors, anticipates the central bank to lift its economic growth projections this week. It also expects rates to have peaked.
At 9:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 5.31 points, or 0.02%, at 34,623.55, the S&P 500 .SPX was down 7.55 points, or 0.17%, at 4,442.77, and the Nasdaq Composite .IXIC was down 38.09 points, or 0.28%, at 13,670.24.
Bucking the trend among its peers, chipmaker Micron Technology MU.O rose 0.7%, following Friday's rout, after Deutsche Bank upgraded its rating on the stock to "buy" from "hold".
L3Harris Technologies LHX.N rose 0.9% after Wells Fargo upgraded the aerospace and defense firm to "overweight" from "equal-weight".
Paypal Holdings PYPL.O lost 2% after MoffettNathanson downgraded the digital payments firm to "market perform" from "outperform".
Declining issues outnumbered advancers by a 1.73-to-1 ratio on the NYSE and by a 1.86-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and nine new lows, while the Nasdaq recorded 16 new highs and 99 new lows.
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by Savio D'Souza and 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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Apple AAPL.O bucked the broader trend to rise 1.1%. By Ankika Biswas and Shristi Achar A Sept 18 (Reuters) - Wall Street's main indexes were subdued in choppy trading on Monday as some megacap and chip stocks declined in the run-up to the Federal Reserve's interest rate decision later this week. A slump in chipmakers on concerns over weak demand and a slide in megacap growth stocks had driven the S&P 500 .SPX, the Nasdaq .IXIC and the Dow .DJI to their worst single-day fall on Friday since Aug. 24, with the indexes losing between 0.8% and 1.5%.
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Apple AAPL.O bucked the broader trend to rise 1.1%. By Ankika Biswas and Shristi Achar A Sept 18 (Reuters) - Wall Street's main indexes were subdued in choppy trading on Monday as some megacap and chip stocks declined in the run-up to the Federal Reserve's interest rate decision later this week. Bucking the trend among its peers, chipmaker Micron Technology MU.O rose 0.7%, following Friday's rout, after Deutsche Bank upgraded its rating on the stock to "buy" from "hold".
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Apple AAPL.O bucked the broader trend to rise 1.1%. By Ankika Biswas and Shristi Achar A Sept 18 (Reuters) - Wall Street's main indexes were subdued in choppy trading on Monday as some megacap and chip stocks declined in the run-up to the Federal Reserve's interest rate decision later this week. A recent inflow of hotter-than-expected economic data has eased concerns about a potential recession, without raising fears of a September rate hike, though an uptick in crude prices threatens to keep inflation elevated, with oil prices firming on Monday.
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Apple AAPL.O bucked the broader trend to rise 1.1%. A recent inflow of hotter-than-expected economic data has eased concerns about a potential recession, without raising fears of a September rate hike, though an uptick in crude prices threatens to keep inflation elevated, with oil prices firming on Monday. "There will be a pause in September as indicated by the futures market.
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13595.0
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2023-09-18 00:00:00 UTC
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Analyzing a Company's Financial Statements for Dividend Potential
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AAPL
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https://www.nasdaq.com/articles/analyzing-a-companys-financial-statements-for-dividend-potential
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nan
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nan
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Do you want to increase your income? Maybe you've been looking for a way to boost your investment returns.
Analyzing a company's financial statements could be the key to unlocking your goals of increasing your dividend payments.
Financial statements are the lifeblood of any investor. They can guide you toward determining the profitability prospects of a company and any potential dividends it may make available. This article will show different ways to analyze a company's financial statements to maximize your returns or income.
What is Dividend Potential, and Why is it Important?
Dividend potential in a publicly traded company indicates the company's ability to generate profits and pay out dividends to shareholders.
Many income investors closely consider dividend potential when they analyze a company's financial statements. It can provide valuable insight into the company's performance and future prospects for generating a steady stream of income.
The analysis of dividend potential involves comparing a company's current financial performance against past trends and industry benchmarks and factoring in less tangible metrics like management and competitive advantages. By doing this, you can estimate what future dividends may pay out.
How to Analyze a Company’s Financial Statements for Dividend Potential
Analyzing a company's financial statements isn't for casual investors. It can be complex and time-consuming. It requires you to understand the company’s financial position and performance thoroughly. But it can be rewarding if you're willing to take the time and educate yourself.
Financial statements are available for any company listed on MarketBeat by clicking on the "Financial Statements" tab (below, using Apple Inc. (NASDAQ: AAPL).
Below are some of the key aspects to consider.
Earnings and Revenues
The company’s earnings provide information about its profitability, while its revenues offer information about its ability to generate cash flows.
Look at the company’s net income (NI), operating income and return on equity (ROE). The company’s net income is the amount of money left after all expenses have been deducted from the company’s revenue. Operating income is the company’s profit from operations after all operating costs have been deducted from the company’s gross income.
The ROE measures a company’s profitability by dividing net income by the company’s shareholders’ equity. Suppose a company has a net income of $100,000 and shareholders' equity of $500,000.
To calculate the ROE, use the formula:
ROE = Net Income / Shareholders' Equity = 100,000 / 500,000 = 0.2 or 20%
This indicates that for every dollar invested in shareholders' equity, there was a return of 20%. This company has good potential to pay out dividends to its investors in the near future.
The higher the company’s net income, operating income, and return on equity, the more likely it is that it will be able to pay a dividend.
Cash Flow
The company’s cash flows provide information about its ability to generate cash and pay out dividends.
The key financial metric to look at here is the company’s free cash flow. Free cash flow is the amount available to the company after all operating and capital expenses have been deducted from the company’s revenues. The higher the free cash flow, the more likely the company will be able to use that cash to pay out a dividend.
Balance Sheet
The balance sheet provides information about the company's assets, liabilities and equity. The key financial metric to look at when analyzing a company’s balance sheet is the company’s debt-to-equity ratio. This ratio measures a company’s financial leverage by dividing total liabilities by shareholders’ equity.
You may want to steer clear of businesses with high debt-to-equity ratios, as they may be less likely to afford to pay out dividends and more likely to go bankrupt during financial hardship.
Other Factors to Consider
Other non-numerical factors — ones you may not find on the financial statements — also factor into a company's potential to pay dividends.
Past Trends
Look at past trends when evaluating a company’s dividend potential, including analyzing its historical stock prices, revenue growth rates and cash flows over time. You can gain insight into how well a company has performed in the past and whether or not it may have the ability to pay dividends in the future.
Industry Benchmarks, Competition and Trends
Compare a company’s performance against industry benchmarks, which include key financial metrics such as net income and return on equity (described above) against market averages or competing companies. Comparing these benchmarks gives an idea of how well a company performs relative to its peers.
By looking at the competitors’ earnings, revenues and cash flows, you can compare each company's prospects for paying dividends. Also, look at current and projected trends within the industry to understand how well the company is positioned relative to its competitors and whether it has strong prospects for earning you income in the future.
Management Quality
Good management teams are essential for successful companies. They can be a key indicator of dividend potential. The most successful management teams have experience with the company’s business and industry and a proven track record of success.
Customer Loyalty
Businesses with loyal customers are more likely to generate higher revenues and profits, which can lead to higher dividends. Look for evident customer relationships, such as repeat purchases or high customer satisfaction ratings.
Product Diversification
Is the company only in one market? Companies with multiple products in different markets provide more chances for growth and can generate higher profits and cash flows, making them more likely to pay out dividends. Look for companies with diversified products, geographic locations and revenue streams. If one business area lags, another can pick up the slack.
Competitive Advantages and Disadvantages
Companies with unique competitive advantages such as brand recognition or proprietary technology can sometimes be better positioned to pay dividends than those without clear legs up on the competition. On the other hand, companies with significant competitive disadvantages, such as high costs or low margins, may struggle to generate enough profits to pay out dividends.
Example of a Company with High Dividend Potential
A practical example of a company with a high dividend potential is Apple. Apple has consistently grown its earnings and revenue over the past few years, resulting in strong net income and operating income. It has also maintained a healthy return on equity of over 70%, indicating that the company is generating strong returns for its shareholders.
Furthermore, Apple’s free cash flow has remained strong, allowing it to generate enough cash to pay out dividends. All of these factors make it likely that Apple will continue to pay dividends in the future.
Unlocking Dividend Potential
Analyzing a company’s financial statements for dividend potential can't be done overnight. It's a complex and time-consuming process. However, by learning how to analyze the company’s earnings and revenues, cash flows and balance sheet, you can get a much more accurate assessment of the company’s dividend potential.
It can give you an advantage over other investors who don't take the time and are more likely to earn you a steady, lucrative dividend yield.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Financial statements are available for any company listed on MarketBeat by clicking on the "Financial Statements" tab (below, using Apple Inc. (NASDAQ: AAPL). The analysis of dividend potential involves comparing a company's current financial performance against past trends and industry benchmarks and factoring in less tangible metrics like management and competitive advantages. Also, look at current and projected trends within the industry to understand how well the company is positioned relative to its competitors and whether it has strong prospects for earning you income in the future.
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Financial statements are available for any company listed on MarketBeat by clicking on the "Financial Statements" tab (below, using Apple Inc. (NASDAQ: AAPL). The analysis of dividend potential involves comparing a company's current financial performance against past trends and industry benchmarks and factoring in less tangible metrics like management and competitive advantages. How to Analyze a Company’s Financial Statements for Dividend Potential Analyzing a company's financial statements isn't for casual investors.
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Financial statements are available for any company listed on MarketBeat by clicking on the "Financial Statements" tab (below, using Apple Inc. (NASDAQ: AAPL). Dividend potential in a publicly traded company indicates the company's ability to generate profits and pay out dividends to shareholders. How to Analyze a Company’s Financial Statements for Dividend Potential Analyzing a company's financial statements isn't for casual investors.
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Financial statements are available for any company listed on MarketBeat by clicking on the "Financial Statements" tab (below, using Apple Inc. (NASDAQ: AAPL). The analysis of dividend potential involves comparing a company's current financial performance against past trends and industry benchmarks and factoring in less tangible metrics like management and competitive advantages. Industry Benchmarks, Competition and Trends Compare a company’s performance against industry benchmarks, which include key financial metrics such as net income and return on equity (described above) against market averages or competing companies.
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13596.0
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2023-09-18 00:00:00 UTC
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Dow Movers: HD, AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-hd-aapl-0
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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 1.3%. Year to date, Apple registers a 36.4% gain.
And the worst performing Dow component thus far on the day is Home Depot, trading down 2.5%. Home Depot is showing a gain of 1.8% looking at the year to date performance.
Two other components making moves today are McDonald's, trading down 2.3%, and Amgen, trading up 1.2% on the day.
VIDEO: Dow Movers: HD, 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: HD, 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 1.3%. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.5%.
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VIDEO: Dow Movers: HD, 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 1.3%. Year to date, Apple registers a 36.4% gain.
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VIDEO: Dow Movers: HD, 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 1.3%. And the worst performing Dow component thus far on the day is Home Depot, trading down 2.5%.
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VIDEO: Dow Movers: HD, 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 is Home Depot, trading down 2.5%. Home Depot is showing a gain of 1.8% looking at the year to date performance.
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13597.0
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2023-09-18 00:00:00 UTC
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Monday Sector Leaders: Technology & Communications, Industrial
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AAPL
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-technology-communications-industrial-1
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nan
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nan
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Looking at the sectors faring best as of midday Monday, shares of Technology & Communications companies are outperforming other sectors, higher by 0.3%. Within that group, Tyler Technologies, Inc. (Symbol: TYL) and Apple Inc (Symbol: AAPL) are two large stocks leading the way, showing a gain of 3.3% and 2.3%, respectively. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 1.9% on the day, and up 37.58% year-to-date. Tyler Technologies, Inc., meanwhile, is up 21.41% year-to-date, and Apple Inc is up 43.73% year-to-date. Combined, TYL and AAPL make up approximately 22.3% of the underlying holdings of XLK.
The next best performing sector is the Industrial sector, higher by 0.2%. Among large Industrial stocks, L3Harris Technologies Inc (Symbol: LHX) and Axon Enterprise Inc (Symbol: AXON) are the most notable, showing a gain of 2.2% and 2.2%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is down 0.6% in midday trading, and up 7.51% on a year-to-date basis. L3Harris Technologies Inc, meanwhile, is down 13.07% year-to-date, and Axon Enterprise Inc is up 25.29% year-to-date. Combined, LHX and AXON make up approximately 1.5% of the underlying holdings of XLI.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, four sectors are up on the day, while five sectors are down.
SECTOR % CHANGE
Technology & Communications +0.3%
Industrial +0.2%
Energy +0.2%
Utilities +0.1%
Consumer Products -0.1%
Materials -0.2%
Services -0.3%
Healthcare -0.3%
Financial -1.0%
10 ETFs With Stocks That Insiders Are Buying »
Also see:
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OFC Price Target
LNZA shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, TYL and AAPL make up approximately 22.3% of the underlying holdings of XLK. Within that group, Tyler Technologies, Inc. (Symbol: TYL) and Apple Inc (Symbol: AAPL) are two large stocks leading the way, showing a gain of 3.3% and 2.3%, respectively. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday.
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Within that group, Tyler Technologies, Inc. (Symbol: TYL) and Apple Inc (Symbol: AAPL) are two large stocks leading the way, showing a gain of 3.3% and 2.3%, respectively. Combined, TYL and AAPL make up approximately 22.3% of the underlying holdings of XLK. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 1.9% on the day, and up 37.58% year-to-date.
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Within that group, Tyler Technologies, Inc. (Symbol: TYL) and Apple Inc (Symbol: AAPL) are two large stocks leading the way, showing a gain of 3.3% and 2.3%, respectively. Combined, TYL and AAPL make up approximately 22.3% of the underlying holdings of XLK. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 1.9% on the day, and up 37.58% year-to-date.
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Within that group, Tyler Technologies, Inc. (Symbol: TYL) and Apple Inc (Symbol: AAPL) are two large stocks leading the way, showing a gain of 3.3% and 2.3%, respectively. Combined, TYL and AAPL make up approximately 22.3% of the underlying holdings of XLK. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 1.9% on the day, and up 37.58% year-to-date.
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13598.0
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2023-09-18 00:00:00 UTC
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Qualcomm and Apple Forge Ahead with New Modem Partnership
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AAPL
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https://www.nasdaq.com/articles/qualcomm-and-apple-forge-ahead-with-new-modem-partnership
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nan
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nan
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Smartphone chipmaker Qualcomm Inc. (NASDAQ: QCOM) finished higher for the week ended September 15, after inking a five-year deal to produce 5G modems for Apple Inc. (NASDAQ: AAPL).
Qualcomm has been doing business with Apple for years, with analysts estimating that 20% or possibly a little more of Qualcomm’s revenue comes from Apple.
The deal to produce the 5G modems wasn’t a shoo-in.
Qualcomm already makes 5G modems for iPhones, but Apple has been developing its own version of the gear since purchasing Intel Inc.’s (NASDAQ: INTC) smartphone modem business in 2019.
However, moving to produce its own modems hasn’t been as easy as Apple may have thought, as the intricate architecture of Qualcomm's chips means they’re challenging to substitute.
The Apple iPhone 15, released on September 12, incorporates Qualcomm modems, but that was expected.
Partners Who Also Have Legal Fights
Qualcomm and Apple have a relationship that could be characterized as “frenemies.” Sure, they just extended their 5G modem partnership, but the two companies also have a history of legal battles.
In 2019, the companies settled out-of-court over billions in licensing fees and royalties for modem chips. The two were about to go to trial, with Apple pivoting away from Qualcomm chips. It was a complicated case, but Apple objected to Qualcomm’s prices and its insistence on licensing fees for its patented chips.
In fact, Apple began using Intel’s chips as the dispute wore on, prior to the settlement. It has since returned to using Qualcomm chips, which was part of the settlement, which also included a six-year royalty agreement.
The new agreement covers smartphones released in 2024, 2025 and 2026. The deal may be extended through 2028. However, Qualcomm officials have said they expect the company to provide Apple with only 20% of the modems for the 2026 iPhone launch, indicating that it expects Apple’s business to gradually diminish.
Qualcomm’s handset revenue totaled $5.26 billion in the quarter ended in June.
Risks of Apple, Samsung Business Declining
In its 2022 annual report, Qualcomm noted that Apple and Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) were both significant customers. It’s always a risk for any company to see declining business from one or more of its biggest purchasers.
In that same report, Qualcomm noted Apple’s purchase of Intel’s modem business, saying, “We expect Apple to use its own modem products, rather than our products, in some or all of its future devices.”
MarketBeat’s Qualcomm analyst ratings show a consensus view of “moderate buy” with a price target of $141.96, an upside of 25.47%.
Qualcomm’s earnings and revenue both declined in the past three quarters. Wall Street has pegged full-year earnings at $6.68 per share, a year-over-year decline of 47%, which is pretty big.
So what’s going on?
Smartphone Sales Dropping Worldwide
Simple: A global decline in smartphone sales. In an August report, research firm Counterpoint said the global smartphone market declined by 9% year-over-year.
A sharp drop in purchases by Chinese consumers has led the decline, but sales in the U.S. have also been sluggish, relative to previous years.
Analysts expect that situation to stabilize, leading to earnings growth of 10% next year, to $7.35 a share.
In its most recent quarterly report, Qualcomm topped analysts’ earnings views, but missed on the revenue side, which you can see using MarketBeat’s Qualcomm earnings data.
On a year-over-year basis, earnings dropped by 39% while sales declined by 23%.
The Qualcomm chart shows you the stock has had trouble gaining any longer-term traction since early 2022, although there have been shorter, tradable rallies.
Qualcomm’s price performance has been lagging other chip designers in its industry, but it’s stacked up against AI juggernauts like Nvidia Corp. (NASDAQ: NVDA) and Broadcom Inc. (NASDAQ: AVGO).
Eking Out a Small Yearly Gain
However, Qualcomm has posted a year-to-date gain of 2.91%.
That doesn’t sound like much when compared with the performance of other computer and technology stocks this year, but as one of the tech-sector grandaddies, which participated in the 1999 dot-com rally, Qualcomm has something many other techs don’t: A dividend.
MarketBeat’s Qualcomm dividend data shows a yield of 2.83%, and a 21-year track record of boosting the shareholder payout. That means there’s some incentive for investors as they wait out the stock’s listless performance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Smartphone chipmaker Qualcomm Inc. (NASDAQ: QCOM) finished higher for the week ended September 15, after inking a five-year deal to produce 5G modems for Apple Inc. (NASDAQ: AAPL). However, moving to produce its own modems hasn’t been as easy as Apple may have thought, as the intricate architecture of Qualcomm's chips means they’re challenging to substitute. The Qualcomm chart shows you the stock has had trouble gaining any longer-term traction since early 2022, although there have been shorter, tradable rallies.
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Smartphone chipmaker Qualcomm Inc. (NASDAQ: QCOM) finished higher for the week ended September 15, after inking a five-year deal to produce 5G modems for Apple Inc. (NASDAQ: AAPL). Risks of Apple, Samsung Business Declining In its 2022 annual report, Qualcomm noted that Apple and Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) were both significant customers. In that same report, Qualcomm noted Apple’s purchase of Intel’s modem business, saying, “We expect Apple to use its own modem products, rather than our products, in some or all of its future devices.” MarketBeat’s Qualcomm analyst ratings show a consensus view of “moderate buy” with a price target of $141.96, an upside of 25.47%.
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Smartphone chipmaker Qualcomm Inc. (NASDAQ: QCOM) finished higher for the week ended September 15, after inking a five-year deal to produce 5G modems for Apple Inc. (NASDAQ: AAPL). Qualcomm has been doing business with Apple for years, with analysts estimating that 20% or possibly a little more of Qualcomm’s revenue comes from Apple. Qualcomm already makes 5G modems for iPhones, but Apple has been developing its own version of the gear since purchasing Intel Inc.’s (NASDAQ: INTC) smartphone modem business in 2019.
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Smartphone chipmaker Qualcomm Inc. (NASDAQ: QCOM) finished higher for the week ended September 15, after inking a five-year deal to produce 5G modems for Apple Inc. (NASDAQ: AAPL). Qualcomm has been doing business with Apple for years, with analysts estimating that 20% or possibly a little more of Qualcomm’s revenue comes from Apple. In its most recent quarterly report, Qualcomm topped analysts’ earnings views, but missed on the revenue side, which you can see using MarketBeat’s Qualcomm earnings data.
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13599.0
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2023-09-18 00:00:00 UTC
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Arm's Blockbuster IPO: Big Names and High Expectations
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AAPL
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https://www.nasdaq.com/articles/arms-blockbuster-ipo%3A-big-names-and-high-expectations
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nan
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nan
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The market’s biggest winners are frequently stocks that made their public debut within the past few years, which is one reason why the September 14 initial public offering of Arm Holdings plc (NASDAQ: ARMH) is getting so much attention.
The U.K.-based chip designer raised nearly $5 billion. The company priced 95.5 million shares at $51 apiece. That pricing was at the high end of its expected price range of $47 to $51.
There’s been some behind-the-scenes drama surrounding Arm’s IPO.
In 2020, Nvidia Corp. (NASDAQ: NVDA) said it would buy Arm from Japanese holding company SoftBank for $40 billion, but the Federal Trade Commission and U.K. regulators put the kibosh on the deal, saying it would harm competition.
When Nvidia said in early 2022 that it would terminate the deal, SoftBank said it would begin preparations for an IPO.
Prior to the IPO, Nvidia and Intel Corp. (NASDAQ: INTC) confirmed they planned to invest in Arm.
Tech Hall of Fame Investors
The roster of Arm investors reads like a who’s who of big tech: Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), Advanced Micro Devices Inc. (NASDAQ: AMD) and Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) are among shareholders.
Arm set aside more than $700 million worth of shares for big techs.
So why the excitement about this particular company?
The company has a wide reach: You can find Arm’s architecture in almost all smartphone chips, which explains why both Apple and Samsung were eager to jump on board.
Arm’s intellectual property also powers other mobile devices, including wearables and tablets. The company also does a brisk business for sensors and Internet of Things chips.
In media interviews, Arm chief financial officer Jason Child said the company derives a significant chunk of revenue from products released many years ago, for which it continues to receive royalties.
Recurring Revenue is Good Starting Point
Far from being a warning sign about a reliance on outdated products, that recurring revenue forms a basis from which the company can innovate and develop new products.
Arm said it anticipates theglobal marketfor its chip designs to be around $250 billion by 2025. That figure includes revenue growth in the automotive and data center markets, both of which it’s targeted as areas of expansion.
The sheer size of Arm’s IPO also energized investors. With the amount raised in the deal, Arm is the largest U.S. IPO this year, and the largest since the 2021 debut of electric truckmaker Rivian Automotive Inc. (NASDAQ: RIVN).
Rivian, which has yet to turn a profit and is expected to continue losing money in the foreseeable future, raised $12 million in its debut based on excitement about the EV market, which has since waned.
While it might seem that Arm is benefiting from the AI frenzy that sent all manner of tech stocks higher this year, investor enthusiasm for that theme also seems to have peaked.
Direct AI Revenue Won't Happen Soon
In any event, analysts say any substantial revenue that Arm will directly generate from AI applications is several years down the road.
A vibrant IPO market is crucial for the broader equity market, as it marks an injection of fresh capital. In turn, promotes innovation and offers opportunities for investors to participate in promising startups and established firms alike.
While there have been other eagerly anticipated IPOs in 2023, Arm’s offering may indicate a shift in what’s otherwise been a trickle, compared to the flood of IPOs in some years.
There have been 111 U.S. IPOs this year as of September 15, down 29% from the same date a year ago.
It’s too early to say whether Arm will deliver the rally that many expect. Shares closed at $63.59 on their opening day, up 25% from the IPO price. They declined by 2.06% in the following session, but could easily be chalked up to some quick profit-taking, and investors shouldn’t read much into that.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech Hall of Fame Investors The roster of Arm investors reads like a who’s who of big tech: Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), Advanced Micro Devices Inc. (NASDAQ: AMD) and Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) are among shareholders. In 2020, Nvidia Corp. (NASDAQ: NVDA) said it would buy Arm from Japanese holding company SoftBank for $40 billion, but the Federal Trade Commission and U.K. regulators put the kibosh on the deal, saying it would harm competition. In media interviews, Arm chief financial officer Jason Child said the company derives a significant chunk of revenue from products released many years ago, for which it continues to receive royalties.
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Tech Hall of Fame Investors The roster of Arm investors reads like a who’s who of big tech: Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), Advanced Micro Devices Inc. (NASDAQ: AMD) and Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) are among shareholders. The market’s biggest winners are frequently stocks that made their public debut within the past few years, which is one reason why the September 14 initial public offering of Arm Holdings plc (NASDAQ: ARMH) is getting so much attention. The company priced 95.5 million shares at $51 apiece.
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Tech Hall of Fame Investors The roster of Arm investors reads like a who’s who of big tech: Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), Advanced Micro Devices Inc. (NASDAQ: AMD) and Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) are among shareholders. With the amount raised in the deal, Arm is the largest U.S. IPO this year, and the largest since the 2021 debut of electric truckmaker Rivian Automotive Inc. (NASDAQ: RIVN). While there have been other eagerly anticipated IPOs in 2023, Arm’s offering may indicate a shift in what’s otherwise been a trickle, compared to the flood of IPOs in some years.
|
Tech Hall of Fame Investors The roster of Arm investors reads like a who’s who of big tech: Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), Advanced Micro Devices Inc. (NASDAQ: AMD) and Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF) are among shareholders. The U.K.-based chip designer raised nearly $5 billion. When Nvidia said in early 2022 that it would terminate the deal, SoftBank said it would begin preparations for an IPO.
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